Monthly Archives: August 2009

All Community Organizing Is Astroturfing – And That’s Fine!

Democratic members of Congress have held numerous town hall meetings recently to promote the president’s health care plan. They have faced unbridled hostility, to the surprise of many.

The response: attack the people making the hostile arguments, not the arguments themselves.

True, the whole phenomenon does seem vaguely dodgy. Who goes to town hall meetings for fun? Of course the people crashing the events have an agenda. That’s the point!

The weird part is that people use different words to describe the same political tactic, depending on which team’s partisans are behind the disruptions. If one team does it, it’s called “community organizing.” If the other team does it, it’s called “astroturfing.”

Again, it matters less which side is doing what, than whether the arguments they’re making are right or wrong. That is what’s important. The government is currently in charge of a bit more than half of all health care spending. Astroturfers say this is too much; community organizers say this is too little. The debate should hinge on which of the two has the better arguments.

The fact that members of Congress extolling the president’s plan are attacking astroturfers while leaving their arguments alone seems to say that the Congressmen believe their own arguments to be weak. Why else the need to go personal?

Regulation of the Day 29: Protecting Us from Cheap Foreign Goods

Sometimes (but not always), when a foreign producer sells goods to U.S. consumers cheaply, the U.S. government takes action to put a stop to it. Trade economists call this antidumping policy. This usually means putting tariffs on cheap goods to raise their prices. These tariffs protect consumers because competitive pricing is anti-competitive.

And no, I don’t get that logic either.

Regardless, the International Trade Agency announced this week that it is updating its antidumping rules for the following foreign products:

Certain Pasta from Italy, Certain Hot-Rolled Carbon Steel Flat Products from Thailand, Fresh and Chilled Atlantic Salmon from Norway, Purified Carboxymethylcellulose from Mexico, Stainless Steel Sheet and Strip in Coils from Taiwan, Welded ASTM A–312 Stainless Steel Pipe from the Republic of Korea, Narrow Woven Ribbons with Woven Selvedge from the People’s Republic of China and Taiwan, Stainless Steel Sheet and Strip in Coils from Japan, Carbazole Violet Pigment 23 from the People’s Republic of China, Stainless Steel Sheet and Strip in Coils from Mexico, and finally, Polyethylene Terephthalate Film, Sheet, and Strip from India.

More to come, I’m sure.

Out Come the Crazies

“When I see those who espouse my cause, I begin to wonder about the validity of my position.”

-Joseph Schumpeter, in Thomas K. McCraw, Prophet of Innovation: Joseph schumpeter and Creative Destruction, p. 221.

Funny, but true. I feel much the same way every time I attend an event with a high “wacko” factor. I have to remind myself that every political movement, not just mine,  contains some people who do nothing but make it look bad.

One’s opinions are best based on data and logic, and not on who else shares that opinion.

Inconvenient Evidence Suppressed in EU-Intel Antitrust Case

The antitrust laws currently on the books are so vague, judges and regulators have essentially had to make up their own policies. In other words, they can pretty much do whatever they want.

Look what just happened in Europe. The EU’s ombudsman recently discovered that the EU’s antitrust regulators intentionally suppressed “potentially exculpatory” evidence in their case against Intel.

That case, remember, resulted in a €1,000,000,000 fine against Intel. Unfortunately, the ombudsman’s finding will not affect the case’s outcome. That’s a nice of way of saying the prosecutor lied and got away with it.

One more example of why antitrust regulations result in the rule of men, not the rule of law.

Timothy Lee’s New Blog

Friend and former colleague Tim Lee has a new blog. It’s called Bottom Up. Worth reading. Tim writes on tech policy for the Cato Institute and a number of blogs. He’s also pursuing a degree in computer science from Princeton. Not only does he know his stuff, he’s a good writer, too — a rare combo within the policy wonk set.

(Hat tip: Jacob Grier)

Regulation of the Day 28: Urine Trouble Now

Want to work for the federal government? You’ll have to comply with the approximately 32,463 words worth of regulations in the Mandatory Guidelines for Federal Workplace Drug Testing Programs.

A list of certified testing laboratories can be found on pages 39,078-39-080 of the 2009 Federal Register.

Reporting the Hidden Costs of Stimulus

CNNMoney.com ran a story today about some of the jobs saved or created by the stimulus package. “A civil engineer, Sara Kelley owes her job to President Obama’s $787 billion stimulus package,” it begins. Five other short vignettes follow, each with a name and a face that we can see and identify with. All six are thankful to the stimulus for helping them get through these troubled times.

All of these people clearly benefited from the stimulus package. But where did their free money come from? To help these fortunate people, others had to be hurt. Where are the stories about them?

When will we see a story about a company that was unable to raise job-creating capital because government bonds necessitated by stimulus debt ate up precious investor dollars? When will we see a story about a job that was never created because the government decided to take that money and use it on Sara Kelley’s civil engineering job?

The media is great about reporting on what is seen – Sara Kelley and the others. The media is not so good at reporting on what is not seen – opportunities taken away by the stimulus; opportunities that never came to be because the money they required was instead spent on Joab Gonzalez’s youth training program.

This does present some difficulties. You can’t put a name and a face on a company that was never founded, or a worker who was never hired. Just try and write about something that never happened. It’s hard.

Maybe it is asking too much of our reporters to see the unseen. But we live in a complicated world, and not all of it is visible. To report on that world as it actually is requires an understanding of sometimes-difficult economic concepts such as opportunity costs.

Economic journalists who don’t know basic economics too often write stories that are at best incomplete, and at worst misleading. Reporting only on what is seen leads to the impression that fiscal stimulus is a free lunch; seeing the unseen reminds us that there is no such thing.

Microsoft, Yahoo, and Antitrust

Over at the Washington Examiner, I make the case for why trustbusters should lay off the Microsoft-Yahoo search engine partnership. My key point:

“If regulations are to be effective, they must be either clear or silent; antitrust statutes are neither. That alone is reason enough to urge trustbusters to back off the Microsoft-Yahoo partnership, and just let the competitors compete. Consumers should pick the winner, not politicians.”

Regulation of the Day 27: Beekeeping in South Dakota

Beekeeping in South Dakota is illegal without a license.

Regulation of the Day 26: Fortune Telling in Maryland

You need a license to tell fortunes in Annapolis, Maryland. You can apply for one by clicking here.

(Hat tip to Damon W. Root.)