Tag: corruption

My Heart Breaks and Tears Flow When I Read about Sequestration Being a Big Defeat for Lobbyists

I believe in the First Amendment, so I would never support legislation to restrict political speech or curtail the ability of people to petition the government.

That being said, I despise the corrupt Washington game of obtaining unearned wealth thanks to the sleazy interaction of lobbyists, politicians, bureaucrats, and interest groups.

So you can imagine my unfettered joy when reading about how this odious process is being curtailed by sequestration. Here are some cheerful details from story in Roll Call.

…sequester cuts…reflect not only Washington’s political paralysis but a bitter lobbying failure for K Street interests across the board. From university professors and scientists to cancer victims, defense contractors and federal workers, hundreds of advocacy, trade and labor groups have lobbied aggressively for months to head off the cuts. They’ve run ads, testified on Capitol Hill, staged demonstrations and hounded lawmakers, all to no avail. …the path forward could be a lobbying nightmare.

Reading the story, I recalled a Charles Addams cartoon from my childhood. Thanks to the magic of Al Gore’s Internet, I found it.

Slightly modified to capture my spirit of elation, here it is for you to enjoy.

Except I like to think I’m a bit more prepossessing than the Uncle Fester character, but let’s not get hung up on details.

What matters is that sequestration was a much-needed and very welcome victory for taxpayers. Obama suffered a rare defeat, as did the cronyists who get rich by working the system.

To be sure, all that we’ve achieved is a tiny reduction in the growth of federal spending (the budget will be $2.4 trillion bigger in 10 years rather than $2.5 trillion bigger). But a journey of many trillions of dollars begins with a first step.

Pakistan’s Dysfunctional Democracy

News out of U.S. “ally“ Pakistan appears promising for its fragile democracy, but may actually signal a continuation of that country’s destructive political pattern. For the past two days, Sufi cleric Tahir-ul Qadri has led protests in Islamabad calling for a caretaker administration to take over for the ruling coalition, a swap he claims will help to ensure that upcoming parliamentary elections (yet to be scheduled) remain honest. Amid those protests, Pakistan’s Supreme Court issued an arrest order for Prime Minister Raja Pervaiz Ashraf, who as minister for water and power allegedly received illegal kickbacks. 

A colleague asked me: “What does this mean for Pakistani democracy?” To which I replied, “When did it ever exist?” 

Certainly, any and all condemnations of public sector corruption comes as welcome news, especially in a country ruled by a tiny minority of kleptocratic elites. Still, such developments require historical background. On cleric Qadri, last week Radio Free Europe’s Daud Khan Khattak asked rhetorically “Can This Islamic Cleric Liberalize Pakistan’s Politics?“ Perhaps, but unlikely. The federal government responded quite rightly that Qadri’s demand for the government to step down—and the judiciary and the military help appoint a caretaker government—is unconstitutional. What makes Qadri’s demands especially troubling, writes Eurasia Group’s Shamila N. Chaudhary, is that the current government will be the first time a [civilian] government in Pakistan finishes a complete term.” It seems imprudent to derail such a historic moment by emboldening Pakistan’s military, which carries a long history of dictatorship. In fact, Qadri once supported Pakistan’s former General-President Pervez Musharraf. 

On that note, another prominent figure in this unfolding drama who once supported the maintenance of dictatorial authority is none other than Pakistan Supreme Court Justice Iftikhar Chaudhry. In February 2000, after Musharraf overthrew democratically elected Prime Minister Nawaz Sharif in a bloodless coup in 1999, Chaudhry, then chief justice of the Balochistan Supreme Court, swore an oath of office under Musharraf to become a judge on Pakistan’s Supreme Court. As Pakistan analyst Seth Oldmixon points out, the court, in its own words, “validated the extra-constitutional step on the touchstone of the doctrine of state necessity and the principle of salus populi suprema lex” (Let the good of the people be the supreme law). 

Spontaneous bouts of pro-democracy protests are promising, but sadly it appears that no one is innocent in this confusing political spectacle. Democracy or no democracy, though, Islamabad’s relations with Washington will likely continue its transactional nature, with a heavy and unpredictable mixture of antagonism and cooperation.

How Government Actually Works, Especially Unaccountable, Multi-Jurisdictional Government

In my book Libertarianism: A Primer, I have a chapter of pop public choice called “What Big Government Is All About.” The Metropolitan Washington Airports Authority isn’t really big government, just a local D.C.-Virginia-Maryland authority to run a couple of airports. But it demonstrates some of the problems you can expect from economic entities that don’t face a market test. Here’s how the Washington Post story today begins:

Meet the Kulle family: mom Helen, daughter Ann Kulle-Helms, son-in-law Douglas Helms, son Albert, daughter-in-law Michele Kulle and Michele’s brother, Jeffrey Thacker.

They all worked for the Metropolitan Washington Airports Authority. All at the same time.

And what about Dad, I wonder. No job for Dad?

Anyway, officers of the agency don’t seem perturbed by the story.

“There were no clear-cut guidelines,” said MWAA board member H.R. Crawford, who will leave the board next month when his term expires.

Crawford, who has had at least three relatives, including a daughter-in-law, work at the agency, said family members are employed frequently, particularly among board members.

“If you ask a third of those folks, their relatives work there,” he said. “I never thought that we were doing anything wrong.”…

“This is a government town and an agency town,” Crawford said. “If there’s a possibility that you can hire a relative . . . it was the norm.”…

“This is not a patronage mill,” said Davis, whose daughter worked in the fire department for two months in 2011. “Dozens of employees’ kids worked there.”

At this point the response of good-government liberals is always: Pass an ethics law. Yeah, that ought to work.

MWAA’s ethics code prohibits employees from hiring, supervising or working with relatives. They also cannot supervise family members — directly or indirectly — or “have influence over their work.”

Why the United States Might Never Leave Afghanistan

In autumn 2001, America’s initial purpose in Afghanistan—which made perfect sense—was to destroy or incapacitate al Qaeda and punish the Taliban government that hosted it. This was accomplished 11 years ago. Today, the purpose of the U.S. mission is ill-defined, but clearly involves nation building. What the coalition desperately needs is an achievable, realistic endgame, not an indefinite timeline that commits thousands of U.S. troops to Afghanistan until or beyond 2024.

A common argument is that America and its allies must create an effective Afghan state that can rule the country and prevent the return of the Taliban and, by extension, al Qaeda. Aside from the fact that al Qaeda can exist anywhere, from Hamburg to Los Angeles, it’s not at all clear that the coalition can either eradicate the Taliban or come close to creating an effective Afghan state.

As a Department of Defense Report declared earlier this year, “The Taliban-led insurgency remains adaptive and determined with a significant regenerative capacity, and retains the capability to emplace substantial numbers of [improvised explosive devices] and conduct isolated high-profile attacks that disproportionately field a sense of insecurity.”

Arguments that the coalition must eradicate the Taliban lose sight of what the term “insurgency” actually means. Guerillas typically fight when the opportunity is ripe. They can melt easily into a population, making it difficult for conventional troops to distinguish friend from foe. Combined with the Afghan insurgency’s ability to retreat to sanctuaries in Pakistan, coalition gains can be quickly undone by such systemic factors that make insurgents resilient. Additionally, reporters Dexter Filkins and Kelly Vlahos provide excellent analyses that draw out the ethnic divisions and political factionalism posed by Afghan warlords, many of whom are regrouping and could potentially touch off a civil war in the years ahead.

As for the common contention that America must stay until Afghans can police and govern themselves, the current state of Afghan institutions ensure that it would take a decade or more before coalition forces could withdraw, with little promise of success.

detailed report released last year by the Commission on Wartime Contracting found that the U.S. government contracted for dozens of clinics, barracks, hospitals, and other facilities that exceed Afghan funding capabilities. For instance, the $82 million Afghan Defense University will cost $40 million a year to operate, which is well beyond the Afghan government’s financial capacity to sustain, according to DoD officials. Long-term operations, maintenance, and sustainment costs for the Afghan National Security Forces could continue through 2025. Similar findings were uncovered by auditors at the Office of the Special Inspector General for Afghanistan Reconstruction.

The expectation is that the United States will maintain a presence of some 10,000 personnel in Afghanistan after 2014, while the World Bank estimates that Afghanistan will need $3.9 billion a year through 2024 for economic development. Ironically, when foreign policy planners in Washington make clear that they never intend to abandon Afghanistan, it’s their ambition to create a centralized state that will perpetuate that country’s dependency on foreigners.

Written Testimony on the Illegal IRS Rule to Increase Taxes & Spending under Obamacare

The written testimony that Jonathan Adler and I submitted for the House Oversight Committee hearing on the Internal Revenue Service’s unlawful attempt to increase taxes and spending under Obamacare is now online. An excerpt:

Contrary to the clear language of the statute and congressional intent, this [IRS] rule issues tax credits in health insurance “exchanges” established by the federal government. It thus triggers a $2,000-per-employee tax on employers and appropriates billions of dollars to private health insurance companies in states with a federal Exchange, also contrary to the clear language of the statute and congressional intent. Since those illegal expenditures will exceed the revenues raised by the illegal tax on employers, this rule also increases the federal deficit by potentially hundreds of billions of dollars, again contrary to the clear language of the statute and congressional intent.

The rule is therefore illegal. It lacks any statutory authority. It is contrary to both the clear language of the PPACA and congressional intent. It cannot be justified on other legal grounds.

On balance, this rule is a large net tax increase. For every $2 of unauthorized tax reduction, it imposes $1 of unauthorized taxes on employers, and commits taxpayers to pay for $8 of unauthorized subsidies to private insurance companies. Because this rule imposes an illegal tax on employers and obligates taxpayers to pay for illegal appropriations, it is quite literally taxation without representation.

Three remedies exist. The IRS should rescind this rule before it takes effect in 2014. Alternatively, Congress and the president could stop it with a resolution of disapproval under the Congressional Review Act. Finally, since this rule imposes an illegal tax on employers in states that opt not to create a health insurance “exchange,” those employers and possibly those states could file suit to block this rule in federal court.

Requiring the IRS to operate within its statutory authority will not increase health insurance costs by a single penny. It will merely prevent the IRS from unlawfully shifting those costs to taxpayers.

Related: here is the video of my opening statement, and Adler’s and my forthcoming Health Matrix article, “Taxation without Representation: the Illegal IRS Rule to Expand Tax Credits under the PPACA.”

Emails Show PhRMA Bought and Paid for ObamaCare

Remember that guy?

Well today, the Wall Street Journal reprints a series of emails showing how his administration colluded with drug-company lobbyists to pass ObamaCare. Never mind the nonsense about Big Pharma making an $80 billion “contribution” to pass the law. An accompanying Wall Street Journal editorial explains that Big Pharma “understood that a new entitlement could be a windfall as taxpayers bought more of their products.”

The money quote from these emails comes from Pfizer lobbyist/Republican/former George W. Bush appointee Anthony Principi. Even though the drug companies were donating to all the right politicians and pledging to spend hundreds of millions of dollars on pro-ObamaCare advertising campaigns and grassroots lobbying, President Obama still accused unnamed ”special interests” of trying to stop ObamaCare in order to preserve “a system that worked for the insurance and the drug companies.” Principi was indignant:

We’re trying to kill it? I guess we didn’t give enough in contributions and media ads supporting hcr. Perhaps no amount would suffice.

The nerve. I smell a campaign slogan. “Barack Obama: a Politician Who Cannot Stay Bought.”

The Journal adds:

[Former Energy and Commerce Chairman Henry] Waxman [D-CA] recently put out a rebuttal memo dismissing these email revelations as routine, “exactly what Presidents have always done to enact major legislation.” Which is precisely the point—the normality is the scandal.

And which critics have argued from the beginning. As I wrote more than two years ago, ObamaCare is corruption:

Each new power ObamaCare creates would be targeted by special interests looking for special favors, and held for ransom by politicians seeking a slice of the pie.

ObamaCare would guarantee that crucial decisions affecting your medical care would be made by the same people, through the same process that created the Cornhusker Kickback, for as far as the eye can see.

When ObamaCare supporters, like Kaiser Family Foundation president Drew Altman, claim that “voters are rejecting the process more than the substance” of the legislation, they’re missing the point.

When government grows, corruption grows.  When voters reject these corrupt side deals, they are rejecting the substance of ObamaCare.

Fortunately, voters so detest ObamaCare that there’s a real chance to wipe it from the books. This video explains how state officials can strike a blow against ObamaCare/corruption:

Security Pact Ensures America’s Presence in Afghanistan

President Obama’s arrival in Afghanistan and signing of the strategic partnership agreement with President Karzai supposedly represents yet another corner turned in our nearly eleven year (and counting) war. The commander-in-chief’s arrival in secrecy, under darkness, and without live coverage of the signing is reminiscent of Bush the Younger’s many trips to war-torn Iraq and displays just how bad security is in Afghanistan. Indeed, despite the administration’s talk about drawing-down, the strategic partnership agreement signed today in Kabul extends Washington’s military and financial support to the endemically corrupt Karzai regime well beyond 2014.

The Taliban’s most powerful narrative is that foreigners are occupying Afghanistan and supporting its corrupt centralized government. That is more than mere propaganda. It is reality. Transparency International was correct—save for North Korea and Somalia, Afghanistan is the most corrupt country in the world. The Karzai cartel and its band of thugs and warlords are the embodiment of social injustice. The nation-building mission in Afghanistan is a failure not of democracy promotion, but the result of bringing injustice and crony capitalism to a desperate and war-ravaged people.

As America climbs out of the worst financial crisis in a generation, the American people pour tens of billions a year into a poverty-stricken narco-stateaccording to the late-Richard Holbrooke—while the Karzais and their cronies build mansions in Dubai. The American people’s hard-earned tax dollars are funding Afghanistan’s “1%.” As I said last week about the agreement, it is nation building by another name. The American people have come to realize that the nation-building mission in Afghanistan is a needless waste of blood and treasure and unnecessary for our vital security interests. U.S. officials should recognize this and expedite our withdrawal, rather than continue to tread water in a desperate attempt to stave off disaster.

A senior administration official today warned of repeating the mistake of allowing the Taliban to reemerge in Afghanistan. In the process, however, the United States is repeating a mistake that experts contend helped to contribute to the devastating terrorist attacks of September 11, 2001unwavering economic support and political cover to the Muslim world’s most corrupt and illegitimate regimes. Some will argue that America has a moral obligation to prevent the reemergence of reprehensible groups like the Taliban. But America never made a substantive policy shift toward or against the Taliban’s misogynistic, oppressive and militant Islamic regime when it controlled Afghanistan in the 1990s. Thus, the present moral outrage against the group can be interpreted as opportunistic. Sadly, Washington’s current embrace of the kleptocratic Karzai regime not only contradicts the basic moral principles that America purports to impose on the rest of the world, but also does little to advance our security, drives foreigners to commit terrorist acts, and is detrimental to our long-term goal of advancing our country’s most cherished values.