Tag Archives: government

There is Hope

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Yesterday, the US Court of Appeals for the District of Columbia (the court of jurisdiction, for those who are interested in such things, because this is the appellate court for matters pertaining to the NLRB orders) ruled unanimously that President Barack Obama’s “recess” appointments to the National Labor Relations Board of Richard Griffin, Sharon Block, and Terence Flynn (the latter of whom resigned from the NLRB shortly after) were “constitutionally invalid” because the Senate was not in recess at the time of the appointments.

Writing for the court, Judge David Sentelle had this to say, according to Bloomberg at the above link:

Considering the text, history and structure of the Constitution, these appointments were invalid from their inception[.]

The court expanded on that point in equally clear terms:

…the inescapable conclusion that the Framers intended something specific by the term “the Recess,” and that it was something different than a generic break in proceedings [an adjournment].

…

The natural interpretation of the [Recess Appointments] Clause is that the Constitution is noting a difference between “the Recess” and the “Session.”  Either the Senate is in session, or it is in the recess.  If it has broken for three days within an ongoing session, it is not in “the Recess.”

The court noted further that the Senate was in session at the time of these…appointments.

…the President made his three appointments to the Board on January 4, 2012, after Congress began a new session on January 3 and while that new session continued.

This also has implications for Richard Cordray and the Consumer Financial Protection Bureau he was “appointed” to chair, since he was put up in that same now known to be illegal batch of “appointments” as those NLRB folks.  The thousands of pages of regulations that board has already written now are of only questionable validity; although the question here isn’t so cut and dried: the CFPB had a quorum, and the matter here is the necessity of a formally seated chairman.  It also lends color to his nomination, for the current Senate’s consideration, to that same post.

Apparently, though, there are limits to Obama’s fiat governance.

An Out of Control CFPB?

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But we knew that would be the case with a budget funded by on-demand calls to the Treasury and a deliberate lack of Congressional oversight.  Here are three examples, from Skadden Arps, the “second best global law firm,” according to Spirit of Enterprise.  In each case, the Consumer Financial Protection Bureau imposed enforcement orders that charged both restitution payments and civil penalties for the miscreancies that wanted restitution.  Those miscreancies generally centered on “deceptive marketing and sales practices” and “deceptive debt collection practices.”

Capital One: Required to pay $140 million in restitution and a $25 million civil penalty.  The penalty was nearly 18% of the restitution.

Discover Bank: Required to pay $200 million in restitution and a $14 million civil penalty.  The penalty was 7% of the restitution.

American Express: Required to pay $85 million in restitution and a $27.5 million civil penalty.  The penalty was 32% of the restitution.

Assuming the restitution amounts are reasonable assessments of the severity of the banks’ misbehaviors, those civil penalties seem to bear no relation at all to the…crimes.  They seem, in fact, to be capricious and out of control—just a grabbing of what an unaccountable bureaucrat felt like taking.

Skadden’s complete report (it’s long and wide-ranging) can be seen here.

Progressive Policies and the Poor

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Thomas Sowell, writing in the National Review, had some thoughts on the impact of modern Liberalism on the welfare of blacks in the US.  I think they apply to all minorities, to whites, to our poor generally.

Severe restrictions on building housing in San Francisco have driven rents and home prices so high that blacks and other people with low or moderate incomes have been driven out of the city. The same thing has happened in a number of other California communities dominated by liberals.

And

Liberals try to show their concern for the poor by raising the minimum wage.  Yet they show no interest in hard evidence that minimum-wage laws create disastrous levels of unemployment….

And

The black family survived centuries of slavery and generations of Jim Crow, but it has disintegrated in the wake of the liberals’ expansion of the welfare state.  Most black children grew up in homes with two parents during all that time, but most grow up with only one parent today.

And

Liberals have pushed affirmative action, supposedly for the benefit of blacks and other minorities.  But two recent factual studies show that affirmative action in college admissions has led to black students with every qualification for success being artificially turned into failures by being mismatched with colleges for the sake of racial body count.

Sowell summarizes the matter starkly:

In all these cases, and many others, liberals take positions that make them look good and feel good—and show very little interest in the actual consequences for others, even when liberal policies are leaving havoc in their wake.

The party of Jim Crow may be attempting to correct its past.  It is, in fact, failing miserably.  Modern Liberals give so little thought to the 50 years of empirical evidence defining the consequences of their actions that I have to conclude that they’re well aware of those consequences.  One of those consequences, flowing from the poverty enforced maintained by their actions, is the continued dependency of our poor on the largesse of the Modern Liberals in government.

That’s not just petty ego stroke, that’s political power.

Freedom and Liberal Big Government

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Joel Mathis, in has some thoughts on the wonders of the Nanny State.

Why I’m a liberal? I believe you can have freedom and care about reducing income inequality.  I believe you can have liberty and smaller soda sizes.  I believe you can throw off tyranny and still have a smarter health care system that delivers care to more people.  I’m a liberal because even though conservatives and libertarians can sometimes come up with good ideas to address these problems, mostly you sense they’d rather not be bothered.  Which leaves good old-fashioned Big Government as the most likely option to actually fix stuff.

Nannies don’t imprison you, after all, and they never did.  Their job is to help you stand on your own.

Setting aside Mathis’ slur that our disagreement with him means we can’t be bothered, the problem of Nanny-ism has been recognized for some time.  Lionel Trilling suggested in his 1950 book, The Liberal Imagination, that liberalism itself had become stuck in its ways and had lost its ability to think freely.  He expanded on this years later, observing

this dull, repressive tendency of opinion which was coming to dominate the old ethos of liberal enlightenment [, and that liberal thought was losing its place as] a political position which affirmed the value of individual existence in all its variousness, complexity, and difficulty.

Exactly the sort of stultifying loss of flexibility and creativity—freedom of thought and of action—that liberals’ cumulative Big Government impositions (fall or a good cause, though) have on the freedom of all of us.

As Stephen Hayward noted at Power  Line,

[A]m I really less of a free person if I can’t buy a 32-oz soda?  Or [can’t] get a plastic bag in my local store?   In isolation, not really.  But what about when I can’t buy a 32-oz soda, can’t burn a fire in my home’s fireplace (now an air quality regulation in many places), can’t build a spiral staircase from my back deck (as I learn this morning from the San Luis Obispo County planning department), can’t own a gun (New York, Chicago), can’t get plastic bags at the store any more (even though I not only recycle them but reuse them for many of my own purposes), can’t patronize Ubercars because the incumbent taxicab monopoly gets the city council to block the new business in the name of “consumer protection” (naturally), or can’t start a small business except with great difficulty and dead-weight expense to the local bureaucracies?  And on the other side of the ledger, large bureaucratic interventions like Obamacare…stifle marketplace discovery and adaptation….

After a while, you’re not “standing on your own” any more.  The nanny hasn’t put you in prison, but it has changed a lot of things in a significant way.

Big Government, by insisting on making these decisions for ordinary citizens, by relieving men of their own responsibilities and freedom of action—including the freedom to be wrong (at least as liberals like Mathis define “wrong”)—reduces them to dependents on government for their welfare.  Even their Happiness (contra John Adams and the rest of our 18th Century Liberal forebears) is determined by Big Government.

No, Nannies don’t imprison us, at least not by putting us behind bars.  Instead, they imprison us by circumscribing our freedom of thought, our ability to rely on ourselves rather than on those Nannies.  They help us, permanently, to stand so that we never learn to not need their help.

In the end, dependents aren’t “unfree.”  They cannot be, as they have no conception of what it is to be free.

Middle Class, Luck, and American Power

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George Friedman, writing for Stratfor (he’s also their Founder and CEO), has an article out concerning the American middle class and American global power.  The whole article is well worth reading, but for now, the relevant remark comes near the end:

It would seem to me that unless the United States gets lucky again, its global dominance is in jeopardy.  Considering its history, the United States can expect to get lucky again….

The luck to which Friedman refers concerns some fortuitous unintended consequences, and he offers three examples:

The GI Bill was designed to limit unemployment among returning serviceman; it inadvertently created a professional class of college graduates. The VA loan was designed to stimulate the construction industry; it created the basis for suburban home ownership. The Interstate Highway System was meant to move troops rapidly in the event of war; it created a new pattern of land use that was suburbia.

The threat to our status as a global power—and by extension to our freedom of action as a nation—stems from a generation of the failure of a long-standing belief in American culture—the faith in the availability of economic upward mobility.  For instance, median household income in 2011 was $49,000, just below the level in 1989 in real terms; it seems that upward mobility has stagnated.

Luck matters, but to a very large extent, we make our own luck.

Underlying this making is individual responsibility, individual initiative, and individual risk-taking.  In all of our past booms, including those in which fortune played a role through those unintended consequences, the freedom to exercise those individual characteristics was both broadly present and not very much circumscribed by government intervention.

Here’s a present example of the role played by fortune, this time negatively: those individual characteristics, and parallel ones in business, are severely circumscribed by government regulation in all aspects of our lives.  We’re restricted in what we’re permitted or required to buy or to throw away (see Obamacare and CFL bulbs), in the decisions businesses are permitted to make in their own interests rather than government’s (see Obamacare and Dodd-Frank with its CFPB abomination), in what businesses are permitted to release as by-products of production or sales.

Our ability to make our own luck, today, is severely limited by government.  Fortuitous unintended consequences are a lot less likely in an environment of rapidly increasing government control over the economic environment which underlies the making of that luck.

There’s another factor at play, too: those government restrictions also have the unintended consequence of restricting upward mobility.  The poor become trapped in their stratum and cannot move up into the middle class due to those restrictions’ effect on job creation and hiring.  This not only works to the detriment of those poor, it shrivels the remaining middle class.