Tag Archives: government

Government Ownership of Private Companies

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There is a move afloat that, as part of a (supposedly) temporary support measure during the current Wuhan Virus situation, the Federal government should inject money into troubled businesses by taking equity stakes—buying shares of stocks—in them.

As The Wall Street Journal pointed out, that’s a bad idea, and it illustrated the dangers by describing the failure of Japan’s moves in this regard.

As it happens, we have a domestic example of the dangers of governments buying private company stocks: CALPERS. That huge (State) government pension fund has, for all the best reasons, invested in a broad range of American companies, and it has invested in some of them heavily.

Like all significant owners, CALPERS is using the influences of its stakes to push those companies to act on its imperatives. Unfortunately, CALPERS’ imperatives are government imperatives, and these are not necessarily sound business imperatives.

The Federal government doesn’t need to expand that negative risk.

An Illustration

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A businessman in the People’s Republic of China, Ren Zhiqiang—who also is a member of the Communist Party of China—has been for some time an outspoken critic of PRC President Xi Jinping’s handling of the nation’s COVID-19 epidemic, a mishandling that allowed an early infection to blow out of control within the PRC and to become a global pandemic.

Outspoken critic: among other things, Ren wrote a widely disseminated essay that took issue with a 23 Feb speech by Xi. He wrote of a

“crisis of governance” within China’s Communist Party and blamed restrictions on freedom of speech and the press for slowing down the response to combat the novel coronavirus, thereby worsening the outbreak.

And

…after analyzing the President’s [Xi’s] speech he “saw not an emperor standing there exhibiting his ‘new clothes,’ but a clown stripped naked who insisted on continuing being emperor[.]”

Then Ren posted on Weibo

When does the people’s government turn into the party’s government? … Don’t waste taxpayers’ money on things that do not provide them with services.

Then his post was deleted, his Weibo account blocked. Ren also has been put on “probation” from the CPC.

And now he’s gone missing, making his point beautifully.

Close

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…but no cigar.  Senator Mike Lee (R, UT) has some thoughts on fixing the  Foreign Intelligence Surveillance Act and its secret FISA Court.  He’s on the right track, but his ideas fall short.

Lee wants to fix the FISA Court and tighten the parameters under which it operates. This Star Chamber cannot be fixed; it must be disbanded and the sections creating and empowering it must be rescinded from the FISA altogether.

There remains a need to guard against and to respond to espionage and interference efforts, and there remains a need for that response to involve investigations of American citizens who might be involved in those foreign assaults.  There remains a need to keep many of our responses and investigations secret—for a time—so as not to tip off the targets of our investigations, whether they’re foreign or American.

Counterbalancing that is the even more crucial need to protect Americans’ individual liberties, including those being investigated.  Especially the latter need protection; they’ve not been shown to have done anything wrong, but public suspicions would ruin the reputations of those actually innocent.

Our present Article III courts already are well-versed in handling secret warrants where necessary for domestic criminal investigations and for sealing records until it’s useful to release them or after sufficient time has passed that their release will not harm an ongoing investigation.  FISA warrants can be handled here.

Many of Lee’s other ideas, with some adjustments, will work just fine in a sealed Article III court.

He wants to expand the role of an amicus in FISA warrant applications beyond warrants involving a novel or significant interpretation of law.

amicus should advocate for the privacy and civil liberties of the person targeted.

The role needs to be expanded further. This new amicus should overtly act as Devil’s advocate and seek to expose weaknesses in the warrant application with a view to getting the application denied. The target legitimately cannot be present, yet in most domestic criminal cases, the target has opportunities to contest the warrant, even if only after the fact.  Such a contest needs to be present with FISA warrants, as well.

Lee wants relevant agencies to be required to provide all information in their possession as part of the application, including any exculpatory evidence. The FBI Director and the Attorney General should be required to certify that this has been done, and there needs to be heavy sanctions applied to the agents, the Director and the AG if this requirement has been found, after the warrant’s submittal, to have gone unsatisfied. It’s almost never enough merely to punish the workers directly responsible; too often they acted improperly because they were actively allowed to or because they were permitted to by too lax supervision.

It’s critical that we take these kinds of measures in response to the failures of and abuses from the present FISA setup so that this sort of violation of United States citizens never happen again.

Campaigning Against a Burgeoning Economy

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In an op-ed in Thursday’s Wall Street Journal, Alan Blinder outlined several lines of attack that Progressive-Democratic Party Presidential candidates could campaign against our present burgeoning economy (the stock market dislocation notwithstanding, as even Blinder acknowledges is irrelevant).

Here is just one of Blinder’s several…misconceptions:

[S]he [Judy Shelton] argued in these pages last September that the Fed should “pursue a more coordinated relationship with both Congress and the president.” Oh my.

Well, of course the Federal Reserve Bank, the Congress, and the President should coordinate so as to not be working at cross purposes. Coordination in no way puts the Fed’s independence at risk.

Beyond that, no President is capable of threatening the Fed’s independence. That independence is statutorily mandated, it’s not a creation of any Executive Order.

Oh my, indeed.

Read the whole piece, at the link, to see the rest of Blinder’s foolishnesses.

A Cynical Attitude About Health and Health Coverage

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California demurs from the Trump administration’s position that the State’s mandate to insurers that they must cover abortion violates Federal law.  The administration has said it will withhold Federal funding from the State if it doesn’t correct its insurer demand.

The objection to the Trump administration position offered by California’s Attorney General Xavier Becerra, though, is especially disingenuous.

The Trump Administration’s threats not only put women’s health on the line, but illegally threaten crucial public health funding that Californians rely on.

For one thing, if the good citizens of California rely on crucial public health funding, then California should provide it. The citizens of the other States of our nation should not be held accountable for the California government’s spending and revenue decisions.

The larger thing, though is Becerra’s women’s health grandstand. Abortion has much, much more to do with the baby’s health than it has with the mother’s health. While pregnancy can threaten a woman’s health, these are extremely rare cases, and they should be handled on the rare case by case basis in which they exist. Funding for and insurance coverage of these few exceptions can be handled in other guises than funding abortions with Federal dollars.