Tag: politician

Speier (D-Silicon Valley) Sows Techno-panic

“Techno-Panics” are public and political crusades against the use of new media or technologies, particularly driven by the desire to protect children. As the moniker suggests, they’re not rational. Techno-panic is about imagined or trumped-up threats, often with a tenuous, coincidental, or potential relationship to the Internet. Adam Thierer and Berin Szoka of the Progress & Freedom Foundation have written extensively about techno-panics on the TechLiberationFront blog.

Talking about techno-panic does not deny the existence of serious problems. It merely identifies when policymakers and advocates lose their sense of proportion and react in ways that fail to address the genuine issues—such as censoring a web site because it reveals the fact that some few among a community of tens of millions of people will conspire to break the law.

You’d think that a congressional representative from the heart of Silicon Valley would not sow techno-panic, but here’s Jackie Speier (D-Calif.) on the Craigslist censorship issue:

“We can’t forget the victims, we can’t rest easy. Child-sex trafficking continues, and lawmakers need to fight future machinations of Internet-driven sites that peddle children.”

Of all representatives in Congress, Speier should know that Craigslist has been making it easier for law enforcement to locate and enforce the law against any perpetrators of crimes against children. Pushing them to rogue sites does law enforcement no good. Censoring Craiglist only masks the problem, which may be in the interest of politicians, but definitely not children.

Moody’s Caves In to Political Pressure on Municipal Bonds

Moody’s has announced that it will change its methods for rating debt issued by state and local governments.  Politicians have argued that its current ratings ignore the historically low default rate of municipal bonds, resulting in higher interest rates being paid on muni debt, or so argue the politicians.

First this argument ignores that the market determines the cost of borrowing, not the rating.  And while ratings are considered by market participants, one can easily find similarly rated bonds that trade at different yields.

Second, while ratings should give some weight to historical performance, far more weight should be given to expected future performance.  Regardless of how say California-issued debt has performed in the past, does anyone doubt that California, or many other municipalities, are in fiscal straights right now?

Last and not least, politicians have no business telling rating agencies how to handle different types of investments.  We’ve been down this road before with Fannie Mae and Freddie Mac.  During drafting of GSE reform bills in the past, politicians put constant pressure on the rating agencies to maintain Fannie and Freddie’s AAA status.

The gaming over muni ratings illustrates all the more why we need to end the rating agencies govt created monopoly.  As long as govt has imposed a system protecting the rating agencies from market pressures, those agencies will bend to the will of politicians in order to protect that status.  As Fannie and Freddie have demonstrated, it ends up being the taxpayers and the investors who ultimately pay for this political meddling.

Tuesday Links

  • Gene Healy on today’s election in Massachusetts: “If Republican Scott Brown wins the Massachusetts special election Tuesday, the Bay State will have its first GOP senator since the era when disco was king. And Brown will have the much-derided Tea Party legions to thank.”
  • George W. Obama? “Bush’s successor—who actually taught constitutional law at the University of Chicago—is continuing much of the Bush-Cheney parallel government and, in some cases, is going much further in disregarding our laws and the international treaties we’ve signed.”
  • Podcast: “Our America Initiative” featuring former New Mexico Governor Gary Johnson. Johnson discusses out of control government spending, immigration, the Bush years, the drug war, defense policy and more.

Obama: ‘All Part of the Job’

Via the Spectator’s Alex Massie, comes this ABC News report on last Thursday’s Obama town hall in New Orleans:

“Why do people hate you?”, a fourth-grade boy asked Obama …. “They’re supposed to love you. And God is love.”

Massie comments,

Obama’s answer is actually pretty reasonable. But this is what happens when you make a mere elected politician assume the status of Priest-King. It is, in its own way, a corrupting influence. I don’t blame the kid asking the question since, heck, there are plenty of professional journalists in DC who basically think along the same lines. This isn’t Obama’s fault, but it’s a problem nonetheless.

True enough, Americans had an irrational conception of presidential responsibility long before 44 took office. Still, Obama’s far from blameless. At the same town hall, Obama commented :

“You know, I listen to, sometimes, these reporters on the news: Well, why haven’t you solved world hunger yet?” he joked.

Ha: silly reporters! They should ask the president about something he’s actually promised to do, like provide “a cure for cancer in our time,” or stop the oceans’ rise, or “create a Kingdom right here on Earth.”

Obama’s right that it’s “part of the job” that the president gets an outsized share of credit or blame for the direction of the country. It’s been that way for a long time. As Thomas Cronin put it in his classic 1970 essay “Superman: Our Textbook President”:

on both sides of the presidential popularity equation [the president’s] importance is inflated beyond reasonable bounds. On one side, there is a nearly blind faith that the president embodies national virtue and that any detractor must be an effete snob or a nervous Nellie. On the other side, the president becomes the cause of all personal maladies, the originator of poverty and racism, inventor of the establishment, and the party responsible for a choleric national disposition.

Barack Obama didn’t create this view of presidential responsibility; he inherited it. But, other than the occasional “change is hard” caveat, it’s not as though Obama’s sought to dispel the irrational expectations people invest in the office. To the contrary, he’s done more than any president in living memory to encourage the view that the president is a benevolent father protector endowed with magical powers – a living American talisman against hurricanes, terrorism, economic downturns, and spiritual malaise. It’s the sort of view that people ought to – but often don’t – grow out of by, say, fifth grade. And a good deal of the burgeoning public dissatisfaction with Obama stems from his aggressive attempts to secure powers to match the boundless responsibilities he embraces.