Author Archives: Quincy

The Old-Fashioned Regulatory State Has Failed

Today, in pitching the Democrats’ new economic plan, Sen. Charles Schumer (D-NY) claimed that “old-fashioned capitalism has failed“. In discussing the plan further, it became clear that corporate concentration was a key concern to Democrats. This should be a concern for all Americans. The question is, can the Democrats own up to the fact that they are responsible for the problem?

Capitalism and competition do not create monopolies. Far from it. Capitalism kills companies that fail to adapt. Blockbuster? Gone. Kodak? A shadow of its former self. Sears? Hemorrhaging money and shedding valuable assets in a death spiral. Motorola? Sony? Borders? Blackberry? Sun? Circuit City? Radio Shack? The list goes Here's lookin' at you, Comcast!on.

Then there are companies that are so awful to their customers that they deserve to be run out of business. Comcast. AT&T. Wells Fargo. Charter. Sprint. Bank of America. Look at the most reviled companies in America and you’ll notice the visible hands of government shielding them from competition.

Wonder why cable companies are so routinely hated? They’re literally the only game in town. In most parts, localities have granted cable companies monopolies. Even when there is competition, new entrants have to negotiate for access utility pole by utility pole due to Federal regulations, though this latter may be changing.

Even when regulators aren’t directly handicapping new entrants, regulations still favor the incumbents. To put it very simply, the bigger the company, the more lawyers it can afford. A startup has to run very lean, focusing all its money and energy into pulling market share away from an established name. Every time they have to spend energy filing paperwork, every time they have to consult a lawyer, the incumbents win a round.

Nobody likes this state of affairs more than progressives. Comcast is exactly the sort of company progressives want: big, stable, and focused on keeping the regulators and politicians happy. It doesn’t matter that their customers hate them with a passion and are desperate for alternatives.

By putting more power in the hands of progressives and regulators Democrats are promising more Comcast, AT&T, and Wells Fargo. A better deal indeed.

Why Liberals should support Neil Gorsuch for the Supreme Court

What have we learned in the last week? First, the President of the United States is a man who has embraced progressive tactics and sees little restraint on his own power. Second, there is not much will in the Republican Congress to push back against a Republican president, even if he more resembles Barack Obama than Ronald Reagan. That leaves the Supreme Court as the last line of defense for the American people.

In this light, avoiding the confirmation of Merrick Garland to the court must be viewed as a tremendous win for the American people. Despite being a centrist on the politics, Garland’s key qualification in the eyes of the left was his deference to the other branches of government. He would have been the fifth vote for deferring to the competence and good will of the executive and the legislature.

For the left, and especially progressives, I can see the attraction so long as their president was in the White House. No pesky Supreme Court opposing progress! What could be better?

Whoops, the wrong guy got voted in by a regressive white minority! That’s what my left-wing friends tell me, anyway. Arguments about the electoral college aside, the left is now going to be fighting the agenda in Washington rather than driving it—and they’ll need the Supreme Court’s help.

So far, the left-wing reaction on Gorsuch is focusing on two things aside from straight up partisanship: abortion (naturally) and the Hobby Lobby case. It is, as usual, a case of tunnel vision. To his credit, Ian Millhiser at Think Progress goes deeper than most, and focuses on two additional topics: Gorsuch’s views on Chevron v. NRDC and his libertarian leanings on crime.

Even still, Millhiser and the rest of the left manage to miss the big picture on Gorsuch: He has an internally consistent judicial philosophy that embodies the same skepticism of power that our system of checks and balances is predicated on. His positions on Hobby Lobby, Chevron, and criminal law enforcement are all outgrowths of the same core belief. They all look at government exercises of power and ask if they are allowed by the Constitution.

Let me say it again: They all look at government exercises of power and ask if they are allowed by the Constitution. Who is exercising government power nowadays? Donald Trump. Looking at government exercises of power and asking if they are allowed by the Constitution seems like a pretty good idea now, doesn’t it?

This is where we need to split the left into two groups: liberals and progressives. Progressives will never support Neil Gorsuch for the court. He opposes, more than anything, their belief that the progressive agenda should be implemented with whatever power is needed.

Liberals, on the other hand, still care about things like individual rights and due process despite sharing some goals with progressives. It is liberals who need to take a fresh look at Neil Gorsuch. There are issues far more important in this Supreme Court appointment than abortion and birth control. The very concept of limiting executive power is at stake.

In nominating Neil Gorsuch, Donald Trump has put forward a justice who will be an impediment to his agenda. He is doing this now because he has not yet felt the yoke of the court come down upon him. In a year or two, once Trump has really figured out the way Washington works, we will not see a nominee like this. We will see another John Roberts or Merrick Garland, who put judicial deference first. Remember, in 2017 judicial deference will be deference to Donald Trump.

Liberal friends, support Neil Gorsuch while you have the chance.

An Open Letter to Democrats on the Day After

Dear Democrats640px-barack_obama_takes_one_last_look_in_the_mirror_before_going_out_to_take_oath_jan-_20_2009,

I get that you’re in shock right now. You’re wondering how and why this terrible calamity has befallen the country. And I need to tell you something you’re not going to like: Look in the mirror.

As a libertarian, I have had the luxury of watching this horrid presidential campaign play out from a distance. While both major parties were fighting dirty, while both Hillary and Trump are awful, untrustworthy people, I saw one really disturbing trend: Trump and the Republicans went after Hillary, Hillary and the Democrats went after Trump’s supporters. This cost Hillary the election.

Economics played a large role in this election. Over the last eight years, Democrats and the media have touted certain numbers as key indicators that the economy was recovering. The stock markets, the number of jobs created, and the official unemployment rate told us things were better, they said.

It turns out that the real story of the American economy was under the surface. A deeper look shows the effects of the recovery were concentrated in certain demographics and regions. Highly-educated people in urban areas have done pretty well since 2008. Those less educated and those in the middle of the country have not. They are, if anything, worse off than they were eight years ago.

Now imagine you are someone who has a high school education in a state like Ohio or Nebraska. Listen to the way you’re perceived by Democrats. You’re bitter clingers, you’re rubes, you’re deplorables. Your work is mocked. Farmers are ignorant rednecks who couldn’t do anything better. Coal miners are so evil it’s better for the country if they’re put out of work entirely. Not even the land you live on gets any respect. It’s flyover country, mere scenery to be observed on the flight from SFO to JFK. How exactly do you feel about that?

Imagine now that a candidate comes along who feels your pain, who promises to make America great again, to bring back the jobs and prosperity to desolate communities. Yes, he might be an awful human being, a sociopath, someone who has time and again failed to deliver as a business man. You’re not dumb, you know this. You see Trump for exactly what he is–a charlatan.

Then you look back at Hillary and the future she and the Democrats promise. You see nothing but more poverty, more despair, and more marginalization at the hands of the urban elite. You realize that even if Trump is a charlatan, he is the lesser of two evils for you.

Now, if you’re a Democrat and you’ve made it this far, look in the mirror. Look. Did you nod knowingly when Hillary described Trump’s supporters as deplorables? Have you cracked jokes about rednecks? Did you cheer when Hillary talked about putting coal miners out of work? Do you talk about everything between the coasts as flyover country?

On the other side of the coin, did you try to understand where Trump supporters were coming from? Did you try to understand what might be motivating them other than presumed evil and stupidity?

Look in the mirror again. Were you part of the majority of Democrats that created a tidal wave of hate that pushed rural Americans right into Trump’s camp? Be honest here, because it’s time to learn.

Every time you are tempted to look down on someone because of the color of their skin (white), their gender (male), their sexual orientation (straight), their education (less than yours), where they’re from (the country), or the work they do (manual labor), stop. Stop and picture Donald Trump in the Oval Office. That is the consequence of your elitism over the last eight years.

The time for change is now. Stop talking and start listening. When people you look down on are concerned for their future and livelihood, take it seriously. Make the effort to look behind the convenient narrative to see if there really is something there. Question the numbers that look conveniently positive.

Or don’t. Stick to the narrative, keep piling on Trump supporters as stupid evil morons who make you so angry you want to punch them in the face.

Whether Trumpism is a short-lived fad or the new normal is entirely in your hands, my Democrat friends. Don’t make the same mistake twice.

Sincerely,

A Disappointed Libertarian

Weakening Encryption: The China Problem

By now, you’ve heard that the FBI has asked Apple to help break into the iPhone belonging to one of the San Bernardino terrorists. USA Today describes the specific request:

Right now, iPhone users have the option to set a security feature that only allows a certain number of tries to guess the correct passcode to unlock the phone before all the data on the iPhone is deleted. It’s a security measure Apple put in place to keep important data out of the wrong hands.

Federal prosecutors looking for more information behind the San Bernardino shootings don’t know the phone’s passcode. If they guess incorrectly too many times, the data they hope to find will be deleted.

That’s why the FBI wants Apple to disable the security feature. Once the security is crippled, agents would be able to guess as many combinations as possible.

Suppose Apple can do this. Suppose that the courts, up to and including the Supreme Court find that they must.

At that point, every device maker who wants to sell a device in the US would have to build this weakening capability into their products.

Putting aside the obvious fact that this capability will be reverse engineered by the wrong people, the impact of this decision on the rest of the world (and Americans abroad) has not received the attention it should.

Nothing stops other countries from presenting similar demands under their own laws. In the case of liberal democracies, the harm to the innocent would be limited. Repressive regimes, though, would quickly utilize this new capability.

Imagine a case in which China got hold of the iPhone of a US citizen at the border about whom it was suspicious. It could present the phone to Apple to decrypt under Chinese law.

Why pick China for this example? While a company might be able to tell of Iran, Venezuela, or even Russia, China is an integral part of the global technology supply chain. They are uniquely positioned to exert leverage in the technology sector where other repressive regimes are not.

The only thing preventing China from using its leverage today is the mathematical impossibility of cracking the encryption. Take that out of the picture, and things get interesting for device makers.

Why pick a US citizen? This one is more interesting. The US government (and states and localities) have multiple ways to digitally spy on their citizens. They can capture traffic on American internet connections. They can subpoena information from cell phone carries and ISPs under the third party doctrine.

Foreign governments don’t have access to any of these. While the US does share intelligence with friendly government, repressive regimes such as China are left out in the cold. Capturing the device of an American is one of the few possible ways for a repressive regime to get at the info.

By demanding that Apple weaken security around its encryption, the FBI will be handing China an entirely new ability to compromise the security of American citizens while only marginally increasing its own reach. Considering that China has been expanding its hunt for dissidents to other countries, the last thing that the US government should consider doing is making Americans with smartphones more attractive targets.

James Comey vs. your privacy

Today’s smartphones contain more data about your life than any other device in human history. It could be argued that they even contain more usable information about your whereabouts and activities than your own brain. Naturally, post-Edward Snowden, protecting that information is a priority for a lot of people.

James Comey wants access to all of that information and he’s willing to let bad guys get at it too:

“Encryption threatens to lead all of us to a very dark place.”

“Encryption isn’t just a technical feature; it’s a marketing pitch … it’s the equivalent of a closet that can’t be opened. A safe that can’t be cracked. And my question is, at what cost?” Comey said. “Both companies [Apple and Google] are run by good people, responding to what they perceive is a market demand. But the place they are leading us is one we shouldn’t go to without careful thought and debate.”

[…]

“With Going Dark, those of us in law enforcement and public safety have a major fear of missing out—missing out on predators who exploit the most vulnerable among us … kids call this FOMO,” he said.

Comey kept referring to the “debate” and “national conversation” that needs to be had regarding widespread encryption. That conversation, in Comey’s mind, should stop and start with the idea that there must be a “front door” means for the FBI, NSA, and other law enforcement agencies to blast through encryption. In other words, companies should be “developing [law enforcement] intercept solutions during the design phase,” a proposition that, beyond making encryption useless, is potentially not even technically feasible.

“Congress might have to force this on companies,” he said. “Maybe they’ll take the hint and do it themselves.”

Read the whole thing.

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