Topic: Political Philosophy

The Free Market Produces Incoherent Headlines

Today’s Washington Post has a story on economic espionage by Chinese interests, most of which have connections to the Chinese government and military. Inexplicably, the headline of the story is “Even Spies Embrace China’s Free Market.”

Government-sponsored economic espionage has little to do with free markets. These are crimes (or at least civil wrongs) sponsored directly or indirectly by over-large governments. Crime and over-large governments are antithetical to free markets, not a part of them.

Evidently, there’s some kind of market failure at the Post. (Note to the economic illiterates at the Post: That’s a joke.)

Privatized Law Enforcement

The New York Times has a fascinating article explaining how bail bondsmen are a uniquely American, quasi-private element of the criminal justice system:

…posting bail for people accused of crimes in exchange for a fee…is all but unknown in the rest of the world. In England, Canada and other countries, agreeing to pay a defendant’s bond in exchange for money is a crime akin to witness tampering or bribing a juror — a form of obstruction of justice. …Other countries almost universally reject and condemn Mr. Spath’s trade, in which defendants who are presumed innocent but cannot make bail on their own pay an outsider a nonrefundable fee for their freedom. “It’s a very American invention,” John Goldkamp, a professor of criminal justice at Temple University, said of the commercial bail bond system. “It’s really the only place in the criminal justice system where a liberty decision is governed by a profit-making businessman who will or will not take your business.” …Bail is meant to make sure defendants show up for trial. It has ancient roots in English common law, which relied on sworn promises and on pledges of land or property from the defendants or their relatives to make sure they did not flee. America’s open frontier and entrepreneurial spirit injected an innovation into the process: by the early 1800s, private businesses were allowed to post bail in exchange for payments from the defendants and the promise that they would hunt down the defendants and return them if they failed to appear. …The system costs taxpayers nothing, Mr. Kreins said, and it is exceptionally effective at ensuring that defendants appear for court. …According to the Justice Department and academic studies, the clients of commercial bail bond agencies are more likely to appear for court in the first place and more likely to be captured if they flee than those released under other forms of supervision.

Libertarians sometimes get accused of being utopians because of occasional debates about the degree to which things such as roads, defense, and law enforcement can be handled by the private sector. But this article is a great introduction to a thought experiment: Imagine if America’s private bail system did not exist and one of Cato’s legal experts proposed privatization of whatever system the government had created instead. That proposal doubtlessly would be condemned as utopian, unrealistic, impractical, and unworkable. Fortunately, that impossible idea has been successfully in place for about two hundred years. Just something to keep in mind the next time a statist tells you that something only can be done by government.

McCain Undone?

John McCain has a campaign finance problem. When his campaign was down and out, he agreed to take public funding for the primaries. Public funding comes with spending limits overall and by state. Also, a candidate who accepts funding cannot raise money from private sources. Now that it is possible he will be the nominee, McCain will want to be free of those fundraising and spending limits, but he cannot withdraw from the public system. Or perhaps he could but only with the approval of the FEC, which is not operating because of a struggle over its nominees. The FEC does not now have a quorum to meet and regulate. (The lack of a quorum was caused by Barack Obama’s hold on a nominee to the FEC, but never mind).

McCain will want out of the public system because he is probably close to hitting the limit, and he could not get more money for his campaign until he received public funding after the GOP convention during the summer.  His “dark period” would thus be a period without campaign funding that would run from spring until after the GOP convention. During that “dark period” Obama or Hillary, both of whom have not accepted public funding for the primaries, would be able to continue spending money; some of that spending would be directed against McCain after Obama or Hillary has secured the party’s nomination.

So McCain needs to get out of the public system and fast. One way would be to refuse public funding for the fall campaign; he could then start raising money privately now; however, he pledged to accept public funding for the general election if his opponent did so. Obama has taken a similar pledge.   Also, McCain would get around some of this by using “outside groups” (527 groups and others ) to fund his effort, but he has been a fierce critic of such groups and tactics.

I have often noticed that people whom you would expect to support campaign finance regulation (e.g. liberal Democrats) often are strident critics of the system if they have had some personal contact with the web of regulation.  McCain is in a mess fostered in part by his own self-righteousness. Somehow I do not expect his personal contact with the system will make him a critic of it in 2009.

See also Mark Schmitt’s concise and informative report.

Market Prices ≈ Slavery ≈ Child Labor?

That’s how Len Nichols of the New America Foundation described market prices for health insurance 41 minutes into this this webcast:

“We stopped child labor.  We stopped slavery.  We ought to stop extreme risk selection, too.”

I imagine more than a few actuaries and twentysomethings would be offended by the comparison.

Thanks to alert viewer Terry Holman for catching what I missed as I sat there listening to Nichols.

Atilla Yayla Found Guilty

Atilla Yayla, the courageous leader of the Association for Liberal Thinking in Turkey, who has spoken at the Cato Institute and taken part in Cato conferences and programs, has been found guilty of allegedly insulting the founder of the modern Turkish state, Mustafa Kemal Ataturk. The 15 month prison sentence was suspended.

Background from my previous blog posts here and here.

The New York Times ran a piece on Friday on the likely direction for freedom of speech in Turkey, “Turkey to Alter Speech Law,” which focuses on Atilla’s case.

Atilla is a brave man and a friend of the liberty of everyone. Please write to the Turkish Ambassador in your country, respectfully (please) requesting that proceedings be undertaken to void the sentence. Here is the info for the Turkish Embassy in the USA.

Bull’s Blood and Revolution

The scene is Central Europe. It’s 1990-something. After a bicycle tour of the Czech Republic’s Bohemian countryside, Jim Harper and his girlfriend have traveled into Hungary and a town called Eger, two hours by train northeast of the capital.

In a small valley not far out of town, there are dozens of underground wine cellars where vintners store and sell the local wine, Egri Bikaver, also known as “Bull’s Blood.” As the evening winds on and the cellars close, visitors concentrate themselves more and more tightly into the remaining open cellars. The wine and proximity make for good conversation and new friendships.

Late on, this particular evening, as our table edged toward overstaying, one of our group stood up and sang his country’s national anthem. He was Estonian.

It was a very long song. I’d like to say otherwise, but his singing wasn’t all that good. And he was quite overly serious about it. With the song going on so long, and the wine having its full effects, the scene edged toward the comical.

Since that evening, the Bull’s Blood wine and our Estonian friend have provided touches of mirth and memory that interesting travel will. The Estonian singer has been the subject of some affectionate joking, I’ll admit.

That’s a little bit regrettable, because I now know that there’s more to the story. Watch the trailer here.

Estonia’s Mart Laar was the winner of Cato’s Friedman Prize for Advancing Liberty in 2006.