A Large Misunderstanding

A Wall Street Journal article about Breitbart writer and speaker Milo Yiannopoulos and his impact on college campus views of free speech opened with a widespread misunderstanding.

The tour by Milo Yiannopoulos is sparking reaction from more groups than any recent speaker has on college campuses, heightening tensions between free speech and public safety.

There is no tension between free speech and public safety, though: there is no public safety without free speech.  The relationship between free speech and public safety is not only—not even primarily—concerned with people whose feelings get hurt, or people legitimately insulted, and who then act out emotionally and dangerously.  The relationship is centered on Government’s ability to control what will be spoken or done and the threat that those abilities represent to public safety.

It’s only necessary to look at the vociferous protests from the Left and from the Right against what each side saw in its time as Government overreach to see the relationship.

Again: there is no public safety without free speech.  Full stop.

Regulators Against Market Competition

Their obstruction sometimes has lethal consequences, and sometimes those consequences kill the least of the least among us: babies.

A little bit ago, in Salem, VA, a 24-weeks pregnant woman was taken to the ER suffering what turned out to be a placental abruption, a condition in which the placenta has detached from the uterus.  It’s often deadly for both the mother and the baby.  This hospital was not equipped to handle this sort of emergency, but six miles away, there was a hospital, Carilion Medical Center, that was so equipped, including an ambulance with incubators that could sustain the necessarily untimely ripped baby during transport to the other hospital.

That ambulance proved unavailable; it was on a call in the opposite direction.

They saved the mother’s life.

The baby didn’t make it.

The hospital to which the pregnant mother had been taken—the closest one to her—had been denied a permit for its own “high-tech neonatal care facilities:” the government of Virginia had decided that the facilities were not necessary.  The government of Virginia had made a business regulatory decision instead of letting the hospital business make its own decision, and that decision contributed to the death of this baby.

Virginia has a Certificate of Public Need (COPN) law requiring hospitals and other medical providers to get special permission from the state government before they are allowed to offer new services, like the specialty nursery that may have saved that child’s life…. These COPN licensing processes are supposed to balance the interests of hospitals with the needs of the public, but in reality they are fraught with politics and allow special interests to effectively veto unwanted competition.

Government balancing hospital interests against public necessity, with competing hospitals for the scales.  Because neither the hospital nor the public can be trusted to be adult enough to make their own decisions without their Know Betters “guiding” them.  But competing interests are fully competent.

The only opposition came from Alice Ackerman, a professor of pediatrics at Virginia Tech’s medical school—the Carilion School of Medicine, which has longstanding ties to Carilion hospital. In written testimony submitted to the Department of Health, Ackerman argued that the number of specialty bassinets at Carilion was sufficient to meet the needs of southwest Virginia.

And then Karen Remley, then Virginia Health Commissioner, denied the hospital’s permit. Under Virginia’s Certificate of Public Need laws, she alone had the final say in the matter.

Read the Reason report at the link.

This stinks.

Personal Responsibility

What a concept.  The proximate subject is whether Montana citizens should be allowed “road beer,” a beer or other alcoholic drink while sitting as a passenger in a car on a Montana road.  Road beer currently is prohibited.

A young Montana Republican State Congressman, Daniel Zolnikov, is backing House Bill 206, which would allow passengers in a car to drink while continuing the prohibition against drivers drinking.  Listen to the man on the larger principle.

The argument was made—how about if it tempts the driver?  That’s like saying (designated drivers) shouldn’t go to bars in case they’re tempted to have a drink. Where is the self-responsibility? This isn’t allowing for people to drink and drive, it’s allowing a passenger to have a beer.

And

[Zolnikov] told KGVO…[i]t’s time to stop “treating adults like children.”

 

Indeed.

The Financial Stability Oversight Council

Ryan Tracy, writing in The Wall Street Journal, thought Republicans should love this Council and be at pains to keep it, even as they look to “quickly scal[e] back Obama-era policies.”

I demur.

Tracy suggested

Consider the powers [FSOC] grants the Treasury secretary: As chair of FSOC—whose members include the chairs of the Federal Reserve and Securities and Exchange Commission—[Treasury Secretary nominee Steven] Mr Mnuchin  can convene a meeting of the top financial regulators at any time, and set the agenda.

SecTreas already can do this.  While he can’t compel attendance, the regulators would have hard time declining to attend or explaining to the rest of us their decision to stay away.

FSOC can make public statements or recommendations that have a name-and-shame effect.

SecTreas already can do this, too, as can any Cabinet Secretary and Agency head, did any of these have the courage to speak without hiding behind the comfortable numbers of a council.

FSOC’s greatest power is to designate “systemically important” financial firms outside the banking system for stricter federal oversight.

Mere existence of this authority is abusive overreach by Government. The Feds have no business in this business at all.

If Mr Mnuchin sympathizes with FSOC detractors, he could call fewer meetings with lighter agendas.

SecTreas doesn’t need the existence of a Council to decline to call meetings of regulators.

It’s past time for this abusive Council, and Dodd-Frank, to be done away with.

Full stop.

“How Barack Obama rescued the US economy”

That’s the headline on a recent Financial Times piece (sorry, the FT has a paywall) by Martin Wolf.  It’s a silly headline, for a silly article.

How should we assess the economic success or failure of Barack Obama’s presidency?

This is a difficult question to answer.

No, the question is easy to answer.  Obama’s economic policies have been abject failures.  It’s also straightforward to lay the bulk of responsibility on Obama and his administration.  While it’s true that the Panic of 2008 began in the prior administration, it was Obama’s “stimulus” package that both blew up the nation’s debt and failed in its purpose of stimulating our economy with shovel ready jobs in a massive so-called Keynesian stimulus and its bailout of failing large banks.  It was his Federal Reserve’s policies (yes, yes, the central bank is supposed to be independent, but it was Obama’s Ben Bernanke, extended at Obama’s decision, and his Janet Yellen appointment) that degraded money discipline with their decisions to ease the money supply and hold interest rates artificially low.  It was his excessive—explosively so—regulation that limited business’ ability to function in the market, that limited small business’ ability to get started, that limited job growth and employment recovery.

It was the Obama administration’s Dodd-Frank, with its too big to fail policy that distorted those big business’ risk-taking decisions, decisions that used to be made in a free market but that under Dodd-Frank are made with the perception—courtesy of that “stimulus” bailout—that if the business messed up, Government would bail them out.

[S]hockingly, most congressional Republicans opposed all significant monetary, financial and fiscal actions taken to deal with the crisis.

This isn’t shocking at all; what’s shocking is the blind, knee-jerk rejection of free market principles by a Democratic Party (soon to become a Progressive-Democratic Party) suddenly in complete control of our government and cut loose from any restrictions on their power.  Absent the “stimulus,” the Panic might have been steeper, but it also would have been much shorter.  One only has to compare the Depression of 1920-21 with the Great Depression to see the efficacy of government non-response compared with Government intervention, and the Panic of 1907 with both to see another example of the efficacy of private response compared with Government intervention.  Of course, the Democrats knew—and know—this history, yet they acted as they did, anyway.

He tried to move the US closer to the universal health insurance taken for granted in other high-income countries. The Affordable Care Act (“Obamacare”) has added an estimated 20m adults and 3m children to the insurance rolls.

He didn’t try, he did it by Party fiat and then by Executive diktats—lots and lots of diktats.  Further, while Obamacare has provided health welfare to those adults and children, it also has thrown millions more out of their health insurance plans and denied them access to their doctors in direct—and knowing—contravention of Obama’s explicit promises that these denials would not happen.  The claim of cost growth reduction is a cynical one, also, being limited as it is to the cost of selected groups of Americans.  In fact, the cost has exploded, with premiums rising in double-digit per centages, deductibles going to 10s of thousands of dollars—an annual expense—the departure of heretofore health insurance companies from the health welfare plan “market,” and the cost to taxpayers similarly growing rapidly to pay for the subsidies of those given essentially free access to this health welfare.

Wolf’s discussion of our “jobs” recovery is misleading, also. Labor force participation rate is at historic lows, held back by those policies’ suppression of job creation.  Even the male labor force participation rate, which has been in a declining trend since its early ’50s peak, is farther below that long-term trend than it ever has been in that time frame.

Finally, this graph summarizes the efficacy of the Obama administration “recovery” as compared to post-WWII economic dislocation recoveries.

Even at the end of 2016 rate of 4.7% unemployment of 4.7%, the Obama administration’s economic policies have held back the recovery by years.