Columnist.
I went to Princeton in 1969, where they taught me that government could solve the world's problems. Put the smartest people in a room, give them enough taxpayer money, and they will fix most everything. During those years, I heard nothing about an alternative. How things have changed! I recently spent time with several hundred college-aged people at a Students for Liberty conference in Washington, D.C. Here were hundreds of students who actually understand that government creates many of the problems, and freedom -- personal and economic liberty -- makes things better.
In America today, the biggest recipients of handouts are not poor people. They're corporations. General Electric CEO Jeffrey R. Immelt is super-close to President Obama. The president named Immelt chairman of his Council on Jobs and Competitiveness. Before that, Immelt was on Obama's Economic Recovery Advisory Board. He's a regular companion when Obama travels abroad to hawk American exports. (Why does business need government to do that?) "Jeff Immelt is perhaps the CEO who is most cozy with President Obama," says journalist Tim Carney. "General Electric is structuring their business around where government is going ... high-speed rail, solar, wind. GE is lining up to get what government is handing out."
One key to getting past the race issue in America is to end the war on drugs. John McWhorter says it's the most important thing we could do. Cato's Letter features a lecture by McWhorter in which he calls for an end to the war on drugs. (It's really a war on certain people.) McWhorter, the former Berkeley linguistics professor and now senior fellow at the Manhattan Institute, specifically indicts the war on drugs for "destroying black America." McWhorter, by the way, is black. The "main obstacle(s) to getting black America past the illusion that racism is still a defining factor in America" are, he says, "the strained relationship between young black men and police forces" and the "massive number of black men in prison."
Anyone who understands basic economics already knows that President Obama's $2.3 billion green-jobs initiative was snake oil. Now, thanks to Kenneth P. Green, we have statistics as well as theory to prove it. In a new article, "The Myth of Green Energy Jobs: The European Experience," the environmental scientist and a resident scholar at the American Enterprise Institute writes, "Green programs in Spain destroyed 2.2 jobs for every green job created, while the capital needed for one green job in Italy could create almost five jobs in the general economy."
Because "The King's Speech," a movie about King George's effort to overcome stuttering, won the Oscar for best picture, reporters have been interviewing me about my stuttering. Some ask why they don't hear me stutter on TV. Others wonder why a stutterer is on TV in the first place. Here's my explanation. Since I was a child, my stuttering has come and gone. Sometimes I was sure the problem had disappeared -- then it would return with such a vengeance I'd fear saying anything. I'd stay silent in class. I avoided parties. When I was old enough to date, sometimes I'd telephone a girl and try to speak, but nothing would come out. I'd just hang up. Now, because of caller ID, stutterers can't do that.
Sunday night is Oscar night! Think you know who's going to win? Want to make a bet? The Hollywood Stock Exchange allows people to bet on which movies, actors, directors, etc. will take home Academy Awards. You can also bet on how much money a movie might make. It's called a prediction market ... except unlike other prediction markets, bettors can't use real money.
Here's a novel idea: Escape the suffocating chains of intrusive government by starting your own country! That's Patri Friedman's idea. He comes from an impressive line of libertarian thinkers. Milton Friedman, the Nobel-prize-winning free-market economist, was his grandfather. His father is David Friedman, author of the libertarian classic "The Machinery of Freedom." Milton Friedman advocated severely limited government. David Friedman thinks we need no government at all. And now Patri believes he has an effective solution to bad government: communities on the ocean surface, or seasteading.
You are our Ruler. An entrepreneur tells you he wants to create something he calls a "skating rink." Young and old will strap blades to their feet and speed through an oval arena, weaving patterns as moods strike them. You'd probably say, "We need regulation -- skating stoplights, speed limits, turn signals -- and a rink director to police the skaters. You can't expect skaters to navigate the rink on their own." And yet they do. They spontaneously create their own order.
The Congressional Budget Office says the current year's budget deficit will be a record $1.5 trillion. It also says that over the next decade we're on track for annual deficits of "only" $768 billion. I suspect the CBO has hired Rosy Scenario to do the bookkeeping, but let's take that number at face value. I'm now going to balance the budget, with the help of some experts.
President Obama fulfilled his constitutional duty and gave his report on the state of the union last night. Here's mine: We're in deep trouble. You know why. Our debt has passed $14 trillion, and yet our current spending plans will make that worse. The U.S. debt will reach Greek levels in just 10 years. But do not despair. If we make reasonable cuts to what government spends, our economy can grow us out of our debt. Cutting doesn't just make economic sense, it is also the moral thing to do. Henry David Thoreau had it right when he "accepted(ed) the motto ... that government is best which governs least."
The Republicans promise less intrusive, less expensive government. But will they deliver? In the past, they have said they would shrink the state, but then they came into power and spent more. Consider George W. Bush's eight horrendous years: The budget grew 89 percent -- from $1.86 trillion to $3.52 trillion. Two Republican House members, Scott Garrett of New Jersey, No. 2 on the budget committee, and Bill Huizenga, a freshman from Michigan, say that they really mean to cut.
Last year, I reported that the United States fell from sixth to eighth place -- behind Canada -- in the Heritage Foundation/Wall Street Journal's 2010 Index of Economic Freedom. Now, we've fallen further. In the just-released 2011 Index, the United States is in ninth place. That's behind Hong Kong, Singapore, Australia, New Zealand, Switzerland, Canada, Ireland and Denmark. The biggest reason for the continued slide? Spending as a percentage of gross domestic product. (State and local spending is not counted.)
Sometimes I drink Scotch and then, to wake myself up, I drink coffee. So what? Many people consume mixtures of caffeine and alcohol in drinks like rum and Coke. Again, so what? But recently some college kids started drinking pre-mixed combos of alcohol and caffeine with names like Four Loko and Moonshot '69. Moonshot '69 is a pilsner beer with less than a coffee cup's worth of caffeine. Until recently, Four Loko contained 12 percent alcohol -- about the same as wine -- and as much caffeine as a cup of coffee. A few students, after drinking Four Loko, landed in the hospital with alcohol poisoning. Naturally, hysterical news reports followed.
Last year, Congress passed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act. It was supposed to really end the alleged abuses perpetrated by the credit card companies. The law forbids some penalties and interest-rate increases on existing balances. It is one of President Obama's proudest achievements. "Enough's enough," he said. "It's time for strong, reliable protection for our consumers."
I often bash government. I say it can't do anything better than people in a free market. But the government is unequalled in producing one thing: negative unintended consequences. Show me a government activity, and I will show you bad results that even the program's advocates probably don't like. Here's one example. Congressmen say our government should "support and strengthen family-based agriculture."
We human beings sure are gullible. Polls report that 27 percent of Americans believe in ghosts, and 25 percent in astrology. Others believe mediums, fortunetellers, faith healers and assorted magical phenomena. I'd think the astrologers or the psychics or the ghost hunters would be eager to prove they were for real. Not only would they convince skeptics, they'd make a million dollars.
Of the 6 billion people on Earth, 2 billion try to survive on a few dollars a day. They don't build businesses, or if they do, they don't expand them. Unlike people in the United States, Europe and Asian countries like Japan, South Korea, Hong Kong, etc., they don't lift themselves out of poverty. Why not? What's the difference between them and us? Hernando de Soto taught me that the biggest difference may be property rights. I first met de Soto maybe 15 years ago. It was at one of those lunches where people sit around wondering how to end poverty. I go to these things because it bugs me that much of the world hasn't yet figured out what gave us Americans the power to prosper.
America is filled with parks that are filthy, dangerous and badly maintained. The governments in charge plead: We can't help it. Our budgets have been slashed. We don't have enough money! Bryant Park, in midtown Manhattan, was once such an unsavory place. But now it's nice. What changed? Dan Biederman essentially privatized the park.
Had today's political class been in power in 1623, tomorrow's holiday would have been called "Starvation Day" instead of Thanksgiving. Of course, most of us wouldn't be alive to celebrate it. Every year around this time, schoolchildren are taught about that wonderful day when Pilgrims and Native Americans shared the fruits of the harvest. But the first Thanksgiving in 1623 almost didn't happen.
It's not what we don't know that causes us trouble. It's what we know that isn't so. Whichever famous writer said that (it's been attributed to many), what he said carries truth. What are some of the things we know that aren't so? Here's one: Grass-fed "free-range" beef cattle are better for the environment -- and for you -- than factory-farmed corn-fed cattle. It does seem to make sense that the steer raised in the more "natural" environment would be better for the world.
