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Cato Daily Dispatch for August 19, 2003

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Baghdad Bomb Hits U.N. Office; Kills at Least 15
FCC Head Sees Risks in More Regulation
California Assembly Approves Financial Privacy Bill

Baghdad Bomb Hits U.N. Office; Kills at Least 15

According to Bloomberg News, "A truck bomb exploded next to the Baghdad hotel housing the United Nations headquarters in Iraq, killing the UN envoy to the country and at least 14 other people, and injuring scores of workers."

In "Leave Iraq As Soon As Possible", The Cato Institute's director of defense policy studies, Charles Pena, writes that "the problem with Iraq -- and all nation-building efforts -- is the natural desire to get it 'right,' which is a prescription for endless occupation. And the cruel irony is that the longer the United States stays, however well intentioned and noble the motive, the more Iraqis will come to resent a foreign occupier. The guerrilla-style tactics being used to pick off U.S. and British troops may only be the tip of the iceberg. The lesson should be clear: The United States must leave Iraq at the earliest possible opportunity.

"To prevent gratitude from turning to resentment and hostility, we must have the wisdom to leave as quickly as possible. If we don't, the United States runs the risk of enduring its own version of the Soviet experience in Afghanistan: Arabs and Muslims from the region may flock to Iraq to expel the American infidel, and the United States could be bogged down for years."

Christopher Preble, Cato's director of foreign policy studies, has suggested steps the United States can take to reduce substantially its military presence in the region in a Policy Analysis, "After Victory: Toward a New Military Posture in the Persian Gulf".

FCC Head Sees Risks in More Regulation

According to The Associated Press, "Federal Communications Commission Chairman Michael K. Powell said yesterday that the threat of terrorism and the 'despicable activity' of some companies has led to a shift toward more regulation that could harm innovation and the economy."

In "Ten Thousand Commandments: An Annual Snapshot of the Regulatory State", the Cato Institute's director of technology studies, Clyde Wayne Crews Jr., analyzes the effect of Washington's many regulations on the economy. "By regulating instead of spending, government can expand almost indefinitely without explicitly taxing anyone a single penny. Making Congress accountable for regulation in the same manner it is accountable for ordinary government spending is the only way to head off this sort of manipulation.

"Requiring explicit approval of all proposed regulations would ensure that Congress bore direct responsibility for every dollar of new regulatory costs. To allay the concern that Congress would become bogged down approving agency rules, agency regulations could be voted on in bundles. In addition, congressional approval of new regulation could also be given by voice vote, signifying unanimity, rather than by tabulated roll call vote. The important thing is that Congress be held accountable."

California Assembly Approves Financial Privacy Bill

"The California State Assembly on Monday overwhelmingly approved a bill to impose what could be the toughest financial privacy standards in the nation, barring companies from sharing all sorts of personal data from individuals' phone numbers to their bank balances," reports Reuters. "The bill, authored by California State Senator Jackie Speier (D-San Francisco), requires insurance companies, banks and other businesses to get customer permission before sharing or selling personal data such as bank balances or credit card activity."

In "Privacy As Censorship: A Skeptical View of Proposals to Regulate Privacy in the Private Sector", the Cato Institute's former director of information studies, Solveig Singleton, writes that "we have no good reason to create new privacy rights. Most private-sector firms that collect information about consumers do so only in order to sell more merchandise. That hardly constitutes a sinister motive. There is little reason to fear the growth of private-sector databases.

"What we should fear is the growth of government databases. Governments seek not merely to sell merchandise but to exercise police and defense functions. Because governments claim these unique and dangerous powers, we restrict governments' access to information in order to prevent abuses. Privacy advocates miss the target when they focus on the growth of private-sector databases."

Chris Kilmer, editor, ckilmer@cato.org