Tag Archives: markets

Based on What Law?

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Federal District Judge Robert Lasnik of the Western District of Washington has blocked, temporarily, the online distribution of blueprints for printing 3-D guns.  Lasnik’s temporary restraining order is subsequent to a settlement reached between Defense Distributed and State (which previously had blocked the posting of the plans) that functionally set aside State’s security objections to the posting.  The State of Washington, et al., then sued to reinstate the prior block.

In decrying the settlement that’s the subject of his TRO, Lasik wrote

the parties reached a tentative settlement agreement which, as described in the first paragraph of this order, will allow Defense Distributed to place downloadable CAD files for automated weapons printing on its website. No findings of fact or other statements are provided in the agreement that could explain the federal government’s dramatic change of position or that alter its prior analysis regarding the likely impacts of publication on the United States’ national security interests.

And

The proliferation of these firearms will have many of the negative impacts on a state level that the federal government once feared on the international stage….

Regardless of the merits of these concerns, though, they are political concerns, not judicial ones.  Lasik was wrong to intrude himself into the matter rather than referring it to the political arms of our government.

Illustrating the irrationality of a judge intruding into inherently political matters, Lasnik also wrote [cites omitted]

Under the Arms Export Control Act (“AECA”), the President of the United States is authorized “to control the import and the export of defense articles and defense services” “[i]n furtherance of world peace and the security and foreign policy of the United States.” “Defense articles and defense services” includes all firearms up to .50 caliber and all technical data related to such firearms, including information that “is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of” the firearms.

Replicas of Hawkin muzzle-loading rifles are of .50 caliber, or less.  Would Lasnik seriously entertain blocking export or import of these, too?

On the other hand, there’s this:

Some firearms experts played down the danger of these guns, saying most 3-D printers use materials that aren’t strong enough to produce a reliable firearm.

This is irrelevant.  The technology surely will evolve, and full-up, durable and reliable weapons will become 3-D printable, and the printers involved will come down in cost.  What is relevant here is the principle of the matter: should a US citizen be able to exercise his rights under our Bill of Rights and post such plans, or not?

Lasnik’s TRO can be seen here.

Equal Outcomes

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New York has them.

A 7-yr-old in New York tried to sell lemonade from his stand last week, and he was shut down by the State’s Health Department.  He didn’t have the required business license, you see.

Up stepped Governor Andrew Cuomo (D), who offered to pony up for the boy’s license next year.  As if a child needs one.  However, as the WSJ put it regarding this Progressive-Democrat version of largesse,

will [Cuomo] pay for every child in New York caught up in illicit lemonade sales?

And

New York can’t keep the subways from breaking down, its public housing has a lead-poisoning scandal, and Mr Cuomo’s crony capitalists who received state subsidies were recently convicted of corruption. But the Health Department is crackerjack at treating a 7-year-old selling lemonade like he’s dumping waste in our drinking water.

New York: an equal opportunity failure inducer.

Paying for Health Care

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John Cochrane correctly decried the costs of health care in today’s economy, but he has the wrong solution.

Why is paying for health care such a mess in America? Why is it so hard to fix? Cross-subsidies are the original sin.

No, cross-subsidies, “sinful” as they are, are not the original sin.  The original sin is government involvement at all in the form of any sort of subsidy.  Far from the subheadline’s claim that “honest subsidies” (eliding the oxymoronic nature of that label) would encourage competition and innovation, they’d do the opposite, as all subsidies do: they’d suppress competition and innovation by giving the government-favored recipients a government-mandated advantage over their government disfavored competitors, freeing the one from competition’s pressures to innovate and reducing the other’s access to resources needed to innovate—and stifling competition’s engine, the need to innovate to stay ahead of rivals.

Are Tariffs Protectionist?

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Certainly, they can be.  And tariffs, for a long time, were intended to protect domestic industry from foreign competition as well as being a major source of income for a nation.  Our own nation was a skilled practitioner of the tariff arts for our first 125+ years and again during the Great Depression and the aftermath.

And that’s the line the Koch brothers are taking with regard to President Donald Trump’s tariff impositions.

The urge to protect ourselves from change has doomed many countries throughout history.  This protectionist mind-set has destroyed countless businesses.

That’s also the line Trump says out loud, often, when he talks about tariffs.  As the old saw goes, though, actions speak louder than words, and it’s useful also to consult the actions Trump has taken vis-à-vis tariffs.  Those actions include the following:

  • offering markedly lower tariffs on all goods and services to Mexico as part of NAFTA renegotiations
  • offering a zero-tariff regime to the G-7
  • offering a zero-tariff, zero-subsidy, zero-non-trade barrier regime to the G-20
  • agreeing in principle to a zero-auto tariff arrangement with the German auto companies, the latter which are pushing their government to push the matter with the EU
  • despite the G-7’s and G-20’s craven refusal even to discuss the matter, getting agreement with European Commission President Jean-Claude Juncker to work toward a zero-tariff, zero-subsidy, zero-non-trade barrier agreement between the EU and the US

Tariffs also are a tool of national policy and have little necessarily to do with protectionism.

Who’s Doing the Blocking?

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Yoram Hazony has a book coming out—The Virtue of Nationalism—that he wanted to advertise on Facebook.  Fat chance.  After he accepted Facebook’s Boost Post process, he got some boosted postings of his book, and then he got

Your ad was not approved because your Page has not been authorized to run ads with political content.

Never mind that the book is a history of the rise of the nation-state and a comparison of nationalism with imperialism.  Doesn’t matter.  It’s about nationalism, and so it’s political.

Hazony wrote an op-ed in Wednesday’s Wall Street Journal outlining his ultimately failed effort to get Facebook to let him promote his book on that social medium. The sub-headline on that piece summarizes the problem from Hazony’s perspective:

The robots won’t let me advertise my book on nationalism

His concern is mis-aimed, though. Hazony’s book advertising is not blocked by any Facebook algorithm (“robot”); it’s being blocked by Facebook’s management team. Facebook’s algorithms only do what they’re programmed to do. Facebook’s management team employs the programmers who program the algorithms, and those programmers are only doing what their bosses have employed them to do.

Facebook’s censorship is the direct result of instructions from Zuckerberg and his senior management team members.