The thirteenth in an occasional series that shines a bit of light on the regulatory state.
Today’s Regulation of the Day comes to us from Rep. Dan Lipinski (D-IL, 3rd term).
Rep. Lipinski has introduced the Securing Cabin Baggage Act, which would set a maximum size for carry-on bags.
In today’s American Spectator Online, I explain why the bill wouldn’t add to security, wouldn’t make flying more convenient, and may well be the result of rent-seeking.
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Posted in Economics, Nanny State, Public Choice, Publications, Regulation of the Day
In today’s American Spectator Online, I look at a bill to regulate the size of carry-on luggage. My take: the bill doesn’t add to security, doesn’t add to convenience, and may well be the result of rent-seeking.
Read the article here.
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Posted in Economics, Public Choice
The twelfth in an occasional series that shines a bit of light on the regulatory state.
Today’s Regulation of the Day comes to us from the International Trade Administration ($420 million 2009 budget, 1,433 employees).
The ITA has been upset for some time that a Thai shrimp exporter is selling shrimp cheaply; hungry consumers have had no complaints.
Using sophisticated formulae, the Department of Commerce has determined that the minimum allowable profit margin for shrimp exporters is 1.88 percent. Anything less than that constitutes “dumping,” which is selling goods on the cheap in order to harm your competitors. Anti-dumping regulations are in place to make sure that companies don’t save their customers too much money.
This kerfuffle is a perfect example of how regulators view prices and profits. If you charge more than your competitors, then you are abusing your market power. If you charge the same as everyone else, that is evidence of collusion. If, like our Thai friends, you charge low prices, then you are unfairly undercutting the competition.
Whatever you charge, and whatever your profit margin, there is a rationale for regulating you.
Read more on pages 31,911-31-912 of the 2009 Federal Register.
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Posted in Economics, International, regulation, Regulation of the Day, Trade
Some politicians in North Carolina want Amazon.com to collect and pay North Carolina state sales taxes.
This is troubling. In our federal system, states can only tax entities within their borders. And Amazon’s Washington state headquarters are three time zones away from the Raleigh, NC, statehouse. What gives?
The logic goes that Amazon works with affiliates to advertise and link to products it sells. Some of these affiliates are in North Carolina. Therefore, Amazon has a physical presence in North Carolina, and can be taxed. QED.
The problem is that affiliates are not owned by Amazon. They are independent entities. Amazon pays them to drive traffic to Amazon and get people to shop there. Affiliates are basically outside contractors.
The taxation-by-affiliate argument is really no different than making a Hawaii resdent pay North Carolina income tax simply because they do business with someone who lives in North Carolina.
This comes at a time when the economy is in recession, businesses are struggling, and workers are losing their jobs. Economists have known for a long time that when you tax something, you get less of it. Apparently politicians in North Carolina want less commerce.
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Posted in Economics, Taxation, Technology
I’m a big fan of Russ Roberts’ approach to economics: Be clear, avoid jargon, be skeptical but not cynical, and be aware of your own biases. Question your own beliefs, not just those you disagree with.
In a short interview with the Finance Buff, Russ talks about another part of his approach: empirical economic research is overrated: “I see [economics] more as a way of thinking, a language, a philosophy for approaching the world.”
This is not a case for rejecting empirical research outright. It is a case for knowing that it has its limits. Regression analyses are good at establishing magnitudes of effect. But they are not to be taken literally. More economists would do well to learn that lesson.
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Posted in Economics
I’ll be on Seattle public radio’s “The Conversation” today at 3:35 EST. I’ll talking about buying local and the fast-growing 3/50 Project.
If you’re in Seattle, tune in to KUOW 94.9 FM. You can also listen online here.
I’ve written before about buying local here.
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Posted in Economics, Media Appearances
Wayne Crews and I are in this morning’s Washington Examiner touting a deregulatory stimulus package.
For a fuller treatment of the ideas, see Wayne’s 10,000 Commandments study.
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Posted in Economics, Publications, Stimulus
This is the first installment of an occasional series that shines a little light on what the regulatory state is up to.
Today’s Regulation of the Day comes to us from the Agricultural Marketing Service (5,500 employees, $1.3 billion 2008 budget). Farmers are apparently unique among businesses in being unable to promote themselves, and therefore need help from the federal government.
Page 26,984 of the 2009 Federal Register contains a proposed rule titled “Amendments to Mushroom Promotion, Research, and Consumer Information Order and Referendum Order.”
Basically, large mushroom producers will vote in a referendum to decide if they like proposed changes in federal mushroom policy. Also at issue is membership apportionment on the all-important Mushroom Council.
Comments Off on Regulation of the Day 1: Taxpayer-Funded Advertising for Mushrooms
Posted in Public Choice, Regulation of the Day
Wayne Crews and I have a piece in today’s Detroit News with some ideas for getting the economy back on track.
The key line: “Doing business in America is becoming very expensive. No wonder there is less of it.”
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Posted in Economics, Publications, regulation, Stimulus
President Obama has just announced the creation of a new “cyber czar.” During his remarks, he noted that “cyber crime has cost Americans more than $8 billion.”
He continued, “My presidency has so far cost Americans more than $4 trillion.”
Just kidding about that last part. Kind of.
(Cross-posted at Open Market)
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Posted in Economics, regulation, Spending, Technology
Inertia Wins! 