CEI Podcast for April 14, 2011: Avoiding a Government Shutdown

Have a listen here.

Warren Brookes Journalism Fellow Kathryn Ciano analyzes the Continuing Resolution passed by the House today that will keep the federal government open for another 6 months. She also looks at proposals from President Obama and Rep. Paul Ryan to reduce the budget deficit over the next decade.

In Politics, Inertia Always Wins

The GOP has been bragging that its budget deal that passed the House today will save $38 billion. The CBO took a closer look, and it turns out the actual figure is $353 million, or 0.02 percent of this year’s budget deficit.

In The Daily Caller, I point out that this is one more example of the iron law of politics — inertia always wins.

TSA Gropes 8-Year Old Boy

He could have been a terrorist, you see.

TSA Gropes 6-Year Old Girl

Sometimes people wonder why I favor abolishing the TSA outright and putting airlines in charge of their own security. One reason is incentives. If airlines don’t keep people safe, they go out of business. That’s a powerful incentive to have high standards.

The TSA’s incentives aren’t geared towards performance — and it shows. Instead, its incentives are geared toward growing its budget and expanding its mission.

That’s the primary intellectual argument. But some reasons for getting rid of the TSA are more visceral. This video of a TSA agent groping a 6-year old girl shows one of them.

Individualism Doesn’t Mean Isolationism

Don Boudreaux hits a home run.

Should Banks be Tax Collectors?

Dan Mitchell thinks they shouldn’t. I agree.

Much Ado about Nothing: Budget Cut Edition

Democrats want the federal budget to be about  $3,730,000,000,000. Republicans want it to be about $3,630,000,000,000. As with many other issues, the difference between the two parties is less than three percent. Even so, it nearly led to a federal government shutdown.

The deal that the two parties recently struck to avoid a government shutdown meets somewhere in the between. It is advertised as cutting $38.5 billion of spending. But on closer inspection, it would actually cut $14.7 billion. That would cut total federal spending by 0.39 percent.

I have a hunch that even those small cuts may not actually happen. This blog post I wrote in 2005 explains why.

The rules of the game in Washington are severely stacked in favor of spending increases. Presidents Bush and Obama grew the federal government by about 100 percent in only a decade with little political pain. And it apparently takes the specter of a government shutdown to reduce spending by 0.39 percent.

If anyone is looking for a reason for fundamental institutional reform, that would be a big one.

The Environmental-Industrial Complex

Sometimes the green part of green regulations isn’t the environment. It’s money.

Economics says that people act according to their incentives. Public choice theorists say that politicians and regulators also act according to their incentives — just like the rest of us. Those incentives include maximizing agency budgets and winning elections.

This short video from Reason.tv shows public choice theory in action:

Should Helicopter Parents Stop Hovering over Their Kids?

Helicopter parents — constantly hovering over their children — have their heart in the right place. But that style of parenting has always struck me as… unnecessary.

My former professor Bryan Caplan agrees. He has a new book out that’s based on his research on identical twins. As it turns out, a lot of how kids will turn out as adults is based on nature, not nurture. The implication: parents can ease up on the high-maintenance parenting style that is so fashionable today.

In The Wall Street Journal, Caplan writes, “With a few exceptions, the effect of parenting on adult outcomes ranges from small to zero.”

He continues:

Once I became a dad, I noticed that parents around me had a different take on the power of nurture. I saw them turning parenthood into a chore—shuttling their kids to activities even the kids didn’t enjoy, forbidding television, desperately trying to make their babies eat another spoonful of vegetables. Parents’ main rationale is that their effort is an investment in their children’s future; they’re sacrificing now to turn their kids into healthy, smart, successful, well-adjusted adults.  But according to decades of twin research, their rationale is just, well, wrong.

Caplan also uses the law of demand to encourage people to have more kids. One reason people have fewer kids than they used to is because they make parenting very costly for themselves than previous generations did.

By easing up a bit, parenting becomes much cheaper in terms of time, effort, and stress. And when something becomes cheaper, people tend to buy more of it. Or, in this case, Caplan says they should at least give it serious thought.

I’ll have to read the book before I can call myself convinced or not. But Caplan’s thesis that parenting doesn’t have to be a chore makes some intuitive sense. And while fatherhood is probably a few years away for this blogger, It does make the prospect of parenthood seem a little less daunting.

CEI Podcast for April 5, 2011: Reforming the Railway Labor Act

Have a listen here.

Russ Brown, a vice president at the Labor Relations Institute and a CEI Adjunct Analyst, talks about recent changes made to the Railway Labor Act that make it easier for airline workers to unionize. Brown recently co-authored a CEI OnPoint paper on the reforms. Congress voted against the changes in legislation, so they were passed via regulation instead. This is another example of regulation without representation.