Podcast Update

There are now five installments of the Libertarian Party of Indiana's Weekly Podcast available for your stimulation, and download. The most recent, just posted minutes ago, features Dr. Eric Schansberg, discussing the bailouts and stimulus, and whether the diseases might be less threatening than the cures.

Here's the linkages:

Dr. Eric Schansberg on stimulus and bailout

Chris Ward on business property rights vis smoking laws

Tim Maguire on the role appointed Libertarians can fulfill

Todd Singer on the Libertarian outlook for the new year

Mike Kole's intro podcast. Way exciting.

LPIN podcast archive

You can subscribe from the above archive link, and new episodes will be sent to your iTunes. Give me convenience, or give me death.

Cato's Retort

Obama made the claim that:

There is no disagreement that we need action by our government, a recovery plan
that will help to jumpstart the economy

To this, the libertarian think tank The Cato Institute created a full-page newspaper ad that ran in several papers, including the NY Times. The ad preceded the Obama press conference by several days. The ad begins:

With all due respect Mr. President, that is not true.

Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.

Then followed the names of 200+ economists who signed on, including Nobel Laureates. A second edition of the ad was created, because more than 100 other economists also wished to sign on.

So, I tend to think that Obama probably was speaking very specifically to libertarians when he marginalized those who would prefer no or little action as better than the deleterious 'stimulus'.

Indiana economists Cecil Bohanon and Courtenay Stone (both of Ball State) and Eric Schansberg (Indiana Southern Univ) are among the signers.

The Sky Is Falling!

President Obama is going all-in on the first hand dealt to him. That does one of two things in a poker tournament- it doubles your chip stack (political capital) or it sends you out of the tournament (see you in four years). That's a heavy gamble to take with a nation. From Obama's press conference:

So what I'm trying to underscore is what the people in Elkhart already understand: that this is not your ordinary run-of-the-mill recession. We are going through the worst economic crisis since the Great Depression. We've lost now 3.6 million jobs, but what's perhaps even more disturbing is that almost half of that job loss has taken place over the last three months, which means that the problems are accelerating instead of getting better.

and

If there's anyone out there who still doesn't believe this constitutes a full-blown crisis, I suggest speaking to one of the millions of Americans whose lives have been turned upside down because they don't know where their next paycheck is coming from.

So, was 2008 the worst year since the Great Depression? Hardly.

Now, I like science rather than articles of faith. Show me the facts. Take a look at the Misery Index. You will see that 2008's numbers are actually better than the first year of Clinton's first term, better than all four years of George HW Bush's term, the first five years of Reagan's presidency, all four years of Carter's term, all three years of Ford's term, and three of the five Nixon years.

Obama is appealing to emotion, not facts. Rather than speaking to someone who has lost his job- something you can do any day of any year, of any decade, of any century- I'd rather look at the economy as a whole, as a nation, by judging the facts.

Now, if I have it straight, the Left likes to say that it prefers facts over faith, science over emotion. (See: 'global warming', etc.) Well, stick to it!

The definition of propaganda and 'assertion' are useful to review here, especially since Obama said the debate over whether or not to have a stimulus is 'over'.

Full disclosure: I don't know where my next paycheck is coming from. I have had one new job come in since October 1, where I like to keep a portfolio of 50-60. Hardly a time to panic, though. It's been a time to get my house in order, to position for the next opprtunities. But, if Obama directs you to talk to me, I'll tell you that he's full of shit. I spent my time when making money paying off my debt and lining up a savings- something everybody else should have done. It shouldn't be my problem if they blew their dough on entertainment, and failed to pay down debt and save. One's financial woes are self-created, beginning with how one chose to educate himself, continuing forward to the decisions they made in better times, including what they bring to the table as a potential employee, and whether or not one should run through their money, or rack up unsustainable debt, as though it wholly impossible that the money could stop.

What Would A Libertarian Do?

President Obama really alienated me last night with his press conference/sales pitch for the 'stimulus' package, going out of his way to single out people who would prefer we did little or nothing in terms of government intervention. This had to be a jab at libertarians, because Republicans had made an Exhibit 'A' case for their brand of economic interventions and 'stimulus', especially in the first 6 years of the Bush Administration.

When is it better to do nothing? When the 'solution' is worse than the malady. In the words of Harvard's Jeffrey A. Miron, via CNN:

When libertarians question the merit of President Obama's stimulus package, a frequent rejoinder is, "Well, we have to do something." This is hardly a persuasive response. If the cure is worse than the disease, it is better to live with the disease.

In any case, libertarians do not argue for doing nothing; rather, they advocate eliminating or adjusting policies that are bad for the economy independent of the recession.

Biron's actions would include the following:

1. Repeal the Corporate Income Tax
2. Increase Carbon Taxes While Lowering Marginal Tax Rates
3. Moderate the Growth of Entitlements
4. Eliminate Wasteful Spending
5. Withdraw from Iraq and Afghanistan
6. Limit Union Power
7. Renew the U.S. Commitment to Free Trade
8. Expand Legal Immigration
9. Stop Bailing out Businesses that Took on Too Much Risk

That's hardly a list of 'do nothing', in any case.

American leadership has gotten positively batty with overreactions and crisis. In this sense, Obama is a real continuum from Bush.

Is it bad out there? Sure, it's bad. Is the solution the same as taking all the money and going to Vegas and putting it all on 'red'? No, but it isn't far off, either.

Dog And Pony Show For Failure

It was mere months ago that Republicans were alarmists. So, what is President Obama's tone? It was mere months ago that President Bush's borrow-and-spend was failed policy. So, why are we to believe it is no longer failed policy?

So, here is Obama in my state, sounding alarmist, and promoting proven failure. From an Indy Star report:

Campaigning for action in the most dire terms, President Barack Obama said Monday that if Congress does not quickly pass an economic stimulus package, the nation will slip into a crisis so deep that “we may be unable to reverse” it.

“We can't afford to wait. We can't wait to see and hope for the best,” Obama said in Elkhart, Ind., a community reeling in job losses during the recession that has defined Obama's young presidency. “We can't posture and bicker and resort to the same failed ideas that got us in into this mess in the first place.”

Sorry- If Congress does pass this badly misnamed 'stimulus', that is when we slip into crisis that we may not be able to reverse. That is when we take Bush's recession and turn it into Obama's depression.

I am not suggesting 'doing nothing', although allowing failing businesses to go under would be good. It would be justice, for one thing. It would punish bad business practices, which would also be good. Rewarding failure with bailouts ensures continued bad business practices.

If you want to stimulate the economy, stop dragging it down with so many taxes. Reduce Federal spending by 25% or more, and stop ALL borrow-and-spend.

But, how about the panic in Obama's rhetoric? Where is the steady voice of Obama The Campaigner?

Out of the Frying Pan, Into the Fire

Or, as The Who sang, "Here comes the new boss, same as the old boss".

Then-candidate Obama was 100% correct when he described then-President Bush's bailout as 'Bush's failed economic policy of borrow-and-spend'.

Unfortunately, President Obama calls the same economic policy 'stimulus'.

In what meaningful way is it different from what Bush was doing? Are we going to hear a peep of criticism from Democrats about this?

I doubt it. In an Indy Star story covering Obama's planned visit to Elkhart, we see what 'stimulus' is all about. Pork, and paying off constituency groups, at the expense of the nation.

"Instead of focusing on a stimulus that will continue to open up the credit markets and create jobs, this bill spends billions on Democrats' wish-list projects," Indiana Rep. Mark Souder said last month after voting against the House version of the package. Souder, a Republican, represents part of Elkhart County.

The Bush bailout was spent on Republican cronies. The Obama bailout will be spent on Democratic cronies. The country will continue to slide towards depression. Thanks for nothing. Is this what 'change' amounts to? Different cronies? Is that the best we could do?

Let Me Tell You About My Narcissism

My friend, Cleveland Plain Dealer reporter Laura DeMarco, writes a weekly entry on visitors and ex-Clevelanders returning to Cle, with their impressions of the city. She quoted me on the immigrant backgrounds of Cle vs. Indy, sausage and corned beef, and on eating ethnic food:

What impressed him the most -- besides the corned beef, that is? "Cleveland's ethnic diversity is fantastic," he says. "I notice it because the depth of diversity is missing in Indy, because it wasn't an immigrant city until about 20 years ago, whereas Cleveland has a long history of immigration. Nothing better than eating my way through ethnic Cleveland! . . . If ethnic diversity was measured in nothing more than sausage, Cleveland runs rings around Indy."

I made comment also about Cleveland's shrinking industrial landscape. That's something I truly miss. I love the steel mills and rail yards, and every time I go back, I drive through for a look. I guess that wasn't sexy enough to print.

I wish Indy had some industrial landscape to speak of. I do get my fix here in Indiana by cruising through Gary on the way to Chicago when work takes me there. Yes, I detour through Gary. For the scenery.

Smoking Ban Testimony

I was reminded yesterday what an unpleasant business law-making is, as I testified before a House Committee in opposition to Indiana HB 1213, which proposes a statewide smoking ban in private workplaces.

Two hours was alotted for the proponents, and then two hours for the opponents. There were many speakers for both sides, so I winnowed my remarks, from four pages to one and a half. I was quoted in the Fort Wayne Journal Gazette:

“At first blush, you think this is a noble cause, but there needs to be a balance,” said Mike Smith, president of the casino group. Mike Kole, a central Indiana resident, echoed Smith’s concerns.

“It sends a signal to business that we like to meddle in how you run your affairs,” he said.

Here are the 'full' comments I presented to the Committee:

I do not smoke. I do not own a restaurant or a bar, a bowling alley, or a casino. I'm a regular citizen who has been concerned enough about the direction our governments are moving in to have run for office as a Libertarian candidate. I am ceoncerene about this law because of the messages and signals it sends, both by design, and unintentionally.

Because I don't smoke, and don't like secondhand smoke, I choose smoke-free restautants. For the same reasons, directing myself towards work that would not have me be in a smoking environment was something I did by conscious design, by choice. That's an important value. Choice.

I am dismayed with the ease with which proponents disregard the value of being free to choose, in order that a few more places will be how they like them to be.

With all due respect to Mr. Maurer, creating a healthy business climate, where Indiana attracts employers, is not created by passing a law like this. It sending the signal to business that we like to meddle in how you run your affairs. I don't think you'lll find a business owner that is drawn because of regulations or higher costs of operation.

In fact, the business owner from Lexington, Kentucky made the case that businesses adjust. That's true! They do! They respond to customer feedback. If business does better without smoking in their establishments, as he says they do, they would respond to that fact, as he said they do, and embrace the policy voluntarily.

Just as Voltaire famously made the case for free speech by saying, "I may not agree with what you have to say, but I will defend your right to say it", I take a similar approach to this issue. Nobody thinks smoking is good for you, but tobacco is a legal product. And since we aren't calling for a prohibition of tobacco, and since this is still the land of the free, business owners should retain the right to set their policies within their four walls. Even if it isn't the policy I would set.

If government must be involved in this issue, it would be adequate to fully inform would-be patrons and workers of the smoking policy. I disagree with the person who gave testimony earlier, equating the signing of a waiver, which fully informs the worker of the working conditions, as 'intimidation'. It's information! And in a free society, we are able to make informed decisions. Post a sign indicating the smoking policy of the building and be done.

I urge you not to pass this bill, in the name of liberty, choice, and property rights.

Health should not come at the expense of these things.

I was a little astonished at the rudeness of many of the proponents. After the opponents sat quietly through two hours of their testimony, about half of their side left. About half of the remaining backers were talking loudly and answering their phones during their testimony, and some were even laughing at the opponents during their testimony.

Three women seated next to me were full of guffaws as a representative of the casino industry testified. When I returned from my turn to speak, I had to walk behind them to get back to my seat. As I sat down, the woman next to me leaned over and said, "I'm a libertarian, too".

I was completely stunned. I'm not sure in what universe the correlation between her rude behavior and her words has any meaning. I said nothing to her. If she's voting Libertarian, I'm glad of it, but she's doing so for all the wrong reasons.

The whole exercise reminded me just how much I dislike this process. Hearing two hours of the other side just made me cringe, for the complete disinterest they have in liberty, and in knowing they are probably a majority view. It take a tough hide, or completely mercenary disposition to tolerate it on a daily basis.

And that reminds me how much I've come to not respect the political mercenaries. I saw someone on the other side who smokes and whom I had come to believe was one who believes in liberty- especially as regards business property. That person is now deeply involved with the advancing of this bill, and I was told it is not at all about belief in right and proper government, but about being involved with a win.

That's just mindblowing and wholly contemptable. I've been known to get along just fine with socialists and other un-libertarians, on the basis of a good and vigorous debate that starts with the premise that we are interested in doing the best we can in the public arena. I can respect that person, even if I think they're wrong on their conclusions. What good is the political mercenary, who will even advance laws they think are bad, and not proper? This isn't a game. If you need to win at something that involves deception and cunning, play chess or poker, and leave the rest of us alone. Get the feather in your cap elsewhere.

In any case, this may not amount to much this year, as the Committee has to decide whether or not the bill will advance beyond the Committee. That vote is expected to happen next week.

New Podcast

The Indiana House Public Policy Committee is hearing testimony Wednesday morning on House Bill 1213, which would ban smoking in all Indiana workplaces if passed. 

I spoke with Chris Ward, the 2007 candidate for Lawrence Mayor in a special edition of the Libertarian Party of Indiana's Weekly Podcast. Chris has a useful perspective. He is a former smoker, and works in a restaurant that currently allows smoking in the bar area of the building. We talked about the health issues related to smoking in the workplace, worker choice, and the rights of business property owners.

For my part, I am scheduled to speak on the side of opponents of the bill in the House Chamber. I don't smoke, and I don't own a bar or a restaurant, but I believe in the primacy of the right of business owners over the intrusion of the state on the behalf of others.

Great Editorial Cartoon

Sometimes, a picture really is worth 1,000 words. This one says a lot about the reality of it:

Michael Ramirez does fine work. He appears in the Investors Business Daily, a fine newspaper if there ever was one.

(h/t Duncan Adams)

Poor Winners

I generally dislike end-zone celebrations after a touchdown. I can see some exuberance after a score, especially one to end a long drive, or on a play where several tackles were broken. In that case, go ahead- spike the ball.

I prefer guys like Barry Sanders or Steve Largent- pros who acted like they had been to the end zone a hundred times in their life. When they scored, they didn't taunt or do a dance. They handed the ball to the ref and trotted off the field.

Now that the Democrats have elected a President and re-elected a Democratic Congress, the gloves are off among leftward bloggers and pundits, revelling in the kind of infantile and mean-spirited name calling reserved those not used to winning. They not only have spiked the ball, but they're in the face of the other side.

It's hard to even read a left blog these days. Mostly, it's the followers and their comments, but sometimes the bloggers themselves. I've pretty well had it with anyone, left or right, who uses the terms, 'wingnut' (as though they could only be right-wing-nuts, and not left-wing-nuts), moonbat, righttard, lefttard, Paultard (or anything-tard, for that matter). You generally need not go more than two posts deep to see it. Shallow posts with ad hominem attacks and name calling, or even goofy pictures, rule the day.

There were many messages Obama put out, won support for, and was elected on. Apparently, his message of inclusive government was not one of them. It seems to have been ignored by the dyed-in-the-wool Democrats. It's too bad, because both Democrats and Republicans have something to offer. As a Libertarian, that's plain to see, because I share many things with each camp. Maybe that's what two party dominance has caused- a great 'my team's way or the highway' antipathy for the other side.

Obama's position is correct. I wouldn't mind seeing some display of it by his choir.

Podcast Update

I have now conducted two interviews for the Libertarian Party of Indiana's Weekly Podcast- one with LPIN Chair Todd Singer, and now newly elected Marion County Chair Timothy Maguire. Both had great insights to share, and I really appreciate their willingness to visit me in my 'home studio'.

Bugs are getting worked out. My recording of Singer is sub-par, in that his volume levels are far too low. That has been corrected with the Maguire interview. I am very satisfied with that latter recording, which is unusual for me. I usually am not comfortable with my newer productions until they've been tweaked for months. Chalk it up to old age and experience.

Here is the link to the podcasts. You can subscribe and have them automatically downloaded to your iTunes as new episodes are released. 

I have to say, as a subscriber to about a half dozen podcasts, I get a real kick out of seeing one I've produced line up in the 'Downloads' queue on iTunes.

I'm open to suggestion for interview subjects or topics to cover. Obviously, the news writes itself, and the bailouts and economy are on the top of my list. Where else should I turn?

Big Surprise

So, when the libertarians were saying that losers shouldn't be bailed out, because bailouts allieve them of pain, and cause them not to revise bad decision making, this is one of the things we were talking about. From the NY Post:

High-flying Citigroup executives, trying desperately to hang on to their new, $50 million luxury jet, took heavy flak yesterday from the White House and Congress after The Post revealed how the beleaguerred bank is blowing taxpayers' rescue funds.

What to say to the Congress and Obama? "Well, you voted for it!"

If they want to blame someone, they need to rush to the nearest mirror.

To repeat, if you want to stop bad decision-making, stop rewarding bad decision-making. It really, truly is that simple.

Legislative Review

The Libertarian Party of Indiana has been reviewing legislation being proposed in the state House & Senate for the past several sessions, and 2009 is no exception. A slew of bills have already been reviewed, and while the cynic might expect Libertarians to be opposed to all of them, there are several bills the Party backs.

I like the new changes. It is still a blog format, but includes room for comments, and also a quick checkoff for 'agree' or 'disagree'.

Check it out here.

One thing I am doing is adding the LPIN Legislative Review to my 'Hot Off The Press" item, at the right. Readers here can see the latest review, and click through.

New Podcast

I had been mulling about for sometime on what to do next in my effort to promote liberty, and rather than running for another office, I kept returning to broadcast media. Being in studio last week with Abdul-Hakim Shabazz on WXNT for the State of the State speech reinforced the idea.

What will emerge is a weekly podcast for the Libertarian Party of Indiana. It will be available on the Party's website, www.lpin.org, and on iTunes, as well as here via the Kole Hard Facts.

I will be the host of the podcast, interviewing others promoting liberty in more meaningful ways than me- candidates, authors, researchers, and LP leaders- to get their takes on the events of the day, and what they are doing to advance their cause.

I sat down with LPIN State Chair Todd Singer tonight to record the basic interviews for a couple of podcasts. The finished product will be available next week.

This blog will continue, with all the wit and verve readers have come to expect. But I'm looking forward to being involved with regular broadcasting again. It's been more than six years since I had the opportunity, but podcasting makes it easy to do.

Never Wonder How We Got Soft

It starts with school, or, in this case, lack of school. It's -10 degrees out there, and I say, "BIG DEAL". Get in the classroom and learn. 306 school closings in Central Indiana? There isn't even any snowfall!

They don't even walk to school anyhow. They ride a bus, or parents drive them in. The kids face the onerous task of going from house to vehicle, then vehicle to school. Wow, that's rough.

The lesson we teach with these school closings is this: It's cold? Give up. Don't bother. Education certainly isn't worth overcoming predictable circumstances. Just give up.

Think the kids in Winnipeg stop going to school as soon as the temps fall below zero? No. they attend. They cope. They overcome.

That would be a good lesson for our kids.

State of the State Reviewed

The speech sounded like one delivered by a governor re-elected to his final term by a landslide percentage. In fact, he sounded rather like a libertarian, sounding the call for tighter budgets as the only common sense approach to tough economic times.

It was certainly music to my ears. I have been calling here for a 5% across-the-board budget cut for the last three years. Although such cuts would have done even more good in positioning our state better than New York or California, it's better late than never, and all to the good.

The real question I have is how effective Mitch Daniels can be in lashing the legislature on to do his bidding. Republicans like to spend tax dollars just as surely as Democrats. Daniels did the Reagan thing by going to the public with his strong appeal for cuts. Was the public listening? Will the public assert to their representatives in the Indiana House and Senate their desire to implement the governor's call for cuts?

Here are some lines from the Governor's speech that could have as easily come from a Libertarian governor:

First, no tax increases. A state striving for economic greatness should constantly be looking for ways to reduce its burden on workers and enterprise. A time of recession is the very last time at which government should add to the struggles of the citizens for whom it works.

Preserving government intact at the expense of families and businesses would be wrong in human terms and backwards in economic terms. The dollars claimed by higher taxes would come from families who need them more than ever to get by. They would come from businesses which would otherwise use them to keep someone on the payroll, or add a new job. Let's agree right now that, whatever course we take this budget year, higher taxes will play no part in it.

Bravo! Could have been written by Andy Horning or Kenn Gividen. Excellent!

The other good news was that Daniels urged the shelving of funding for full-day kindergarten and guaranteed college tuition. The budget can't be maintained if this bloat is added.

There was no word about the State's legacy costs, beyond a promise not to rob the pension fund in order to suppliment the budget. That's a glaring omission in light of the wreckage legacy costs have visited upon Ford, GM, and Chrysler. Governments give the fattest benefit packages in the country. This will come home to roost, and should be dealt with now, before we have the kinds of problems California is already beginning to experience.

Daniels continued to push for his consolidation plan. I'm just not sold on it because it looks merely like a panacea for those who want smaller government. For those who have wanted it and never seen it, smaller government includes smaller budgets, eliminated departments, and significantly fewer bureaucrats. So, let's look at one area of proposed consolidation, from the Kernan-Shepard recommendations:

Consolidation of Township Assessors. Property is still going to be assessed, because it is still going to be taxed. In a county with 9 townships, consolidating to the county level doesn't mean that one person is going to do the work of 9. It means that those who did the work will simply be housed in one location. Ok, that yields the savings on office space, and that shouldn't be overlooked. But that's nipping at the fringe of the cost.

Worse, it will make assessment less accountable, not more. Currently, the resident of the township can go to the Township Assessor's office if there is a dispute over the assessment. One-ninth of the County elects the Township Assessor, so if the township's people are dissatisfied with the work of that official, they can back a candidate and run them in the next primary. Under consolidation, if the citizens of one township are completely dissatisfied with the work of the County Assessor, they not only have to win their township, they have to win the votes of the other 8 townships with their candidate at the primary. In fact, a County Assessor can screw one township completely and be re-elected comfortably, if that screwed township generally votes for the minority party.

If you want to see how this plays out, a nice parallel exists in Hamilton County, where the County Commisioners members ostensibly represent a district, but are voted on at-large countywide. They sometimes lose their districts while winning on the backs of the areas they do not represent.

If you want smaller government, don't goof around with consolidation. Cut a department. Cut budgets by 20% instead of 5%. That's the real deal.

Bottom Line: Good speech, with nice substance for libertarians, even if it doesn't go nearly far enough towards more appropriately sized government.

Text of the speech.

For Your Listening Pleasure

...Or discomfort. I'll be on a special edition of WXNT's "Abdul in the Morning" show, this evening at 7pm, to discuss the governor's 'State of the State' speech. I will represent the Libertarian Party, alongside the other guys. Tune in to 1420-am, or listen online at www.wxnt.com.

Many thanks to Abdul for having me again. I was on a similar special show two years ago with him.

We Vote With Our Feet

This is a theme I have returned to many times over the years, because I myself have done it a few times.

I once lived in Cleveland and worked in suburban Parma, OH. Each city had a municipal income tax of 2%. When I finally gave up on my rough, decaying Cleveland neighborhood and moved to Parma, I gave myself a 2% raise. I got to thinking that I had to be an idiot to stay where the schools sucked, the crime rate was high, my auto and homeowners insurance rates were higher, and my commute was longer besides.

Later, I moved to Indianapolis. The Indiana tate income tax was lower than Ohio's, 3.1% to 7%; the sales tax was lower, then 6% to 8%; the property taxes were then about a third of what Ohio's were. Again, I thought what an idiot I would have to be choose Ohio.

Then we moved to Fishers. Again, the schools are better, the crime lower, the property taxes lower, the county income taxes lower, the insurance rates lower. Yet again, the thought of what kind of idiot I would have to be to choose Indy over Fishers came to mind, and continues to every time I learn of a violent crime in our previous neighborhood.

I expect to see a lot of migration in the next few years, as high tax jurisdictions are exposed for their empty rewards. From an AP report:

The number of people leaving California for another state outstripped the number moving in from another state during the year ending on July 1, 2008. California lost a net total of 144,000 people during that period — more than any other state, according to census estimates. That is about equal to the population of Syracuse, N.Y.

The state with the next-highest net loss through migration between states was New York, which lost just over 126,000 residents.

Two high-tax states lose population- before the economy really began to tank! It isn't news to me. We're going to see a lot more of it. Just wait until the legacy costs of those states and their cities do to them what they've done to GM, Ford, and Chrysler.

Among other things: California's unemployment rate hit 8.4 percent in November, the third-highest in the nation, and it is expected to get worse. A record 236,000 foreclosures are projected for 2008, more than the prior nine years combined, according to research firm MDA DataQuick. Personal income was about flat last year.

With state government facing a $41.6 billion budget hole over 18 months, residents are bracing for higher taxes, cuts in education and postponed tax rebates. A multibillion-dollar plan to remake downtown Los Angeles has stalled, and office vacancy rates there and in San Diego and San Jose surpass the 10.2 percent national average.

What I observed first-hand about Cleveland seems to hold true anywhere: The combination of high taxes and lousy schools is lethal. People of means and high values flee. Cities become magnets for the poor and the stupid.

In 1950, Cleveland's population was a shade under 915,000. By 2006, Cleveland had lost more than half its population. Chart.

Cities don't learn. Rather than lowering the taxes so as to attract people of means, they are wed to the glories that are their 'services', so they raise taxes evermore in order to keep revenues up, thereby chasing evermore people from their jurisdiction. The population gets poorer and dumber.

There are exceptions. Places like New York can get away with it because of the incredible cultural offerings. But, Detroit? Cleveland? Indianapolis? I think when the legacy costs come home to roost, you will see an exodus from NYC as well.

Blame the highways. Blame 'white flight'- although blacks with means flee all the same. Blame anything, but unless you start looking at tax policy and ask people of means just how much they value the 'services' provided by government, you're going to miss the mark. Notice that people of means leave the places with the most services, and taxes. They prefer to leave what they built behind for others, starting completely new in another area, just to be left alone, away from the greedy hands that gobble taxes.

I will probably vote with my feet again, if Fishers continues to grow, and add services, and employees, and legacy costs. I don't want any of that stuff, but the Bigger Brains create it and fatten it, so I'll eventually flee it.

It should become an environmental cause to lower taxes. Hey- it would prevent sprawl!

(h/t: Duncan Adams, for the California article)

Obama Takes Lesson From Bush

Change? Seriously, when will we be seeing some of this change Obama spoke of for about a year?

We can split hairs on this down the page, but the bottom line is this: Obama criticized outgoing President Bush for tax-cut-and-spend policies. Now Obama proposes massive tax-cut-and-spend policy. From CNN:

President-elect Barack Obama launched his campaign Monday for a massive package of tax cuts and spending proposals aimed at reviving an economy mired in recession.

...

Middle-class tax cut: Obama would offer a tax cut equal to $500 a year for individuals and $1,000 for couples. The credit would work essentially as a payroll tax credit, meaning the money could be delivered fairly quickly. Companies could simply reduce the tax they withhold from employees' paychecks.

The tax credit is likely to be offered only to those below a certain income level, but the Obama team hasn't specified where the cut-off point would be. The credit also would be refundable, meaning that even tax filers without any tax liability -- typically very low-income workers -- would receive one.

The credible criticism of Bush was that cutting taxes while drastically increasing spending will bring a deficit. This is something Obama was correct in identifying. Now that he is The Office of President Elect, it is suddenly something that works?

"We're working with Congress to develop a tax-cut package based on a simple principle - what will have the biggest and most immediate impact on creating private sector jobs and strengthening the middle class. We're guided by what works, not by any ideology or special interests," an Obama spokesperson told CNNMoney.com in an e-mail.

So, tax-cut-and-spend now works, with the difference being that the right constituent group are the recipients of the tax break. Some change. The math is exactly the George W. Bush same. Democrats were complaining that Laffer was wrong, and that marginal tax cuts do not yield higher returns. Is Laffer suddenly right? Is George Bush? Is there really a substantial difference in letting the middle class be favored to keep a slice of their earnings versus the highest wage earners?

I think tax cut and larger spending cut is the right recipe for this economic climate. Tax cut and spending freeze comes in second. Tax cut and spending spree comes in a very distant third.

Going to be a long 2009.

When Idealism Becomes Realism

Many of the things that have come home to roost lately are things libertarians have been warning against for years. Back then, it was the stuff of conspiracy, of loony tinfoil hat wearing eggheads, studying things that looked like such minutiae in the glory days of the 90s bubble.

So, let's look at some of the things that we are doing now, and consider that we were right on our predictions then, so we might just have a grasp on what to expect with what is being done now. We looked idealistic then. Applying our principles now would be a good, necessary dose of realism.

The bailouts are a disaster. It is said that these businesses being propped up are too big to fail, or too important to just stand back and do nothing about. So, our federal government, with bi-partisan Republican and Democratic support, is giving them money.

If the problem is that President Bush approved budgets submitted by Congresses that had majorities from each party that were characterized by deficit spending, and much of our economic distress can be traced to our deficit, does it make sense to expand or contract the size of government, and therefore the cost of the government?

If the problem in lending is that lenders made bad, greedy decisions in making certain loans, which would correct the problem most swiftly? Letting them fail on the outcome of those decisions, or rewarding them?

If the problem is that borrowers took loans that they had no hope of repaying, or put them in a situation that they were one hiccup from foreclosure, which would correct the problem most swiftly and make sure it doesn't happen again? Letting them fail on the outcome of having extended themselves dangerously, or forgiving that behavior?

If the problem is that some automakers have legacy costs so severe that they cannot compete with others, will they be inclined to address their legacy cost issues if they are flush with cash, or if they are on a tight budget?

If the problem is that companies' executives lavish themselves with outlandish compensation packages, will that problem be best corrected by giving the companies free money, or if they have just enough to continue operations?

We can look at some local issues, too.

If the problem is that citizens of Indianapolis feel unsafe because of violent crime in the city, will they feel safer if they, as law abiding citizens, are stripped of their guns? Or, will they simply move out of Indianapolis for the suburbs, leaving the criminals who are not inclined to follow the law to remain, making the city even more violent and criminal?

If the problem is that employers leave the city for a rural area because of high taxes, will more businesses stay or leave if taxes are raised?

How is additional regulation supposed to fix these problems? Why are we putting our faith in more government? Americans have looked to the past for clues, and are convinced that we 'did nothing' about the problems that led to the stock market crash of 1929, and therefore created the Great Depression. Whatever the merit to that argument, it does not correspond to today's situation, where doing nothing would be exactly the right tonic for bad lenders, bad borrowers, and bad business leaders. It would be corrective, and instructive. It would also be just.

I cannot think of anything more unjust than what we are doing right now- taking from everyone to reward failure. It's just as wrong as wrong can be. It's wrong from an idealistic standpoint, and from a realistic standpoint.

Well, maybe we could do something. Our leaders could be leaders, and send the right signals to the people, by browbeating all these groups in public forums.

Smoking, Again

It appears that Indiana is poised to consider a statewide ban on smoking in places of public accommodation. No sir, I don't like it.

I don't smoke. Never have. I detest the smell of tobacco smoke. What I do like are property rights.

There's no doubt that smoking can kill you, and that secondhand smoke can also kill you. I'm not advocating smoking or hanging around in smoky bars. But people engage in this behavior, using a legal product, for a variety of reasons, none of which especially needs to be justified to me.

I trust business owners to set their own policies. Some restaurant owners long ago set smoke-free policies as a matter of their business plan, hoping to attract a clientele that prefers a smoke-free atmosphere. But there is clearly also a market for restaurants that permit a post-meal smoke. If the owner permits it, and you chose to walk in, who is harmed?

Some say that the people who work there are harmed. Sure they are, if they choose to work in a smoky environment. Who is taking what gun and pointing it to their heads, forcing them to be there? But, it's their job!

Well, no. It isn't their job. The job, like the building, belong to the employer. The employee is one who agrees to be there, on an agreed-to set of terms. Now, there may be some stupid employees out there, who didn't bother to discuss the terms, or who were somehow non-observant of the conditions of the workplace when they accepted the job of their own volition.

If the employer permits smoking by employees, the smoker isn't 'intervening' into the non-smoker's space. He is smoking in the space provided by the employer. The life, liberty of the property owner comes before the non-property owner who is invited into the building. It's the primacy of the property owner over the visitor that is important.

Consider your home for a minute. Would you not consider it absurd to invite guests over and then have them determine the policies of your home? So, why is a place of business any different?

America is really losing its' way with regards to freedom, and understanding freedom. When anybody but the property owner can dictate the policies affecting that property, there is no freedom, but fascism.

But, since it's clear that there are health risks associated with the use of tobacco, it seems prudent for those offering smoking policies to warn their potential guests. We have warning labels on cigarette packages. There is no reason why we can't have the smoking policy of various establishments clearly posted at all entrances so that informed choices can be made. This way, those who hate smoke, like me, can figure out if we want to enter or not. those who smoke can go where they want to as well.

Seems like a nice, King Solomon compromise solution- One that respects freedom.

And, Here's The Inflation

Well, I guess the rate can't be cut much lower than 0.5%, so what's left to do? Fire up the printing presses! Make some of that 'money' out of thin air! From CNNMoney:

...the Fed will likely continue to use its new favorite tool, quantitative easing, "Fed-speak" for pouring new money into the economy.

In addition to lowering rates, the Fed has increased its lending to financial institutions and foreign central banks throughout the year to ease the credit crunch. But when the financial markets exploded into crisis-mode in mid-September, the Fed's reserve of Treasurys to support its lending began to run low. As a result, the central bank began firing up the printing presses, financing drastically increased lending to banks, purchases of corporate debt and bailouts of troubled institutions like AIG.

So, I hope you did invest in gold, or some other commodity that can hold its' value. Your currency isn't going to be worth anything.

"The end result of all of this could be the next major problem: the crisis of confidence in the dollar," said Baumohl. "At some point, foreign investors are not going to come to the table to buy U.S. debt, leading to a dollar decline."

I'm more worried about by purchasing power, although to hear the disciples of FDR, a body blow to my purchasing power is a blessing.

I can't wait to watch the left struggle to explain itself. How is it that the Clinton era was so prosperous under the anti-inflationary eye of Alan Greenspan, and we are to return to prosperity with Obama under an inflationary course?

I get to thinking about my favorite stories of Weimar Germany, hoping it never reaches us. From a nice, short history via PBS:

Pianos, wrote the British historian Adam Fergusson, were bought even by unmusical families. Sellers held back because the Mark was worth less every day. As prices went up, the amounts of currency demanded were greater, and the German Central Bank responded to the demands. Yet the ruling authorities did not see anything wrong. A leading financial newspaper said that the amounts of money in circulation were not excessively high. Dr. Rudolf Havenstein, the president of the Reichsbank (equivalent to the Federal Reserve) told an economics professor that he needed a new suit but wasn't going to buy one until prices came down.

Why did the German government not act to halt the inflation? It was a shaky, fragile government, especially after the assassination. The vengeful French sent their army into the Ruhr to enforce their demands for reparations, and the Germans were powerless to resist. More than inflation, the Germans feared unemployment. In 1919 Communists had tried to take over, and severe unemployment might give the Communists another chance. The great German industrial combines -- Krupp, Thyssen, Farben, Stinnes -- condoned the inflation and survived it well. A cheaper Mark, they reasoned, would make German goods cheap and easy to export, and they needed the export earnings to buy raw materials abroad. Inflation kept everyone working.

So the printing presses ran, and once they began to run, they were hard to stop. The price increases began to be dizzying. Menus in cafes could not be revised quickly enough. A student at Freiburg University ordered a cup of coffee at a cafe. The price on the menu was 5,000 Marks. He had two cups. When the bill came, it was for 14,000 Marks. "If you want to save money," he was told, "and you want two cups of coffee, you should order them both at the same time."

and

The flight from currency that had begun with the buying of diamonds, gold, country houses, and antiques now extended to minor and almost useless items -- bric-a-brac, soap, hairpins. The law-abiding country crumbled into petty thievery. Copper pipes and brass armatures weren't safe. Gasoline was siphoned from cars. People bought things they didn't need and used them to barter -- a pair of shoes for a shirt, some crockery for coffee. Berlin had a "witches' Sabbath" atmosphere. Prostitutes of both sexes roamed the streets. Cocaine was the fashionable drug. In the cabarets the newly rich and their foreign friends could dance and spend money. Other reports noted that not all the young people had a bad time. Their parents had taught them to work and save, and that was clearly wrong, so they could spend money, enjoy themselves, and flout the old.

The publisher Leopold Ullstein wrote: "People just didn't understand what was happening. All the economic theory they had been taught didn't provide for the phenomenon. There was a feeling of utter dependence on anonymous powers -- almost as a primitive people believed in magic -- that somebody must be in the know, and that this small group of 'somebodies' must be a conspiracy."

When the 1,000-billion Mark note came out, few bothered to collect the change when they spent it. By November 1923, with one dollar equal to one trillion Marks, the breakdown was complete. The currency had lost meaning.

I hope it never comes to this. Perhaps we will only go as far as revisiting the 1970s economy. This crisis has all the markings of history repeating itself, though, by way of willful ignorance of economics, and a mindless scoffing at sound money as 'mere ideology'.

Best be prepared.

Recession Economics

When times are tight and money isn't a-flowing from your wallet, would you prefer that your dollar had greater purchasing power, or weaker? Would you prefer that your cost of living increased, or decreased?

With the economic in the tank, government intervention is seen by many as the best way to revive it. One person held as a hero to many for economic turnaround is FDR. One of the tools FDR used to try to revive the economy was inflation. One of the hallmarks of the prosperity of the 1990's under the Clinton Administration and Alan Greenspan's Fed was the very low rate of inflation.

These endless bailouts are going to generate inflation, whether that is the design or not, because the money being doled out doesn't exist. It has to be printed or borrowed, and with our borrowing capacity nearly tapped, it's going to have to be printed- created out of thin air.

Obama is in favor of the bailouts, so by extension, he is in favor of inflation.

Here's an interesting bit of propaganda from 1933, extolling the virtues of inflation, i.e.: the weakening of your purchasing power and the raising of your cost of living.



(h/t: Chris Spangle)

Actual Hope!

(Crystal Lake, IL)- Here in suburban Chicago, the scandal of their governor is everywhere. Through it all, I found the one thing I really hoped would come of it all: President-Elect Obama has called on Blagojevich to resign. From the Washington Post:

President-elect Barack Obama believes that Gov. Rod Blagojevich should resign, his advisers said on Wednesday. "The President-elect agrees with Lt. Gov. Quinn and many others that under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois," Robert Gibbs, the incoming White House press secretary, said.

Now, there seems to be no good reason why Obama couldn't have gotten in front of a camera and made the statement himself, but I'll take it on principle, which is that corruption cannot be tolerated, especially when it come from within your own party.

Maybe he can have someone speak for him against this auto industry bailout. That would bring hope in bushels.

Reactions To Blagojevich

First, the most predictable and unfortunate response, from the man himself, via his attorney, and via Politico.

The attorney for Illinois Gov. Rod Blagojevich said the governor will be vindicated and has no plans to resign.

"He didn't do anything wrong," attorney Sheldon Sorosky told reporters after Blagojevich appeared in court on Tuesday. "A lot of this is just politics."

Blagojevich should be in the office on Wednesday, Sorosky added.

So, reporters asked, he doesn’t intend to resign?

"Not that I know of, no," said Sorosky, who added that the governor was "surprised" by the day's events, but his spirits are “good.”

It seems that Democrats never resign when caught seemingly red-handed. I can't remember the last who did. It's always, "I'll be vindicated" and a legal fight, clinging to that delicious power for dear life.

On the upside for the Democratic Party, Senate majority leader Harry Reid has said that he won't seat a Blagojevich appointee. That's a good first step in distancing the Party from the man.

I think it's time Obama calls for the man to resign. That would signal to skeptics like me that he is serious about a change in politics. It's safe enough for Obama to do. It's not like he has any other office to chase. It's one thing for him to have come out, as anyone would, to say that he has no ties to Blagojevich's alleged actions. It's another entirely to say that it isn't condoned, it isn't to be swept under the rug. It is to be called out and confronted, opposed and smashed. Anything short of a call for resignation by Obama is weak. You've almost certainly heard his initial statement, here via ABC News:

"Obviously like the rest of the people of Illinois I am saddened and sobered by the news that came out of the US attorney's office today," said President-elect Obama this afternoon in Chicago, speaking of the criminal complaint against Democratic Gov. Rod Blagojevich for corruption. "But as this is a ongoing investigation involving the governor I don't think it would be appropriate for me to comment on the issue at this time."

Asked what contact he'd had with the governor's office about his replacement in the Senate, President-elect Obama today said "I had no contact with the governor or his office and so we were not, I was not aware of what was happening."

Distance yourself, make no statement on the content. That's pretty typical, and not much in the realm of change. I think a definitive statement of condemnation is not only appropriate, it's necessary.

A Corrupt Illinois Democrat

I know- Big surprise. It's just incredible though how brazen Illinois' soon-to-be-former Governor appears. From the AP:

Illinois Gov. Rod Blagojevich was arrested Tuesday on charges he brazenly conspired to sell or trade President-elect Barack Obama's vacant Senate seat to the highest bidder

and

Blagojevich also was charged with illegally threatening to withhold state assistance to Tribune Co., the owner of the Chicago Tribune, in an attempt to strong-arm the newspaper into firing editorial writers who had criticized him.

The 51-year-old Democrat was also accused of engaging in pay-to-play politics - that is, doling out jobs, contracts and appointments in return for campaign contributions.

Well, this is what virtually all elected officials do. Not condoning. Oh no! In fact, it should be just the beginning of the witch hunt. Let's indict all elected officials who steer contracts in return for campagin contributions.

I love this one:

Prosecutors said Blagojevich also talked about getting his wife placed on corporate boards where she might get $150,000 a year in director's fees.

In court papers, the FBI said Blagojevich expressed frustration at being "stuck" as governor. "I want to make money," the governor, whose salary is $177,412, was quoted as saying in one conversation.

Bwaahahaha! "Stuck" being governor! Sick of making a mere $177k! Oh, my side hurts! Bwaaaahahaha!

Ok, my ardent Democratic friends. It is time for you to condemn Blagojevich and his naked greed roundly. Demand his resignation. Today, he has made himself the face of the Democratic Party. If you fail to demand his immediate resignation, you condone his corruption.

Calorie Counting Report

Overall, I stuck to the plan of keeping at or under 2,000 calories/day, being greatly aided on Tuesday by intestinal flu, where the thought of food itself was nauseating. I lost eight pounds, going from 202 to 194. There were two cardio workouts and last night's hockey to boost the restraint.

On the downside, I was still quite drawn to the sugary stuff, and gave in to the temptation of soda three times. I'm weak! Once I saw that I was dropping pounds, it was very easy to allow myself to give in.

The main thing here is that putting the plan together and into action yielded results. Hmm. That's just like everything else in life.

Automaker Bailout Analysis

In a word? WRONG! But, here's a piece of what I've been thinking, from Russell Roberts at Cafe Hayek:

Why don't the Big Three save the money it takes to put together Congressional testimony and the time it takes for the people in charge to make the trip. Why don't they just take out ads in the Wall Street Journal and the New York Times outlining what they're going to do with the money. Then they can try this really novel idea. They can sell bonds and borrow the money. If the plans look good, people might lend them the money. If the plans are lousy, they won't get the money.

This was the same advice I had for the funding of the then-proposed Lucas Oil Stadium. Alas.

Friend Michael Jarrell relates the automaker-Congressional begging to child-parent interaction, and to a drug addict intervention.

I doubt many of us would say yes to an alcoholic or drug addict when they asked for a fix, so why do politicians "have" to say yes when companies addicted to bad habits come begging for a fix from the "lender of last resort"?

Excellent.

Calorie Counting Begins

Well, I'm no spring chicken anymore, and I can't just eat whatever I want to. Like so many Americans, I have a little extra around the waist, and am determined to lose it.

So, I am beginning to count calories today, and to exercise regularly.

I've been playing hockey weekly, and lifting weights occasionally, so I'm in some kind of shape to begin a regular schedule. I'll do an hour of cardio daily, and lift three days a week. That's probably more than enough to get me where I want to go, but I realized that I have never tracked what I eat. I generally avoid fried foods, but I indulge greatly in sugary foods, knowing that it just isn't good for me.

Laying off the sugar will probably be the tough part. I love, I mean LOVE root beer and sodas. I had sworn them off once in 2003, in the interest of watching my weight, switching to diet sodas. I was drinking six cans of Coke or root beer every day, which is good for nearly 1,000 calories by itself. I lost eight pounds in just four weeks, doing nothing other than switching to diet. Problem is, I had a kidney stone in 2006, and was advised not to have diet drinks, so I swore those off and went back to sugary drinks, just having far fewer than I used to have.

My plan now is to drink water with lemon. I'll get the double benefit of drinking calorie-free water that is so good to do, and with the lemon, I'll be fighting off potential kidney stones. After that, I'm pretty clueless. This is why I need to track my calories. I have no idea what I consume right now. I suspect that some days I take in 1500 or so, and other days up to 4000. That's pretty ridiculous, when I think about it.

Side Note: Running for office was great for my waistline. I went from 195 lbs at the start of the campaign, and finished on election day at 168 lbs. Now I'm back to 195. Why not just do that again? Well, it didn't seem as healthy as constructing a way of living that works and is healthy by design.

My ceremonial last sugary drink last night was a Berghoff' Root Beer. It was delicious.

No Place For Libertarian Thought In Huckabee's Republican Party

As I was driving Monday afternoon to Nashville, Tennessee, I did a little AM-radio dial hopping to see what was out there. I found a trashing of libertarianism, at the hands of Mike Huckabee and Sean Hannity.

Now, I've long felt that Republicans don't really believe in liberty. They really believe in big government, just as Democrats do, merely using the power of government as an instrument of plunder or oppression for a different set of beneficiaries, or over a different set of acceptable minority victims. It was just interesting to hear it plainly spoken.

Huckabee was promoting his new book, which features a chapter that trashes not the Libertarian Party, but libertarian thought. From Time Magazine:

In a chapter titled "Faux-Cons: Worse than Liberalism," Huckabee identifies what he calls the "real threat" to the Republican Party: "libertarianism masked as conservatism." He is not so much concerned with the libertarian candidate Ron Paul's Republican supporters as he is with a strain of mainstream fiscal-conservative thought that demands ideological purity, seeing any tax increase as apostasy and leaving little room for government-driven solutions to people's problems. "I don't take issue with what they believe, but the smugness with which they believe it," writes Huckabee, who raised some taxes as governor and cut deals with his state's Democratic legislature. "Faux-Cons aren't interested in spirited or thoughtful debate, because such an endeavor requires accountability for the logical conclusion of their argument."

The logical conclusion of our economic argument is self-sufficiency and non-dependence. Is that what Huckabee is afraid of? The logical conclusion is to not reward failure, and to not punish success. I guess that's what the Republican Party is done with. Just in time for the bailouts.

Not interested in spirited or thoughtful debate? That's something libertarians are actually accused of- too much debate. He does get one thing right, and that's calling libertarians "Faux-Cons". That's because we're not 'cons'. Libertarianism is classic liberalism. It's only conservative in the sense that the tradition extends back to Thomas Jefferson, and libertarians intend to maintain, i.e.: conserve, that tradition.

Jon Henke has much of value to say on his blog:

We've come quite some way since 1975, when Reagan said "I believe the very heart and soul of conservatism is libertarianism."

Oh, and it happens that Huckabee does, in fact, take issue with what we believe. In May of 2008, Huckabee called blamed election losses on Republicans being too "libertarian" (this is obviously some strange usage of the word "libertarian" that I was previously unaware of), accused us of being un-American (my response to that is unprintable, but I would be glad to say it to his face if he wanted to repeat his comment to my face) and then proceeded to make the standard, cartoonish Democratic argument against libertarianism.

and

Huckabee is a Rawlsian liberal + social conservative: Mike Huckabee describes his political philosophy as (a) the Golden Rule ("Do unto others as you would have them do unto to you", and (b) a passage from the Bible ("Inasmuch as you have done to the least of these my brethren, you have done it unto me"). This is not "conservatism"; it is basic Rawlsian liberalism.

and

Social conservatives have to realize that they need the fiscally conservative, socially moderate/tolerant voters if they want to be a part of a winning coalition. The limited government message won revolutionary victories for Republicans in 1980 and 1994; it is the only viable organizing principle for the current Republican coalition.

Well, the weak, tenous link between the Republican coalition is finally exposed. Social conservatives wish to use goverment to oppress minority groups they don't like. Fiscal conservatives want government to get out of the way of business and the economy. How is it that one can reconcile the desire for a heavy-handed government in one area of life with a desire for a relative absence of government in another? It doesn't make any sense.

There is actually a better chance, in my estimation, of the fiscal liberals joining forces with the social conservatives, then of small-l libertarians staying with the GOP long term. After all, social conservatives and fiscal liberals both believe that freedom produces bad results, and only the wise, heavy hand of government can force people to act more 'correctly'.

They have their leader. His name is Mike Huckabee, the anti-libertarian who would raise taxes and interfere in your bedroom. I'm glad he thinks libertarians should be cast out. Nobody who believes in liberty can support his brand, the Republican brand, of conservatism.

Cheap. Pitiful.

I see that Indy's Mayor is proposing a cut on the County Option Income Tax (COIT) for Marion County. From the Indy Star report:

Mayor Greg Ballard has introduced a proposal to lower the county income tax by three-hundredths of a percentage point, to 1.62 percent.

The adjustment would give a $6 million break to taxpayers. That works out to about $12 a year for the average $40,000-a-year wage-earner in Indianapolis.

Well, ain't he Santa Claus! Is this the same Mayor Ballard who was greatly aided in his election by tax protestors? Is this the level best reward he can give to a constituency that rallied to make itself heard?

Last year, the council increased the county income tax from 1 percent to 1.65 percent to cover an ongoing shortfall in public safety and criminal justice costs. The 2007 state law authorizing that tax increase required 0.3 percent of the money to go toward freezing property tax spending.

On Nov. 7, the state certified the county tax rate at 0.27 percent and gave counties the option of returning excess revenue to taxpayers. In Marion County, that excess is 0.03 percent.

It's very safe, very likely to gain passage by the City-County Council. It's a gain. But it's pitiful. It's a pittance. It doesn't reflect any genuine cut in government, it only represents not taking that small amount which isn't deemed 'necessary', in returning 'excess'.

In times of economic hardship, government is a luxury, not a necessity, and people at home should be allowed to keep a greater share of what they earn so that they can provide for their households.

At what point can we expect to see actual cuts in government?

When Do We Call It 'Socialism'?

One of my favorite things to observe in the jubilant Left these days is an unwillingness to embrace the possibility that the first 100 days of Democratic rule might be socialism.

I think The Left knows well enough that socialism is not going to be broadly embraced, but I think it also knows that given bits and pieces of socialistic policy here and there, especially if dressed up with different words, like 'benefit', can make for broad enough an embrace.

My greatest fear is that we will be treated to socialized medicine in the first 100 days. If I learned anything from Mitch Daniels' first term, or Bill Clinton's, it's that you do the controversial things very early, and then you spend the next three years doing innocuous things. Well, it also helped that in both of these cases, the response to their first year was that they lost their parties' legislative majorities and returned to divided government.

When I mention this to my Obama-supporting friends, I get a heap of resistence, pooh-poohing the idea that there are any socialistic intents, just an improvement of benefits, or increasing access, or something, anything besides socialism.

I'd like to see how some of you would define socialized medicine.

Here's a definition I consider useful, from the Cato Institute, in a recent publication:

Socialized medicine exists to the extent that government controls medical resources and socializes the costs. Notice that under this definition, it is irrelevant whether we describe medical resources (e.g.,hospitals, employees) as “public” or “private.” What matters—what determines real as opposed to nominal ownership—is who controls the resources. By that definition, America’s health sector is already more than half socialized, and Obama’s health care plan would socialize medicine even further.

There is one main reason I oppose socialized health care. I believe it inherently unjust to involuntarily cause one person pay for any good or service consumed by another person.

I've always been mystified by The Left's gigantic blind spot, willfully or otherwise, on this point. How can one oppose involuntary servitude, or involuntary conscription into the military, and yet accept involuntary responsibility for the cost of another's health care? In any of these cases, an individual is denied the full decision of the allocation of his resources. They are taken by the state, against the will of the individual, and given elsewhere, on the basis that the state has first claim, and knows best besides.

Interesting Take On Transparency

A few of my friends have recently been touting with excitement the Obama transition plans, as shown on the website change.gov. Isn't it nice to see exactly what's coming down the pike? No secrets, all there to see.

Well, my friend Michael Jarrell has been watching with interest as well. He notes that while things may be transparent, they aren't permanent.

Apparently Team Obama keeps a sharp eye on their opposition these days. It seems that they saw the many commentaries on their new plans for involuntary servitude and decided to attempt to memory hole them.

He lays out an interesting change. One day the website said this:

Obama will call on citizens of all ages to serve America, by developing a plan to require 50 hours of community service in middle school and high school and 100 hours of community service in college every year. (emphasis supplied)

The next day:

Obama will call on citizens of all ages to serve America, by setting a goal that all middle school and high school students do 50 hours of community service a year and by developing a plan so that all college students who conduct 100 hours of community service receive a universal and fully refundable tax credit ensuring that the first $4,000 of their college education is completely free. (emphasis supplied)

The initial hope was to require the oxymoronic 'forced volunteerism'. When noticed, it became a 'goal', and now comes with a transfer of wealth.

That's all pretty shady, if you ask me. All of it.

What is hopeful in any of this?

What Goes Up Must Come Down

Oh, what's this? A nice rah-rah piece on Amtrak, that suck-hole of tax dollars and inept provider of passenger transportation, courtesy the Lafayette Journal-Courier:

Recent spikes in gasoline prices, airport congestion and environmental awareness are among the reasons why Amtrak is reporting record ridership for the 2008 fiscal year that ended Sept. 30.

Nationwide, Amtrak carried 28.7 million people this year, compared to 25.8 million in 2007. That was an 11 percent increase.

So, since the gasoline prices are now lower than when Hurricane Katrina hit the Gulf Coast, back in August 2005, ridership will certainly have already begun to tank, if it were such a factor in driving an increase in ridership. I love this quote from a rider:

"We're students and we're poor," she said with a chuckle, noting the train's comparatively cheap cost.

A round trip ticket between Lafayette and Chicago generally runs between $30 and $50 depending on the days, according to Amtrak's Web site.

Well, poor student, you aren't learning mathematics at Purdue, that's for sure. With gas now around $2/gallon, even if you drive a Hummer or some other beast that gets 10mpg, you can drive from Lafayette to Chicago for $25.20.

126 mi / 10 mpg = 12.6 gal x $2 = $25.20

You're going to be poor for a lifetime if you can't do the math. Amtrak isn't the solution. Oh? Riding for the environment? Ok, then calculate the ride in my Toyota Corolla:

126 mi / 40 mpg = 3.15 gal x $2 = $6.30

Seriously. What kind of stupid do you have to be to lap up what this article is offering?

Update: In response to the astute comment that caught where I didn't (shame on me!) that the Amtrak pricing is based on round trips, and my car pricing is based on a single leg, I decided to shore that up. Doubling my auto prices is the easy part:

252 mi / 10 mpg = 12.6 gal x $2 = $50.40
252 mi / 40 mpg = 3.15 gal x $2 = $12.60

I went to Amtrak's website to see the various prices. Turns out that the article is wrong. One cannot get a $30 round trip fare. It varies pretty significantly depending on the days of departure and arrival.

$36 - Depart Lafayette Nov 19 or 20, Return from Chicago Nov 24
$41 - Depart Lafayette Nov 19 or 20, Return from Chicago Nov 22 or 25
$52 - Depart Lafayette Nov 21, Return from Chicago Nov 23 or 26
$58 - Depart Lafayette Nov 19 or 20, Return from Chicago Nov 22 or 25
$67 - Depart Lafayette Nov 21, Return from Chicago Nov 23 or 26

So, the J-C's range of 'generally between $30 and $50 for a round trip' is misleading. You can't get a fare as low as $30, and most combinations are more than $50.

I guess we're both shoddy journalists, quick to make our points. In any case, my ride in the Corolla is still WAY cheap.

Doing The Math

Harvard Economist Greg Mankiw offers advice to President-Elect Obama. Here's the bit the struck me most:

during the campaign, you promised that you would cut taxes for 95 percent of Americans, that you would vastly expand health insurance coverage, and that you would never cut Social Security benefits or raise the retirement age. You will almost surely have to renege on some of these promises. As your economic team will often remind you, even if the laws of arithmetic are ignored during campaigns, they provide a real constraint when making actual policy.

One of the best criticisms of the Bush Administration offered by the Left was an attack of borrow-and-spend. So, if Obama is to try to deliver on his campaign promises, how can he do it but to borrow and spend?

btw, Mankiw's had some really good posts lately, including an analysis of the GOP's failure, with the remedy being to run more libertarian. FWIW, he authored the textbook I used in my MBA Econ class.

Glad The Barrier Is Broken

The major upside to the Obama victory is that now the color barrier is broken for the highest office in the land. Now The Man will be a black man. 

Well, it's about time. When the contest came down to a white man with bad ideas and a black man with bad ideas, it may as well have been the black man with bad ideas. At least then Black America can at last stop thinking of the country as a place run by racist redneck crackers. We can put the race card away for once and for all.

I would have been miles happier to vote for a black man with good ideas, but there wasn't one running for President. This year. Obama will have helped clear the way for the future.

Now For The Bad News

Ok, idealism aside, my practical take is that if Bob Barr can't win, my best hope for minimizing the growth of government at the federal level is for McCain to win.

I feel ill typing that. Going back over a year, John McCain was one of two (Hillary Clinton the other) candidates I felt I could be pursuaded to vote against. But, divided government can be more deliberative, even though they weren't with the bailouts. It can be more restrained, even though they weren't with the bailouts. Sigh.

I fully expect an Obama landslide. That means unfettered Democratic rule. From this, I expect Obama to be a rubber stamp for his party's Congressional leadership, just as George W. Bush was for his. I expect government to expand dramatically, which is the bad news.

The only upside is historical precedent. Any time either the Democrats or Republicans take a majority, they piss off the American people in short order. We saw what Republicans did with their recent majorities. When Bill Clinton was elected in November 1992, he came into a Democratic Congress. The result? They pissed off the American people to the extent that the Republicans stormed back in 1994. Government was restrained at that point as best as has been in my lifetime.

So, there is some potential good news. It would be better if the American people took notice that they are alienated every time one party rule grows government, and went for REAL CHANGE and voted to restrain it, not by switching back and forth between the two parties proven to grow government, but to the one committed to scaling back the growth, the Libertarian Party.

But, since I'm being realistic here and not idealistic, my hope is for a structural repeat of the Clinton era: Dems take over, Dems screw up, divided government rules the day once again.

It's kind of like praying to have your breast bone brokem, because it's better than having your skull caved in.

Now, back to holding my little newborn guy!

An Appeal To My Friends In Ohio

You probably know that I ran for office in my 'new' home state of Indiana. Do you know why I didn't run in Ohio?

It was because the Republicans and Democrats erected great barriers against me from running as a Libertarian Party candidate. If I wanted to run I would have had to spend my time wastefully petitioning, rather than campaigning. This handicap is intentionally placed, discouraging third parties from participation. 

In America! Home of the free! 

Republicans and Democrats merely need to sign up to become candidates in Ohio. Libertarians can have this same kind of automatic ballot access, if Bob Barr gains 5% of the vote.

That's a tall order, as Ohio is a battleground state, and the Electoral Votes up for grabs could come down to anybody's vote. That's just as the Rs & Ds would have it. They set the bar that high because they believed it an impossible threshold.

I know that some of my friends are ardent partisan Rs or Ds. But for most of you, I know that the two parties only represent you to a point, that Rs & Ds don't match up very well, leaving you only to decide who to vote against, or whether sorting your sock drawer is a better option than casting a vote at all. Many of you would be partisan Libertarians, if you only had the choice.

This year, vote for Libertarian Bob Barr for president. Help the Libertarian Party of Ohio gain automatic ballot access so that Ohioans can begin to have broader ballot choices, in the interest of greater participation, and more choices that represent the broad spectrum of views found across the state.

Vote for Barr!

Vote Libertarian!

I am sending this appeal to any voter, but in particular, I want to urge the people who supported my 2006 campaign for Indiana Secretary of State to get out to the polls and cast votes for Libertarian Party candidates.

When I ran for that office, it wasn't just in seeking the office. It was to ensure continued automatic ballot access for all of Indiana's Libertarian party candidates. This is the day that effort was put forth for.

If you supported my campaign, with your effort, your time, your money- do yourself a favor and protect your investment. Make sure the showing is as strong as possible for our Libertarian candidates.

If you support libertarian policy, please do not be discouraged by the perceived likely results in the various races. Show up and cast your vote. When we score strongly, our ideas are taken seriously. If we don't? Well, why should anyone take us seriously?

But truly, we're running some strong races out there. Steve Keltner is running a fantastic campaign for Indiana Senate in District 30. Ed Angleton is also running strong, for Indiana House in District 100. Rex Bell scored 15% in his three-way 2006 run for Indiana House in District 54, and this time it's a two-way race. Rex could win! Dr. Eric Schansberg is running another strong campaign for US House in District 9. And on, and on.

Full list of Libertarian candidates on the ballot in Indiana.

Do it for me! Do it for yourself and your children. Just do it- vote Libertarian.

All Is Right With The World

How could it be otherwise?

It's A Boy!

Ame delivered a healthy, BIG (9lb, 11oz) baby boy at 7:02 this morning, on the back porch- the same spot Isabel was born 3+ years ago.

We haven't picked a first name out yet, but we're pretty set on Anders for a middle name, as a nod to Ame's Danish heritage. We'll post again when we arrive at a name.

This Redistribution of Wealth Is Trickier Than I Thought

To be fair, both Obama and McCain stand united in their belief, their faith, in the justice and value of the redistribution of wealth. I haven't seen anything from McCain to suggest otherwise. Of course, Obama has come out and said that he favors it.

Nobody seems to think himself wealthy. The blind spot here is that wealth is relative. Even if you are comfortably a recipient of redistribution today, what happens of the upper class begins to be eroded? Or, get this, if you earn a fat killing? Or, if there are just an awful lot of poor in greater need than you?

I love this personal experiment in wealth redistribution. It involves a businessman who sees a homeless man and a waiter with an Obama tie. Who needs the businessman's tip more? That's who gets it.

The waiter stammered a few "Why practice on me? I’m just a local college student!" retorts and then angrily stormed away from the table in a steaming huff of progressive self-righteous indignation.

Apparently, after experiencing firsthand the application of such socialistic governance from the perspective of the rightful wage earner, my young liberal-minded waiter was quickly convinced that income redistribution was much easier to support as a noble, magnanimous social policy than when his own hard-earned income was about to be redistributed, against his will, to another I deemed more needy.

Or, as Monty Python nailed it many years ago:



That clip only boils down to the punchline. The whole skit is a beauty, but long, spread out over Flying Circus Episode #37. Find it here.

(h/t Charleston Watch)

Meltdown Blame Game

I've been fairly astonished to see some of the vitriolic piling on against libertarianism with the meltdown of the derivative markets and subsequesnt bailouts.

Does anyone think Libertarians have been running the Federal Government? Really? Here's your reality check.

Ok, some point to Alan Greenspan, the erstwhile Ayn Rand devotee. You know- the same Greenspan that presided over the Fed during the entire Clinton Administration- that mythical period of time of milk & honey. I wouldn't call Greenspan a libertarian. Any libertarian running the Federal Reserve would have done anything in his power to return our dollars to specie-backed legitimacy. That certainly didn't happen. Link to Murray Ruthbard's libertarian critique of Greenspan.

Moreover, what made the trading in derivatives legal in the first place? A law signed by Congress, unanimously, in 2000. Catch 60 Minutes last night?

The vehicle for doing this was an obscure but critical piece of federal legislation called the Commodity Futures Modernization Act of 2000. And the bill was a big favorite of the financial industry it would eventually help destroy.

It not only removed derivatives and credit default swaps from the purview of federal oversight, on page 262 of the legislation, Congress pre-empted the states from enforcing existing gambling and bucket shop laws against Wall Street.

"It makes it sound like they knew it was illegal," Kroft remarks.

"I would agree," Dinallo says. "They did know it was illegal. Or at least prosecutable."
In retrospect, giving Wall Street immunity from state gambling laws and legalizing activity that had been banned for most of the 20th century should have given lawmakers pause, but on the last day and the last vote of the lame duck 106th Congress, Wall Street got what it wanted when the Senate passed the bill unanimously.

So, at what point do we blame lawmakers. It seems pretty clear that they didn't even read what they voted on. Just like the Patriot Act. Just like John McCain and the proposal for the bailout when it was merely 3 pages long.

The bucket laws were good regulation. The bets on stocks without any skin in the game affects the stock price. It's not like a football game, where the bets do not affect the outcome of the game. (This leaves aside point shaving, NBA refs, the 1919 Black Sox, and other notorious interactions with gambling.)

Unfortunately, I believe that this one place is going to place America squarely in the pro-regulation camp for everything. It's kind of ironic, because the critics of deregulation and capitalism decry its' adherents as 'dogmatics' and 'idealogues' in the pejoritive, when they themselves as dogmatically and idealistically pro-government, pro-regulation, and anti-capitalist.