Tag: Mexico

Former President Fox: “Legalize Drugs”

Mexico’s former President, Vicente Fox, joins the growing chorus of Latin American ex-presidents calling for an end on the war on drugs. He’s proposing an open debate on drug legalization.

It’s a shame, though, that these leaders wait until they are out of office to voice their opposition to Washington’s prohibitionist drug strategy. While it’s true, as Fox points out, that any step towards legalization in the region must be supported by the United States, Latin American presidents skeptical of the status quo could use the pulpits at the United Nations, Organization of American States, or the Summits of the Americas to denounce the war on drugs and call for different approaches.

Still, Fox’s opinion on the matter is welcome.

The Cost of Flu Fears - and Our Ongoing Vulnerability

The ever-sensible Shaun Waterman has begun to tally the cost of overreaction to the fear outbreak inspired by the H1N1 flu strain. He reports in ISN Security Watch:

Even the precautions that you take against this kind of global flu pandemic could knock about 1.9 [or] 2 percent off global [economic production]. That’s about a trillion dollars,” according to journalist Martin Walker, who cited World Bank figures from a study last year.

The Economist reported last week that the crisis in Mexico was costing Mexico City’s service and retail industries $55m a day - not because of the handful of deaths but because of people’s reactions. And that was even before the national suspension of non-essential public activities called for this week by the authorities there, which was expected to double that cost.

Waterman also cites my joke about moving Vice President Biden to an undisclosed location in future crises - not for his protection or government continuity, but to keep him away from the media.

It’s comedic wrapping on a substantive point: As long as people look to government leaders in times of crises, leaders have a responsibility to communicate carefully, according to a plan, and with message discipline. If they don’t, the damage can be very high.

Even if all Americans knew to dismiss the words of the Vice President as if he’s a “Crazy Uncle Joe” - and they don’t - foreign tourists certainly don’t know that. Biden harmed the country simply by speaking off the cuff.

Here, an outbreak of flu appears to have caused billions of dollars in damage to the world economy. One billion lost to the U.S. economy is about 145 deaths (using the current $6.9 million valuation for a human life). When overreactions restrict economic activity, that reduces wealth and thus health and longevity.

Now, imagine what might happen if the United States encountered a novel, directed threat - some kind of attack that inspires widespread concern. Will Vice President Biden and officials from a half-dozen agencies rush forth with personal observations and speculation? The results could be devastating, especially to a country that is already suffering economically.

People die from poor situation management, and it makes Americans worse off. Political leaders should not get a free pass for failing to communicate well just because it’s hard to do.

The Obama Administration should learn from its many errors in handling the rather benign H1N1 flu situation. It should train up for communicating in the event of a real emergency. If the Obama Administration fails to soothe nerves in the event of some future terrorist attack, that will be a clear failure of leadership.

Mixed Messages on Swine Flu

The government has taken the sensible step of creating a website to disseminate information on the Swine Flu.  There’s even a “Swine Flu & You” section.

Unfortunately, someone forgot to tell Vice President Biden.

On the Today Show, Biden lauded the government’s focus on identified vectors and not on a wholesale closing of the border with Mexico or shutting down commercial airline traffic. Then he contradicted this rational message by saying he “wouldn’t go anywhere in confined places now” and discourages travel by plane, subway, or automobile.

No word on whether this will impact administration plans to use “high-speed rail” to revolutionize transportation in America.

The Global Economy Is Not Immune to Swine Flu

World governments should be careful not to play politics with the Mexican swine flu outbreak. The health consequences should of course be rigorously addressed—but without adding economic consequences, which is what several countries appear poised to do.

Public health scares have a history of seeping into trade policy without anything resembling sufficient consideration of the evidence. Governments in Russia and East Asia are already banning pork exports from Mexico, even though there is zero evidence that they pose a health hazard. It hearkens back to unfounded bans of U.S. beef in recent years by the European Union and South Korea.

If the U.S. government jumps on board, U.S. exports could be targeted for retaliatory trade actions. One quarter of U.S. pork production is exported, as well as billions of dollars of our soybeans used as feed by foreign hog farmers.

Exploiting this crisis could turn what is so far a manageable health problem into an unnecessary trade and diplomatic conflict. Obviously the global economy does not need the extra strain.

New at Cato

Here are a few highlights from Cato Today, a daily email from the Cato Institute. You can subscribe here.

  • Scott Lincicome discusses how the Obama administration has put U.S. leadership in free trade in jeopardy.
  • Ted Galen Carpenter discusses President Obama’s recent trip to Mexico to meet with President Felipe Calderon.
  • Appearing on PBS, Cato Chairman Robert A. Levy debates the state of American gun laws.
  • In today’s Cato Daily Podcast, John Samples discusses what the “Tea Party” protests mean for the GOP.

Gun Control for the Sake of Mexico: The Meme That Wouldn’t Die

Fox News already debunked the claim that 90% of the guns involved in Mexico’s drug war come from the United States.  Facts aside, the press onslaught continues in a new push for gun control.

The fact is that out of 29,000 firearms picked up in Mexico over the last two-year period for which data is available, 5,114 of the 6,000 traced guns came from the United States.  While that is 90% of traced guns, it means that only 17% of recovered guns come from the United States civilian market.

Where did the rest come from?  A number of places.  To begin with, over 150,000 Mexican soldiers have deserted in the last six years for the better pay and benefits of cartel life, some taking their issued M-16 rifles with them.

Surprisingly, a significant number of the arms are coming to the cartels via legitimate transactions.  They are produced and exported legally every year, regulated by the State Department as Direct Commercial Sales.  FY 2007 figures for the full exports are available here, and State’s report on end-use is available here, alleging widespread fraud and use of front companies to funnel the weapons into the black market.  (H/T to Narcosphere)  This doesn’t even take into account the thousands of weapons floating around Latin America from previous wars of liberation.  This Los Angeles Times article also shows how the cartels are getting hand grenades, rocket launchers, and other devices you can’t pick up at your local sporting goods store.

Perhaps this is why law enforcement officials did not ask for new gun laws to combat Mexican drug violence at recent hearings in front of Congress.

Never mind those pesky facts.  The story at the New York Times recycles the 90% claim.  The associated video is just as bad.  Narrator: “The weapons that are arming the drug war in Juarez are illegal to purchase and possess in Mexico.”  They’re also illegal in the United States.  As the narrator says these words, the Mexican officer is handling an M-16 variant with a barrel less than sixteen inches long.  This rifle would be illegal to possess in the United States without prior approval from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE).  As the video mentions the expired “Assault” Weapons Ban, the submachine gun in frame would also be classified as a short-barreled rifle and require BATFE approval.  Ditto for many of the rifles shown in the video.  The restrictions on barrel length would not apply to weapons exported as Direct Commercial Sales.  Law enforcement folks call this a “clue.”

The language of gun control advocates is changing subtly to demonize “military style” weapons.  “Military style” weapons is a new and undefined term that means either (1) automatic weapons, short barreled rifles, short barreled shotguns, and destructive devices already heavily regulated by federal law; or (2) a term inclusive of  all modern firearms in a back-door attempt to enact a new gun control scheme.

Yes, ALL modern firearms.  Grandpa’s hunting rifle?  Basis for the system used by military snipers.  The pump-action shotgun you use to hunt ducks and quail?  Basis for the modular shotgun produced for the military.  The handgun you bought for self-defense, a constitutionally protected right?  Used by every modern military.

This is not a new tactic.  The Violence Policy Center has previously tried to fool people by portraying ordinary rifles as machine guns with the term “assault” weapons: “The weapons’ menacing looks, coupled with the public’s confusion over fully automatic machine guns versus semi-automatic assault weapons-anything that looks like a machine gun is assumed to be a machine gun-can only increase the chance of public support for restrictions on these weapons.”

Making our domestic policies based on the preferences of other countries is unacceptable, especially in an activity protected by the Constitution.  One of Canada’s Human Rights Commissioners is on record saying that “[f]reedom of speech is an American concept, so I don’t give it any value.”  (Apparently, it makes the folks at the Department of Homeland Security nervous too)  In a similar vein, the United Nations says “[w]e especially encourage the debate on the issue of reinstating the 1994 U.S. ban on assault rifles that expired in 2004.”

It’s not theirs to say, and we shouldn’t listen to an argument based on lies.  Related posts here and here.

Week in Review: No End to Spending and Regulation in Sight

Geithner to Propose Unprecedented Restrictions on Financial System

geithnerThe Washington Post reports, “Treasury Secretary Timothy F. Geithner plans to propose today a sweeping expansion of federal authority over the financial system… The administration also will seek to impose uniform standards on all large financial firms, including banks, an unprecedented step that would place significant limits on the scope and risk of their activities.”

Calling Geithner’s plan another “jihad against the market,” Cato senior fellow Jerry Taylor blasts the administration’s proposal:

What President Obama is selling is the idea that government must be the final arbiter regarding how much risk-taking is appropriate in this allegedly free market economy. It is unclear, however, whether anybody short of God is in the position to intelligently make that call for every single actor in the market.

Cato senior fellow Gerald P. O’Driscoll reveals the real reason behind the proposal:

Federal agencies have long had extensive regulatory powers over commercial banks, but allowed the banking crisis to develop despite those powers. It was a failure of will, not an absence of authority.   If the authority is extended over more institutions, there is no reason to believe we will have a different outcome.  This power grab is designed to divert attention away from the manifest failure of, first, the Bush Administration, and now the Obama Administration to devise a credible plan to deal with the crisis.

A new paper from Cato scholar Jagadeesh Gokhale explains the roots of the current global financial crisis and critically examines the reasoning behind the U.S. Treasury and Federal Reserve’s actions to prop up the financial sector. Gokhale argues that recovery is likely to be slow with or without the government’s bailout actions.

In the new issue of the Cato Policy Report, Cato chairman emeritus William A. Niskanen explains how President Obama is taking classic steps toward turning this recession into a depression:

Four federal economic policies transformed the Hoover recession into the Great Depression: higher tariffs, stronger unions, higher marginal tax rates, and a lower money supply. President Obama, unfortunately, has endorsed some variant of the first three of these policies, and he will face a critical choice on monetary policy in a year or so.

Obama Defends His Massive Spending Plan

President Obama visited Capitol Hill on Wednesday to lobby Democratic lawmakers on his $3.6 trillion budget proposal. Both the House and Senate are expected to vote on the plan next week.

obama-budget1In a new bulletin, Cato scholar Chris Edwards argues, “Sadly, Obama’s first budget sets a course for more government bloat, more economic distortions, and ultimately lower standards of living for everyone who is not living off of federal hand-outs.”

On Cato’s blog, Edwards discusses Obama’s misguided theory on government spending:

Obama’s budget would drive government health care costs up, not down. But aside from that technicality, the economics of Obama’s theory don’t make any sense.

Obama’s budget calls for a massive influx of government jobs. Writing in National Review, Cato senior fellow Jim Powell explains why government jobs don’t cure depression:

If government jobs were the secret of success, then the Soviet Union wouldn’t have collapsed, because it had nothing but government jobs. Communist China, glutted with government jobs, would have generated more income per capita than Hong Kong where, at least before the Communist takeover, there were hardly any government jobs, but Hong Kong’s per capita income was about 20 times higher than that on the mainland.

Multiplying the number of government jobs did nothing then and does nothing now to revive the private sector that pays all the bills, in large part because of the depressing effect of taxes required to pay for government jobs.

Cato on YouTube

Cato Institute is reaching out to new audiences with our message of individual liberty, free markets and peace. Last year, we launched our first YouTube channel, which has garnered thousands of views and subscriptions. Here are a few highlights: