ER Doc Reviews Crisis of Abundance

In the latest issue of Health Care News, John Dale Dunn reviews Arnold Kling’s book Crisis of Abundance. Dunn is a professor of emergency medicine at CR Darnall Army Medical Center in Fort Hood, Texas. He writes:

Arnold Kling is a lucid writer and down-to-earth Ph.D. economist from the Massachusetts Institute of Technology. Really.

…Kling concludes with policy ideas born of intelligent analysis and economic expertise…He suggests consumer-oriented, market-based, rational solutions that deal with the limits and benefits of both public policy and free-market health insurance and health care…

Not bad for a professor from MIT. When dealing with those, I usually need a translator by my side. Not this time.

Politicians Seeking Pro-Growth Tax Cuts to Lure Successful People Back to France

The International Herald Tribune reports on the tax-cut battle in France. The President and his Finance Minister are seeking to cut taxes and change the French attitude about wealth creation. In another sign that tax competition is a valuable tool for better policy, the articles explains that a key selling point is the need to make the country attractive once again to the numerous French tax exiles living and working in nations with lower tax rates:

In proposing a tax-cut law last week, Finance Minister Christine Lagarde bluntly advised the French people to abandon their “old national habit.” …Citing Alexis de Tocqueville’s “Democracy in America,” she said the French should work harder, earn more and be rewarded with lower taxes if they get rich. …The government’s call to work is key to its ambitious campaign to revitalize the French economy by increasing both employment and consumer buying power. Somehow it hopes to persuade the French that it is in their interest to abandon what some commentators call a nationwide “laziness” and to work longer and harder, and maybe even get rich.
France’s legally mandated 35-hour workweek gives workers a lot of leisure time but not necessarily the means to enjoy it. Taxes on high-wage earners are so burdensome that hordes have fled abroad. (Sarkozy cites the case of one of his stepdaughters, who works in an investment banking firm in
London.) In her National Assembly speech, Lagarde said that there should be no shame in personal wealth and that the country needed tax breaks to lure back the rich. “All these French bankers” working in London and “all these fiscal exiles” taking refuge from French taxes in Belgium “want one thing: to come back to France,” she said. “To them, as well as to all our compatriots who are looking for the keys to fiscal paradise, we open our doors.”

Finally Legal!

I can finally report that I am driving a legal automobile.

As readers will recall, this was my third trip (see here and here for previous installments in the saga). Actually, it was my third and fourth trip. When I got to the DMV this morning, happily clutching the Fairfax County tax receipt to my chest, I was told that I also needed an emissions test. It would have been nice of the bureaucrats to tell me that on my first trip, but why expect miracles.

So I had to exit the line, go back out to my car, and drive (illegally, once again) to a nearby service station. This interaction with the private sector was predicatably brief, so I was back at the DMV in less than 30 minutes. Unfortunately, Dan Griswold must have been hard at work in the interim since there was now a long line of people, none of whom appeared to be native-born Americans.

But after a 90-minute wait, I got up to the counter, and was able to get registered - but only after dealing with a libertarian quandary. While twiddling my thumbs, I noticed that I could request a vanity plate. Wouldn’t it be nice, I thought, to have a license plate reading “anti gov.” But getting a special plate also involved paying more money - funds that presumably would help finance the sloth-like bureaucracy that I despise. After wrestling with my conscience (which usually comes out on the short end), I decided that the cause of freedom would be best served by having the vanity plate.

I feel guilty about giving government more money, but I somewhat compensated by paying for my registration and vanity plate with a credit card, which means at least some small slice of the $103 gets diverted to the financial services industry. It ain’t easy being libertarian, but I somehow muddled through.

Air Traffic Control

You often need a crisis, real or imagined, to get major policy changes enacted. There are two looming challenges in our backwards and bureaucratic air traffic control system that might nudge Congress toward reform. The first is that the government system is having a hard time keeping up with the continued growth in air travel.

The second, as Government Executive magazine reports today, is that a large group of controllers are nearing retirement and the government might have a hard time finding replacements.

These challenges add to the woes of the Federal Aviation Administration, which has mismanaged the air traffic control (ATC) system for decades. The FAA has struggled to modernize ATC technology in order to improve safety and expand capacity. Its upgrade projects are often behind schedule and far over budget, according to the Government Accountability Office. (Discussed in here). 

Privatization of U.S. air traffic control is long overdue. During the past 15 years, more than a dozen countries have partly or fully privatized their ATC, and provide some good models for U.S. reforms.

Canada privatized its ATC in 1996, setting up a fully private, non-profit corporation, Nav Canada, which is self-supporting from charges on aviation users. The Canadian system has received rave reviews for investing in new technologies and reducing air congestion, and it has one of the best safety records in the world.

The United States should be a leader in air traffic control, especially given the nation’s legacy of aviation innovation. A privatized system would allow for more flexible hiring policies, replacement of expensive human controllers with machines, and access to private capital for infrastructure upgrading. It is also likely that privatization would help improve safety and reduce air congestion by speeding the adoption of advanced technologies.

NR Editors on SCHIP

In an editorial released Friday, National Review’s editors highlight the many problems with the State Children’s Health Insurance Program, or SCHIP.  That program ostensibly was created for low-income children.  Congress is presently trying to expand the program to cover as many non-poor children – and even non-children – as they can get away with.

I agree with most of the editorial, though I worry about its conclusion:

If the Democrats agree to enact some free-market reforms, it might be worth supporting a modest expansion of S-CHIP. Otherwise, President Bush should make good on his veto threat.

I think one would have throw in some pretty hefty free-market reforms to offset the harm done by expanding SCHIP.  Letting people purchase health insurance out-of-state wouldn’t be enough.  The package would have to include weightier reforms, such as President Bush’s proposed standard deduction for health insurance or large health savings accounts.

I discuss the many problems with SCHIP in an upcoming Cato Institute Briefing Paper.

Great Moments in Local Government, Part II

I am moving ever closer to being a compliant citizen of Fairfax County and the State of Virginia. As I noted in an earlier post, I am seeking to renew the registration on my car, but I failed miserably in my first trip to the Department of Motor Vehicles.

The trip to the Fairfax County tax office was rather successful, albeit a bit puzzling. The ostensible purpose of the trip was to pay a mysterious overdue tax and then a $20 fee to remove a “hold” on my registration. But the County bureaucrat said there was no overdue tax. This made sense because I hadn’t received any notices in the mail, but I can only imagine why the automated system was trying to get me to cough up $174 (I’m now thankful my efforts to comply were unsuccessful).

Yet even though there was no unpaid tax, the County still insisted on getting $20 to remove the hold. In an ideal world, I would have loudly protested this ridiculous demand. In the spirit of the Founding Fathers, I would have pointed out the absurdity of being forced to pay the remove a hold for a tax liability that did not exist. In reality, the County got its money and I’m just happy that I have (at least in theory) just one final visit to the DMV.

I never did ask, by the way, why the County thinks I have four cars. While I am a tad bit curious, discretion is the better part of valor when dealing with bureaucracy. Stay tuned.

Hash Brownies and Harlots in the Halls of Power

Eight British Cabinet ministers have admitted that they smoked marijuana in their youth, most of them “only once or twice” in college, which would be an atypical pattern. The revelations began with Jacqui Smith, the new Home Secretary, the equivalent of the attorney general. They also include the police minister and the Home Office minister in charge of drugs. The eight have been dubbed the “Hash Brownies,” in acknowledgment of Prime Minister Gordon Brown.

On Wednesday Brown announced that Smith would lead a government review of the laws on marijuana, specifically with reference to whether simple possession should be again grounds for arrest. (The law was eased in 2002.) Several leading Conservatives in the Shadow Cabinet have also acknowledged using drugs, and party leader David Cameron has emulated President Bush in saying that he’s not obligated to discuss every detail of his private life before he entered politics.

In the United States many leading politicians including Al Gore, Newt Gingrich, Bill Bradley, and Barack Obama have admitted using drugs, while Bush and Bill Clinton tried to avoid answering the question.

In both Britain and the United States, all these politicians support drug prohibition. They support the laws that allow for the arrest and incarceration of people who use drugs. Yet they laugh off their own use as “a youthful indiscretion.”

These people should be asked: Do you think people should be arrested for using drugs? Do you think people should go to jail for using drugs? And if so, do you think you should turn yourself in? Do you think people who by the luck of the draw avoided the legal penalty for using drugs should now be serving in high office and sending off to jail other people who did what you did?

And the same question applies to Sen. David Vitter, who has acknowledged employing the services provided by the “D.C. Madam.” Many people have compared Vitter to other politicians who engaged in adultery, or have mocked his commitment to “family values”–he has said that no issue is more important than protecting the institution of marriage from the threat of gay couples getting married. But the other politicians usually cited were not breaking the law when they had affairs, and Vitter’s hostility to gay marriage while cheating on his own is a matter of simple political hypocrisy. The more specific issue, as with the pot-smoking drug warriors, is that Vitter (presumably) supports the laws against prostitution. Yet he himself, while a member of the United States Congress, has broken those laws and solicited other people to break them.

Vitter should be asked: Do you think prostitution should be illegal? If so, will you turn yourself in? Or will you testify for the defense in the D.C. Madam case, asking the court not to punish Deborah Jeane Palfrey if it’s not punishing you?

I hope that Jacqui Smith, Barack Obama, and David Vitter will engage in some introspection and conclude that if they didn’t deserve to go to jail, then neither do other pot smokers, prostitutes, and their customers. They might decide that not every sin or mistake should be a crime. But they should not sit in the halls of power, imposing on others the penalties they don’t think should apply to them.