The standard Keynesian policy proposal for a weak economy is to have the government spend more money, and run deficits to do so. Clearly much of current government spending is being financed by borrowing. So current conditions are not subject to the New Deal critique that it was mostly paid for by taxes, as during the Great Depression. Current federal expenditures have increased about 41% since the housing market peaked in 2006. Has all this government spending generated many jobs? While keeping in mind that correlation is not the same as causality, it is interesting that the trend in government spending and total non-farm employees mirror one another, but not in the way you’d like. The more the government has spent, the more people have lost their jobs. The simple correlation between government spending and jobs has been a negative 0.9. Also worth noting is that both the decline in jobs and increase in government spending began well before the financial crisis of Sept 2008. In fact, almost 2 million jobs were lost between the beginning of the recession in Dec 2007 and the financial crisis in Sept 2008. Again, I won’t pretend this proves anything, however, it does suggest to me that continued massive government spending is not going to turn around the job market.
Cato at Liberty
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Government and Politics
Time Running Out in Libya?
Even defenders of broad presidential prerogatives are starting to conclude that Obama’s war in Libya violates the original legal justification for it offered by the Office of Legal Counsel (OLC) in the Department of Justice.
Briefly put, the OLC said the Libyan war was not a war because the operation would be limited as to means, objectives, and duration. Thus, the OLC argued, neither the Constitution nor the War Powers Resolution constrained the president’s prerogatives.
The objective has changed from protecting civilians to regime change. The war itself has gone on now for as long as the unauthorized war in Kosovo in 1999. Jack Goldsmith concludes: “as the days drag on, and as our deep involvement persists, it becomes harder and harder to represent that this mission is limited in nature, duration, and scope.”
We Don’t Need No Art in Kansas
At POLITICO this morning we find a long opinion piece by Matt Stoller, “Public Pays Price for Privatization,” summarized as “The real infrastructure trend in America today is privatizing what is left.” If that weren’t enough to give you the flavor of the piece, the bio line tells us that “Stoller worked on the Dodd-Frank financial reform law and Federal Reserve transparency issues as a staffer for Rep. Alan Grayson (D‑Fla.). He is currently a fellow at the Roosevelt Institute.” Say no more – except, there’s more to say.
Stoller notes, among much else, that Kansas Gov. Sam Brownback “just turned over arts funding to the private sector, making Kansas the only state without a publicly funded arts agency.” Don’t reel in horror; the cited Los Angeles Times article has already done it for you: “The governor erased state funding for arts programs, leaving the Kansas Arts Commission with no budget, no staff and no offices.” One imagines there will now be no art at all in Kansas.
Not surprisingly, Stoller extols the giant public works of the New Deal and after, which petered out in the 1970s, he says, after which “international competitiveness and environmental costs drove the logic of cost reductions into our political order. Today, we are still living in the Ronald Reagan-Paul Volcker era of low taxes, low regulations, low pay, low spending and high finance.” It seems not to have occurred to Stoller that perhaps the prior absence of “the logic of cost reductions” in our political order might have contributed to why, as he says, “the New Deal coalition melted in the 1970s.”
Art aside – that’s an easy case for defunding – Stoller does go on to criticize much of the “privatization” that’s taken place since – starting with Fannie Mae and Freddie Mac. He’s right there: These “private-public partnerships” are fraught with peril, not least by giving privatization a bad name, something he doesn’t consider. The idea of “public goods” is not meaningless, but the definition has to be strict, as economists know, and the means for privatizing ersatz “public goods” have to be clean. Given the vast public sector before us, we’ve got years of privatization ahead. Let’s hope it’s done right.
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“Weinergate”: It’s Entertaining–and Edifying!
I guess I should blush to admit that my Washington Examiner column this week focuses on “Weinergate.” But who among us can resist snickering at a scandal this hilarious—who so sober and serious that they could ignore the crotch pic that launched a thousand puns?
As I argue in the column, among all the horselaughs to be had, there are also lessons to be learned:
There’s nothing wrong with enjoying a good old-fashioned political sex scandal. They’re entertaining, and they may even be edifying — reminding us that self-styled “public servants” are often less responsible, more venal, and just plain dumber than those they seek to rule.
Some writers with whom I’m normally simpatico disagree. Doug Mataconis of Outside the Beltway deplores “the odd American obsession with political sex scandals.” The Atlantic’s Conor Friedersdorf also condemns the attention given the Weiner kerfuffle:
there is a significant cost to obsessing over these things. The opportunity cost, for the media, is covering lots of other matters that are actually of greater import to the public, whatever one thinks of sex scandals.
I just don’t see it. Sure, in a better world, the news cycle might consist of a dignified 24/7 seminar on debt limits, insurance exchanges, the War Powers Resolution, and the like. But here on earth, Weinergate’s mainly crowding out more coverage of Sarah Palin’s bus tour.
“And for the politician in question,” Friedersdorf continues, “scandal consumes all the time he’d otherwise be dedicating to his official duties.”
I confess, I have a hard time not seeing this as win-win.
Both Mataconis and Friedersdorf argue that “private” sexual behavior tells us little about how politicians do their jobs. And I see their point, to a point. I sometimes joke, lamely, that one of my favorite presidents was a draft-dodging, womanizing Democrat elected in ’92 (wait for it)… Grover Cleveland.
But whether or not we should care about congressional “sexting”—in the context of the modern media Panopticon, isn’t someone, like Weiner, who engages in it (especially after GOP Rep. Christopher Lee’s downfall) at least a reckless idiot? And isn’t that relevant to his job?
In a recent hand-wringing editorial, the New York Times fretted about disgraced former Senator and VP candidate John Edwards.
What the Times found unfortunate wasn’t the runaway prosecution–a legitimate complaint–but the fact that it would draw attention to yet another giant political phony. It’s “the last thing the nation needs: another cautionary tale of hubris,” says the Grey Lady, “the woeful courtroom coda to [Edwards’] once flourishing political career can only invite a further slide toward wariness and cynicism for American voters.”
Oh no! Not more “wariness and cynicism”! Surely, that’s the “last thing the nation needs” in an era of promiscuous warmaking and reckless spending!
There’s a story (perhaps apocryphal) where F. Scott Fitzgerald says to Ernest Hemingway, “the rich are different from you and me,” and Hemingway supposedly replies, “yes, they have more money.” I don’t know about the rich, but the political class is, by and large, different from the rest of us–and not just because they have more power.
By reminding us of how untrustworthy and reckless these people can be–how little control they often exhibit in their own lives–political sex scandals may even serve an important social purpose: they remind us that we should think twice before granting them more control over ours.
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The Constitutional Case for Marriage Equality
On June 12, 1967, the U.S. Supreme Court struck down bans on interracial marriage in more than a dozen states in the case of Loving v. Virginia. Today, the highest court in the United States may soon take on the issue of marriage equality for gay and lesbian relationships. Attorneys David Boies and Theodore B. Olson are hoping the case of Perry v. Schwarzenegger will further establish marriage as a fundamental right of citizenship. Also featured are John Podesta, President of the Center for American Progress, Cato Institute Chairman Robert A. Levy and Cato Executive Vice President David Boaz.
Watch the full event from which many clips were pulled here and Robert A. Levy’s presentation here.
Don’t Tread on My Plate
Last week First Lady Michelle Obama and the U.S. Department of Agriculture unveiled “ChooseMyPlate.gov,” an updating of the federal government’s ongoing efforts to lecture us on how to eat. While the idea of nutrition recommendations from Washington, D.C. isn’t itself new, the past couple of years have seen a lurch toward a more coercive approach, especially under the Obama administration, under pressure from a burgeoning “food policy” movement, as I explain in a new Daily Caller op-ed:
All sorts of nannyish and coercive ideas are emerging from that [movement] nowadays: proposals at the FDA to limit salt content in processed foods; mandatory calorie labeling, which poses a significant burden on many smaller food vendors and restaurants; new mandates on food served in local schools; advertising bans; and on a local level efforts to ban things like Happy Meals at McDonald’s. No wonder many parents, local officials and skeptics in Congress are beginning to say: Back off, guv. It’s my plate.
The fact is that the federal government’s dietary advice has changed often through the years—the Washington Post had a great feature on past federal dietary guidelines, under which sweets and even butter held their place as food groups—and that government’s recommendations have regularly proved wrong and even damaging, a point that Steve Malanga elaborates on in this City Journal piece (“Following the government’s nutritional advice can make you fat and sick.”)
Yesterday, C‑SPAN’s Washington Journal had me on opposite Maya Rockeymoore of the group Leadership for Healthy Communities to discuss issues that ranged from the school lunch program to whether Washington should serve as an “arbiter” of contending dietary claims, an idea I didn’t much care for. You can watch here.
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That’s Not Healthy: Even Krugman Admits Medicare Is a Lousy Program
From today’s health care news:
- Paul Krugman gets Medicare vouchers all wrong, but at least he begins with the premise that Medicare is a lousy program.
- The invaluable web site HealthNewsReview.org dings the World Health Organization for announcing that cell phones may cause cancer without simultaneously releasing the evidence on which they base that conclusion.
- Ryan Lizza thinks RomneyCare’s health insurance Exchange is a “deregulated online marketplace.”