Monthly Archives: October 2008

Why I’m Voting For Bob Barr, And Why You Should Too

In a likelihood, two weeks and one day from now, I will be standing outside of my local polling place in Western Prince William County, Virginia waiting for the doors to open so I can cast my ballot in the 2008 election.

Unless the polls and electoral college projections that we’re seeing right now are remarkably bad, or there is an historically unprecedented shift in the public mood over the next two weeks, or, unless, as former Louisiana Governor Edwin Edwards once joked, one of the candidates is caught in bed with a dead girl or a live boy, it seems fairly clear that Barack Obama will win and America will have it’s first non-white President.

I’ve been voting in Presidential elections for twenty years now. In my first General Election, I was faced with a choice between George H.W. Bush and Michael Dukakis. Partly because Bush’s pandering on the flag-burning issue disgusted me, but mostly because I considered my first vote for President to be so important to me personally that I wanted to vote for the candidate that actually stood for the things I believed in, I ended up voting for the Libertarian Party nominee that year, Ron Paul. I voted Libertarian again in 1992, for Andre Marrou, and in 1996, for Harry Browne.

Then came the 2000 election between George W. Bush and Al Gore. I wasn’t entirely thrilled with Bush, but he seemed to be different from the nominees the Republicans had put up in the past and, as an added bonus, spoke out against the Clinton Administration’s policy of “nation building” in countries like Bosnia. The Libertarian Party, meanwhile, had descended in to parody — Harry Browne was nominated again but the party had quickly become little more than a vehicle for him to promote his own business ventures. Since there was no way I was going to vote for Gore based on his policies, Bush seemed like a better choice than throwing my vote away on a third-party candidate that wasn’t taking the election seriously.

By 2004, I had soured on Bush’s foreign policy but he was still a clearly better choice than the candidate the Democrats had selected, and the Libertarian Party seemed to be in more disarry than ever.

Man, do I regret those votes I made in 2000 and 2004 now.

Did I feel at the time like I was compromising my principles when I pulled the lever for George W. Bush not once, but twice ? Absolutely, but. as I think many Americans do on a regular basis, I fell hook, line, and sinker for the “lesser of two evils” argument.

That’s not happening this time.

After eight years of a Republican President who has engaged in a reckless and irresponsible war, and expanded the size, scope, and power of the Federal Government at a greater rate than any President since Lyndon Johnson, I’ve come to realize that compromising your principles in the voting both is, ultimately, just a path that will lead you to regret what you’ve done.

Back in February, I crossed party lines and voted for Barack Obama in the Virginia Democratic Primary, but my reasons for doing so then were quite clear:

What’s needed, I am convinced, is a break with the past and a new direction. In some sense, although I hate to admit it, John McCain represents that for the GOP but Barack Obama represents it even more and, more importantly, is running against the one person who, if she wins, would guarantee a return to same crap we’ve been dealing with since 1993 on both sides of the political aisle.

Defeating Hillary Clinton was, I thought then and still think today, essential to even taking the baby steps necessary to move America beyond the divisive politics that has been infecting the political system for the past twenty-odd years. If my vote for Barack Obama on February 12th helped make that happen even in the smallest degree, it was worth it.

I also noted in February:

Does this mean I would vote for Obama in November if he’s the nominee ? No, and, frankly I probably wouldn’t.

Given Obama’s positions on a variety of issues, that answer today is an emphatic no. Whether it’s the economy, education, health care, taxes, or a whole other variety of issues that face America today, it’s clear to me that Obama believes in more government, not less. He suffers from the same fatal conceit that all liberal Democrats do — the idea that they can use the power of the state to remake the world in their own image.

On the issues, John McCain isn’t much better. The difference is that McCain campaigns on rhetoric that makes you think that he believes in individual liberty, self-reliance, and small government. The reality of a hypothetical McCain Administration, though, is demonstrated quite clearly in his response to the financial crisis, his support of the bailout, and his insane idea to have the government buy-up and renegotiate distressed mortgages. These are not the policy proposals of a man who believes in the free market.

Moreover, McCain has run his campaign in a manner that is at the very least offensive and borders on an insult to the intelligence of the American voter. He selected as his Vice-Presidential running mate a woman manifestly unqualified for the job. He engaged in the pointless, some might even say reckless, stunt of pretending to suspend his in response to an economic crisis that he obviously had no real understand as to either the causes or the remedies. And, most recently, he engaged in nearly two weeks of relentlessly negative campaigning that concentrated not on the issues facing the country, but on his opponents alleged associations with someone even he admitted was a “washed up terrorist” and, in the process, brought out some of the worst in his supporters.

I said a long time ago that I would never vote for John McCain based solely on his manifest disdain for one of the fundamental freedoms in the Constitution. Now I can say that, even if he had never sponsored McCain-Feingold, his conduct during the course of this election has demonstrated to me that he is unfit to be President of the United States.

That’s why, this year, I am voting for Bob Barr for President of the United States.

Unlike any other candidate running for President this year, Bob Barr stand unequivocally in favor of the principles of individual liberty and limited government that stand at the core of America’s founding documents. He’s the only candidate who has spoken out against the evils of the Nanny State in all it’s manifestations. He’s the only candidate who has made the case against a solution to the problem of increasing health care costs that doesn’t involve more government regulation, higher taxes, and no real solution for the consumer. He’s one of the few politicians I’ve ever seen admit that he was wrong when he repudiated his previous positions on the War on Drugs. He’s spoken out on the Bush Administration’s assault on civil liberties, taken a clear and consistent position on the Second Amendment, called for the separation of government and the economy, and called for a return to a defense policy that actually involves defending the United States rather than engaging in adventures abroad. More recently, he has been the only candidate to speak out against government bailouts of private companies — whether its Fannie Mae and Freddie Mac or the entire banking industry.

Most importantly of all, though, Bob Barr is the only candidate running for President on a platform that is based upon the ideas of individual liberty and limited government that the United States was founded upon. They are ideas that have worked in the past, but they’ve been abandoned by both major political parties.

It’s time to return to the America that was meant to be. It’s time to vote for Bob Barr.

A Coming Dark Age For Liberty ?

In a rather somber article over at Forbes, Henry Manner, former Dean at George Mason University School of Law, sees dark times ahead for freedom:

The political direction of the country is now determined for a long time to come, and it is inevitably leftward. Politicians would never resist a popular but massive demand for more government regulation (even the few with enough brainpower to recognize what is going on). The business community has never been a strong supporter of free market capitalism, and it certainly cannot be counted on to change its stance this time around. The media, the various leftist trend-setting elites and university faculties have been waiting a long time for an opportunity just like this, and we can be sure that they won’t squander it. The shrillness of their attacks on free markets will reach new heights of righteous indignation and assumed moral and intellectual superiority.

No policy issue based on private property, low taxes, small government or free trade will escape the charge that any unregulated free market will lead to disastrous excesses just as happened with the great financial crisis of 2008. This will be true for such soon to be rebuffed ideas as tuition vouchers for private schools, private health care, lower estate taxes, deregulation in its many forms, reduced use of eminent domain, tort liability restraint and free trade.

We can anticipate a new reign of mercantilism, as the protectionists among us wield this strong new weapon against globalization and open markets. And all of this is true in large degree regardless of who wins the forthcoming election.

If Sarbanes-Oxley was any indication of the kind of legislation that results from crisis, then we can be sure that even more ham-handed regulation of all kinds will be the main product of the next Congress. Henry Waxman’s grandstanding this past week about bankers’ greed has been merely the warm-up for what is to follow.

Bankers eager for federal help now will find themselves regulated not far short of total federal control of their business behavior. Banks won’t be permanently nationalized, but what we will get will differ from that result semantically more than factually. Derivatives, for all their promise of alleviating panics and distributing risk, will not now be allowed to evolve into the brave new system once predicted for them. Accounting rules will become even more convoluted as we continue to ask for more information out of double-entry bookkeeping than it can ever deliver.

And, although Manne doesn’t say it, we can expect this move toward a corporate state to be supported by members of both parties — just look at the votes for the bailout to confirm that one.

Despite this, Manne doesn’t think that all hope is lost:

[U]nlike during the New Deal, there is a substantial intellectual establishment to ride herd on leftist proclivities. There are numerous free market blog sites, which, for instance, can be properly credited with forcing modification of the recent short-sale ban. There are countless free market think tanks in Washington and all around the country exerting considerable influence on government policies. Libertarians are a small but growing political factor, and there are even a few university economics departments and law schools where sanity prevails or is at least occasionally evident.

Like it or not, these few intellectual bastions of freedom philosophy will be about the only thing that keeps these ideals alive in the coming years. But we should never underestimate the power of good ideas. Like the bad ones we are about to witness in large numbers, they may just have to bide their time until a new crisis causes the fickle and uninformed public to demand a new direction.

Unfortunately, that new crisis is likely to cause a lot of pain for everyone.

Joe The Plumber And Professional Licensing Laws

After Joe Wurzelbacher became the star of the Wednesday night’s debate, the media started looking in to his background and it didn’t take long for someone to discovery that Joe the Plumber doesn’t have a plumber’s license. It is often stated that local plumbers can help you in a crisis situation. However, this shows just how important it is for you to check how qualified a plumber is before hiring them! You want to make sure you get someone who knows what they are doing. As much as we would like to get jobs done by doing it ourselves, unfortuntely, we are not all skilled in every department. When it comes to finding the right person for the job, a bit of research is necessary. This shows that you are putting thought behind who you go for. Wherever you’re based, from Australia to the UK, looking into something like Plumber Brisbane Southside will help find you a plumber in Australia, whereas doing the same to find plumbers in the UK will get you the results you’re looking for too. It is important to find a reputable company, rather than just go with the first/cheapest option.

Now, Wurzelbacher admits that and say that, because he works for someone who has a license, he isn’t required to be licensed under Ohio law.

Whether that’s true or not, though, Matthew Yglesias notes it raises another question entirely:

[Wurzelbacher] raises the issue of whether or not it really serves the public interest to have so many occupational licensing rules. Like most people, if I needed to hire a plumber, I’d probably look for a recommendation. I don’t have any real confidence that these licensing schemes are tracking quality in any meaningful way, just preventing a certain number of people from earning a living and raising the general cost of plumbing services for everyone else.

Yglesias has a point, and it applies to more than just plumbers. Depending on the jurisdiction you live in you have to get a license from the state to be a plumber, carpenter, landscaper, electrician, beautician, dog groomer, dog walker, and probably a whole host of other occupations that I can’t even think of right now.

But what purpose does the licensing really serve ? Does anyone really believe that the mere fact that one of these professionals has a piece of paper from the state or local government means that they are competent to do their job, or that they’ve never cheated someone on a job ?

Of course not. That’s why you don’t just rely on whether or not someone is licensed before hiring them to, say, remodel your basement, build a deck, or fix your water heater. You do what Yglesias would do, you’d look for recommendations from friends, family or neighbors, or even online sites that have expertise in the area. People look to waterheaterreviewssite.com as one example of this, as having the advice of other people is immensely helpful. You also judge based on appearance as the first impression is key. This includes the vehicle used. If it is a new van from somewhere like the van experts IVL, then you are going to feel more encouraged to use their services.

So if it’s not guaranteeing good or even competent service, what purpose is the licensing serving ?

Well, one of Yglesias’s commentors, probably inadvertently, stated it pretty clearly:

The problem is that when you don’t have any licensing for skilled positions you have a glut of weekend warriors who drive the price down and put professionals out of business– and that eventually lowers quality. I knew a guy who had his own landscaping business but gave it up because there were too many people with a John Deere who would do stuff for absurdly low rates because it was only a hobby for them. When it came to doing actually skilled work, of course, they sucked at it– but people want to believe they can get quality work without paying for it. So they go with an unskilled cheap guy and the actual professional suffers.

In other words, the purpose of professional licensing, more often than not, is not to “protect the public,” it’s to protect incumbent businesses by creating barriers to entry, restricting the supply of skilled labor, and making the cost of that labor more expensive to the public.

We’ll Make Them An Offer They Can’t Refuse

One person with knowledge of the meetings called it a “take it or take it offer”:

The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left.

And when the CEOs began to object, Paulson’s consigliere explained that it was ‘in their best interest’ not to protest too much:

With the discussion becoming heated, the chairman of the Federal Reserve, Ben S. Bernanke, who was seated next to Mr. Paulson, interceded. He told the bankers that the session need not be combative, since both the banks and the broader economy stood to benefit from the program. Without such measures, he added, the situation of even healthy banks could deteriorate.

As David Boaz quipped, “Nice little bank ya got there… Shame if anything happened to it.”

The strange thing is, there are still people in America who are surprised to hear that our government behaves like this…

Inflation Fears Ease — So Watch Out!

As I’ve pointed out before, the extreme leverage increases in our economy created a false inflation, and the de-leveraging is an inherently deflationary process.

There are signs that this false inflation is easing, and possibly even heading into a deflationary curve.

Consumer prices were flat in September as retreating costs for gasoline, clothes and new cars helped to offset rising prices for food, medical care and other things.

The new reading on the Consumer Price Index, the government’s most closely watched inflation barometer, came after prices actually dipped by 0.1 percent in August, the Labor Department reported Thursday.

In the inflation report, when energy and food products are stripped out, “core” prices inched up by just 0.1 percent in September, an improvement from a 0.2 percent advance in August.

The latest showing on inflation was better than economists expected. They were forecasting a 0.1 percent increase in overall prices and a 0.2 percent rise minus energy and food.

I’ve been watching locally as gas prices here in Orange County have dropped, from the $4.50/gallon range at the high points down into the $3.35/gallon range this morning. As they tend to lag the price of oil, they could drop even further. The [impending or currently existing] recession is eating into demand for most consumer goods, which puts downward pressure on prices for those as well.

Food is holding steady, but if we can get some pressure in Washington to end our silly corn ethanol program (only possible if Congressional Democrats try to punish their Midwestern Republican opponents), it could reduce prices there as well.

So why do I say watch out?

With the economy in for a period of weakness that could extend well into next year, inflation should also moderate, Bernanke and other Fed officials predict. Tamer inflation would give the Fed more leeway to slice rates again or at least keep them at low levels for some time.

“The rapidly disappearing inflation threat is providing the Federal Reserve full latitude to move to an easing bias on rates to combat the recession as well as the ongoing financial crisis,” said Brian Bethune, economist at Global Insight.

Many economists believe there’s a strong chance the Fed will lower rates at its next regularly scheduled meeting later this month. In an unprecedented assault on the financial crisis, the Fed and other major central banks together reduced rates last week. The Fed’s main rate dropped to 1.50 percent, from 2 percent.

He says this coming off a 2-week bender where the Fed, the Treasury, and our elected officials have pledged to throw liquidity at the problem to “unfreeze” this market. Now, there’s a chance that our super-intelligent always-prudent benevolent masters in Washington may lay down exactly the right amount of liquidity to forestall deflation, get markets moving, and not create inflation of their own… Yeah, that’s about as likely to happen as France adopting a 55-hour work week.

Much more likely is the scenario where our government throws dollar after dollar, rate cut after rate cut, and stimulus package after stimulus package at the problem until they see movement. After all, now that they know inflation fears are “disappearing”, they know that they have “full latitude” to act. Once they begin to see movement, they’ll finally realize that all those free dollars had a lag period and that they’ve overreached. We’ll have “booming growth” on paper as the value of our money erodes.

Sadly, only the few of us who know that these cycles are induced by a loose monetary system— those of us who saw this problem coming 2+ years ago— will accurately diagnose that the apparent growth is a chimera. And as usual, nobody will listen until it’s too late. They’ll blame the guy in office, and get ready to elect their next savior politician to take care of them. “Pay no attention to the man behind the curtain! All hail the Wizard!”

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