Hubris Today

USA Today writes in an editorial:

That’s one reason the proposed XM-Sirius combination, announced this week, may be the rare merger that is good for consumers.

The rare merger that’s good for consumers? That’s rich coming from the flagship newspaper of Gannett, the rapacious media conglomerate that has swallowed up the major independent papers in Iowa, Mississippi, Kentucky, Tennessee, Arizona, Vermont, and other states.

Now, to be sure, USA Today did endorse the radio merger. And I don’t question the right of newspaper owners to sell their papers to Gannett. But USA Today ought to acknowledge that its parent company has been built on mergers (or takeovers) that in the eyes of critics reduced competition.

The rare merger that’s good for consumers? Mergers often benefit consumers; they can generate efficiencies and reduce costs. And the market is the best test [.pdf] of which mergers work and which don’t.

FBI Scandal

The FBI looked the other way when it knew that several people were being framed for a crime they did not commit.  Some might say, “Well, we all know there were certain abuses when Hoover was running the bureau in the ol’ days.”  But behold the argument advanced by the attorney representing the United States government:

Yesterday, a Justice Department lawyer argued that the FBI had no duty to share internal documents with state prosecutors and insisted the state was responsible for convicting the men in the slaying of Edward “Teddy” Deegan in Chelsea.

“The United States is not liable to plaintiffs because they were convicted as a result of a state prosecution,” Bridget Bailey Lipscomb said. “The FBI did not initiate this prosecution, and there is no duty of the FBI to submit to state or local governments any of its internal files.”

The government is not denying the fact that it knew what was happening. Nor is it saying the plaintiffs were wronged but are asking for too much money.  The government is instead arguing that it had no duty to come forward. 

At a minimum, one might ask what the FBI means when it says that one of its “core values” is “Accountability [by] accepting responsibility for its actions and decisions and the consequences of its actions and decisions.”  Maybe the director means that his agents will not arrest people who bring lawsuits against the bureau alleging illegal conduct.  Maybe he means something else. 

At worst, criminal laws were broken here.  An ordinary citizen can go to jail for suborning perjury.  It is also a crime to stand by and let a crime take place without notifying the authorities (misprision of felony).  The feds evidently believe they are not bound by these rules.  Pretty shocking.  Even if the judge rules against the Department of Justice, we should not forget what it argued in this case.

To listen to a Cato event on the FBI’s informer scandal, go here.     

Would You Like Fries with that Arrogance?

This isn’t really my beat, but it pushed my buttons (and not in a good way) all the same. Prince Charles, first in line for the British throne, has reportedly called for a ban on McDonald’s.

A known organic food advocate, Prince Charles was touring a diabetes center in Abu Dhabi when he made what McDonald’s assumes was an “off the cuff” remark about how banning McDonald’s was the “key” to improving diets.

This offends me on so many levels. First, as a libertarian I object to anyone telling others what they can put in their mouths. Second, the fact that the remarks come from someone whose power is derived solely through heredity (and, to my knowledge, has no qualifications in nutrition or public health) annoys me even more.

But mainly I am offended by the gall of a Brit casting aspersions on the quality of any cuisine.

Hey! Teacher! Let the Facts Be Known, ‘Cause…

From today’s Cincy Enquirer:

More than 11,500 Cincinnati Public School students are eligible to receive state-paid vouchers to attend private schools next year, but state officials say that Cincinnati Public officials are hindering them from getting the word out.

The district is the only one in the state that has refused to provide to the state the addresses of students who are eligible for tuition vouchers.

This Saturday and next, the Ohio Department of Education is conducting free parent information sessions in Cincinnati to describe how students attending 27 Cincinnati schools that are in “academic watch” or “academic emergency” are eligible to receive Ohio EdChoice Scholarships to attend private schools.

All in all, CPS is just another brick in America’s educational Berlin Wall. They can try to keep kids from escaping to freedom, like East German border guards during the Cold War, but eventually that wall is coming down.

The only thing that these folks can do is choose whether to help the process of educational liberation, or hinder it.

Someday their grand-kids or great-grand-kids, who will enjoy school choice, will ask them which side they were on. How will they answer?

Giuliani

A new poll shows that Rudy Giuliani has pulled into the frontrunner position for the Republican nomination for President. Thus, it is worth looking at his fiscal performance as New York City Mayor (1994 through 2001).

A good source of data are the Comprehensive Annual Financial Reports issued by the city’s comptroller. See the CAFR for fiscal 2002, which contains 10 years of historical data.

Total NYC general fund expenditures.

1994: $31.3 billion

2001: $40.2 billion

representing a 3.6 percent average growth rate.

NYC Outstanding General Obligation Bonds.

1994: $22.9 billion

2001: $26.8 billion

representing a 2.3 percent average growth rate.

The data suggest that Giuliani exerted reasonable fiscal control, particularly in comparison to prior NYC mayors, or President Bush. For example, NYC debt more than doubled in the five years prior to Giuliani entering office. But more analysis needs to be done.  

“Cleaning Those Foreigners’ Clocks”

While a lame argument is disappointing for the opportunity cost of having read it, a lame argument put forth as rebuttal to one’s own assertions can be affirming.  But, to paraphrase a colleague, there’s nothing better than being challenged with lame arguments by adversaries who have wide media circulation.  For that, I thank you, Pat Buchanan.

Buchanan takes exception to the arguments I make in this piece, which appeared in the Washington Times last week.  The theme of my op-ed was that Congress should curtail its instinct to blame trade for everything that’s wrong with America.  I even go as far as to suggest that, with strong economic growth, strong job creation, and a low rate of unemployment, things might not be all that bad in America.  And at the very least, Congress should take the time to honestly assess the meaning of the trade deficit.  What Congress would find is that the deficit is highly pro-cyclical (meaning that is shrinks when the economy contracts, it grows when the economy expands, and grows faster when the economy grows faster – see some of Dan Griswold’s work on this topic).  I also suggested that the trade account has very little to do with trade policy, and much more to do with demand in the United States and abroad, as well as differences in habits of savings and consumption.

For those empirically sound (and verifiable) assertions, Buchanan lampoons libertarians for possessing some religious-like devotion to their beliefs regardless of the facts before taking two of my points out of context to serve as springboards into his xenophobic, isolationist, nationalistic rage.

When we win at trade, it doesn’t mean they lose (“cleaning those foreigners’ clocks”).  We are all winning at trade as the economic pie grows larger and larger—so much so that the large U.S. economy can grow at a moderate-to-strong pace every year with the exception of two for the past quarter century, while the small-to-medium-sized Chinese economy simultaneously can grow by double digits every year during the same period.  

But rather than reinvent the wheel under which arguments like Buchanan’s have been reliably squashed throughout the years, I invite you to peruse this collection of timeless commentaries from Cato scholars and others about Buchanan-like views on trade and globalization.

Inquiring Minds Want to Know

The Hill reports on a senator’s curiosity about 527 groups:

“I promised a group of people that we would do some hearings on it,” said Feinstein. “We’ll take a look at the 527, what it is today and where it appears to be going. I’d like to know exactly what 527s are doing. My exposure to them is necessarily limited, as it is for most members. It’s when you have a 527 weighing in against you that you want to know where this money is coming from.” (emphasis added)

Not that Senator Feinstein would do anything to harm the people weighing in against her. She is just curious, eager to learn.