School Choice Survives Repeal Attempt in New Hampshire … Again

School choice is safe in the Granite State.

This morning, the New Hampshire Senate Education Committee voted 3-2 along party lines against SB 204, a bill to repeal New Hampshire’s trailblazing scholarship tax credit law, which was the first in the nation to include homeschoolers. The repeal bill is likely to be rejected in a vote of the entire state senate later this week. A similar repeal attempt failed two years ago. Thus far, no state has legislatively repealed a school choice law.

Last month, the Cato Institute released a short documentary on the fight for school choice in the “Live Free or Die” state, titled “Live Free and Learn: Scholarship Tax Credits in New Hampshire.” You can watch the film here:

The Parasite Economy and The Libertarian Mind

In The Libertarian Mind, which is officially published today, I have a chapter titled “What Big Government Is All About” that aspires to be applied Public Choice analysis. Much of it relates to what I think Jonathan Rauch first called “the parasite economy,” the part of the economy that involves getting through government what you can’t get through voluntary market processes. Reason.com has just published an excerpt from that chapter, with a few recent examples added, such as these all-too-typical stories:

Lobbying never stops. One week in December, the Kaiser Health News reported that “growth opportunities from the federal government have increasingly come not from war but from healing.” That is, “business purchases by the Department of Health and Human Services have doubled to $21 billion annually in the past decade.” And who showed up to collect some of the largesse? Well, General Dynamics was having trouble making ends meet with defense contracting, so suddenly it managed to become the largest contractor to Medicare and Medicaid. “For traditional defense contractors,” wrote Kaiser Health, “health care isn’t the new oil. It’s the new F-35 fighter.”

Of course, the old F-35, despite a decade or more of running behind schedule and over budget, is still doing pretty well. That same week Congress passed the $1.1 trillion “Cromnibus” spending bill, including $479 million for four F-35 fighters from Lockheed that even the Pentagon didn’t want. The Wall Street Journal reported that the bill “sparked a lobbying frenzy from individual companies, industries and other special interests”—pretty much the same language you could have read in earlier stories about Porkulus and Obamacare. Every provision in the bill—from the $94 billion in Pentagon contracting to $120 million for the Chicago subway to an Obamacare exemption for Blue Cross and Blue Shield—has a lobbyist or several shepherding it through the secretive process.

And I also talked about the parasite economy on John Stossel’s television show last Friday night:

For more on the parasite economy, and everything else you wanted to know about libertarianism, read The Libertarian Mind.

Serving the Public or “Whooping Ass”?

Are federal government employees “public servants,” who faithfully execute the laws and aim at the broad public good? Do they match the Progressive-era ideal of neutral and selfless experts free of political bias?

Perhaps many federal workers do. But a story in GovExec suggests that other motivations are also in play:

Lawmakers from both parties addressing unionized federal employees at a conference Monday pledged more support and respect for the civil service, but the union itself promised to “whoop [the] ass” of Congress if it stood in the group’s way.

At its annual legislative gathering, the American Federation of Government Employees vowed to combat any congressional efforts to shrink the federal workforce, cut pay and benefits or weaken unions. While Congress has succeeded in slashing agency rolls and freezing pay, union leaders said, those actions have better positioned the union to prevent similar efforts in the future.

Every time the “fools” in Congress try to hurt the federal workforce, said AFGE National President J. David Cox in a passionate address to his members, “We get bigger. We get stronger and we fight harder.”

He added: “We are a force to be reckoned with and we are a force that will open up the biggest can of whoop ass on anyone” who votes against the union’s interests…

The union chief called on each of those [AFGE] members to help push its agenda. “I’m begging you,” he said, “I’m pleading with you: Get in the fight.”

Maybe it is no surprise that federal workers and their unions fight for themselves. But can we count on federal legislators to stand up for taxpayers and citizens and check union power? Maybe not:

Lawmakers who addressed the attendees emphasized they would not be alone in that struggle; the lawmakers promised to bring the message of the positive and essential work feds do back to their colleagues and into the public sphere.

Freshman Congressman Don Beyer, D-Va., promised to be a “champion” for federal employees, adding the “critical question” for the workforce is how to change the perception of civil servants. He pledged to mention the positive work feds do in every speech he gives, suggested creating public service announcements highlighting federal employees and even proposed someone write a movie in which an “anonymous civil servant” is the hero.

“We have a great, great story to tell,” Beyer said of the federal workforce. “We just have to find every possible way to tell it.”

Beyer and his fellow Virginian, Republican Rep. Rob Wittman, agreed one crucial step to demonstrating that support is to repeal the across-the-board budget cuts known as sequestration.

I think we can see who is the real boss in Washington today. Beyer and Wittman have figured it out, and they are standing firmly in line. AFGE chief, David Cox, barked the orders: “If I meet one more politician who tells me we need to tighten our belts, I’m going to take my belt off and I’m going to whoop his ass.”

Bitcoin Regulation: “Assume the Existence of Public Interest Benefits!”

You’ve probably heard some version of the joke about the chemist, the physicist, and the economist stranded on a desert island. With a can of food but nothing to open it, the first two set to work on ingenious technical methods of accessing nutrition. The economist declares his solution: “Assume the existence of a can opener!”…

There are parallels to this in some U.S. state regulators’ approaches to Bitcoin. Beginning with the New York Department of Financial Services six months ago, regulators have put proposals forward without articulating how their ideas would protect Bitcoin users. “Assume the existence of public interest benefits!” they seem to be saying.

When it issued its “BitLicense” proposal last August, the New York DFS claimed “[e]xtensive research and analysis” that it said “made clear the need for a new and comprehensive set of regulations that address the novel aspects and risks of virtual currency.” Yet, six months later, despite promises to do so under New York’s Freedom of Information Law, the NYDFS has not released that analysis, even while it has published a new “BitLicense” draft.

Yesterday, I filed comments with the Conference of State Bank Supervisors (CSBS) regarding their draft regulatory framework for digital currencies such as Bitcoin. CSBS is to be congratulated for taking a more methodical approach than New York. They’ve issued an outline and have called for discussion before coming up with regulatory language. But the CSBS proposal lacks an articulation of how it addresses unique challenges in the digital currency space. It simply contains a large batch of regulations similar to what is already found in the financial services world.

Admitting FutureGen’s Failure

The Department of Energy (DOE) is admitting that it failed. Last week, it announced that it will stop development of FutureGen 2.0, a federally-financed, coal-fired power plant in Illinois. FutureGen, and its successor FutureGen 2.0, wasted millions of tax dollars, and was beset with multiple delays and cost overruns.

FutureGen was one of many federal energy projects experimenting in so-called “clean coal” technology. FutureGen sought to demonstrate the technical capabilities of carbon capture and sequestration (CCS) technology. CCS attempts to capture carbon dioxide emissions from coal-fired power plants and store it underground, eliminating an increase in atmospheric carbon dioxide.

FutureGen was launched in 2003 by the George W. Bush administration as a public-private partnership to demonstrate CCS with a site chosen in Illinois. Costs would be shared among the federal government and 12 private energy companies. The project’s estimated cost grew from $1 billion to $1.8 billion by 2008, when it was cancelled due to the cost overruns.  

In 2010 the Obama administration revived the project using stimulus funding. The new project, FutureGen 2.0, was allotted $1 billion from the federal government, with private investors supposed to be providing additional funding.

The Great Temperature Adjustment Flap

Matt Drudge has been riveting eyeballs by highlighting a London Telegraph piece calling the “fiddling” of raw temperature histories “the biggest science scandal ever.” The fact of the matter is some of the adjustments that have been tacked onto some temperature records are pretty alarming—but what do they really mean?

One of the more egregious ones has been the adjustment of the long-running record from Central Park (NYC). Basically it’s been flat for over a hundred years but the National Climatic Data Center, which generates its own global temperature history, has stuck a warming trend of several degrees in it during the last quarter-century, simply because it doesn’t agree with some other stations (which also don’t happen to be in the stable urban core of Manhattan).

Internationally, Cato Scholar Ross McKitrick and yours truly documented a propensity for many African and South American stations to report warming that really isn’t happening.  Some of those records, notably in Paraguay and central South America, have been massively altered.

At any rate, Chris Booker, author of the Telegraph article, isn’t the first person to be alarmed at what has been done to some of the temperature records.  Others, such as Richard Muller, from UC-Berkeley, along with Steven Mosher, were so concerned that they literally re-invented the surface temperature history from scratch. In doing so, both of them found the “adjustments” really don’t make all that much difference when compared the larger universe of data. While this result has been documented  by the scientific organization Berkeley Earth, it has yet to appear in one of the big climate journals, a sign that it might be having a rough time in the review process.

The Libertarian Mind — Now Available

The Libertarian Mind cover

I’m delighted to announce that my new book, The Libertarian Mind: A Manifesto for Freedom, goes on sale today. Published by Simon & Schuster, it should be available at all fine bookstores and online book services.

I’ve tried to write a book for several audiences: for libertarians who want to deepen their understanding of libertarian ideas; for people who want to give friends and family a comprehensive but readable introduction; and for the millions of Americans who hold fiscally responsible, socially tolerant views and are looking for a political perspective that makes sense. 

The Libertarian Mind covers the intellectual history of classical liberal and libertarian ideas, along with such key themes as individualism, individual rights, pluralism, spontaneous order, law, civil society, and the market process. There’s a chapter of applied public choice (“What Big Government Is All About”), and a chapter on contemporary policy issues. I write about restoring economic growth, inequality, poverty, health care, entitlements, education, the environment, foreign policy, and civil liberties, along with such current hot topics as libertarian views of Bush and Obama; America’s libertarian heritage as described by leading political scientists; American distrust of government; overcriminalization; and cronyism, lobbying, the parasite economy, and the wealth of Washington.