Topic: General

Hold Politicians Accountable for Debacle in Libya

Will America ever again be at peace? Pressure is building for the U.S. again to intervene in Libya.

Less than three years after Libya’s civil war the country has ceased to exist. This debacle offers a clear lesson for American policymakers. But denizens of Washington seem never to learn.

The administration presented the issue as one of humanitarian intervention, to save the people of Benghazi from slaughter at the hands of Libyan dictator Moammar Khadafy.

Although he was a nasty character, he had slaughtered no one when his forces reclaimed other territory. In Benghazi he only threatened those who had taken up arms against him.

In fact, the allies never believed their rhetoric. They immediately shifted their objective from civilian protection to slow motion regime change. Thousands died in the low-tech civil war.

Alas, Libya was an artificial nation. When Khadafy died political structure vanished. The country split apart. Today multiple warring factions have divided into two broad coalitions.

“Operation Dignity” is a largely secular grouping including Gen. Khalifa Haftar’s “Libyan National Army” and the internationally recognized government. Last May Haftar launched a campaign against the Islamist militias with covert support from Egypt and the United Arab Emirates.

“Libya Dawn” is a mix of Islamists, moderate to radical, and conservative merchants which now controls Tripoli. They are backed by Qatar, Sudan, and Turkey, and deny that the Islamic State poses much of a threat.

Marijuana Legalization in DC

On February 26, 2015, marijuana becomes legal (again) under the laws of Washington, D.C. The key rules are:

  • It will be legal to possess up to two ounces of pot.
  • It will be legal to smoke said pot on private property.
  • It will be legal to transfer (give) an ounce or less of pot to someone else.
  • It will be legal to grow and cultivate up to six pot plants—no more than three mature ones—in your home.
  • You must be 21 years old to possess, consume, or grow pot.
  • Selling pot will still be illegal.
  • As will be smoking pot in any public space, which includes restaurants, bars, and coffee shops.
  • And, of course, none of this applies to any federal land (which accounts for 22 percent of the District), which considers marijuana illegal.

Overall, this is progress.  But note that:

1. Federal marijuana prohibition still applies.

2. The age limit of 21 is misguided (just as with alcohol).  That limit guarantees that much marijuana use will remain outside the law.

3. The limit on possession amounts is silly; the ban on sale is idiotic.

4. Perhaps restaurants, bars, and coffee shops will circumvent the ban on smoking in public by offering free edibles.

5. The federal government owns 22 percent of the land in D.C.?  Geez.

 

Bipartisan Baloney About Top 1 Percent Income Gains

In the State of the Union address on January 20, President Obama said, “those at the top have never done better… Inequality has deepened.”  The following day, Fox News anchor Brett Baier said, “According to the work of Emmanuel Saez, a professor at the University of California, Berkeley, during the post-recession years of 2009-2012, top earners snagged a greater share of total income growth than during the boom years of 2002-2007. In other words, income inequality has become more pronounced since the Bush administration, not less.” 

Senator Bernie Sanders agrees that “in recent years, over 99 percent of all new income generated in the economy has gone to the top 1 percent.”  And Senator Ted Cruz likewise confirmed that, “The top 1 percent under President Obama, the millionaires and billionaires that he constantly demagogued earned a higher share for our income than any year since 1928.” 

When any statistic is so politically useful and wildly popular among left-wing Democrats and right-wing Republicans you can be pretty sure it’s baloney.  Bipartisan baloney.

In November 2013, I wrote that, “Because reported capital gains and bonuses were…shifted forward from 2013 to 2012 [to avoid higher tax rates], we can expect a sizable drop in the top 1 percent’s reported income when the 2013 estimates come out a year from now. The befuddled media will doubtless figure out some way to depict that drop as an increase.” As predicted, the New York Times took one look at a 14.9% drop in top 1% incomes and concluded that “The Gains from the Recovery are Still Limited to the Top One Percent” That involved slicing the same old baloney very badly.

Happy Valentine’s Day from the Cato Institute!

Having trouble finding the perfect V-Day greeting for your freedom-fighting honey? Cato’s got you covered.

This collection of liberty-friendly valentines puts a fun twist on some recent Cato research. Perfect for your like-minded love … and all your friends. 

If your crush cares more about free markets than flowers, these valentines are sure to sweep them off their feet!

Topics:

You Asked Cato EVP David Boaz Anything. Here’s What Happened…

Over his 33 years at Cato and through his earlier activities in the libertarian policy sphere, Cato’s Executive Vice President David Boaz has played a key role in the development of both the Cato Institute and the libertarian movement at large; he even wrote the Encyclopedia Britannica entry on libertarianism!

On Tuesday, in conjunction with the release of his new book, The Libertarian Mind: A Manifesto for Freedom (which, incidentally, sold out on Amazon within hours), Boaz took to Reddit’s iAMA forum to discuss libertarianism, his book, and the burgoening “libertarian moment,” inviting Redditors of all ilks to ask him anything

During the hour long Q&A session, Boaz tackled a wide-array of questions, weighing in on everything from the drug war and abortion to effective strategies for social change and the efficacy of libertarian governance.  Each one of his responses ignited impassioned debates amongst the forum’s diverse audience as commenters from all sides of the political spectrum hashed out the ideas of liberty. 

The resulting discussion is a fascinating one, very much worth your attention. Check out the Reddit discussion and Boaz’s book, and then continue the conversation on Twitter using #LibertarianMind.

Obama’s Hypocrisy Regarding Forcible Border Changes

In a joint press conference with German Chancellor Angela Merkel, President Obama stated that he was considering sending weapons to the government of Ukraine.  Noting that Russia had already annexed Crimea and was now backing separatist rebels in eastern Ukraine, the president warned that “the West cannot stand and simply allow the borders of Europe to be redrawn at the barrel of a gun.”

Such sentiments might have more credibility if the Western powers, including the United States, had not engaged in similar conduct.  But Washington and its NATO allies have indeed redrawn borders, including borders in Europe, through military force.  Two incidents are especially relevant.  Turkey, a leading member of NATO, invaded Cyprus in 1974 and amputated some 37 percent of that country’s territory.  Turkish forces ethnically cleansed the area of its Greek Cypriot inhabitants and, in the years that followed, desecrated a large number of Greek historical and religious sites.

Ankara subsequently established a client state, the Turkish Republic of Northern Cyprus in the occupied territories.  Turkey has steadfastly refused to atone for its illegal invasion and occupation, much less disgorge the land that it conquered.  Yet except for some token economic sanctions imposed shortly after the invasion, which were soon lifted, Washington has never even condemned the aggression that its NATO ally committed. 

One might assume that it would be awkward for U.S. leaders to excoriate Vladimir Putin’s regime for annexing Crimea or setting up puppet states in the occupied Georgian provinces of Abkhazia and South Ossetia (which Moscow did after a short, nasty war in 2008) when a NATO member is guilty of similar behavior.  But such flagrant inconsistency has apparently caused American officials little difficulty.

When Mean-Tested Benefits Rose, Labor Force Participation Fell

The U.S. job market has tightened by many measures – more advertised job openings, fewer claims for initial unemployment insurance, substantial reduction in long-term unemployment and the number of discouraged workers.  Yet the percentage of working-age population that is either working or looking for work (the labor force participation rate) remains extremely low.  This is a big problem, since projections of future economic growth are constructed by adding expected growth of productivity to growth of the labor force.

Why have so many people dropped out of the labor force?  Since they’re not working (at least in the formal economy), how do they pay for things like food, rent and health care?

One explanation answers both questions: More people are relying on a variety of means-tested cash and in-kind benefits that are made available only on the condition that recipients report little or no earned income.   Since qualification for one benefit often results in qualification for others, the effect can be equivalent to a high marginal tax rate on extra work (such as switching from a 20 to 40 hour workweek, or a spouse taking a job).  Added labor income can often result in loss of multiple benefits, such as disability benefits, supplemental security income, the earned income tax credit, food stamps and Medicaid. 

This graph compares annual labor force participation rates with Congressional Budget Office data on means-tested federal benefits as a percent of GDP.  The data appear consistent with work disincentives in federal transfer payments, labor tax rates and refundable tax credits.