Monthly Archives: July 2012

Milton Friedman Turns 100


If he were still alive, Milton Friedman would be celebrating his 100th birthday today. I saw him speak a couple times, and even met him once. I was fresh out of college and reading Capitalism and Freedom at the time. He and his wife and co-author Rose were kind enough to sign my copy.

Friedman earned a reputation as a demanding professor, and he deserved it. But he and Rose were both very kind in person. Despite the vast gulf between their accomplishments and mine, they listened carefully to what I had to say and took me seriously. And it was clear they weren’t just doing it to be nice. That’s just how they were. They treated everyone that way.

That basic kindness animated the Friedmans’ political philosophy, as well as how they argued for it. Their critics who haven’t bothered with the ideological Turing test argue that the Friedmans were stooges of the rhetorical one percent; it was actually the bottom one percent that was their main concern.

Even a quick look at the data show that where economies are relatively free, the people are rich. The further a country moves away from free markets, the poorer its people tend to be. When the empirical data are that overwhelming, advocates for the global poor have no choice but to argue for economic and political freedom. It was for them that the Friedmans argued for economic and political freedom, and against the draft and drug prohibition.

In the two-minute clip from an interview with Phil Donahue below (click here if the embed doesn’t work), Friedman makes that point clearly and eloquently. But note that he also does it with a smile, and with humor. Milton Friedman’s ideological friends and foes alike have much to learn from his substance as well as his style. It’s a shame he’s not around to teach us in person, but he left behind an extensive body of work that, for a second-best option, will do quite nicely.

Regulation of the Day 225: Boobie Pillows

Kern County, California’s government takes morality very seriously. Chapter 9.12.010 of the County Code states that “No vendor shall vend stuffed articles depicting the female breasts (sold as “boobie pillows”) within one thousand (1,000) feet of any county highway.” The punishment for each offense is a fine of up to $500 and/or up to 90 days in jail. Worse, “Each day of violation shall constitute a separate offense.”

The purpose of the boobie pillow ban, according to the Finding of Fact Leading to Enactment that accompanies the text, is to prevent children on their way to church from seeing such adult-themed merchandise.

Strangely, boobie pillows are the only adult-themed merchandise subject to the ban. So, according to the law, purveyors of smut can still set up shop almost anywhere they please. They just can’t sell “stuffed articles depicting the female breasts.”

In other news, Kern County is currently running a budget deficit in the $25-30 million range. If the county liberalized its strict boobie pillow policy, it could increase its sales tax revenue and tame its deficit.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  86 new final rules were published last week, up from 81 the previous week.
  • That’s the equivalent of a new regulation precisely every hour and 53 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,213 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,875 new rules.
  • 1,549 new pages were added to the 2012 Federal Register last week, for a total of 42,879 pages.
  • At its current pace, the 2012 Federal Register will run 76,600 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rules were published last week.
  • So far, 235 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 421 final rules affect small business. 60 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

Salvaging a Lost Season

It’s been a bad year for my poor Brewers. A rash of early injuries, many of them season-ending, contributed to a weak start. The bullpen isn’t nearly as successful as it was last year, and neither is the run production. The result is a 45-54 record coming into tonight’s game against the Washington Nationals. They trail first-place Cincinnati by 14 games.

It’s that time of year to trade away some players to contending teams in exchange for young prospects who could help next year and beyond. So star pitcher Zack Greinke is now an Angel, and catcher George Kottaras is now an Oakland Athletic. Aramis Ramirez and Corey Hart’s names have shown up in rumors, as has reliever Francisco Rodriguez.

This season’s playoff hopes are gone. But Brewer fans can still have some fun. According to my back-of-the-envelope calculations, Milwaukee’s magic number is to win their division is currently 78. If the total of Brewer wins and Red losses adds up to 78, the Brewers will repeat as division champs.

Of course, there are only 63 games left. That’s why I like to set secondary goals around this time of year, such as finishing with a better record than the Chicago Cubs. They’re 4 games behind the Brewers right now, which bodes well. That magic number is 60.

This blog will be keeping an eye on that number as it dwindles, along with the hopes and dreams of Cub fans everywhere.

Politics in a Nutshell

Peter Boettke describes Gordon Tullock’s public choice approach on p. 134 of his new book, Living Economics:

Politics is about concentrating benefits on well-organized and well-informed interest groups, and dispersing costs on the unorganized and ill-informed masses.

That’s precisely why non-political solutions to social problems are desirable wherever possible. When the universal human impulses of self-interest, rationality, and maximizing utility find themselves in an institutional environment like Congress or City Hall, corruption and special privilege are the results almost every time.

Markets respect no special interest. This is why failing companies swarm to Washington; government exists to cater to them.

CEI Podcast for July 24, 2012: Unfunded Mandate Reform


Have a listen here.

Unfunded mandates are a way for Congress to increase government’s size and scope without increasing the deficit. Of course, this just means that state governments and the private sector are footing the bill instead. Research Associate David Deerson explains why past efforts to rein in unfunded mandates failed, and why new legislation that Congress is set to vote on this week could help.

Time to Reform Unfunded Mandates

When deficits are high, Congress has even more incentive than usual to indulge in unfunded mandates. That way it can deliver the spending programs and other government goodies that voters like, and without adding to the deficit. Of course, this is because states and the private sector bear the burden instead.

Congress passed an Unfunded Mandate Reform Act back in 1995, but it is mostly toothless, and needs to be strengthened. Fortunately, help may be on the way, as Wayne Crews and I explain in today’s Washington Times:

During the last week of July and just before August recess, the House is likely to vote on H.R. 4078, a package of reforms called the Regulatory Freeze for Jobs Act of 2012.

Title IV of the package is H.R. 373, the Unfunded Mandates Information and Transparency Act of 2011, a bipartisan bill long championed by Rep. Virginia Foxx, North Carolina Republican. It would close some of UMRA’s loopholes. The biggest fix is that it would force independent agencies to comply with UMRA.

Another reform is that the Office of Management and Budget would no longer review the rules. That task would move to OMB’s Office of Information and Regulatory Affairs, which specializes, albeit imperfectly, in cost estimates. That office likely is better suited to the job, given a long history of being tasked with regulatory review responsibility, but it doesn’t have much veto power.

Read the whole piece here. Our colleague David Deerson has also blogged about unfunded mandate reform here and here.

 

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  81 new final rules were published last week, down from 84 the previous week.
  • That’s the equivalent of a new regulation precisely every 2 hours and 4 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,127 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,854 new rules.
  • 1,283 new pages were added to the 2012 Federal Register last week, for a total of 42,879 pages.
  • At its current pace, the 2012 Federal Register will run 75,570 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rules were published last week.
  • So far, 224 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 402 final rules affect small businesses. 59 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

CEI Podcast for July 19, 2012: Congress Takes on High-Skilled Immigration Reform


Have a listen here.

Congress will soon vote on a package of reforms for holders of the H-1B visa for high-skilled immigrants. Policy Analyst David Bier unpacks the proposed reforms, and explains why allowing more high-skilled immigration would help spark economic growth, especially in the technology sector.

Don’t Let School Get in the Way of Your Education

So says Bryan Caplan: “I love education too much to respect the mediocre substitutes that schools actually offer.”