Archives: 10/2009

VOIP News: Cato Is Tops! But Let’s Clarify Something

Though I hadn’t heard of it before, I was delighted to see a publication called VOIP News cite the Cato Institute as one of 15 “Greatest Enemies of Net Neutrality.” As VOIP News says, we are indeed a “voice of reason during political debates.”

Alas, I’m selectively quoting. What they actually said, snidely, was that Cato is a “hired voice of reason during political debates, because of its pseudo-academic affiliations.” (I don’t know why they italicized “voice of reason” - I always thought Reason was the voice of reason.)

But my selective quotation is as accurate as the selective research that VOIP News did for this fluffy hit piece. You see, Cato recently published a lengthy paper that articulates the benefits of net neutrality (referred to as the end-to-end principle).

Where do you find that in the paper? Here’s the first paragraph of the executive summary:

An important reason for the Internet’s remarkable growth over the last quarter century is the “end-to-end” principle that networks should confine themselves to transmitting generic packets without worrying about their contents. Not only has this made deployment of internet infrastructure cheap and efficient, but it has created fertile ground for entrepreneurship. On a network that respects the end-to-end principle, prior approval from network owners is not needed to launch new applications, services, or content.

The paper expresses well-founded concerns about net neutrality regulation—taking a good engineering practice and making a mandate of it for lawyers and bureaucrats to implement. From the executive summary’s third paragraph:

New regulations inevitably come with unintended consequences. Indeed, today’s network neutrality debate is strikingly similar to the debate that produced the first modern regulatory agency, the Interstate Commerce Commission. Unfortunately, rather than protecting consumers from the railroads, the ICC protected the railroads from competition by erecting new barriers to entry in the surface transportation marketplace. Other 20th-century regulatory agencies also limited competition in the industries they regulated. Like these older regulatory regimes, network neutrality regulations are likely not to achieve their intended aims.

It’s tough sledding, working through most of a one-page executive summary. But many publications go that far in researching the pieces they publish.

I do sincerely appreciate the nod to our prominence in this debate. I hope VOIP News does a better job of portraying where we stand and why in the future.

Cause for Alarm in Iraq, or Just a Ripple?

Najim Abed al-Jabouri, former mayor of Tal Afar, has a piece in the Times that seems like cause for alarm:

Both the military and the police remain heavily politicized. The police and border officials, for example, are largely answerable to the Interior Ministry, which has been seen (often correctly) as a pawn of Shiite political movements. Members of the security forces are often loyal not to the state but to the person or political party that gave them their jobs.

The same is true of many parts of the Iraqi Army. For example, the Fifth Iraqi Army Division, in Diyala Province northeast of Baghdad, has been under the sway of the Islamic Supreme Council of Iraq, the Shiite party that has the largest bloc in Parliament; the Eighth Division, in Diwaniya and Kut to the southeast of the capital, has answered largely to Dawa, the Shiite party of Prime Minister Nuri Kamal al-Maliki; the Fourth Division, in Salahuddin Province in northern Iraq, has been allied with one of the two major Kurdish parties, the Patriotic Union of Kurdistan.

More recently, the Iraqi Awakening Conference, a tribal-centric political party based in Anbar Province (where Sunni tribesmen, the so-called Sons of Iraq, turned against the insurgency during the surge) has gained influence over the Seventh Iraq Army Division, which was heavily involved in recruiting Sunnis to maintain security in 2006.

Hadi Mizban/Associated PressHadi Mizban/Associated Press

Now, via Spencer Ackerman, we find out that there may be support for al-Jabouri’s fear that “these political schisms are partly responsible for coordinated terrorist attacks like those on Sunday or the so-called Bloody Wednesday bombings of Aug. 19, which killed more than 100.”  61 Iraqi army and police officers were just arrested in connection with Sunday’s blasts, part of the effects of which you see over there on the side of the post.

Al-Jabouri writes ominously that

in a little more than two years, the United States drawdown of forces will be complete.  In that time, the Iraqi security forces can go further in the direction of ethno-sectarianism, or they can find a new nationalism.  True, the status quo offers a temporary balance of power between the incumbent parties, likely providing relative peace for the American exit. But deep down, ethno-sectarianism creates fault lines that terrorist groups and other states in the Mideast will exploit to keep Iraq weak and vulnerable. The better alternative is to reform and gain the confidence of Iraqis. The people will trust the security forces if they are seen as impartial on divisive political issues, loyal to the state rather than to parties, and if they embody the diversity and tolerance that we Iraqis have long claimed to be a defining characteristic.

President Bush was making a good point in 2005 when he said on al Arabiya that “the future of Iraq depends upon Iraqi nationalism and the Iraq character – the character of Iraq and Iraqi people emerging.” I think this overall point is right and fundamentally unanswered, at least according to al-Jabouri.  Barbara Walter, one of the leading academics studying civil wars, wrote in August that Iraq would likely melt down if U.S. troops left, worrying about what she called “the settlement dilemma”:

Combatants who end their civil war in a compromise settlement – such as the agreement to share power in Iraq – almost always return to war unless a third party is there to help them enforce the terms. That’s because agreements leave combatants, especially weaker combatants, vulnerable to exploitation once they disarm, demobilize and prepare for peace. In the absence of third-party enforcement, the weaker side is better off trying to fight for full control of the state now, rather than accepting an agreement that would leave it open to abuse in the future.

Finally, al-Jabouri’s “better alternative” seems to amount to praying for a miracle.  It’s not clear what can make Iraqis come to perceive sectarian security forces as “impartial on divisive political issues, loyal to the state rather than to parties,” and fundamentally national rather than sub-national.  (Perhaps I was suckered once again by Bill Kristol when he told me in January of this year that George W. Bush’s greatest achievement was “winning the war in Iraq.”)

Given the enduring sectarianism and the relative weakness of Iraqi nationalism al-Jabouri describes, it could be interesting or even scary to see what hatches out of the egg we’ve been perched atop for the last six and a half years.

Update: I neglected to include a link to Nir Rosen’s detailed Boston Review piece on the changing nature of inter- and intra-sectarian political allegiances in Iraq.  It’s definitely worth reading, for people interested in the issue.

Another Education Road Sign Screaming “Stop!”

This morning the National Center for Education Statistics released a new report, Mapping State Proficiency Standards Onto NAEP Scores: 2005-2007.  What the results make clear (for about the billionth time) is that government control of education has put us on a road straight to failure. Still, many of those who insist on living in denial about constant government failure in education will yet again refuse to acknowledge reality, and will actually point to this report as a reason to go down many more miles of bad road.

According to the report, almost no state has set its “proficiency” levels on par with those of the National Assessment of Educational Progress (NAEP), the so-called “Nation’s Report Card.” (Recall that under No Child Left Behind all children are supposed to be “proficient” in reading and math by 2014.) Most, in fact, have set “proficiency” at or below NAEP’s “basic” level. Moreover, while some states that changed their standards between 2005 and 2007 appeared to make them a bit tougher, most did the opposite. Indeed, in eighth grade all seven states that changed their reading assessments lowered their expectations, as did nine of the twelve states that changed their math assessments.

Many education wonks will almost certainly argue that these results demonstrate clearly why we need national curricular standards, such as those being drafted by the Common Core State Standards Initiative. If there were a national definition of “proficiency,” they’ll argue, states couldn’t call donkeys stallions. But not only does the existence of this new report refute their most basic assumption – obviously, we already have a national metric – the report once again screams what we already know:  Politicians and bureaucrats will always do what’s in their best interest – keep standards low and easy to meet – and will do so as long as politics, not parental choice, is how educators are supposed to be held accountable. National standards would only make this root problem worse, centralizing poisonous political control and taking influence even further from the people the schools are supposed to serve. 

Rather than continuing to drive headlong toward national standards – the ultimate destination of the pothole ridden, deadly, government schooling road – we need to exit right now. We need to take education power away from government and give it to parents. Only if we do that will we end hopeless political control of schooling and get on a highway that actually takes us toward excellent education.

Thursday Links

  • The financial regulators’ pipe dream: “Most new regulation will do nothing to limit crises because markets will innovate around it. Worse, some regulation being considered by Congress will guarantee bigger and more frequent crises.”
  • The illegal cigarette trade in Ireland reaches “epidemic proportions“  after the government imposes draconian regulations on tobacco products.

Why National Democrats are Like Wile E. Coyote

Illinois state senator James Meeks, an African American Democrat and long-time opponent of school choice, just switched sides.

In doing so, he swells the small but growing ranks of Democrats in Florida, New Jersey, and the nation’s capital, among others, who support giving parents an easy choice between public and private schools.

Like Wile E. Coyote, national Democrats have run off a political cliff in their reflexive opposition to educational freedom.  And like Wile,  they’re experiencing a temporary suspension of the law of gravity – not yet suffering for their mistake.

But we all know that the cloud at Wile’s feet eventually dissipates, and he realizes that he’s no longer on solid ground. By then, it’s too late.

As someone much happier under divided government than one party rule, I hope national Democratic leaders get a clue, and notice that the’ve left solid ground on education. There is still time for Obama and company to make it back to the cliff’s edge, calling for the expansion rather than the termination of DC’s K-12 scholarship program, and voicing support for education tax credits at the state level, as many of the party’s state leaders have already done. 

States are going to continue passing and expanding private school choice programs with or without the support of national Democrats. If president Obama and friends continue clinging to the anvil of government schooling while that happens, we all know how it’s going to turn out.

Beep. Beep.

(HT: Alexander Russo)

Feds Giveth Jobs & Cars, Then Taketh Away Again

The bad news this morning on the impact of both the federal stimulus and the Cash for Clunkers program should not come as a surprise to anyone who has paid attention to the history of government intervention in the economy.

New data that the jobs created by the stimulus have been overstated by thousands is compelling, but it’s really a secondary issue. The primary issue is that the government cannot “create” anything without hurting something else. To “create” jobs, the government must first extract wealth from the economy via taxation, or raise the money by issuing debt. Regardless of whether the burden is borne by present or future taxpayers, the result is the same: job creation and economic growth are inhibited.

At the same time the government is taking undeserved credit for “creating jobs,” a new analysis of the Cash for Clunkers program by Edmunds.com shows that most cars bought with taxpayer help would have been purchased anyhow. The same analysis finds the post-Clunker car sales would have been higher in the absence of the program, which proves that the program merely altered the timing of auto purchases.

Once again, the government claims to have “created” economic growth, but the reality is that Cash for Clunkers had no positive long-term effect and actually destroyed wealth in the process.

Right now businesses and entrepreneurs are hesitant to make investments or add new workers because they’re worried about what Washington’s interventions could mean for their bottom lines. The potential for higher taxes, health care mandates, and costly climate change legislation are all being cited by businesspeople as reasons why further investment or hiring is on hold. Unless this “regime uncertainty” subsides, the U.S. economy could be in for sluggish growth for a long time to come.

For more on the topic of regime uncertainty and economic growth, please see the Downsizing Government blog.

Ask Consumers if They Like a Weak Dollar

According to a Washington Post story today, “the weak dollar is one problem the United States loves to have.” The story reports how the fall of the dollar against the euro and other currencies in the past year has boosted U.S. exports and discouraged imports, cutting the trade deficit and allegedly boosting the U.S. economy. A weaker dollar has spurred complaints in Europe and elsewhere, but here at home the Post story leaves the impression the approval is practically unanimous.

Nowhere in the 1,058-word story is the impact on consumers ever mentioned. But it is American consumers who pay the biggest price when the dollars we earn buy less on global markets. We are paying more for oil, which not coincidentally has zoomed toward $80 as the dollar flounders. A weaker dollar means higher prices than we would pay otherwise for a range of goods, from imported shoes and clothing to food, that loom large in the budgets of American families struggling to make ends meet in this difficult economy.

Ignoring consumer interests is widespread in reporting about trade. It reflects the strong bias of elected officials to see trade issues strictly through the lens of producers and never consumers. After all, it is producers who form trade groups and hire lobbyists to promote their exports or protect themselves from imports. Nobody in Washington represents the diffused, disorganized but much more numerous 100 million American households.

The dollar’s value should be set by markets, and I have no reason to believe the dollar is over- or undervalued. But pardon me if I dissent from the consensus that a falling dollar is unambiguously good news.