Tag: Regulation

  • Kansas and Wichita quick takes: Tuesday October 12, 2010

    Wichita Visioneers in Louisville. The Wichita Business Journal’s Emily Behlmann reports on a trip by Wichitans to Louisville to get ideas on transforming Wichita’s downtown. Hopefully they won’t get this idea, as reported yesterday by the Louisville Courier-Journal: “The heavily subsidized 4th Street Live entertainment district has come under criticism from locally owned businesses for receiving millions of dollars in tax breaks and government subsidies — including a controversial, $950,000 city loan that won’t necessarily have to be repaid.” According to Wichita planner Goody Clancy, heavy subsidy isn’t supposed to be necessary in Wichita. And, I hope all the planners read Jack Cashill’s take on Louisville’s planning: Good intentions, and planners, can sap a city’s soul.

    Lynn Jenkins: Don’t try to make Koch Industries a scapegoat. From today’s Wichita Eagle: “Koch management is dedicated to keeping the company growing. It reinvests 90 percent of company profits back into the businesses, allowing them to expand product lines and hire more employees. That is good for consumers and for workers. However, the company has come under fire because its owners support free-market principles inconsistent with the current Democrat leadership.”

    Should candidates bother to debate? Rasmussen finds that nearly half of likely voters have watched at least one debate, and about half find them informative.

    Costly approach to Kansas economic development — or defense. “Insiders were still not talking Wednesday about the potential cost of saving 6,000 aircraft workers’ jobs in Wichita. Outsiders say that some circumstances at their employer, Hawker Beechcraft, are so different from other companies Kansas has fought to keep that it may be impossible to gauge what it might cost to help prevent the 80-year-old Wichita firm from moving lock, stock and avionics to Baton Rouge, La., and cashing in on Louisiana incentive packages rumored to be worth as much as $400 million.” From Kansas Reporter.

    FiveThirtyEight. More about the political site FiveThirtyEight, which I took a look at on Sunday, especially its coverage of Kansas races. Here, James Taranto discusses FiveThirtyEight, concluding: “The recent acquisition of Nate Silver’s FiveThirtyEight.com makes for a striking contrast with the paper’s uneven news reporting and dreadful op-ed columnists.”

    No Wichita city council today. It’s the League of Kansas Municipalities conference in Overland Park this week. LKM is a special interest group working in favor not of the citizens who live in Kansas towns and cities, but the politicians and bureaucrats that run them — and their cronies — who benefit from the LKM’s advocacy of things like TIF districts, STAR bonds, tax abatements, and eminent domain for economic development.

    County commissioner forum tonight. Tonight at 7:00 pm at Gloria dei Lutheran Church, 1101 N. River Blvd. Oletha Faust-Goudeau and Richard Ranzau will appear.

    Parkinson is moderate — he says again. Kansas Governor Mark Parkinson — yet again — engages in self-congratulation over “how Kansas has weathered the economic recession by setting politics aside and working together to find moderate, common-sense solutions.” He’s done this several times since the legislative session was over — so many times that I’ve lost count. Evidence of a guilty conscience, perhaps? Parkinson’s abandonment of the Kansas Democratic Party by not choosing to run for reelection has put that party at a tremendous disadvantage in this year’s elections.

    Bureaucracy vs. Bureaucracy? “Andrew Gray, Libertarian Candidate for Kansas Governor, says that simplifying or repealing unnecessary statutes and regulations is a key part of his administration’s plan to empower the private sector to create jobs and prosperity in Kansas. He also says he’s pleased that Senator Brownback is at least talking about similar actions. However, Gray finds it ridiculous that Senator Brownback is actually planning to create more bureaucracy in order to cut bureaucracy.” I think he’s got a point. But anything that is necessary to reduce the size of government is what we need to do.

    The impossibility of an informed electorate. D.W. MacKenzie writing for Mises Daily, reacting to a John Stossel suggestion that uninformed people have a duty not to vote: “The problem with voting in modern America is that we have a politicized society, and modern society is extraordinarily complex. Stossel suggests that only people who follow politics should vote. However, even those who follow politics very closely do not understand the implications of changes in public policy. The lesson here is that efforts to incrementally reform government policies and programs through the democratic process are futile. To the extent that we vote at all, rational people should vote to depoliticize the economy. … What this means is that we need to reintroduce the price system as the primary method of economic communication, and the profit-and-loss sorting mechanism as the primary method of social reform.”

    Gallup: Americans negative towards federal government. “More than 7 in 10 Americans use a word or phrase that is clearly negative when providing a top-of-mind reaction to the federal government.” Details here: Americans’ Image of “Federal Government” Mostly Negative.

    A minority opinion, or a delusion? Paul Krugman in the New York Times: “Here’s the narrative you hear everywhere: President Obama has presided over a huge expansion of government, but unemployment has remained high. And this proves that government spending can’t create jobs. Here’s what you need to know: The whole story is a myth. There never was a big expansion of government spending. In fact, that has been the key problem with economic policy in the Obama years: we never had the kind of fiscal expansion that might have created the millions of jobs we need.”

  • Kansas and Wichita quick takes: Monday October 11, 2010

    Moran at Wichita Pachyderm: This Friday’s speaker at the Wichita Pachyderm Club is current United States Representative and Republican Party Senate nominee Jerry Moran. As a large audience is expected, please arrive by 11:45 to get your buffet lunch in time for the noon start (the larger meeting room will be used). Cost is $10, which includes lunch.

    Wichita, get control of incentives: Rhonda Holman’s lead editorial in yesterday’s Wichita Eagle urged caution and restraint in Wichita’s use of tax incentives — a welcome message not expected from the Eagle. One conservative wrote to me: “I am stunned to find myself to be largely in agreement with today’s editorial by Rhonda Holman. Wow.” The editorial was critical of past city policy and practice, with Holman referring to special taxing districts as “tax tricks.” On the need for public investment in downtown, she wrote “the city must ensure its use of special taxing districts is strategic, fair, farsighted and defensible.” Whether our present political and bureaucratic leadership can accomplish this is, in my opinion, unlikely.

    Rasmussen key polls from last week: California Senate moves from “leans Democrat” to “toss-up” … Most Americans feel Nobel prizes are politicalHarry Reid’s son trails in race for Nevada governor … Cyber bullying seen equally dangerous as physical bullying.

    Kansas initiative and referendum: The Wichita Eagle takes a look at initiative and referendum. A focus of the article is Secretary of State candidates Chris Biggs and Kris Kobach, which is a little misplaced, as they don’t have a say in whether Kansas has I&R, although they would administer the process and Kobach has made it a campaign issue. Key takeaways: “States with initiatives spend and tax less than states without them.” Politicians of both stripes hate I&R, with Kansas Senate President Steve Morris — a big-spending, big-taxing, liberal Republican — hating the idea, according to the article. Same for Speaker of the Kansas House of Representatives Mike O’Neil, a conservative. Not reported in the article is one of the first things the people may do in states that have I&R: impose term limits on their elected officials, an idea most of the political class hates.

    China Emerges as a Scapegoat in Campaign Ads: The New York Times reports: “With many Americans seized by anxiety about the country’s economic decline, candidates from both political parties have suddenly found a new villain to run against: China. … Democrats and Republicans are blaming one another for allowing the export of jobs to its economic rival.” Kansas fourth district Congressional hopeful Democrat Raj Goyle is mentioned as one of 29 candidates using China as a foil in campaign ads, just in case you thought Goyle’s attacks were novel. But the issue is murky, as the Times notes: “Never mind that there is hardly any consensus as to what exactly constitutes outsourcing and how many of the new overseas jobs would have stayed in American hands.”

    Regulation — Baptists and Bootleggers: “Here is the essence of the theory: durable social regulation evolves when it is demanded by both of two distinctly different groups. ‘Baptists’ point to the moral high ground and give vital and vocal endorsement of laudable public benefits promised by a desired regulation. Baptists flourish when their moral message forms a visible foundation for political action. ‘Bootleggers’ are much less visible but no less vital. Bootleggers, who expect to profit from the very regulatory restrictions desired by Baptists, grease the political machinery with some of their expected proceeds. They are simply in it for the money. The theory’s name draws on colorful tales of states’ efforts to regulate alcoholic beverages by banning Sunday sales at legal outlets. Baptists fervently endorsed such actions on moral grounds. Bootleggers tolerated the actions gleefully because their effect was to limit competition.” From Bruce Yandle, Bootleggers and Baptists in Retrospect. A podcast on the topic is Bruce Yandle on Bootleggers and Baptists.

    Obama fails education: From Three Reasons Obama’s Education Vision Fails at Reason: “While he brags constantly about his Race to the Top initiative, in which states competed for $4 billion to fund innovative programs, he’s spent more than $80 billion in no-strings-attached stimulus funds to maintain the educational status quo.” Obama also killed a school choice program in Washington, and has snuggled up to the teachers unions with a stimulus bill to preserve and add union teacher jobs “despite the fact that there are already more teachers per student than ever.” The status quo describes outgoing Kansas Governor Mark Parkinson and his education “vision.” Not that presumptive incoming governor Sam Brownback is a radical on school reform, however. His education plans are quite tepid and not likely to produce the results Kansas schoolchildren need.

    Wichita Eagle Opinion Line: “If Kansans want lower taxes and less government, why are there so many homeowners’ associations here?” I guess the distinction between government and voluntary action escapes this person.

  • Good intentions, and planners, can sap a city’s soul

    The following article by Kansas City writer Jack Cashill, courtesy of Ingram’s Magazine, explains some of the problems with city planning of the type Wichita is undertaking at this time.

    There are two connections to Wichita in this article. The first connection is the Power & Light District in downtown Kansas City, a meticulously planned — and heavily subsidized — redevelopment that has been mentioned by Wichita Mayor Carl Brewer as a model for Wichita. It’s also been featured heavily on the city’s television channel.

    The second connection to Wichita is Cashill’s description of Louisville. That city is the hometown of Wichita Downtown Development Corporation President Jeff Fluhr, not that this fact means anything substantive regarding public policy. But Louisville was one of four cities praised in a case study that is part of a Wichita-produced document that makes the case for downtown revitalization. Also, Visioneering Wichita has a trip to Louisville planned for October.

    I recently spent some back-to-back time in two cities, one run by merchants and one run by planners. The difference between the two is that the planners’ city, a veritable clone of Kansas City, does not work. The merchants’ city does.

    Since 1955, my family has been spending a chunk of every summer in and around the wonderfully vulgar New Jersey burg called Seaside Heights.

    “Vulgar” has several basic meanings. In this case, all of them are apt, and none is necessarily bad. One is “deficient in taste, delicacy, or refinement,” and that certainly fits. So too, in spades, does “offensively excessive in self-display.” It is the third and original definition — “associated with the great masses of people” — that makes the other two come to life in so fruitful a way. Yes, at Seaside, great masses of indelicate people wander about in excessive self-display, but, writ large, it is all glorious to behold.

    If the natives are excessive, it is because they can be. An ethnic hotbed since its inception, Seaside Heights educates international visitors in one visual sweep on the difference between their working classes and ours. If theirs shuffle, heads down, ours strut, swagger even, heads up, plumage on full display. Ours believe in themselves and their futures.

    It was not without calculation that MTV chose Seaside Heights as the locale for its improbable hit, “Jersey Shore,” a show that captures the larger gaudiness of the place and distills it to its truly vulgar essence. Vulgar or not, when my brother-in-law and I spotted two cast members on the beach, we were the envy of every female in our 50-member family compound, almost all of whom have college degrees. Vulgarity sells.

    Seaside Heights works in ways that most cities don’t. Each summer evening, its main thoroughfare, the boardwalk, is jammed from end to end with throngs of people of all ages and stripes spending goo-gobs of money at miscellaneous shops, many of which have no parallel in the free world.

    On the mile-long commercial stretch of the boardwalk, there is not a single vacancy. I don’t remember there ever being one. The Seaside chamber boasts, only a little bit grandly, of thrill rides, a water park, fun-filled amusements, action-packed arcades, Ferris wheels, merry-go-rounds, an overhead chair lift, ski-ball, frog bog, squirt-gun games, balloon darts, ring toss, mini golf, go-karts, old-time photo shops, tattoo parlors, trendy boutiques, massage parlors, bars, discos, numerous Italian restaurants, pizza shops, Philly cheesesteak restaurants, a Mexican Cantina, an Irish Pub, frozen custard and soft-serve ice cream shops, saltwater taffy and fudge shops, a new bakery, and, of course, shops that serve “Seaside Heights staples like the Fried Oreo.”

    Of the above services, how many can you find in the Power & Light District? City planners would hock their first-born to create this kind of pedestrian traffic, but they don’t know how. They can no more plan “fun” than they could anticipate a popular demand for a fried Oreo. This hodgepodge of stuff was driven by the consumers as gauged and tweaked by savvy, on-site merchants over decades.

    Seaside represents America’s money culture at work. There is no public transportation anywhere near the town. There is not a single sign on the boardwalk in any language other than English. There is nothing even resembling a dress code. There is no convention center, no hotels, no buildings higher than three or four stories, no parking garages, no subsidies, no strip clubs, no “adult” book stores. Nothing is free, including the beach. And yet each weekend, 100,000 or so people speaking a dozen or so different languages find their way to the boardwalk.

    After a week at Seaside, I flew out of Newark to Louisville, a city I had not yet visited. To round out my New Jersey experience, I sat across from Dominic Chianese, a.k.a. Junior Soprano, on the little express jet. I struck up a conversation, never letting on that I knew who he was. I am sure I had him fooled.

    I arrived on a Sunday evening for a conference at the convention center. Had I not known any better, I would have thought the plane had been diverted to KC’s Power & Light District. Other than the occasional horse statue, there was nothing remotely indigenous about Louisville’s downtown. It had all the stultifying cookie-cutter charm of a place that had been planned and heavily subsidized precisely for the benefit of ungrateful visitors like me.

    My hotel was nice enough, but aren’t all hotels? On Sunday eve, my little group and I wandered up Fourth Street to the city’s entertainment district. I passed a Border’s, a Panera’s, an Einstein Brothers, and a Hard Rock Café. The street was blocked off, and a rock band was playing loudly and badly in the created space. The only problem was that there was little foot traffic and even less audience.

    We ducked into an elaborately fake British pub. To say the least, there was no wait. Our waitress was tarted up to look like Twiggie, but happily, her inner cracker showed through. She was delightful even when botching our order. “Y’all wanted a shepherd’s pie?” My younger comrades wanted to hit the Hard Rock Café next, but I ducked out to watch the season premiere of Mad Men. I had watched not a minute of TV at Seaside.

    There was a time, not that many years ago, when Kansas City competed against the likes of Chicago and Denver and Atlanta. Today, we compete — often unsuccessfully — with Louisville. The reason Louisville can compete with us is because we have become Louisville and Louisville has become us.

    We have taxed our distinctive merchant-driven centers like the Country Club Plaza and Westport — and cannibalized their customer base — to subsidize a soulless, planner-driven Downtown.

    Only four years after its creation, city officials now project that the allegedly self-sustaining Power & Light District will require long-term life support to the tune of $10 million to $15 million in an annual cash subsidy.

    It may be time to scrap all plans, exile all the planners and embrace the fried Oreo.

    The link to the original article is Good Intentions, and Planners, Can Sap a City’s Soul.

  • Mine safety regulations: do they work?

    The mainstream media attack on Charles Koch, David Koch, and Koch Industries has reached the state of West Virginia. This time a newspaper criticizes the Charles G. Koch Foundation for supporting a “conservative Morgantown think tank and several positions at the West Virginia University economics department.” A specific target of criticism is West Virginia University economics professor Russell S. Sobel and a collection of essays he edited.

    Here’s what the Charleston Gazette printed in an article: “One essay questions the value of ‘mandated’ mine safety laws, stating government regulations may increase accident rates.”

    Lobbing a brick like this doesn’t do much to increase understanding of important issues of public policy, including the safety of coal miners.

    Who could be opposed to the safety of coal miners, after all? I think we can all agree that we’d like miners to work in safety. But do laws and government regulation make them safer? The natural reaction of most people is to assume that government regulation will increase safety. But that’s not always the case.

    Here’s a recent example of regulatory failure: Recently research has been presented that shows that bans on texting while driving don’t work and may actually increase the number of crashes. The results of this research are contradictory to what almost everyone in Kansas — and other states — thought this year when the legislature passed, and the governor signed, the texting ban law. It was well-intentioned, but potentially harmful to the safety of drivers — the very people the law is designed to protect.

    Having seen examples of regulatory failure like this, we should ask this question: Have mine safety laws — well intentioned as they are — increased the safety of miners?

    Chapter 4 of the book in question (Unleashing Capitalism: Why Prosperity Stops at the West Virginia Border and How to Fix It) probably holds the material referred to by the Gazette. This chapter was not written by Sobel, but he is the book’s editor. Here’s two points from the book:

    • A focus by regulators on one type of accident led to an increase in other accidents. Overall deaths increased: “In 1910, the U.S. Bureau of Mines was created with a focus on mainly large-scale accidents, defined as gas and dust explosions and other accidents killing more than five men. State mining legislation was also mainly concerned with these types of accidents. This resulted in a decline in large-scale accidents, but an increase in small-scale accidents, which received less publicity but accounted for more deaths overall.”
    • Incentives matter: “With the passage of workers’ compensations laws, accidents actually increased. Under this new system, employers had an incentive to pay workers compensation instead of paying the extra costs of accident prevention.”

    So there is good reason to be skeptical and critical of mine safety laws, even though this is contradictory to a superficial examination of the issue. Yet the mainstream media will automatically demonize those who question the validity of government regulation and those who are bold enough to support their work.

  • Texting bans haven’t worked

    In an attempt to increase highway safety, many states have passed bans on texting while driving. But the bans haven’t worked, and some states have experienced an increase in crashes.

    A news release from the Highway Loss Data Institute summarizes the finding of a new study: “It’s illegal to text while driving in most US states. Yet a new study by researchers at the Highway Loss Data Institute (HLDI) finds no reductions in crashes after laws take effect that ban texting by all drivers. In fact, such bans are associated with a slight increase in the frequency of insurance claims filed under collision coverage for damage to vehicles in crashes. This finding is based on comparisons of claims in 4 states before and after texting ban, compared with patterns of claims in nearby states.”

    The study does not claim that texting while driving is not dangerous. Rather, the realization by drivers that texting is illegal may be altering their behavior in a way that becomes even more dangerous than legal texting. Explains Adrian Lund, president of both HLDI and the Insurance Institute for Highway Safety: “If drivers were disregarding the bans, then the crash patterns should have remained steady. So clearly drivers did respond to the bans somehow, and what they might have been doing was moving their phones down and out of sight when they texted, in recognition that what they were doing was illegal. This could exacerbate the risk of texting by taking drivers’ eyes further from the road and for a longer time.”

    When Kansas passed its texting ban this year, newspapers editors praised the legislature and Governor Mark Parkinson for passing the law. In an editorial, the Wichita Eagle’s Rhonda Holman wrote “But it’s nice to know the state finally has a law against this brainless and dangerous practice.” In his written statement, Parkinson said “I am pleased to sign this legislation that will encourage more aware drivers and save Kansas lives.”

    While Kansas was not included in the HLDI study, there’s no reason to think that Kansas will experience anything different from the states that were studied: Kansas drivers may be under greater risk of being in a crash after the passage of this law. Stricter enforcement of this law and higher fines will simply encourage the dangerous law-evading texting behavior.

    The texting ban was included in my Kansas Economic Freedom Index for 2010 for the Kansas Senate. Senators who voted against the ban increased their scores in favor of freedom.

    While I did not know the results of this study at that time, this is another example where instinctive distrust of government regulation was the correct diagnosis.

  • Thompson makes case for liberalism, freedom, capitalism

    Speaking to an audience in Wichita last Thursday, author and scholar C. Bradley Thompson delivered a lecture that explained the foundation of the greatness of America, and cautioned that this greatness is, and has been, under attack.

    Thompson’s lecture was sponsored by the Bill of Rights Institute and underwritten by the Fred C. and Mary R. Koch Foundation. Thompson is the BB&T Research Professor at Clemson University and the Executive Director of the Clemson Institute for the Study of Capitalism. He has also been a visiting fellow at Princeton and Harvard Universities and at the University of London.

    In his lecture, Thompson explained the “two Americas,” which he said are “two radically different moral and political visions for America.” These are two different perspectives on the meaning of the word “liberalism.”

    America, Thompson said, is and always has been a liberal nation. The question to ask, he said, is: Which liberalism? Thompson drew a distinction between what he called the old liberalism of America’s revolutionary founding fathers, and the new liberalism associated with “the ‘Republicratic’ party of George W. Bush and Barack Obama.”

    The philosophy of the old liberalism, Thompson said, is summed up in the words of the Declaration of Independence: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

    The philosophy of the new liberalism, however, is this: “From each according to his ability, to each according to his needs.” These are the words of Karl Marx and the political philosophy of socialism.

    Thompson said that these two competing moral philosophies have dominated American culture for the last 100 years. He asked: which of these is the most dominate in American life and culture today? The answer, he said, is clear, holding up a copy of Newsweek magazine from last year whose cover claimed “We are all socialists now.”

    In examining the two forms of liberalism, Thompson started with the old liberalism. This insisted that men have the right to be free and to pursue their happiness without interference from others. Politically, government should be strictly limited through a separation of church and state, school and state, economy and state, and culture and state. Economically, individuals should be free to produce and exchange their goods and services free from government control, and government should not take wealth.

    Socially, Thompson said that the founder’s liberalism is best expressed by “rugged individualism.” This is distinctly American — there is no French version of this, he told the audience.

    This is a “principled commitment to freedom” in which individuals are morally sovereign.

    Liberalism embodied itself in America’s founders a distrust of political power. The question at the time of the founding was “How can the grasping power of government be tamed and harnessed in a way that would serve the legitimate functions of government?” The solution was to subordinate the government to the Constitution. Written constitutions, then, are the fundamental law.

    Initially, the night watchman state advocated by Thomas Jefferson was strictly limited with a “tightwad budget.” Government asked only that citizens respect the rights of others, live self-starting, self-reliant, virtuous lives, and that citizens deal with each other through persuasion and voluntary trade. In exchange, the state promised protection from domestic and foreign criminals and to govern by the rule of law.

    But the “land of the free,” Thompson said, would not, and could not, last.

    Turning to the new liberalism of Franklin Delano Roosevelt, Richard Nixon, Hillary Clinton, George W. Bush, and Barack Obama, Thompson said these are its principles: Morally, he repeated the Marxian slogan: “From each according to his ability, to each according to his needs.” This, he said, is the moral philosophy of altruism: Selfishness is the ultimate form of evil, and that selflessness is the highest moral good. “Man’s greatest moral duty is to sacrifice one’s self to needs of others,” he told the audience. President Obama has called for such sacrifices, he said.

    In practice, Thompson said that altruism means the hard-working must be sacrificed for the lazy. The best is sacrificed to the lowest common denominator. In practice, he said it punishes ability and virtue, rewards incompetence and vice, destroying incentive, responsibility, integrity, and honesty in the process.

    Egalitarianism is at the center of the new liberalism, he said. New liberalism says that individuals have positive rights and positive freedom. It means that everyone — regardless of ability and productivity — should be made equal. Freedom from fear and want become basic human rights.

    “The modern welfare state is morally corrupting and fundamentally evil on all levels. It teaches one man that he has the right to live off the work of another man.” The impact on the moral character of Americans is that presently 61 million Americans are dependent on the government for their daily housing, food, and health care. This has grown by 31 percent in the last nine years, Thompson said.

    Politically, new liberalism says that the common good trumps individual rights. Individual self-interest must be always be sacrificed to the general welfare. Since this “public interest” is undefinable and non-objective, the coercive power of the government must be too: undefinable and non-objective. “Unlimited ends requires unlimited means,” Thompson said.

    While liberal socialism speaks of grand ideals such as social responsibility, what it really wants is more basic: power. “There is a direct and causal relationship between the morality of sacrifice, and force, and the violation of rights.”

    Examples of the violations of rights and freedoms include Social Security, which violates the rights of younger Americans by forcing them to fund the retirements of senior citizens. Medicare, Medicaid, and Obamacare force taxpayers to fund the health care of anyone who claims to need it. The Community Reinvestment Act of 1977 violates the rights of bankers by forcing them to make risky mortgage loans to people that they wouldn’t have otherwise lent to. The ARRA (the federal stimulus bill of 2009) forces taxpayers to pay for all sorts of programs.

    Underlying all these programs is altruism, the moral philosophy which says we must serve others, whether we want to or not.

    Thompson went on to explain how altruism affects our lives day-to-day. The tax and regulatory system means that workers must work (on average) until April 9th to pay their taxes. This means, Thompson said, that for almost three and one-half months we are all enslaved to someone else.

    Thompson said that we are dying a slow death by regulatory strangulation. Endless commands by government bureaucrats regulate nearly all aspects of our lives. “We live in a world today — believe it or not — more heavily regulated than was Nazi Germany during the 1940s or Communist China is today.” Besides federal regulation, state and local governments add to the regulatory burden.

    The regulations have a much more insidious effect, Thompson said: “Each and every new entitlement or regulation passed by government seduces and tranquilizes the American people to become ever more reliant on politicians and bureaucrats for their daily sustenance and for their daily decision making and actions.”

    Thompson continued: “A moral culture of radical independence has become a moral culture of slouching dependence.” The last 80 years have seen the greatest expansion of political power, and the greatest loss of freedom, in our history. The untold story of our national history of the last century is “how the American people sold their freedom and sold their souls to the nanny state.”

    There are two questions confronting Americans today. First, have we reached a “tipping point” where government is on an unstoppable downward cycle?

    Second, and more important: Have we reached a point of no return on the road to serfdom?

    There is also another way to divide the two Americas, Thompson said: the rulers and the ruled. The ruling class is all the politicians of both major parties, along with bureaucrats at all levels, college professors, journalists of the mainstream media, think tank policy wonks, community organizers, and corrupt businessmen who support corporate welfare. This class presumes it is intellectually and morally superior to those it rules over.

    This ruling class, Thompson said, seeks to manage and regulate two classes of Americans: those who work and pay taxes, and those who don’t. By redistributing over one-fourth of what Americans produce, the ruling class rules over the country. The rule of law is replaced by the rule of men.

    And what does the ruling class want, Thompson asked? It wants us simply to obey. The country is drifting slowly and steadily to soft despotism.

    The two Americas are irreconcilable, Thompson told the audience. We can’t have both, he said — we must have one or the other.

    Concluding, Thompson said that “Americanism created a sphere of freedom unprecedented in world history.” The freedom philosophy of Americanism has liberated the creative and productive power of millions of ordinary Americans, listing the many impressive contributions of America to the world. The principles of individualism, limited government, and laissez-faire capitalism have revolutionized human life and improved it immensely.

    This American, “old liberalism” philosophy that has liberated ordinary men and women to pursue their own values and greatness is under attack, and we must fight to keep it alive.

  • Left’s double standard on Kochs and Soros

    Evidence continues to mount that the political Left — most recently in the form of New Yorker magazine’s Jane Mayer and her criticism of Charles and David Koch — simply doesn’t understand liberty-based thinking and political positions. Following, Tim Carney of the Washington Examiner explains.

    Some of Carney’s most important points:

    • Regulation is often used to increase barriers to entry to an industry, thereby increasing the value of existing companies. But the Kochs oppose heavy-handed regulation.
    • Many energy companies view greenhouse gas regulations as a way to increase profits. Not so for Koch Industries.
    • Economic freedom, which Charles and David Koch have advocated for many years, is good not only for business, but for everyone.

    Left’s double standard on Kochs and Soros

    By Timothy P. Carney

    I was the main speaker of the night at a fancy dinner. The crowd included millionaire business owners and corporate executives. And the man who introduced me, and who had invited me to speak, was billionaire industrialist Charles Koch.

    My topic was what it always is: the evils of corporate welfare and bailouts, and the destructive influence of the Big Business lobby in Washington. In my talk, I blasted “regulatory robber barons” and “subsidy sucklers.”

    But if you follow the Left’s talking points, my talk was part of Koch’s “pro-corporate movement.”

    Continue reading at the Washington Examiner

  • New Yorker’s Koch profile misses the point

    There’s been much attention paid to a recent profile of Charles and David Koch that appeared in a recent edition of New Yorker magazine. It’s also been heavily criticized as biased and based on several false premises.

    For example, the New Yorker article is critical of Charles and David Koch for funding organizations that are skeptical and questioning of the claims of global warming alarmists. A recent statement added to the Koch Industries website explains Koch’s position:

    A free society and the scientific method require an open, honest airing of all sides, not demonizing and silencing those with whom you disagree. We’ve strived to encourage an intellectually honest debate on the scientific basis for claims of harm from greenhouse gases. Because it’s crucial to understand whether proposed initiatives to reduce greenhouse gases will achieve desired environmental goals and what effects they would likely have on the global economy, we have tried to help highlight the facts of the potential effectiveness and costs of policies proposed.

    But the stance of the New Yorker article is that global warming is real, it is man made, and it is ruining the planet. Criticism of the Kochs on this matter makes sense only if you uncritically believe what the New Yorker and its left-wing readership believe.

    Today, Daniel Fisher of Forbes Magazine takes a look at the New Yorker piece and finds that “lot of what she [author Jane Mayer] paints as nefarious activity is simple business sense.”

    New Yorker’s Koch Profile Misses The Point

    By Daniel Fisher

    Jane Mayer’s much-discusssed New Yorker profile of the Koch brothers is a useful look at how money can buy an outsized voice in our democracy. But a lot of what she paints as nefarious activity is simple business sense. And anybody who’s spent time talking to Charles Koch, as I have, comes away with the conviction that with this man, business is personal and the personal is political. He’s the kind of guy who can fund the right-wing Cato Institute and hope that its mantra of lower taxes, inviolate property rights and personal responsibility will somehow reverse decades of increasing central-government power. (For the record, it hasn’t.)

    For Midwestern entrepreneurs of his generation, there’s nothing wrong or even unusual about thinking the New Deal was a colossal mistake, and spending money in a futile effort to roll it back. Mayer quotes a purported friend of the Koch brothers saying they have “a distrust of the U.S. government, and seeing its expansion, beginning with the New Deal, as a tyrannical threat to freedom.” That’s straight out of Friedrick Hayek’s Road to Serfdom and while not to the taste of most New Yorker readers, barely qualifies as conservative compared to the Wisconsin farmers I encountered in my first newspaper job. They considered zoning to be the vanguard of the Communist revolution (I am not exaggerating).

    Continue reading at Forbes.

  • For downtown Wichita, Mayor Brewer has a vision

    In Sunday’s Wichita Eagle, Wichita Mayor Carl Brewer penned a piece that states his belief in the importance of downtown and prepares the people of Wichita for the start of a prescriptive planning process, with accompanying subsidy to politically-favored developers willing to fulfill the plan.

    The mayor used the word “vibrant” twice. Asking citizens a question like “Would you like to have a vibrant downtown?” is meaningless. Who doesn’t? It’s only when the question is accompanied by context that citizens can start to understand how they should answer.

    For example, in the mayor’s article, he mentions the use of special assessment financing that funded suburban infrastructure, and that this is not sufficient for downtown needs. This statement reveals a misunderstanding by the mayor about the various forms of financing that might be used to help development.

    Special assessment financing means that the city spends money to build something, like the new street to serve a site where someone wants to build a house or a shopping center. The cost of this street, plus interest, is added to the property’s tax bill over a period of years. The property owner doesn’t get anything for free.

    But in the forms of financing that the mayor and city hall planners favor for downtown, developers do get something for free. Under tax increment financing (TIF), developers get to use their property taxes to pay for the same infrastructure that everyone else has to pay for. That’s because in TIF, the increment in property taxes are used to pay off bonds that were issued for the exclusive benefit of a development. Or, as in the case with a new form of TIF called pay-as-you-go, the increment in property taxes are simply given back to the developer. (Which leads to the question: why even pay at all?)

    Some deny that TIF directly enriches the developer. They’ll make arguments such as “it’s only used for infrastructure and eligible expenses” or “it’s not lending, it’s bonding” or “it wouldn’t happen but for TIF” or the biggest lie: TIF doesn’t have any cost. But despite these claims, TIF has a cost, and it does directly enrich the developer. That’s its entire purpose; its reason for being. If TIF didn’t enrich the developer, how does it change something that is claimed to be not economically feasible into something that is?

    While city leaders say that public participation in the revitalization of downtown is to be limited, we should be cautious and skeptical. Goody Clancy planners have said that public participation will be limited to TIF. This is bad in its own right and should be opposed on its merits.

    We need to be skeptical of the mayor and downtown planners because there isn’t enough TIF money available to do what they want to do. I fully expect a citywide sales tax, probably in the amount of one cent per dollar, to be proposed for the benefit of downtown subsidized developers. City leaders speak fondly of such a tax that Oklahoma City has used for many years.

    City leaders have already shown themselves to be not averse to imposing additional sales taxes in Wichitans and our visitors, having granted several Community Improvement Districts the ability to charge up to an additional two cents per dollar sales tax. This means that when visitors check out of the Fairfield Inn in downtown Wichita, they’ll be faced with a sales tax rate of 9.3 percent. That’s in addition to the six percent guest tax, which in the case of this hotel is collected for the exclusive benefit of itself, rather than funding general government and tourism activities.

    More community improvement districts are in the works. Wichita may soon be peppered with them.

    No faith in free markets means no faith in people

    The unwillingness of Wichita city leaders to let Wichitans freely decide where they live, and Wichita businesses freely decide where to locate, is a sign of lack of confidence in free markets and the people of Wichita. Because Wichitans do not choose to live and locate their business firms where politicians like Carl Brewer and Janet Miller — to name just two — and city hall bureaucrats like Wichita city manager Bob Layton and Wichita economic development director Allen Bell want them to, they deliver a slap in the face. It appears in the form of a vision backed up by planning, regulation, and the power to dish out favorable tax treatment, as outlined above.

    Once formed, a vision is a powerful force. Randal O’Toole, author of The Best-Laid Plans: How Government Planning Harms Your Quality of Life, Your Pocketbook, and Your Future has written about visionaries and government planning:

    The worst thing about having a vision is that it confers upon the visionary a moral absolutism: only highly prescriptive regulation can ensure that the vision overcomes an uncaring populace responding to a free market that planners do not really trust. But the more prescriptive the plan, the more likely it is that the plan will be wrong, and such errors will prove extremely costly for the city or region that tries to implement the plan.

    An example of planning that many see as having gone wrong is the government planning that led to growth on the city’s fringes. An example that helped make this possible is the government’s decision to build the northeast expressway also known as K-96. Acts of government like this are claimed to have caused the demise of downtown, the very situation that planners now want to correct.

    With government making “mistakes” (their claim, not mine) like this on a grand scale, why are we willing to trust that politicians and bureaucrats are making correct decisions now? Especially when you look at the campaign finance reports of most city council members and see the same names giving repeatedly to all council members, with these same names appearing repeatedly before the council asking for their subsidy. This is not a decision making process that gives citizens confidence.

    It bears repeating: the existence of the downtown planning process tells Wichitans they’ve made a mistake in where they chose to buy a home or build a business. Not only will Wichitans have to pay for what they freely chose, they’re going to be asked to pay again so that those with purportedly superior vision can have their way.