Saturday, November 19, 2016

On Executive Overreach

1)           This may be my favorite article of the bunch.  
2)     My general disposition on Paul Ryan is cautiously optimistic.  He is much too establishment for my taste but not the worst of the bunch.  Him calling Trump's win a mandate from the people is WRONG.
3)     Let that sink in.  Only 22% of eligible voters chose to elect Trump.  Less than ¼ of legal adults in the US.  And yet somehow this is a mandate?  I disagree.  Beyond the staggeringly low 22% (which is not low with respect to most elections), we should consider that many people were coerced into voting for Trump via the primary process and our two-party system. I also contend that a vote as a simple yay or nay is never a mandate on implementing all of a candidate’s policies.  In every election many people vote just to stop the other side from winning.  This can hardly be taken as an affirmative to the winner to enact his 'mandated' policies. The quote below from the article says it all:

"The act of casting a vote tells us nothing about motivation or enthusiasm, so it remains possible to know what message, exactly, the voter wished to send to the candidate. It is also impossible to infer from a vote what aspects of the candidate's platform meet each voter’s approval, or which aspects are a priority. An unemployed auto worker from Ohio is likely to vote for Trump for very different reasons than a college educated suburbanite from Colorado. Claims that both of these votes can be combined to fashion a single ‘mandate’ for the candidate strains the bounds of credibility."


This is a fun thought experiment.  Over time government grows and grows and grows.  It is not all at once but rather in tiny executive actions and gradual increments.  Hey if Obama could do X I'm sure Donald wants to Trump that executive privilege. 



"The state never stays ‘limited’ in the long or even medium run, as we've seen for ourselves, and before long it worms its way throughout civil society. Once it becomes entrenched in some area of social life that had previously been managed by voluntary means, people grow accustomed to the state's new role, even coming to view it as indispensable."

"Contrast this with the state's so-called social contract. Here, nobody signs anything. You are assumed to consent to the state's rule because you happen to live within its territorial jurisdiction. According to this morally grotesque principle, you have to pack up and leave in order to demonstrate your lack of consent. The state's authority over you is simply assumed (or it takes the form of a contract nobody ever signed), with the burden of proof on you, rather than — more sensibly — on the institution claiming the right to help itself to your life and property."

"We may test the hypothesis that the state is largely interested in protecting itself rather than its subjects by asking: which category of crimes does the state pursue and punish most intensely — those against private citizens or those against itself? The gravest crimes in the State's lexicon are almost invariably not invasions of private person or property, but dangers to its own contentment, for example, treason, desertion of a soldier to the enemy, failure to register for the draft, subversion and subversive conspiracy, assassination of rulers and such economic crimes against the state as counterfeiting its money or evasion of its income tax. Or compare the degree of zeal devoted to pursuing the man who assaults a policeman, with the attention that the State pays to the assault of an ordinary citizen. Yet, curiously, the state's openly assigned priority to its own defense against the public strikes few people as inconsistent with its presumed raison d'etre."

Let’s take the issue of LGBT equality, for example, which is arguably a Constitutionally just cause.  It may even be a cause that most people in America agree with.  I tend to think this is the case but the more important fact equality is an inalienable right.  Any MANDATE for equality is inherently a dangerous thing.  It gives power to the ruling class, and in so doing removes power from the common folk. Admittedly, leaving LGBT equality to the average person is not always perfect equality, but giving the ruling elite the power to mandate it is just the beginning of a very slippery slope.  Over time, government can extend its reach.  We have seen it with the Obama administration and thus we are left shocked and afraid of what Trump may be able to get away with.  If we never went down the path of granting increasing power to the ruling class, the election of a bozo such as Trump would not matter so much because he is powerless.


Written in 2000, but this article couldn't be more applicable today.  Everyone looks at every negative occurrence as a chance to sue. I burned my finger today, should I sue the people that made my stove? With this line of thinking, there is no clear end.  The rules for whom you can and can't sue and for what reason will be arbitrarily written.  Tort law was not developed to provide insurance if you took on risk in a unilateral manner.  

"Here’s a basic principle of good government: Don’t endorse a government power that you wouldn’t want wielded by your worst political enemy. Democrats will soon be learning that painful lesson."

"Obama also used congressional inaction as a justification for claiming the power to decide whether the Senate was in session. After his nominees to the NLRB and CFPB were blocked by the Senate, President Obama used his recess appointment power—which gives the president the ability to appoint executive officers during Senate recesses—to push his nominees through. In so doing, he essentially declared that the Senate’s pro forma sessions, which were sham sessions first used by Harry Reid to block President George W. Bush’s nominees, were not “real” sessions of the Senate. It was a bold, reckless, unprecedented, and dangerous move that was struck down unanimously by the Supreme Court. On many types of executive overreaches, however, the Court will not be able to similarly intervene. If Obama had the temerity to push through those appointments, imagine how far Trump might go on other matters."

I hope we make it through the next four years but if we don't equal blame should be put on Trump and those that came before him and extended the powers of the executive branch un-Constitutionally.

This point has been beaten to death but needs to continue to be made because it is SO important that the left understands the risk. Trump may be a worse person than Obama but what is scary is not the level of goodness of an elected official but rather the power this person has to implement things that affect your daily life.  The author goes on to say:

 "But now that same power rests in the hands of a man who may use it to persecute them. It's scary. The liberties we trade for security and the powers we grant government are never returned. We, as a people, must be vigilant in ensuring that we are not tricked into trading away our individual liberties for the promise of a benevolent government, because one day that government may turn tyrannical and dictatorial."



ISSUES


Government officials may have your best interest in mind (probably not but maybe).  Even so, they can't be experts on you as an individual.

"Consider bureaucrats at the Food and Drug Administration. They don't know you. None has any earthly idea of your preference for risk — say, how willing you are to risk possible death today to take a drug that might cure you of cancer that will otherwise surely kill you tomorrow. And yet these bureaucrats are commonly called “experts” on drug safety. What they have is expert knowledge of the various possible consequences, good and ill, of different drugs. But none of them has expert knowledge of the preferences and circumstances of each of the millions of individuals whose lives are governed by bureaucrats' decisions on whether to approve a drug for public use."


We don't live in anything that even remotely resembles a true free market society.  It is crony to its core.  Take a look at the article for a better understanding of cronyism.

"...cronyism is when politicians create “privileges that governments give to particular businesses and industries.”








Please read this one Mr. Trump. You could make a lot of people a lot worse off with your ignorant protectionist policy plans.

While I issue this warning, I have a feeling Trump is smarter than we think.  I think he knows how negative those policies could be and only promoted them because he wanted to play the voters.  Will be interesting to see where his heart really lies!


"If the argument for the prohibition or restrictions of trade with tariffs and trade barriers at the national level is accepted, there is no logical stopping place at the level of the state, the city, the neighborhood, the street, or the block. The only stopping place is the individual, because the individual is the smallest possible unit. Premises which lead ineluctably to an absurd conclusion are themselves absurd. Thus, however convincing the protectionist, anti-trade arguments advanced by Trump might seem on the surface, there is something terribly wrong with them."
The logical extension of Trump’s protectionist policies say, ‘Well, I don’t want to give away my potential job of building a house and of producing my own steak so I am not going to employ a contractor to build me a home or buy a steak at the grocery store.’
Why do we endorse to foolishness.  The more specialization the more I can consume for a cheaper price.  Exports are what we have to pay for imports in a way.  The less we produce and ship to other countries the more we can consume domestically.  The more we import the more we consume domestically. You must change the frame with which you view economics and it all becomes immensely clearer.


"Sen. Elizabeth Warren supports those who oppose school choice (“Progressive Values on the Ballot,” Nov. 10), presumably because she believes that competition causes suppliers (in this case K-12 schools) to worsen their service to customers.  Yet Sen. Warren also supports – because she thinks that it will intensify competition throughout the economy – active antitrust enforcement, presumably because she believes that competition causes suppliers to improve their service to customers.
Is it too much to ask Sen. Warren to decide one way or another if she believes that competition for customers worsens or improves suppliers’ performance – or, alternatively, to ask her to explain why K-12 schooling is an exception to the well-established rule that competition doesn’t worsen, but improves, the performance of its suppliers?
Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA  22030"

I am glad someone else sees how much of a moron Elizabeth Warren is.  For visual representation check out this link http://www.aei.org/publication/venn-diagram-of-the-day-do-progressives-like-sen-elizabeth-warren-support-competition-or-not/


Couple interesting quotes....

"Look at Wisconsin, for example – a largely blue state that shocked everyone by going for Trump. The exit polls show no greater consensus on any issue than the question of whether Obamacare went too far. Only 17% said it was fine as is. Fully 45% of those surveyed after the vote said that it had gone too far. Among that 45%, 81% voted for Trump. That alone was enough to turn Wisconsin from blue to red and provide a turning point in the electoral count."

"The months and years ahead are going to be all about an endless stream of confusing proposals, complexities, and regulatory tweaks. People need to ask themselves a simple question: why is it that our access to and pricing of food, clothing, car rides, home repairs, auto insurance, and every manner of digital service, have improved vastly in the last decade, while healthcare has become ever worse?  Is there something structurally different about medical services that make them unlike anything else, such that government must rule their delivery? No. If you put the service in the hands of government to manage, you subject a judgement on its merits to the democratic process.  The truth is unavoidable: the only path toward fixing this problem is through ever less government and ever more market competition."


"MY FELLOW-ECONOMIST WALTER WILLIAMS has for years kept track of how much money it would take to lift every American man, woman and child in poverty above the official poverty level. That sum has consistently been some fraction of the money actually spent in "anti-poverty" programs. In other words, if you gave every poor person enough money to stop being poor, that would cost a fraction of what our welfare state programs and bureaucracies cost."

This was written in 1998.  I am going to search for the #s today but I am guessing they are worse.  Literally we could give every man woman and child the dollar amount in cash to get them to the poverty line and it would cost a fraction of what we spend on benefits.  I would love to hear the best rebuttal on this you efficient government folks.



Borrowing (debt) works because one person is willing to lend money to another person or institution. The borrower then uses the proceeds in his chosen endeavor, presumably to earn more money with which to pay himself a profit and also eventually repay the lender, including some interest. But, by definition, government has no capacity to earn profits.  So in order to obtain funds for it’s programs, government has to either steal from the producers of wealth (the citizens of the country) or print money.  But printing money only devalues the money that producers have earned by reducing what can be purchased with the same amount of money (inflation).  So printing money acts essentially as a tax and a regressive one, which hurts the poor disproportionately. With this framework we see that it isn't necessarily the deficit that is negative for the US economy - it is the very spending of unearned money by the government.


"To speak exactly, therefore, the effect of a protective tariff is to increase the amount of labor for which certain commodities will exchange. Hence it reduces the value of labor just as it increases the value of commodities."


As much as politicians would have you believe, you cannot simply change one variable and have the rest not automatically rebalance to an equilibrium.  A tariff simply reduces the value of an equivalent amount of labor. But if we just reduced the value of labor can't we fix that by just increasing the price of labor (minimum wage). Of course not. The left just constantly thinks increasing government interventions is the way to go.

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