Tag: federal government

The Census Asks Too Much

Everyone in America, I presume, has just received a letter from the U.S. Census Bureau urging us to fill out our Census forms. Seems like a very expensive way to tell us to watch for the form to arrive in the mail. But I’m particularly interested in why they say we should promptly fill out the form:

Your response is important. Results from the 2010 Census will be used to help each community get its fair share of [federal] government funds for highways, schools, health facilities, and many other programs you and your neighbors need. Without a complete, accurate census, your community may not receive its fair share.

Obviously this is a zero-sum game. If my neighbors and I all fill out the form, then you and your neighbors will get less from the common federal trough. But at least we’ll be getting our “fair share,” as the letter tells us twice in three sentences.

But where does the government get the authority to ask me my race, my age, and whether I have a mortgage? In fact, the Constitution authorizes the federal government to make an “actual enumeration” of the people in order to apportion seats in the House of Representatives. That’s all. Not to define and count us by race. Not to ask whether we’re homeowners or renters. Just to ask how many people live here, so they can apportion congressional seats.

I’m not interested in getting taxpayers around the country to pay for roads and schools and “many other programs” in my community. All the government needs to know from me is how many people live in my house. And I will tell them.

More on the census and the Constitution here.

Six Reasons to Downsize the Federal Government

1. Additional federal spending transfers resources from the more productive private sector to the less productive public sector of the economy. The bulk of federal spending goes toward subsidies and benefit payments, which generally do not enhance economic productivity. With lower productivity, average American incomes will fall.

2. As federal spending rises, it creates pressure to raise taxes now and in the future. Higher taxes reduce incentives for productive activities such as working, saving, investing, and starting businesses. Higher taxes also increase incentives to engage in unproductive activities such as tax avoidance.

3. Much federal spending is wasteful and many federal programs are mismanaged. Cost overruns, fraud and abuse, and other bureaucratic failures are endemic in many agencies. It’s true that failures also occur in the private sector, but they are weeded out by competition, bankruptcy, and other market forces. We need to similarly weed out government failures.

4. Federal programs often benefit special interest groups while harming the broader interests of the general public. How is that possible in a democracy? The answer is that logrolling or horse-trading in Congress allows programs to be enacted even though they are only favored by minorities of legislators and voters. One solution is to impose a legal or constitutional cap on the overall federal budget to force politicians to make spending trade-offs.

5. Many federal programs cause active damage to society, in addition to the damage caused by the higher taxes needed to fund them. Programs usually distort markets and they sometimes cause social and environmental damage. Some examples are housing subsidies that helped to cause the financial crises, welfare programs that have created dependency, and farm subsidies that have harmed the environment.

6. The expansion of the federal government in recent decades runs counter to the American tradition of federalism. Federal functions should be “few and defined” in James Madison’s words, with most government activities left to the states. The explosion in federal aid to the states since the 1960s has strangled diversity and innovation in state governments because aid has been accompanied by a mass of one-size-fits-all regulations.

For more, see DownsizingGovernment.org.

King Canute, Abraham Lincoln, and Wishful Thinking

King Canute famously demonstrated to his advisers that even a king couldn’t stop the sea from rising. Abraham Lincoln told his visitors that calling a dog’s tail a leg doesn’t make it a leg. But lots of people these days think that passing a law automatically makes things happen, that you can pass a law against drug use or racism or homelessness and solve a problem.

Today I heard a traffic reporter on WAMU public radio demonstrate just how widespread that assumption is, at least in Washington. About 9:20 a.m. he said, “The federal government opened on time today [after a week of closings and yesterday’s delayed opening], so most federal workers are already sitting at their desks.” Well, I was stuck in a miles-long backup on snow-blocked roads, and I’m guessing that a lot of the people in the other cars were federal employees. Just because you declare that the federal government will open on time doesn’t automatically mean that federal employees will get there on time. You have to take into account realities like weather, slow clearing of roads, and people’s unwillingness to start their commute much earlier than normal.

Reality, alas, interferes with a lot of grand plans.

A Time for Less Government?

The public is unhappy with government.  How could it be otherwise, given the mess our governors have made?  Reports the Washington Post:

Two-thirds of Americans are “dissatisfied” or downright “angry” about the way the federal government is working, according to a new Washington Post-ABC News poll. On average, the public estimates that 53 cents of every tax dollar they send to Washington is “wasted.”

Despite the disapproval of government, few Americans say they know much about the “tea party” movement, which emerged last year and attracted voters angry at a government they thought was spending recklessly and overstepping its constitutional powers. And the new poll shows that the political standing of former Republican vice presidential nominee Sarah Palin, who was the keynote speaker last week at the first National Tea Party Convention, has deteriorated significantly.

The opening is clear: Public dissatisfaction with how Washington operates is at its highest level in Post-ABC polling in more than a decade – since the months after the Republican-led government shutdown in 1996 – and negative ratings of the two major parties hover near record highs.

Surely this is a moment for a true political entrepreneur, someone who believes in liberty–across the board–willing to challenge Washington’s bipartisan consensus that government should grow ever bigger and more expensive.  Someone who opposes expensive, and often deadly, social engineering at home and abroad.  Someone willing to simply leave the American people alone, rather than determined to conscript them into yet another annoying, intrusive, and expensive national crusade.  Someone willing to back up his or her rhetoric about individual liberty with action.

Dr. Frankenstein on His Creation: It’s All The Monster’s Fault

As I have explained on numerous occasions, supporters of the Student Aid and Fiscal Responsibility Act (SAFRA) – which would end federal guaranteed student loans, turn everything into lending direct from Uncle Sam, and spend the resulting savings and way much more – have often shamelessly promoted the bill as a boon to taxpayers when it will almost certainly cost them tens-of-billions.  Where they have generally been right is in rebutting criticisms that SAFRA would be a federal takeover of a private industry. With lender profits all but assured under federal guaranteed lending, the vast majority of student loans haven’t been truly private for decades.

Unfortunately, SAFRA advocates are just as clueless – or, more likely, rhetorically unbridled – about what constitutes a private entity as are status-quo supporters. Case in point, an article in today’s Huffington Post that, along with U.S. Secretary of Education Arne Duncan, attempts to portray the suddenly rocky road ahead for SAFRA as a result of evil lender lobbyists dropping boulders in the selfless legislation’s way:

Taking aim at Sallie Mae, the largest student lender in the country and a driving force behind the lobbying effort, Education Secretary Arne Duncan on Tuesday accused the company of using taxpayer funds to lobby and advertise, and cast its executives as white-collar millionaires uninterested in serious education reform.

“Sallie Mae executives have paid themselves hundreds of millions of dollars in the last decade while teachers, nurses, and scientists – the backbone of the new economy – face crushing debt because of runaway college tuition costs,” Duncan said.

Here Sallie Mae is painted in the same ugly hues as Lehman Brothers, AIG, and all the other supposedly rapacious, unscrupulous companies whose unchecked greed, we’re told, brought the American economy to its knees. (We also get the baseless but obligatory pronouncement about “crushing debt” for teachers and other toilers for the “public good.”)

But wait! Doesn’t  “Sallie Mae” sound a lot like”Fannie Mae” and “Freddie Mac”? Of course! That’s because just like Fannie and Freddie, Sallie was created by the federal government,  only with Sallie’s job being to furnish lots of cheap college loans. And guess what? Just like Fannie and Freddie, Sallie became by far the biggest kid on her block because her huge federal creator fed her and protected her for decades, not setting her off on her own until 1996. But that part of her story doesn’t fit anywhere into the evil corporation narrative, so it’s just not mentioned.  All we need to know is Sallie is private, her owners and employees make a lot of money, and that is why she is evil and dangerous.

And so the politics of demonization and denial, a staple of the recession blame game, continues. Private institutions are portrayed as malevolent predators and government as a warm, pure, protective father-figure. But there is much more accurate imagery possible when it comes to Sallie Mae: Egomaniacal Dr. Frankenstein furiously blaming the monster he created for doing exactly what he built it to do.

And some wonder why there’s such widespread outrage – the real reason SAFRA is in trouble – about ever-expanding federal power?

Weekend Links

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Can Scott Brown’s Election Stop the Federal Takeover…of Education?

Yesterday, I wrote about President Obama’s proposal to extend the Race to the Top program, this time letting school districts completely bypass state governments and apply directly to the feds for funding. I pointed out that the proposal was one among several troubling signs that Obama intends to put Washington fully – and, of course, unconstitutionally – in charge of American education.  At the time, I didn’t realize how right I was.

When I was writing yesterday I was basing my comments on documents from the White House’s website and hadn’t yet read the details of what went on at the President’s photo-op announcing the proposed extension. I sure wish I had: At the dog-and-pony show, the President just came right out and said that he wants to push aside states – mentioned by name was famous holdout Texas – that dared to invoke the Constitution and not participate in a program that was, Constitution or no Constitution, supposed to be voluntary.  

“Innovative districts like the one in Texas whose reform efforts are being stymied by state decision-makers will soon have the chance to earn funding to help them pursue those reforms,” intoned the President. 

Fortunately, Texas Governor Rick Perry wasn’t about to be cowed: “I will say this very slow so they will understand it in Washington, D.C.: Texas will fight any attempt by the federal government to take over our school system.”

So it’s pretty certain now, more so even than just 24 hours ago: President Obama wants to federalize American education.

Thankfully, a lot can clearly happen in 24 hours. Yesterday’s election of Scott Brown in Massachusetts could very well send shockwaves of fear through the ranks of Democratic (and maybe even Republican) legislators in DC, who might finally get the message that Americans just don’t like federal takovers. Heck, perhaps even the President will get the message. If so, then maybe even something as relatively small as a $1.35-billion scalpel designed to cut through states and get right at districts could be seen as too dangerous to handle.  

That’s speculation, of course, but we should know a lot more  in just, oh, the next 24 hours.