

<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom">
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<title>Political Philosophy | Cato Institute</title>
<atom:link href="http://www.cato.org/rss/ra.xml?name=political-philosophy" rel="self" type="application/rss+xml" />
<link>http://www.cato.org/researcharea.php?display=10</link>
<managingEditor>amast@cato.org (Andrew Mast)</managingEditor>
<description>
The Jeffersonian philosophy that animates Cato's work has increasingly come to be called "libertarianism" or "market liberalism." Rooted in the traditional American principles of individual liberty and limited government, it combines an appreciation for entrepreneurship, the market process, and lower taxes with strict respect for civil liberties and skepticism about the benefits of both the welfare state and foreign military adventurism.</description>
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			<title>Rhodes Scholars and the Business World (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/22/rhodes-scholars-and-the-business-world/</link>
			<description><![CDATA[<p>On the weekend that next year&#8217;s Rhodes Scholars are announcd, Elliot Gerson, American secretary of the Rhodes Trust and executive vice president of the Aspen Institute, <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/11/20/AR2009112003374.html">writes in the Washington Post</a> that he is greatly disappointed that a few Rhodes Scholars have gone into business.</p>
<p>Yes, you read that right. He&#8217;s disappointed that even a few Rhodes Scholars have chosen to go into business:</p>
<blockquote><p>For more than a century Rhodes scholars have left Oxford with virtually any job available to them. For much of this time, they have overwhelmingly chosen paths in scholarship, teaching, writing, medicine, scientific research, law, the military and public service. They have reached the highest levels in virtually all fields.</p>
<p>In the 1980s, however, the pattern of career choices began to change. Until then, even though business ambitions and management degrees have not been disfavored in our competition, business careers attracted relatively few Rhodes scholars. No one suggested this was an unfit domain; it was simply the rare scholar who went to Wall Street, finance and general business management. Only three American Rhodes scholars in the 1970s (out of 320) went directly into business from Oxford; by the late 1980s the number grew to that many in a year. Recently, more than twice as many went into business in just one year than did in the entire 1970s.</p></blockquote>
<p>Apparently Gerson believes that our best and brightest can accomplish more good for the world in such fields as writing, law, and bureaucracy than they can by creating, innovating, and improving lives in the world of business &#8212; the arena that not only provides all of us with more comfortable, more interesting lives, and has lifted billions of people out of the back-breaking labor and short lives that were the human condition for millennia, but also makes possible the luxuries of the Aspen Institute, which was founded by Walter Paepcke (1896-1960), chairman of the Container Corporation of America, and is supported by successful businesspeople and their heirs today.</p>
<p>Of course, it&#8217;s not clear that business needs Rhodes Scholars. Think of the businesspeople who have revolutionized our world in recent decades: Bill Gates and Paul Allen, Steve Jobs and Steve Wozniak, Larry Ellison, David Geffen, Ted Turner, and Malcom McLean, <a href="http://www.collegedropoutshalloffame.com/">among others</a>, either never attended or never finished college. Sam Walton, Bill McGowan, and Fred Smith did finish college but weren&#8217;t Rhodes Scholars. In the Washington Post <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/09/20/AR2009092001806.html">Jay Mathews notes</a> that the chief executives of the top 10 U.S.-based Fortune 500 companies attended Pittsburg (Kan.) State, Texas at Austin, University College Dublin, Texas Tech, Texas at Austin, Dartmouth, Kansas, Gannon, Georgia State and Central Oklahoma, not the usual sources of Rhodes Scholars.</p>
<p>But the elite hostility to business &#8212; a holdover from Europe, perhaps, where aristocrats looked down on &#8220;trade,&#8221; or an unconscious echo of Marxism &#8212; is unseemly and harmful to both general prosperity and the individuals who are influenced by it to avoid productive enterprise. It crops up in President Obama&#8217;s <a href="http://online.wsj.com/article/SB121193223213724275.html">commencement addresses</a> sneering at students who want to &#8220;take your diploma, walk off this stage, and chase only after the big house and the nice suits and all the other things that our money culture says you should buy&#8221; and in <a href="http://article.nationalreview.com/?q=MmEyN2RkNzcwYzgyZDY2MDBiY2U5MjJlZGMwNDM2ODg=">Michelle Obama&#8217;s urging</a> hard-pressed women in Ohio, &#8220;Don’t go into corporate America.&#8221; It&#8217;s nice that some people, like senators&#8217; wives, can make $300,000 a year in &#8220;the helping industry,&#8221; but it&#8217;s business that produces the wealth that allows such nonprofit generosity.</p>
<p>Gerson and the Obamas are disparaging the people who built America – the traders and entrepreneurs and manufacturers who gave us railroads and airplanes, housing and appliances, steam engines, electricity, telephones, computers and Starbucks. Ignored here is the work most Americans do, the work that gives us food, clothing, shelter and increasing comfort. That work deserves at least as much respect as &#8220;scholarship, teaching, writing, medicine, scientific research, law, the military and public service.&#8221;</p>
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			<pubDate>Sun, 22 Nov 2009 17:40:56 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/22/rhodes-scholars-and-the-business-world/</guid>
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			<title>Obama and Reagan’s Speeches about Freedom (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/18/obama-and-reagans-speeches-about-freedom/</link>
			<description><![CDATA[<p>President Obama spoke to Chinese college students on Monday, as President Ronald Reagan spoke to Moscow State University students in 1988. There were a lot of similarities &#8212; both men are great communicators, convinced of the rightness of their views and of their persuasive ability, and confident that their values are not just American but universal. But there were some clear differences in the philosophies they presented.</p>
<p>President Obama was <a href="http://www.whitehouse.gov/the-press-office/remarks-president-barack-obama-town-hall-meeting-with-future-chinese-leaders">eloquent in his defense of freedom</a> in the heart of an authoritarian country:</p>
<blockquote><p>The United States, by comparison, is a young nation, whose culture is determined by the many different immigrants who have come to our shores, and by the founding documents that guide our democracy.</p>
<p>America will always speak out for these core principles around the world.   We do not seek to impose any system of government on any other nation, but we also don&#8217;t believe that the principles that we stand for are unique to our nation.  These freedoms of expression and worship &#8212; of access to information and political participation &#8212; we believe are universal rights.</p>
<p>Those documents put forward a simple vision of human affairs, and they enshrine several core principles &#8212; that all men and women are created equal, and possess certain fundamental rights; that government should reflect the will of the people and respond to their wishes; that commerce should be open, information freely accessible; and that laws, and not simply men, should guarantee the administration of justice&#8230;.</p></blockquote>
<p>Those are important American values, and I agree with the president that they are universal, as classical liberals have long argued. But I&#8217;m disappointed that President Obama didn&#8217;t cite freedom of enterprise,  property rights, and limited government as American values. Those are not only the necessary conditions for growth and prosperity, they are the necessary foundation for civil liberties.</p>
<p>He did glancingly mention in the paragraph above that &#8220;commerce should be open, information freely accessible,&#8221; so that&#8217;s half a clause about commerce, I guess. But that&#8217;s it for the freedoms that allow people to work and save, create, build, invest, and prosper. He noted that &#8220;China has lifted hundreds of millions of people out of poverty &#8212; an accomplishment unparalleled in human history&#8221; but didn&#8217;t examine how that happened. (Hint: <a href="http://www.imf.org/EXTERNAL/PUBS/FT/ISSUES8/INDEX.HTM">economic reforms</a> that moved toward <a href="http://www.cato.org/pub_display.php?pub_id=5756">free markets</a> and (quasi) <a href="http://www.cato.org/pub_display.php?pub_id=961&amp;full=1">property rights</a>.)</p>
<p>His only subsequent mention of freedom touched on economics in the context of citizen participation and the Internet:<span id="more-10212"></span></p>
<blockquote><p>Now, that&#8217;s not just true in &#8212; for government and politics. It&#8217;s also true for business.  You think about a company like Google that only 20 years ago was &#8212; less than 20 years ago was the idea of a couple of people not much older than you.  It was a science project.  And suddenly because of the Internet, they were able to create an industry that has revolutionized commerce all around the world.  So if it had not been for the freedom and the openness that the Internet allows, Google wouldn&#8217;t exist.</p>
<p>So I&#8217;m a big supporter of not restricting Internet use, Internet access, other information technologies like Twitter.</p></blockquote>
<p>Yes, &#8220;the freedom and the openness that the Internet allows&#8221; were important to the development of Google. But more fundamental was the freedom of enterprise in America. There&#8217;s a reason that so many technological advances and consumer benefits are developed in the world&#8217;s freest economies. Property rights, freedom of exchange, low taxes, and limited restrictions on entreneurship allow people to invest and create.</p>
<p>Contrast <a href="http://www.reagan.utexas.edu/archives/speeches/1988/053188b.htm">the speech that President Reagan gave</a> to the students who were still behind the Iron Curtain in 1988. Start with the way he addressed a very similar point to the one Obama made about Google:</p>
<blockquote><p>The explorers of the modern era are the entrepreneurs, men with vision, with the courage to take risks and faith enough to brave the unknown. These entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States. They are the prime movers of the technological revolution. In fact, one of the largest personal computer firms in the United States was started by two college students, no older than you, in the garage behind their home.</p></blockquote>
<p>Reagan praised democracy and justice and openness:</p>
<blockquote><p>At the same time, the growth of democracy has become one of the most powerful political movements of our age&#8230;.Democracy is the standard by which governments are measured.We Americans make no secret of our belief in freedom. In fact, it&#8217;s something of a national pastime. Every 4 years the American people choose a new President, and 1988 is one of those years. At one point there were 13 major candidates running in the two major parties, not to mention all the others, including the Socialist and Libertarian candidates &#8212; all trying to get my job. About 1,000 local television stations, 8,500 radio stations, and 1,700 daily newspapers &#8212; each one an independent, private enterprise, fiercely independent of the Government &#8212; report on the candidates, grill them in interviews, and bring them together for debates. In the end, the people vote; they decide who will be the next President.But freedom doesn&#8217;t begin or end with elections.</p>
<p>Go to any American town, to take just an example, and you&#8217;ll see dozens of churches, representing many different beliefs &#8212; in many places, synagogues and mosques &#8212; and you&#8217;ll see families of every conceivable nationality worshiping together. Go into any schoolroom, and there you will see children being taught the Declaration of Independence, that they are endowed by their Creator with certain unalienable rights &#8212; among them life, liberty, and the pursuit of happiness &#8212; that no government can justly deny; the guarantees in their Constitution for freedom of speech, freedom of assembly, and freedom of religion. Go into any courtroom, and there will preside an independent judge, beholden to no government power. There every defendant has the right to a trial by a jury of his peers, usually 12 men and women &#8212; common citizens; they are the ones, the only ones, who weigh the evidence and decide on guilt or innocence. In that court, the accused is innocent until proven guilty, and the word of a policeman or any official has no greater legal standing than the word of the accused. Go to any university campus, and there you&#8217;ll find an open, sometimes heated discussion of the problems in American society and what can be done to correct them. Turn on the television, and you&#8217;ll see the legislature conducting the business of government right there before the camera, debating and voting on the legislation that will become the law of the land. March in any demonstration, and there are many of them; the people&#8217;s right of assembly is guaranteed in the Constitution and protected by the police. Go into any union hall, where the members know their right to strike is protected by law&#8230;.</p>
<p>But freedom is more even than this. Freedom is the right to question and change the established way of doing things.</p></blockquote>
<p>And he came back to the basic purpose of democracy in the American context, not a plebiscitary system but a way to ensure that the governors don&#8217;t exceed the consent of the governed: &#8220;Democracy is less a system of government than it is a system to keep government limited, <span>unintrusive</span>; a system of constraints on power to keep politics and government secondary to the important things in life, the true sources of value found only in family and faith.&#8221;</p>
<p>He tied all of these freedoms to the American commitment to economic freedom as well. Throughout the speech he tried to enlighten students who had grown up under communism about the meaning of free enterprise:</p>
<blockquote><p>Some people, even in my own country, look at the riot of experiment that is the free market and see only waste. What of all the entrepreneurs that fail? Well, many do, particularly the successful ones; often several times. And if you ask them the secret of their success, they&#8217;ll tell you it&#8217;s all that they learned in their struggles along the way; yes, it&#8217;s what they learned from failing. Like an athlete in competition or a scholar in pursuit of the truth, experience is the greatest teacher&#8230;.</p>
<p>And that&#8217;s why it&#8217;s so hard for government planners, no matter how sophisticated, to ever substitute for millions of individuals working night and day to make their dreams come true. The fact is, bureaucracies are a problem around the world.</p></blockquote>
<p>He even explained why China would one day, as President Obama said, lift hundreds of millions of people out of poverty:</p>
<blockquote><p>We are seeing the power of economic freedom spreading around the world — places such as the Republic of Korea, Singapore, and Taiwan have vaulted into the technological era, barely pausing in the industrial age along the way. Low-tax agricultural policies in the sub-continent mean that in some years India is now a net exporter of food. Perhaps most exciting are the winds of change that are blowing over the People&#8217;s Republic of China, where one-quarter of the world&#8217;s population is now getting its first taste of economic freedom.</p></blockquote>
<p>President Obama said some important things to the Chinese students. But his continuing failure to mention the virtues of productive enterprise <a href="http://www.cato.org/pub_display.php?pub_id=9429">in a commencement address</a> or to note the centrality of economic freedom in the American experiment could easily lead listeners to conclude that he really doesn&#8217;t care much for business and economic liberty.<span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'"> </span></p>
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			<pubDate>Wed, 18 Nov 2009 11:13:30 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/18/obama-and-reagans-speeches-about-freedom/</guid>
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			<title>Talkin’ Libertarianism (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/17/talkin-libertarianism/</link>
			<description><![CDATA[<p>In response to a question today, I found a C-SPAN appearance from 2006 on their website. Host Steve Scully was teaching a class on &#8220;Issues in Media and Public Policy&#8221; with students at the <a href="http://www.cablecenter.org/press/pressReleasesDetail.cfm?id=255">Cable Center&#8217;s Distance Learning Studio in Denver</a>. He asked me to join him for a discussion of libertarianism and public policy. For about an hour and 20 minutes I answered questions posed by both Scully and the students. Video of the event can be found <a href="http://www.c-spanvideo.org/program/190683-1">on C-SPAN&#8217;s website</a>.</p>
<p><a href="http://www.c-spanvideo.org/program/190683-1"></a></p>
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			<pubDate>Tue, 17 Nov 2009 12:49:59 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/17/talkin-libertarianism/</guid>
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			<title>Taking Over Everything (2) (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/16/taking-over-everything-2/</link>
			<description><![CDATA[<p>“My critics say that I’m taking over every sector of the economy,” <a href="http://www.boston.com/news/health/articles/2009/09/21/in_media_blitz_obama_focuses_on_health_care/" target="_blank">President Obama complained</a> to George Stephanopoulos back in September. And I responded:</p>
<blockquote><p>Not every sector. Just</p>
<ul>
<li><a href="http://www.foxnews.com/politics/2009/09/21/health-insurance-mandate-includes-tax-despite-obama-denial/" target="_blank">health care</a></li>
<li><a href="http://firstread.msnbc.msn.com/archive/2009/09/22/2076903.aspx">energy</a></li>
<li><a href="http://www.msnbc.msn.com/id/29612995/" target="_blank">local schools</a></li>
<li><a href="http://www.bankinvestmentconsultant.com/news/tarps-toll-to-be-felt-for-years-2663958-1.html" target="_blank">banks</a></li>
<li><a href="http://www.businessinsurance.com/article/20090617/NEWS/906179992" target="_blank">insurance companies</a></li>
<li><a href="http://www.politico.com/news/stories/0309/20625.html" target="_blank">automobile companies</a></li>
<li><a href="http://online.wsj.com/article/SB125324292666522101.html" target="_blank">compensation at financial firms</a></li>
<li><a href="http://thehill.com/blogs/blog-briefing-room/news/59523-obama-open-to-newspaper-bailout-bill">newspapers</a></li>
<li><a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/09/18/AR2009091803596.html?hpid=sec-tech">the internet</a></li>
</ul>
</blockquote>
<p>And now check out the <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/11/14/AR2009111402459.html">lead story</a> in Sunday&#8217;s <em>Washington Post</em>:</p>
<blockquote><p>Federal Oversight of Subways Proposed</p>
<p>The Obama administration will propose that the federal government take over safety regulation of the nation&#8217;s subway and light-rail systems, responding to what it says is haphazard and ineffective oversight by state agencies.</p></blockquote>
<p>Not everything. But more and more. So much that even the growing opposition can&#8217;t keep up with it all.</p>
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			<pubDate>Mon, 16 Nov 2009 19:48:22 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/16/taking-over-everything-2/</guid>
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			<title>Attack of the Utility Monsters: The New Threats to Free Speech (Policy Analysis)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10952</link>
			<description><![CDATA[<p>Freedom of expression is looking less and less
like a settled issue. Challenges to it have lately
arisen from the right, from the left, from Muslim
perspectives, and even in the name of protecting
children online. These challenges seem to share an
underlying concern, namely that we must balance
free expression against the psychic hurt that some
expressions will provoke. Often these critiques are
couched in language that draws or appears to
draw, on the law and economics movement. Yet
the cost-benefit analyses advanced to support
restrictions on expression are incomplete, subjective,
and self-contradictory.</p>

<p>Several examples help to illustrate this point,
including flag-desecration laws, hate-speech laws in
the United Kingdom and Canada, U.S. college and
university speech codes, the Cairo Declaration on
Human Rights in Islam, and the Megan Meier
Cyberbullying Prevention Act, currently before the
House Judiciary Subcommittee on Crime,
Terrorism, and Homeland Security. Although seemingly
unrelated, these measures rely on a common
assumption, namely that governments should provide
emotional well-being to their citizens, even at
the expense of free expression. This assumption discounts
the emotional well-being of other citizens,
neglects countervailing social considerations, and
hands arbitrary power to governments.</p>



<p>The result is not more happiness, but a race to
the bottom, in which aggrieved groups compete
endlessly with one another for a slice of government
power. Philosopher Robert Nozick once observed
that utilitarianism is hard-pressed to banish what he
termed <em>utility monsters</em>&#8212;that is, individuals who take
inordinate satisfaction from acts that displease others.
Arguing about who hurt whose feelings worse,
and about who needs more soothing than whom,
seems designed to discover&#8212;or create&#8212;utility monsters.
We must not allow this to happen.</p>

<p>Instead, liberal governments have traditionally
relied on a particular bargain, in which freedom of
expression is maintained for all, and in which
emotional satisfaction is a private pursuit, not a
public guarantee. This bargain can extend equally
to all people, and it forms the basis for an enduring
and diverse society, one in which differences
may be aired without fear of reprisal. Although
world cultures increasingly mix with one another,
and although our powers of expression are greater
than ever before, these are not sound reasons to
abandon the liberal bargain. Restrictions on free
expression do not make societies happier or more
tolerant, but instead make them more fractious
and censorious.</p>]]></description>
			<pubDate>Mon, 16 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10952</guid>
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			<title>If the Other Party Took Power (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/15/if-the-other-party-took-power/</link>
			<description><![CDATA[<p>Maggie Mahar <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/11/13/AR2009111302310.html">asks a good question</a> in Sunday&#8217;s <em>Washington Post</em>:</p>
<blockquote><p>If you&#8217;re a progressive like me, and you&#8217;re upset by the Stupak amendment, which bars federally subsidized insurance from covering abortions, consider this: What if we had a single-payer health-care system and someone like Jeb Bush or Sarah Palin were running the country?</p></blockquote>
<p>She worries that if Republicans were in charge of government-run health care, they might not stop with abortion. They might try to limit government-paid access to birth control, fertility treatments, or end-of-life care. They might even (gasp) try to require co-pays to get people to take some responsibility for their health-care decisions. She goes on:</p>
<blockquote><p>I strongly support increasing our government&#8217;s involvement in the health-care system by including a public option in the reform package. I believe that if Congress passes legislation that includes a public option, that option will be stronger than many pundits suggest. Such a plan could help lower costs while lifting the quality of care, and would provide serious competition to private insurers.</p>
<p>But I&#8217;m also wary that in four or eight years, someone else &#8212; someone less sympathetic to my views &#8212; may be in the White House. And conservatives could once again control Congress. So I am relieved that we don&#8217;t seem to be headed toward a single-payer system. We simply cannot count on &#8220;good government&#8221; overseeing our health care. One never knows who the American people will choose to elect. As a progressive, I have been stunned by the people&#8217;s pick more than once in the past 30 years. Democracy offers choices but makes no promises.</p>
<p>So I want to hedge my bets. I want alternative insurance options, especially from nonprofits such as Kaiser Permanente. And I don&#8217;t want to find myself locked into an insurance plan run by conservatives &#8212; or Democrats &#8212; who feel they have a right to impose their religious beliefs on my access to care.</p></blockquote>
<p>It&#8217;s a good point. <a href="http://www.cato.org/pub_display.php?pub_id=10950">I made the same point</a> a week ago in the Philadelphia Inquirer:</p>
<blockquote><p>If you still have warm feelings toward Obama and his good intentions, ask yourself this: Will you feel comfortable one day when the appointees of President Romney or President Palin are exercising unconstitutional, unauthorized, unreviewable authority to restructure the economy the way they see fit?</p></blockquote>
<p>And Bob Levy <a href="http://www.cato.org/pub_display.php?pub_id=10950">made the same point to Republicans</a> when <em>they</em> were in power:</p>
<blockquote><p>advocates of expanded executive power remind civil libertarians that President Bush is an honorable man who understands that the Constitution is made of more than tissue paper. That argument is simply not persuasive &#8211; even to those who fervently share its underlying premise. The policies that are put in place by this administration are precedent-setting. Bush supporters need to reflect on the same powers in the hands of his predecessor or his successors.</p></blockquote>
<p>Indeed, because Republicans are often known as the Stupid Party, and not without reason, <a href="http://www.hoover.org/publications/policyreview/3584951.html">I tried to warn them</a> about giving more power to the government <em>while President Clinton was in office</em>:</p>
<blockquote><p>Let&#8217;s not forget that if, say, Coats&#8217;s Maternity Shelter Act were implemented next year, Donna Shalala, the secretary of health and human services, would be charged with implementing it. She might appoint HUD assistant secretary Andrew Cuomo to run it, or maybe unemployed ex-congressman Mel Reynolds, or maybe just some Harvard professor who thinks single motherhood is a viable lifestyle option for poor young women. One reason conservatives shouldn&#8217;t set up well-intentioned government programs is that they won&#8217;t always be in power to run them.</p></blockquote>
<p>But they never listen. When the Republicans were in power, they brushed aside reminders that some day a Democratic president would be exercising the vast powers that Bush was accumulating in the White House. And when Democrats are in power, they ignore the risks of giving more power to a federal government that will one day be run by conservatives. And then both sides are appalled by the uses that are made of those powers when that day comes.</p>
<p>I guess that&#8217;s why the first section of <em><a href="http://www.catostore.org/index.asp?fa=ProductDetails&amp;method=cats&amp;scid=45&amp;pid=144978">The Libertarian Reader</a></em> is titled &#8220;Skepticism about Power.&#8221;</p>
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			<pubDate>Sun, 15 Nov 2009 16:44:43 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/15/if-the-other-party-took-power/</guid>
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			<title>George W. Bush: The Washington Times as the Onion (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/15/george-w-bush-the-washington-times-as-the-onion/</link>
			<description><![CDATA[<p>Yesterday I thought I was reading the Onion.  <a href="http://www.washingtontimes.com/news/2009/nov/13/bush-warns-of-too-much-government/?source=newsletter_must-read-stories-today_more_news_carousel">The <em>Washington Times</em> headlined its article </a>&#8220;Bush Warns of Dangers of too Much Government&#8221;:</p>
<blockquote><p>Former President George W. Bush said Thursday that America must resist the &#8220;temptation&#8221; to allow the government to take over the private sector, taking a subtle shot at his Democratic successor by warning that too much state intervention and protectionism will squelch the economic recovery.</p>
<p>As the Obama administration has made far-reaching moves into the auto, real estate, health care and financial sectors to fight the economic recession, Mr. Bush, without mentioning the president by name, said, &#8220;The role of government is not to create wealth but to create the conditions that allow entrepreneurs and innovators to thrive.</p>
<p>&#8220;As the world recovers, we will face a temptation to replace the risk-and-reward model of the private sector with the blunt instruments of government spending and control. History shows that the greater threat to prosperity is not too little government involvement, but too much,&#8221; said Mr. Bush, who has remained out of the limelight since leaving office and rarely criticizes his successor.</p>
<p>Mr. Bush has addressed private groups since leaving the White House in January, but Thursday&#8217;s speech, delivered at Southern Methodist University in Dallas, was his first major public policy address since leaving office</p></blockquote>
<p>Mr. Big Spender, aka George &#8220; break the budget, expand Medicare, centralize control of education in Washington, bail out anyone and everyone, violate civil liberties, treat the president as an elective dictator, and initiate a needless war&#8221; Bush, is worried about government doing too much.</p>
<p>I can&#8217;t take it any more.  I&#8217;ve been working in Washington too long.</p>
]]></description>
			<pubDate>Sun, 15 Nov 2009 09:44:00 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/15/george-w-bush-the-washington-times-as-the-onion/</guid>
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			<title>Money, Greed and God (Daily Podcast)</title>
			<link>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1030</link>
			<description><![CDATA[]]></description>
			<pubDate>Fri, 13 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1030</guid>
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			<title>ObamaCare Is Not Pro-Choice -- for Anyone (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10961</link>
			<description><![CDATA[<p>"This is a health care bill, not an abortion bill," says President Obama.  <em>Au contraire, mon fr&#232;re</em>.</p>

<p>Whatever your views on abortion, the fight over abortion in the Obama health plan illustrates perfectly why government should stay out of health care.</p>

<p>When the government subsidizes health care, anything you do with that money becomes the voters' business.  And rather than allow for choice between different ways of doing things, the government typically imposes the preferences of the majority &#8212; or sometimes, a vocal minority &#8212; on everybody.</p>



<p>On Saturday, the House of Representatives passed their version of President Obama's health care overhaul.  Among other things, the legislation would subsidize private health insurance for millions of Americans.</p>

<p>To appease pro-life Democrats, Speaker Nancy Pelosi (D-Calif.) allowed them to insert an amendment to prohibit taxpayer dollars from touching any health insurance plan that covers abortion.  House Majority Whip Jim Clyburn (D-S.C.) says the bill would have come up 10 votes short without it.</p>

<p>The amendment incensed pro-choice Democrats.  The bill's subsidies would be so pervasive that prohibiting the use of taxpayer dollars for abortion coverage would restrict access to such coverage even for women who don't use the subsidies.  Rep. Diana DeGette (Colo.) says she and 40 other pro-choice Democrats "are not going to let this into law."</p>

<p>Democratic leaders are searching for a compromise, but there is no way to split the baby here.  Either the government will force taxpayers to fund abortions, or the restrictions necessary to prevent taxpayer funding will reduce access to abortion coverage.  There is no middle ground.  Somebody has to lose.  Welcome to government-run health care.</p>

<p>The same thing happens, in all areas of health care, whenever government foots the bill.  Do you think chiropractic is nonsense?  Too bad, the government forces you to pay for it through Medicare.</p>

<p>Faith healing seem like quackery too you?  Sorry, Charlie.  Medicare and Medicaid force you to pay for faith healers at prices "comparable with those of real health care providers," according to law professors David Hyman and Charles Silver.</p>

<p>The problem extends far beyond those trivial examples.  The government uses price and exchange controls to pay health care providers.  We call those controls Medicare's "fee-for-service payment system" in polite company.  Yet the effects are anything but genteel.</p>

<p>Researchers believe Medicare's exchange controls encourage unnecessary services, which account for at least one third of its $430 billion budget, according to the Dartmouth Atlas.  Those controls actually penalize doctors and hospitals that coordinate care, use electronic medical records, or try to reduce the estimated 100,000 annual deaths due to medical errors.  Congress has "reformed" Medicare's exchange controls approximately once in the program's 43-year history, with a "payment system" that encourages an estimated $12 billion of avoidable hospitalizations per year.</p>



<p>President Obama's economic advisor Larry Summers sums it up: "Price and exchange controls inevitably create harmful economic distortions. Both the distortions and the economic damage get worse with time."</p>

<p>Should grandma want to escape Medicare's price and exchange controls &#8212; if she would rather see a doctor that operates under less-perverse financial incentives &#8212; too bad.  If she would prefer a smaller network of doctors that provides safer, more convenient, coordinated care, she's out of luck.  The choice of what kind of medicine she receives belongs to the majority, or a vocal minority.</p>

<p>To be fair, the Medicare Advantage program allows some seniors to escape the traditional Medicare program's price and exchange controls.  But Medicare Advantage has its own perversities, thanks to a separate price-and-exchange-control scheme the government uses to pay participating insurers.  And in keeping with the overall hypothesis, Democrats are trying to eliminate Medicare Advantage, anyway.</p>

<p>Pro-choice Democrats want to preserve access to private abortion coverage.  Pro-life Democrats want to preserve the right to choose whether to fund abortions.  Fair enough.  But any vote for government subsidies is a vote against choice.</p>

<p>Get government out of health care, and you'll be able to make choices for yourself.  Not before.</p>]]></description>
			<pubDate>Fri, 13 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10961</guid>
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			<title>“Freedom in Crisis” on YouTube (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/11/freedom-in-crisis-on-youtube/</link>
			<description><![CDATA[<p>My &#8220;Freedom in Crisis&#8221; speech, which has gotten some compliments as I&#8217;ve delivered it in various venues, is now available on the web, complete with accompanying Powerpoint illustrations.</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="425" height="344" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/jinTGY5QdtY&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="425" height="344" src="http://www.youtube.com/v/jinTGY5QdtY&amp;hl=en&amp;fs=1&amp;" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
<p>Find it also on the Cato site <a href="http://www.cato.org/weekly/index.php?vid_id=134">here</a>. And a partial <a href="http://www.cato.org/pubs/catosletter/catosletterv7n3.pdf">transcript</a> (pdf) was printed in <em>Cato&#8217;s Letter</em>. (Get a free subscription to <em>Cato&#8217;s Letter</em> <a href="http://www.cato.org/pubs/catosletter/subscribe.html">here</a>.) And to hear speeches like this live, watch for details on the next <a href="http://www.cato.org/cato-university/index.html">Cato University</a>, July 25-30, 2010, in San Diego.</p>
]]></description>
			<pubDate>Wed, 11 Nov 2009 11:58:30 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/11/freedom-in-crisis-on-youtube/</guid>
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		<item>
			<title>David Boaz on the rise of the state. (Weekly Video)</title>
			<link>http://www.cato.org/weekly/index.php?vid_id=134</link>
			<description><![CDATA[Freedom is under assault, and has been for a while. The United States went through a lot in the past eight years &#8212; the excesses of the Patriot Act; the intrusion of the federal government into local schools; state decisions on marijuana, end-of-life choices, and state marriage law; the biggest expansion of entitlements in 40 years; a law to sharply restrict core political speech; the steady accumulation of power in the executive branch and in the person of the president. The centralization of power is continuing in the Obama years.]]></description>
			<pubDate>Tue, 10 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/weekly/index.php?vid_id=134</guid>
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			<title>Obama's Arrogance of Power (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10956</link>
			<description><![CDATA[<p>Last year's financial meltdown rightfully destroyed former Federal Reserve Board Chairman Alan Greenspan's reputation as an infallible "wise man," but he said something wise in his 2007 memoirs, describing a constitutional amendment he'd been "pushing for years."</p>

<p>Wrote Greenspan: "Anyone willing to do what is required to become president of the United States is thereby barred from taking that office. I'm only half joking."</p>

<p>It's no laughing matter. After all, what sort of person wants the job badly enough to spend years living out of a suitcase, begging for cash, glad-handing through primary states, and saying things that no intelligent person could possibly believe?</p>



<p>Greenspan's point was that people who seek the presidency today display a pathological power lust that ought to make us uncomfortable, given the powers the modern president enjoys.</p>

<p>George Washington was called "the American Cincinnatus," after the Roman hero who took power reluctantly and returned humbly to his plow when crisis passed. That's the model Americans once expected presidents to follow. Things have changed, and not for the better.</p>

<p>The last candidate to pay tribute to the Cincinnatus model was 1996 GOP contender Bob Dole, who praised the virtues of his birthplace, Russell, Kan., insisting it was either the White House or "home." It turned out that Dole left "home" deliberately vague. After losing, he returned to his condo at the Watergate, making bucks as a lobbyist and Viagra pitchman.</p>

<p>As for the current POTUS, "he's always wanted to be president," according to Obama's longtime friend and advisor Valerie Jarrett. No surprise, then, that, as <em>Newsweek</em> editor Jon Meacham put it in a profile of Obama earlier this year, he "likes and enjoys power," even "revels" in it.</p>

<p>In a fascinating article, presidential scholar Richard Ellis writes that "in the beginning, the presidency was envisioned not as an office to be enjoyed but as a place of stern duty." "Powerful cultural norms" told 19th-century presidents to approach the role humbly, with a keen awareness that power corrupts.</p>

<p>In public and in private, early presidents often acknowledged their deficiencies. "No event could have filled me with greater anxieties," Washington said of his election. Likewise, in his first inaugural, Jefferson worried that the task he'd undertaken was "above my talents."</p>

<p>Today, Ellis explains, the public demands greater confidence from presidential aspirants. Senate Majority Leader Harry Reid tells us that when he congratulated Barack Obama for a "particularly fine" speech Obama made as a freshman senator, Obama "said quietly, 'I have a gift, Harry.'"</p>



<p>Reid reports that Obama said that with "deep humility." We'll have to take his word for it.</p>

<p>Calvin Coolidge, a genuinely humble man and a fine president, wrote in his autobiography that it was "a major source of safety to the country" for the president "to know that he is not a great man." Few of our recent presidents display Coolidge's self-awareness.</p>

<p><em>Newsweek</em>'s Meacham reports that Barack Obama relishes "the capacity to shape reality in his image and by his lights." An interesting phrase, that &#8212; reminiscent of the Bush aide who bragged to reporter Ron Suskind that "we're an empire now, and when we act, we create our own reality."</p>

<p>And yet, as we learned during the Bush years, reality has a way of fighting back.</p>

<p>Obama's supporters have embraced the epithet Suskind's source coined. They fancy themselves members of the "reality-based community." Yet they doggedly defend a president for whom the word "hubris" might have been invented &#8212; one who thinks that the government, under his direction, can rationally reshape the one-sixth of the U.S. economy devoted to health care.</p>

<p>Our president describes his budget as a "blueprint" for America's future, and believes that, with the proper mix of social workers and soldiers, we can bring orderly governance to Afghanistan, which has never enjoyed it.</p>

<p>We'd do far better if our presidents had Coolidge's sense of his own limitations and of government's as well.</p>

<p>It's easy enough to blame the overconfident, self-aggrandizing characters who seek the office. But at the end of the day, we're the ones who reward them. Unless and until we seek out candidates who share Coolidge's modesty, we'll have no one to blame but ourselves.</p>]]></description>
			<pubDate>Tue, 10 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10956</guid>
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			<title>Remembering the Wall (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/09/remembering-the-wall/</link>
			<description><![CDATA[<p>This morning, <a href="http://www.politico.com/arena/"><em>Politico </em>Arena asks</a>:</p>
<blockquote><p>Is it a &#8220;tragedy&#8221; (Newt Gingrich) that Obama did not go to Berlin to commemorate the fall of the wall?</p></blockquote>
<p>My response:</p>
<p>There are many ways to characterize President Obama&#8217;s failure to appear personally today, on behalf of the American people, to commemorate the fall of the Berlin Wall.  None does him credit.  Yet to criticize his decision is to invite the derision of his apologists, as we are seeing already here at Politico Arena.  It is as if the Cold War never ended.  And at a fundamental level, it hasn&#8217;t.</p>
<p>The Berlin Wall fell for many reasons, ranging from the internal contradictions of communism to the moral clarity and courage of communism&#8217;s opponents.  Above all, however, the Cold War marked a fundamental clash of ideas.  And nothing symbolized that clash more starkly than the Berlin Wall.  It was erected not to keep West Germans out of the &#8220;workers paradise&#8221; but to keep East Germans trapped behind the wall, many of whom were mercilessly shot as they tried to flee their brutal captors.  What greater symbol could there be of the difference between freedom and oppression.</p>
<p>Yet for all that time there were apologists and temporizers in the West.  &#8220;Detente,&#8221; &#8220;moral equivalence,&#8221; &#8220;convergence&#8221; &#8212; &#8220;we are now free of that inordinate fear of communism,&#8221; President Carter said in 1977, even as Aleksandr Solzhenitsyn, Vladimir Bukovsky, Natan Sharansky, and others were documenting the horrors of communism.  And only two years before the wall fell, as the <a href="http://teachingamericanhistory.org/library/index.asp?document=727"><em>Wall Street Journal</em></a> notes editorially this morning, we heard CBS&#8217;s Dan Rather say, &#8220;Despite what many Americans think, most Soviets do not yearn for capitalism or Western-style democracy.&#8221;</p>
<p>Which brings us to President Obama.  What does he think?  Where does he stand on this fundamental clash of ideas?  What meaning is to be drawn from his decision to forgo the commemoration in Berlin today?  One can only speculate from what he has said and done, but the record does not inspire.  To be sure, several of his speeches suggest that he is a man of freedom &#8212; but his actions contradict those words.  Where has he been on the great human rights issues of our day?  When reformers were being brutalized in Iran, both over the summer and last week, he was slow, at best, to find a voice.  When the Dalai Lama visited last month, Obama declined to see him &#8212; the first time, in 10 visits since 1991, that a U.S. president has done so.  He&#8217;s had us join the U.N. Human Rights Council, the main mission of which seems to be to criticize the U.S. and Israel while lending credibility to its own oppressive members.  There&#8217;s more, but on balance it&#8217;s a sorry record.  He&#8217;s no Ronald Reagan.</p>
<p>It&#8217;s on the domestic front, however, that questions loom especially large.  His every move is that of a government man.  True to his roots as a &#8220;community organizer,&#8221; he sees government as the solution to our problems.  On autos, he has converted a bailout into ownership, fired the head of GM, and told the auto companies what kinds of cars to build, despite what the market might say.  He has appointed a &#8220;pay czar&#8221; &#8212; among many other &#8220;czars,&#8221; not to go unnoticed on this day &#8212; and empowered him to set executive pay scales.  He is promoting a union organizing scheme that effectively eliminates the secret ballot, environmental policies that fall most heavily on the poor, and tax and spend policies that penalize ambition and thrift while indebting us for generations to come.  And his health care policy will in time make us all dependent on government. Those policies, like so much else on his agenda, will restrict rather than expand our choices.  If enacted, we will all be less free.</p>
<p>It is the siren song of government &#8220;beneficence&#8221; that Obama seems most to hear, oblivious to the lessons of the 20th century.  The tragedy would be that we ourselves forgot that the fundamental clash of ideas will always be with us, even when the Berlin Wall is a distant memory.</p>
]]></description>
			<pubDate>Mon, 09 Nov 2009 11:18:50 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/09/remembering-the-wall/</guid>
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			<title>Celebrate Fall of Wall, Freedom Every Day (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10949</link>
			<description><![CDATA[<p>On Nov. 9, 1989, the Berlin Wall, the most dramatic symbol of the most grotesque human tyranny ever to plague the globe, was opened. Free, free at last, shouted residents of half a continent and beyond.</p> 

<p>So dramatic was the ensuing revolution that it is easy today to forget that communism ever existed -- or at least what it really meant. Decades of totalitarian oppression were swept away in an instant.</p> 

<p>What may be the most important liberating moment in human history should give us hope even if we are tempted to despair about the future of our own nation and of Western civilization.</p>

<p>Communism was unmatched in its endless slaughter, killing more than 100 million. It impoverished spiritually as well as economically.</p> 



<p>Yet what seems inevitable today was not obviously so in 1989. Liberty had always ended up stillborn in the Soviet empire.</p> 

<p>But 1989 proved to be different.</p> 

<p>In Poland the communist leadership organized free elections -- which it promptly lost. Hungary tore down its wall with Austria, allowing East Germans to escape their country through Hungary and on to the West. Demonstrations engulfed the so-called German Democratic Republic, forcing the Communist Party to retreat.</p> 

<p>On Nov. 9 the regime opened the Wall, never to be closed again. Within a year a regime distinguished mainly by its willingness to shoot desperate people seeking freedom disappeared.</p> 

<p>Revolution erupted even in Romania, unseating the monstrous Ceausescus. Eventually even the Soviet Union disappeared.</p> 

<p>The collapse of communism remains a fantastic triumph of the human spirit. With minimal bloodshed, average people overthrew a gaggle of tyrannies; the desire for liberty trounced the lust for power.</p> 

<p>There were heroes in all of the communist countries. Average people willing to speak out, demonstrate, and demand their rights as human beings.</p> 

<p>Some heroes stand out. Alexandr Solzhenitsyn, the Soviet novelist who chronicled the horrors of the gulag. Lech Walesa, the electrician who climbed atop a shipyard wall in Gdansk, Poland, to declare that the time of repression was over. Pope John Paul II, who told his Polish countrymen to fear not.</p> 

<p>The playwright Vaclav Havel, who called the Czech regime to account for its crimes. Imre Pozsgay, who broke with his Hungarian Poliburo colleagues to call the 1956 uprising a "popular revolt."</p> 

<p>Even more important was Mikhail Gorbachev. He was a reform communist, but he kept the Soviet troops in their barracks, leaving Eastern European apparatchiks to stand alone.</p> 

<p>Finally, there was Ronald Reagan. He understood the real nature of communism, that it truly was an "Evil Empire." He also believed that communism could be defeated and tossed into the dustbin of history.</p> 

<p>On June 12, 1987, he stood in front of the Brandenburg Gate and said: "Mr. Gorbachev, tear down this wall!" Another 29 months would pass, and Ronald Reagan would leave office, but the Brandenburg Gate did open.</p> 



<p>Today it is almost as if the Wall never existed. Only a few small sections remain. The structure continually grew more deadly, yet several thousand people made it over, under, or around the Wall and the border fortifications lining the rest of the border between the two Germanys.</p> 

<p>Alas, tens of thousands of East Germans were caught and imprisoned for "Republikflucht" -- attempting to flee the workers paradise. Worse, roughly 1,000 people were murdered attempting to escape their national prison.</p> 

<p>The first person to die was 58-year-old Ida Siekmann, who jumped from her building to the bordering road in West Berlin on Aug. 22, 1961. Two days later a 24-year-old tailor, Guenter Litfin, became the first to be shot and killed -- while attempting to swim the River Spree.</p> 

<p>On Feb. 6, 1989, 20-year-old Chris Gueffroy was the last East German to be murdered while seeking liberty. He was shot 10 times. On March 8, 32-year-old Winfried Freudenberg, an electrical engineer, became the last person to die in an escape attempt, when his home-made balloon crashed.</p> 

<p>The fall of the Wall, and the evil system behind it, deserves to be celebrated. Not just on Nov. 9. But every day.</p> 

<p>Two decades later much remains to be done by those who love liberty. Abroad tyranny remains. At home liberty also is threatened, though not as dramatically. The expansive welfare rather than the brutal authoritarian state is on the march.</p> 

<p>Yet hope remains. Two decades ago what had only seemed to be a faint dream became a reality. The Berlin Wall fell. Communism disappeared. Hundreds of millions of people became free.</p> 

<p>The spirit of liberty remains. Sometimes deeply buried. But the spirit of liberty remains.</p>]]></description>
			<pubDate>Mon, 09 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10949</guid>
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			<title>When Government Slippery Slope Goes Vertical (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10950</link>
			<description><![CDATA[<p>Libertarians often warn about the slippery slope of government intervention:</p>

<p>Let the government run the schools, and it may end up teaching your children values that offend you. Let the government have new powers to fight terrorism, and it may use those extraordinary powers in the pursuit of ordinary crimes. Let the federal government give the states money for highways, and it may eventually use its money to impose its own rules on the states.</p>

<p>In the Obama era, the slippery slope has gone vertical. Instead of "eventually," the feared extensions of government power come immediately.</p>

<p>When President Obama decided to convert George W. Bush's bailout of General Motors Corp. and Chrysler L.L.C. into effective government ownership, critics warned that this could lead to political intrusion into the management of automobile companies, with decisions being made for political instead of economic reasons. The companies would get less efficient. The government might try to preserve jobs or engage in political grandstanding rather than build sound companies that serve consumers - eventually.</p>



<p>But there was no "eventually" about it. Before he had even secured government control, Obama fired the chief executive officer of General Motors. He decided what the ownership structure of the companies should be. He insisted that the companies build "clean cars" rather than cars that consumers want to buy. And as soon as a deal was concluded, members of Congress started trying to block the closing of inefficient dealerships and to require the companies to buy their palladium in Montana, use unionized trucking companies, remove mercury from scrapped cars, and so on. Politics reared its ugly head in the first moments of government control.</p>

<p>Now we have the federal government's unprecedented intrusions into executive-pay decisions at seven bailed-out banks and automobile companies. The Obama administration's "pay czar," unlike most of the so-called White House czars, has an appalling amount of real power. He "has sole discretion to set compensation for the top 25 employees of each of those companies," and his decisions "won't be subject to appeal," according to recent articles in the Washington Post and Wall Street Journal, respectively. I was appalled when he used that autocratic power to make such sweeping cuts in executive pay.</p>

<p>True, these executives were running their companies with taxpayers' money. Live by the bailout, die by the bailout. If you don't want to make a government salary, don't take government money. It's a bad idea for government to attach strings to its funding, to use its money to impose an agenda, but the reality is that it does. Maybe it's a good lesson for other executives: Don't take government money.</p>

<p>But what about the slippery slope? Well, it went totally vertical. On the very day that the government czar announced that he would cut the pay of companies that received taxpayer bailouts, the Federal Reserve announced that it would start regulating compensation at the thousands of banks that it regulates, as well as American subsidiaries of non-U.S. financial companies. Some state regulators said they planned to issue similar requirements for state-regulated banks not covered by the Fed plan.</p>

<p>All of this is being done without any legitimate power under the Constitution, and much of it without even the authorization of Congress. Congress refused to bail out the auto companies, so Bush did it on his own authority. Congress never authorized the Federal Reserve to regulate the pay of bank employees.</p>



<p>This is not a slippery slope. This is falling off a cliff. As one news story pointed out: "The restrictions were the latest in more than a year's worth of government intervention in matters once considered inviolable aspects of the country's free-market economy and represent a signal moment in the history of the American economic experiment."</p>

<p>Sometimes it's hard to make a case for slippery slopes, because you're trying to oppose an immediate benefit by warning of a future cost. Not this time.</p>

<p>If you put a frog in lukewarm water, and then gradually turn up the temperature to boiling, the frog won't sense the danger, and will eventually be cooked to death, or so the metaphor goes. Throw a frog into boiling water, and it will jump out immediately, rather than be scalded.</p>

<p>People tend to react the same way to new demands by the government. If new powers and restrictions are introduced gradually, they'll get used to each one so that the next one seems no big deal.</p>

<p>In this case, we're being tossed into boiling water. It's time for Americans of left, right, and center to say that this is not the economic system we want. If you still have warm feelings toward Obama and his good intentions, ask yourself this: Will you feel comfortable one day when the appointees of President Romney or President Palin are exercising unconstitutional, unauthorized, unreviewable authority to restructure the economy the way they see fit?</p>]]></description>
			<pubDate>Sun, 08 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10950</guid>
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			<title>A Fed Takeover by Any Other Name... (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10947</link>
			<description><![CDATA[<p>President Obama has gone to great pains to deny that his proposed health-care reform is a government takeover of the health-care system.</p> 

<p>"Nothing could be further from the truth," he has said.</p> 

<p>Yet it's hard to see the 1,994-page bill that the House passed last night as anything else. After all, the bill uses the command "shall" -- as in "you shall do this," "businesses shall do that" and "government shall do some other thing" -- 3,345 times.</p> 

<p>Not a great deal of choice or options there.</p> 

<p>To make sure that we obey these "shalls," the bill would create 111 government agencies, boards, commissions and other bureaucracies -- all overseen by a new health-care czar bearing the Orwellian title "commissioner of health choices."</p> 



<p>All this would come at a true cost of more than $1.3 trillion over 10 years. And virtually every aspect of health care would be subject to federal regulation.</p> 

<p>For example, the government would force every American to buy health insurance and would control what benefits those policies must include. Even those who now have health plans and are happy with them would have to switch to policies that include the government-required benefits -- insurance that might well be more expensive, thanks to the new benefits you won't get to choose.</p> 

<p>Another mandate would require that even small businesses provide their workers with a government-devised minimum package of insurance benefits. This could cost hundreds of thousands of jobs -- and force some workers to accept insurance benefits rather than higher wages.</p> 

<p>Those insurance products that now give Americans the most choice and flexibility would be severely restricted. Health-savings accounts would be almost eliminated and Flexible Spending Accounts cut back.</p> 

<p>Even if the final bill doesn't include the so-called public option, private insurance would be so regulated as to become little more than a public utility, operating much like the electric company, with the government regulating nearly every aspect of its operation.</p> 

<p>And the public option itself holds the potential for driving most private insurance out of business, with millions of American workers dumped into the government-run program.</p> 

<p>Programs like Medicaid, meanwhile, would be dramatically expanded, and federal subsidies would be extended to people earning as much as 400 percent above the poverty level (or $88,000 a year for a family of four), putting millions more Americans on a form of the dole.</p> 

<p>Doctors, too, would find themselves micromanaged from Washington. For example, providers who perform too many tests or procedures would see their Medicare reimbursements cut.</p> 

<p>That means every time a doctor decides on a treatment, he or she would have to ask: "Does the government think I'm doing this too much? Will I be penalized if I order this test?"</p> 



<p>The government would also undertake comparative- and cost-effectiveness research and use the results to impose practice guidelines on providers.</p> 

<p>Medicare would see even more micromanagement, as the government develops a "high value" reimbursement system by 2012. (Many "reform" supporters hope to see these guidelines extended to nongovernment insurance as well.)</p> 

<p>Finally, Americans would have to pay nearly $730 billion in new taxes, fees and penalties over the next 10 years to fund this huge government expansion.</p> 

<p>No doubt, we do need to fix the problems in our health-care system, but health care represents one-sixth of the US economy -- and some of the most important personal and private decisions in our lives.</p> 

<p>Given that the government has mismanaged everything from "cash for clunkers" to the swine-flu vaccine (not to mention the Iraq war and the response to Hurricane Katrina), how much of our health-care system do we really want it to control?</p>]]></description>
			<pubDate>Sun, 08 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10947</guid>
		</item>
		<item>
			<title>The Road From Serfdom (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10948</link>
			<description><![CDATA[<p>Twenty years ago, the Berlin Wall came down and with it communist rule in Central Europe. Within little more than two years, the Soviet Union ceased to exist and the transition from communist dictatorship to free market democracy began in much of the former socialist commonwealth. Democracy and capitalism, Francis Fukuyama concluded in The End of History, have won. Communism, to use (with an appropriate sense of irony) Leon Trotsky's words, ended up in "the dustbin of history."</p>

<p>In spite of its monumental failure to bring social peace and material abundance, socialism is enjoying something of a renaissance. From Venezuela to Bolivia to South Africa, government ministers espouse the supposed virtues of socialism. Even in the West, some policies are taking government intervention in the economy to levels unseen in decades. Given the renewed interest in alternatives to capitalism, it is perhaps appropriate to recall the last time that socialism was tried with real gusto.</p>

<p>Of course, shops can be filled with goods, roads can be rebuilt, and houses renovated. The psychological scars of communism take much longer to heal. As one traveler to Russia wrote in 1982:</p>



<p>If it is hard to describe the economic wasteland of Russia to someone who hasn't been there, it is even harder to describe what their totalitarian system has done to the human spirit ... It isn't just the drabness and grayness one sees everywhere. Or the rudeness and surliness one encounters so often. It's that you virtually never see people laughing, smiling, or just seeming to enjoy themselves. People seem to walk slightly bent over, their eyes always averting a stranger. There is an overwhelming sense of oppression and depression.</p>

<p>As the Austrian philosopher Friedrich von Hayek explained in his 1944 classic, The Road to Serfdom, central planning leads to massive inefficiencies and long queues outside empty shops. A state of perpetual economic crisis then leads to calls for more planning. But economic planning is inimical to freedom. As there can be no agreement on a single plan in a free society, the centralization of economic decision-making has to be accompanied by centralization of political power in the hands of a small elite. When, in the end, the failure of central planning becomes undeniable, totalitarian regimes tend to silence the dissenters&#8212;sometimes through mass murder.</p>



<p>Some 100 million people have died in the pursuit of a communist utopia. Eliminating profit and private property was meant to end social ills, such as inequality, racism, and sexism. But the closer a society got to Marxism&#8212;whether it was half-hearted attempt as in Hungary or a whole-hearted attempt as in Cambodia&#8212;the bloodier the result. Survival in a communist society necessitated lies, theft, and betrayal. Thus, as the former Czech President Vaclav Havel wrote, most people in the former Soviet bloc grew up without a moral compass. These morally compromised survivors of communism find it difficult to reflect on the past and to come to terms with it.</p>

<p>Unlike the Germans after the World War II, the people in ex-communist countries were never forced to face their demons. As a consequence, communist rule has not acquired the moral opprobrium of Nazism. As long as that remains the case, socialist economics will continue to enjoy an aura of plausibility.</p>]]></description>
			<pubDate>Sat, 07 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10948</guid>
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		<item>
			<title>The Spirit of 1989 (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10946</link>
			<description><![CDATA[<p>Only yesterday, it seems, decades of oppression disappeared overnight. On November 9, 1989, the Berlin Wall, the most dramatic symbol of the most grotesque human tyranny ever to plague the globe, was opened. Free, free at last, shouted residents of half a continent and beyond.</p>

<p>So dramatic was the ensuing revolution that it is easy today to forget that communism ever existed &#8212; or at least what it really meant. Decades of totalitarianism impoverished people spiritually as well as economically. Those decades of oppression were swept away in an instant. What may be the most important liberating moment in human history should give us hope even as we despair about the future of our own nation and of Western civilization.</p>

<p>Communism's body count dwarfs that of fascism and Nazism. The latter was uniquely monstrous in its attempt to eradicate an entire people. But communism was unmatched in its endless slaughter. <em>The Black Book of Communism</em>, written by several European intellectuals &#8212; attacked for their effrontery in criticizing Joseph Stalin, Mao Zedong, and other well-meaning mass murderers &#8212; estimated the death toll at more than 100 million. And the killings continue in such communist hell-holes as North Korea.</p>



<p>Today the former communist states range from robustly democratic to unpleasantly authoritarian. However, all have moved light years beyond what President Ronald Reagan so accurately termed the Evil Empire. Freedom now is widely viewed as the normal human condition.</p>

<p>What seems inevitable today was not obviously so in 1989, however. As the year dawned, the Soviet bloc was stirring. In Russia Mikhail Gorbachev had unleashed perestroika and glasnost; several satellite regimes were trembling.</p>

<p>Still, liberty had always seemed to end up stillborn in the Soviet empire. Somewhat less thuggish apparatchiks, not cosmopolitan liberals, replaced brutal murderers in the USSR. The 1953 East German demonstrations, the 1956 Hungarian Revolution, and the 1968 Prague Spring were all summarily crushed. Poland's Solidarity movement was suppressed in the dead of cold night in December 1981.</p>

<p>But 1989 was different.</p>

<p>Hungary led the way. The man who betrayed his colleagues in 1956, Janos Kadar, had been deposed the previous year. The murdered revolutionary leaders, most notably Imre Nagy, were reburied. Plans for multiparty elections were announced. The Communist Party was dissolved.</p>

<p>In Poland the Solidarity union stirred anew and the communist leadership retreated. The regime was foolish enough to hold free elections &#8212; which it lost, dramatically.</p>

<p>Hungary tore down its wall with Austria. It didn't matter so much to Hungarians, who already had been allowed to travel. But Budapest's action freed everyone else in Eastern Europe, who had been allowed to vacation within the Soviet bloc. In particular, East Germans began streaming out of their country and then through Hungary. Others fled to the West German embassy in Prague, Czechoslovakia. The human flood destabilized East Germany, the formerly bedrock Soviet satellite that trailed only Nicolae Ceausescu's Romania as Eastern Europe's most rigid and authoritarian regime.</p>

<p>Demonstrations first occurred in the so-called German Democratic Republic during the spring over yet another predictably fraudulent election. By the fall there were weekly marches in Leipzig: The GDR leadership temporized, causing the number of protesters to multiply. Communist Party boss Erich Honecker wanted to shoot them; rather than commit mass murder, the Politburo dumped Honecker. On November 4 a million people gathered in Alexanderplatz in East Berlin to demand the end of communism.</p>

<p>On November 9 the regime opened the Wall. In fact, the desperate communist leadership had decided only to relax travel restrictions, but Politburo member and spokesman Guenter Schabowski misunderstood his colleagues' decision and announced at a press conference that the border was opening at that moment. Tens of thousands of people gathered at still closed checkpoints, causing befuddled border guards to stand aside. The Berlin Wall was open, never to be closed again. Within a year the ugly, brutish regime, which had distinguished itself by shooting desperate people seeking to escape to freedom, disappeared.</p>

<p>The other European communist autocracies fell as well. Bulgaria dumped its ruler of 35 years, Todor Zhivkov. The tottering Czech regime yielded power in the so-called "Velvet Revolution." A mixture of popular demonstrations and military revolt unseated the monstrous Ceausescus in Romania. As revolution erupted they fled by helicopter. Their pilot observed: "They look as if they were fainting. They were white with terror." On Christmas Eve they were executed after a drumhead court martial.</p>

<p>The newly free countries have been bedeviled by problems. Of most concern is Russia's retreat towards authoritarianism. Nevertheless, the collapse of communism remains a fantastic triumph of the human spirit. With minimal bloodshed, average people overthrew a gaggle of tyrannies. What some thought to be impossible became real, as the desire for liberty trounced the desire for power.</p>

<p>There were heroes in all of the communist countries. Average people willing to speak out, demonstrate, and demand their rights as human beings. Average people willing to say no to the apparatchiks who had so long lived off the workers they were supposed to represent.</p>

<p>Some stand out. Aleksandr Solzhenitsyn, the Soviet novelist who chronicled the horrors of the gulag and stripped the Soviet regime of any claim to legitimacy. Dissidents like Andrei Sakharov, who was banished internally after protesting Soviet man's inhumanity to man.</p>

<p>Lech Walesa, the electrician who nearly a decade before the Wall's collapse famously hopped over a shipyard fence in Gdansk, Poland, to declare that the time of repression was over. The forces of reaction reasserted themselves martial law in late 1981, but nine years later Walesa was elected president of Poland.</p>

<p>In Czechoslovakia there was Alexander Dubcek, who attempted to give communism a human face. The playwright, and first president, Vaclav Havel, called the regime to account for its crimes. Current President Vaclav Klaus engineered his nation's adoption of market economics as well as peaceful split between the Czech Republic and Slovakia.</p>

<p>More than four decades ago Imre Nagy, Pal Maleter, and thousands of Hungarian revolutionaries demanded freedom and were murdered by the Soviets and their Hungarian stooges. In 1989 Imre Pozsgay broke with his Poliburo colleagues, calling the earlier uprising a "popular revolt." He also pushed to tear down Hungary's wall with Austria.</p>

<p>Even more important was Mikhail Gorbachev. He was, of course, a reform communist, not a Western-style democrat. His crackdown in the Baltic states left blood on his hands.</p>

<p>Nevertheless, he was the necessary transition from communist totalitarianism to everything else. His decision to loosen the repressive bonds in the Soviet Union was heroic: events spun out of his control, but he was willing to pay that price in order to humanize the most murderous political regime in human history.</p>

<p>Equally important was his decision to keep the Soviet troops in their barracks throughout Eastern Europe. Moscow had ruthlessly crushed all previous attempts by subject peoples to lessen, let alone eliminate, communist repression. In 1989, however, Gorbachev let Eastern European communist leaders stand alone. They could not count on the loyalty of their own militaries. Nor could they depend on Soviet aid. In every country but Romania the ruling elites blinked. In the latter they lost anyway.</p>

<p>Finally, there was Ronald Reagan. He understood what communism was about, that it truly was an "Evil Empire." But he also believed that communism could be defeated, that the most ruthless totalitarian system ever created could be tossed into the dustbin of history.</p>

<p>On June 12, 1987 he stood in front of the Brandenburg Gate and said: "General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization: Come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!"</p>

<p>Another 29 months would pass, and Ronald Reagan would leave office, but the Brandenburg Gate did open.</p>

<p>Today it is almost as if the Wall never existed. Only a few small sections remain of the massive concrete structure that ran roughly 100 miles around West Berlin, a free island deep within the Evil Empire. Yet it is a testament to man's inhumanity to man which we can ill afford to forget.</p>



<p>The "wall" started out as barbed wire along streets, followed by brick walls. The structure grew more fearsome over time, mixing concrete walls, wire mesh fencing, watch towers, and anti-vehicle trenches. Yet several thousand people made it over, under, or around the Wall and border fortifications lining the rest of the border between the two Germanys. Human ingenuity knows few bounds when people are seeking freedom.</p>

<p>Alas, far more people failed in their attempt to be free. Tens of thousands of East Germans were imprisoned for "Republikflucht," or attempting to flee the East German paradise. Worse, roughly 1,000 people were murdered attempting to escape East Germany, some 200 from Berlin.</p>

<p>The first person to die while attempting to escape was 58-year-old Ida Siekmann, who jumped from her building to the bordering road in West Berlin on August 22, 1961 (the structure was later demolished to create a "death strip"). Two days later a 24-year-old tailor, Guenter Litfin, was shot and killed while attempting to swim the River Spree.</p>

<p>A year later an 18-year-old bricklayer, Peter Fechter, was shot and left to bleed to death in the death strip near Checkpoint Charlie within full view of residents in West Berlin &#8212; who could do nothing for him. On February 6, 1989, 20-year-old Chris Gueffroy became the last East German to be murdered while seeking to escape his national prison. He and a friend thought the order to shoot had been lifted; he was hit ten times and died on the spot. His friend was injured but survived &#8212; to spend time in prison. On March 8, 32-year-old Winfried Freudenberg, an electrical engineer, became the last person to die in an escape attempt, when his home-made balloon crashed.</p>

<p>The fall of the Wall, and the evil system behind it, deserves to be celebrated. Not just on November 9. But every day.</p>

<p>Two decades later much remains to be done by those who love liberty. Abroad tyranny remains: North Korea's odious dictatorship brutalizes and starves its people, the Castros' dictatorship remains in power a half century after the Cuban revolution, and China has reformed its economy, not its political system. Russia is retrogressing, while in some Eastern European states economic reforms have stalled, political systems have deadlocked, and communist crimes remain unpunished.</p>

<p>At home liberty is threatened, though not as dramatically. The expansive welfare state rather than the brutal authoritarian state is on the march, threatening to consume the health care system. While spending wildly on bailouts, pork, and everything in between, Congress is considering a massive energy tax, which would devastate the private economy. Our society seems set to become both less free and less prosperous.</p>

<p>Yet hope remains. Two decades ago what had only seemed to be a faint dream became a reality. The Berlin Wall fell. Communism disappeared. Hundreds of millions of subjects of the Soviet empire became free.</p>

<p>The spirit of liberty remains. Sometimes deeply buried. But the spirit of liberty remains.</p>]]></description>
			<pubDate>Fri, 06 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10946</guid>
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			<title>Ayn Rand's Affinities and Animosities (Daily Podcast)</title>
			<link>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1022</link>
			<description><![CDATA[]]></description>
			<pubDate>Fri, 06 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1022</guid>
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			<title>Condemning Communism (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/05/condemning-communism/</link>
			<description><![CDATA[<p>It has been 20 years since the fall of Soviet communism, but the regime that meant death for tens of millions of people is rarely condemned morally. Former Soviet dissident <a href="http://www.cato.org/people/vladimir-bukovsky">Vladimir Bukovsky</a> believes the failure to morally condemn the crimes of communism has left KGB operatives in charge of the government to this day.</p>
<p>Bukovsky, who spent twelve years in Soviet prisons, labor camps, and forced-treatment psychiatric hospitals for his dissenting views, believes an open condemnation of communism will help the former Soviet Union make progress toward civil society.</p>
<p>He recently told his story at the Cato Institute:</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="425" height="344" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/VSecLcrQnZk&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="425" height="344" src="http://www.youtube.com/v/VSecLcrQnZk&amp;hl=en&amp;fs=1&amp;" allowfullscreen="true" allowscriptaccess="always"></embed></object></p>
<p>Watch the entire speech, <a href="http://www.cato.org/event.php?eventid=6505">here</a>.</p>
]]></description>
			<pubDate>Thu, 05 Nov 2009 11:19:57 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/05/condemning-communism/</guid>
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			<title>Berlin Wall Anniversary Links (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/05/berlin-wall-anniversary-links/</link>
			<description><![CDATA[<p>The Berlin Wall fell 20 years ago this month, marking the collapse of Soviet communism. The anniversary is an appropriate time for stocktaking and for seeking to answer a number of questions associated with this historic event, its aftermath, and its continued influence.</p>
<ul>
<li>After 20 years, Paul Hollander looks back at <a href="http://bit.ly/4d7vyU">why the Berlin Wall fell</a>.</li>
</ul>
<ul>
<li>Nazism and Communism: <a href="http://bit.ly/1KTo1W">Why you rarely hear about the atrocities of Soviet communism. </a></li>
</ul>
<ul>
<li><a href="http://bit.ly/22hC8I"> Imposing &#8220;paradise&#8221; at gunpoint.</a></li>
</ul>
<ul>
<li>Flashback to 1990: <a href="http://bit.ly/3QwrJO">Why the Soviets fell. </a></li>
</ul>
<ul>
<li><a href="http://bit.ly/2AjdoZ">Fear and Loathing in the Soviet Union</a>: Cato president Ed Crane discusses his trip to the other side of the Iron Curtain in 1982.</li>
</ul>
<ul>
<li><a href="http://bit.ly/2Y7CHR">Podcast</a>: Why Russia must confront the criminal nature of its communist past.</li>
</ul>
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]]></description>
			<pubDate>Thu, 05 Nov 2009 09:50:54 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/05/berlin-wall-anniversary-links/</guid>
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			<title>Re-Educating Americans about Our Identity (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10939</link>
			<description><![CDATA[<p>My favorite magazine by far was <em>Constitution</em>, published by the Foundation for the U.S. Constitution. No longer in existence, it was full of riveting stories &#8212; for students and adults &#8212; with beautifully reproduced historic documents, portraits and paintings of how we came to be distinguished from all other nations.</p>

<p>Such a magazine, in print or digitally, is sorely needed now. Interactive civics classes have been replaced by testing and retesting assembly lines of students so that the state can evaluate whole schools rather than individual, evolving citizens. David Souter warned in May, as he was retiring from the Supreme Court, that surveys show many Americans cannot name the basic three branches of government (executive, legislative and judicial). He stressed that "(we need) to start the re-education of a substantial part of the public."</p>

<p>Souter's concern about "the restoration of the self-identity of the American people" was the urgent theme in the first issue of <em>Constitution</em> (Fall 1988) in Lynne Cheney's article "A Fading Heritage."</p>

<p>At the time, she was chair of the National Endowment for the Humanities, and we used to share, in phone conversations, our forebodings of the growing spread of "political correctness" on campuses and at large &#8212; a compulsory conformity of opinions that would have been foreign to such free-thinkers as James Madison and Thomas Jefferson.</p>

<p>I have not spoken with Lynne Cheney for a long time, figuring she would hardly welcome my call after what I've written about her husband, former vice president Dick Cheney. But I continue to find her article in <em>Constitution</em> energizing and disturbingly contemporary.</p>

<p>"Consider," she wrote then, "how little history is required of our students. Once it was taught every year kindergarten through 12th grade; now many states require but one year." If that, these days.</p>

<p>Today, in a contemporary book that should be in every school, and certainly within reach of members of Congress and the Obama administration, <em>The Genius of America: How the Constitution Saved Our Country and Why It Can Again</em> (Bloomsbury USA, New York) &#8212; Eric Lane and Michael Oreskes write: "We are not burdened by a sense of history, our own or anyone ... Our sense of our own past, to put it politely, is thin and growing thinner. The evidence for this is all around us."</p>

<p>Lynne Cheney, in the magazine <em>Constitution</em>, quoted a political philosopher who had been chosen in 1986 as the Jefferson Lecturer by the National Council on the Humanities. Leszek Kolakowski emphasized in that lecture that among America's young, "the erosion of a historically defined sense of 'belonging' plays havoc in their life and threatens their ability to withstand possible trials of the future."</p>

<p>"Havoc," for example, surely exists among those of our young whose acute need 'to belong' somewhere brings them into the increasingly brutal gangs, not only in urban centers.</p>

<p>And many other youths, including in prestigious lower schools and colleges, would be very hard put to say why we have the First, Fifth, Fourth and Ninth Amendments in our Constitution, let alone tell why they could be so important in their own lives. Where are their moorings as Americans?</p>

<p>And how many in or out of school have a meaningful or even scant knowledge of such contributors to the roots of this nation as George Washington (except maybe for the cherry tree), Tom Paine, John Marshall, Frederick Douglass, Mark Twain or Elizabeth Cady Stanton?</p>

<p>"Ideally," Lynne Cheney advised, "there would be fewer textbooks used in our schools. Teachers would enlighten their students with current and classic works of literature or historical documents. But to find and bring these into the classroom takes a breadth of knowledge that may be beyond some teachers ... because their preparation has been misdirected ... taking just courses in education. Because time spent taking these types of courses is time that cannot be spent studying 'content' areas like history, teachers find themselves knowing less than they should about the subjects they are teaching."</p>

<p>This includes knowing less about what students should know about this nation so that they can begin to feel they "belong" to it.</p>

<p>If an American roots coalition can be formed &#8212; across political and professional lines &#8212; with maybe Lynne Cheney involved, our history can be brought off the pages and into Americans' lives. David Souter is already showing the way, having joined a committee in his home state that is changing the civic curriculum for New Hampshire's public schools.</p>

<p>During his retirement speech at Georgetown University Law Center, Souter looked at his audience, saying: "If I can do it, you can do it, too."</p>

<p>A book I would love to see come into all Americans' lives is by a master narrator of our identities, Ray Raphael, whose abundant volume, <em>Founders: The People Who Brought You a Nation</em> (New Press) has the reverberating impact of the former CBS-TV series <em>You Are There!</em></p>

<p>When, for instance, in 1772, at Faneuil Hall in Boston, as Samuel Adams, James Otis and other patriots formed a Committee of Correspondence to inform all the colonies of British abuses of these Americans' privacy rights in their homes and offices, you too are there in a meeting that was vital in precipitating the American Revolution. That's how to make the Fourth Amendment come alive again! Not only in schools.</p>

<p>As Kathryn Sinclair, a high school student in Murfreesboro, Tenn., engaged in a First Amendment battle with her principal 25 years ago, asked me: "Why don't the schools teach why we're Americans? So few people know."</p>

<p>A quarter-century later, sadly, there still isn't a reassuring answer for her.</p>]]></description>
			<pubDate>Thu, 05 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10939</guid>
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			<title>The GOP Should Dump the Neocons (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10935</link>
			<description><![CDATA[<p>The founders envisioned a federal government constitutionally limited to defending our rights to life, liberty and the pursuit of happiness. For that to happen, we must have at least one political party that strongly advocates limiting the power of government. For much of the 19th century that party was the Democrats. For the early part of the 20th century and from the early 1960s through 1988, that party was the Republicans. </p>



<p>Today, it is difficult to find non-interventionists in either party. </p>

<p>The Democrats demonstrate a disdain for capitalism, free trade and the validity of contracts. They cheer the restriction of certain types of speech on campus and in federal law, and think nation-building is our moral obligation, even when there is no discernible U.S. interest involved. Lately, the Democrats have been popularly associated with opposition to waging war in far-flung corners of the globe. But evidence on the ground today tells a somewhat different tale.</p> 



<p>As for the GOP, it has openly abandoned the limited-government principles of Barry Goldwater and Ronald Reagan. Little other evidence is needed than the Medicare prescription drug benefit &#8212; with its $13-trillion unfunded liability &#8212; passed with a strong-arm campaign by the Bush White House and  a Republican congressional majority.</p>

<p>What happened to the Republicans? Well, the two Bush presidencies didn't help. Neither did the supply-side movement, focused on tax cuts and economic growth, which is laudable.  But supporters of those ideas didn't talk about spending cuts, much less the proper role of government. They had the effect of replacing "liberty" as the motivating force behind the GOP with "growth," a somewhat less inspiring ideal. </p>

<p>But perhaps most pernicious has been the role played by the neoconservatives. The late William F. Buckley used his conservative flagship publication, <em>National Review</em>, to make anti-communism the litmus test for joining the conservative movement. Dealing with the Soviets during the Cold War was clearly an important task, but it should not have opened the door to the limited government movement to the neoconservatives, who always have been advocates of big government. With the neocon foot in the policymaking door after the Cold War ended, the drumbeat for war in Iraq began in earnest a decade before 9/11. </p>



<p>It is important to realize that neocons are not just nation-building, American empire advocates. They like big government across the board. No Child Left Behind, the thinly disguised effort to nationalize education in America, was principally a neocon initiative. Consider this comment from the late Irving Kristol, self-described "godfather" of the neoconservative movement: "Neocons do not feel that kind of alarm or anxiety about the growth of the state in the past century, seeing it as natural, indeed inevitable." Indeed. </p>

<p>There is an insidious philosophy underlying this acceptance of the "natural" growth of statism. Neoconservative columnist David Brooks wrote in the late 1990s that we need "a vigorous One Nation Conservatism that will connect a revived sense of citizenship with the long-standing national greatness Americans hold dear." In another essay, he wrote, "Ultimately, American purpose can find its voice only in Washington ... individual ambition and will power are channeled into the cause of national greatness. And by making the nation great, individuals are able to join their narrow concerns to a larger national project." A frightening worldview.</p> 



<p>Which brings us to the war in Afghanistan. The neocons are predictably enthused about the prospect of a prolonged U.S. occupation there.  A dozen or so of them recently sent a letter to President Obama urging him to up the ante. Astonishingly, the president who was elected as the anti-war  protest candidate appears poised to take the neocons' advice and commit tens of thousands more troops to a conflict in which immediate U.S. interests are unclear at best.</p>

<p>Meanwhile, Obama's domestic agenda is in shambles. Americans are outraged at the prospect of trillion-dollar deficits,  auto bailouts and the subsidies to irresponsible bankers. And they don't want socialized medicine. </p>

<p>The "tea parties" and town hall meetings are essentially libertarian. There is no conservative policy agenda, only a demand that the government stop trying to run our lives.</p>

<p>Republicans should take this opportunity to return to their traditional non-interventionist roots, and throw their neoconservative wing under the bus and forcefully oppose the war in Afghanistan. The Republicans have a chance at this moment to reclaim the mantle of the party of non-intervention &#8212; in your healthcare, in your wallet, in your lifestyle, and in the affairs of other nations. </p>]]></description>
			<pubDate>Wed, 04 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10935</guid>
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		<item>
			<title>Vladimir Bukovsky discusses the legacy of the Soviet Union. (Weekly Video)</title>
			<link>http://www.cato.org/weekly/index.php?vid_id=133</link>
			<description><![CDATA[Former Soviet dissident <a href='/people/vladimir-bukovsky'>Vladimir Bukovsky</a> believes the failure to morally condemn the crimes of communism has left KGB operatives in charge of the government. Bukovsky, a Cato Institute Senior Fellow, believes an open condemnation of communism will help the former Soviet Union make progress toward civil society.]]></description>
			<pubDate>Wed, 04 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/weekly/index.php?vid_id=133</guid>
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			<title>The Spirit of Nien Cheng (1915-2009) (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/03/the-spirit-of-nien-cheng-1915-2009/</link>
			<description><![CDATA[<p><img class="alignright size-full wp-image-9981" title="Nien Cheng" src="http://www.cato-at-liberty.org/wp-content/uploads/Nien-Cheng.jpg" alt="Nien Cheng" hspace="5" width="262" height="347" />Nien Cheng, author of best-seller <a href="http://www.amazon.com/Life-Death-Shanghai-Nien-Cheng/dp/014010870X"><em>Life and Death in Shanghai</em></a> and one of the greatest Chinese voices of humanity to have opposed communism, passed away in Washington yesterday. To read her account of the cruelty and madness of the Cultural Revolution, during which she was imprisoned for six-and-a-half years and her daughter killed, is to come away inspired by Nien Cheng’s sheer strength of character and the dignity and power of the individual even in the face of totalitarianism. Her refusal to accept dogmas, her deep understanding and love of Chinese culture and history, her capacity for self-reflection, the way in which she used her learning and sharp wit to confront her oppressors and expose their incoherent views, and her ability to survive persecution—all was truly a triumph of the human spirit.</p>
<p>I had the great good fortune to have known Nien Cheng both through Cato and because she coincidentally lived in the same Washington condominium building as I did for many years until I recently moved. (It was the same building in which she typed her book manuscript once she lived here in exile, never thinking that many people would read it.)</p>
<p>To know Nien Cheng was to confirm the impressions one forms of her from reading her book, and more. As neighbors, we chatted from time to time, and on several occasions my now-wife Lesley and I enjoyed tea and lively discussion in her apartment. Mrs. Cheng was generous and polite, and she was curious about the opinions of others. But she was also very well read, kept up on current affairs, and was opinionated, honest and transparent. She was always insightful. The trappings of political power never impressed her. She was regularly invited as a guest to White House functions by several administrations, but although she was honored, she had long been turning them down because, as she told me, she was too old for such things and it was too much time standing around.</p>
<p>Nien Cheng never liked to waste time and so maintained the habits of an industrious person. Perhaps that was partly a strategy to keep her mind at ease since the death of her daughter tormented her all of her life. I’m sure, however, that she ultimately died in peace. Never displaying an air of self-importance, she was ready and happy to pass on, as she told me and others on more than one occasion. For testifying to the world about the realities of Chinese communism and for living a courageous life, Nien Cheng holds a special place in the hearts and minds of all advocates of the free society, especially the Chinese.</p>
<p>May her spirit live on.</p>
]]></description>
			<pubDate>Tue, 03 Nov 2009 16:37:57 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/03/the-spirit-of-nien-cheng-1915-2009/</guid>
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			<title>Libertarian Movement — Just Too Big and Too Busy? (Cato @ Liberty Blog)</title>
			<link>http://www.cato-at-liberty.org/2009/11/03/libertarian-movement-just-too-big-and-too-busy/</link>
			<description><![CDATA[<p>Last night &#8212; a Monday night, the eve of a hotly contested gubernatorial election in Virginia &#8212; there were at least three interesting events for libertarians in the Washington area:</p>
<ul>
<li>Reason.tv held an event to launch &#8220;<a href="http://reason.org/news/show/1008645.html">Radicals for Capitalism</a>,&#8221; a new series of videos celebrating Ayn Rand&#8217;s continuing influence.</li>
<li>The Future of Freedom Foundation and the George Mason University Economics Society <a href="http://www.gmueconsociety.blogspot.com/">sponsored a lecture</a> by Lawrence W. Reed, president of the Foundation for Economic Education, at GMU.</li>
<li>And here at the Cato Institute, an overflow crowd gathered to watch a new film, <a href="http://www.cato.org/events/091102screening.html"><em>The Soviet Story</em></a><em>,</em> which the<em> Economist </em>called &#8220;the most powerful antidote yet to the sanitisation of the past.&#8221;</li>
</ul>
<p>It&#8217;s got to be a sign of growth and health if the libertarian movement is offering three excellent programs on one Monday night in one area. But what&#8217;s an overscheduled libertarian to do?</p>
]]></description>
			<pubDate>Tue, 03 Nov 2009 14:12:13 EST</pubDate>
			<guid>http://www.cato-at-liberty.org/2009/11/03/libertarian-movement-just-too-big-and-too-busy/</guid>
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			<title>Ayn Rand and the World She Made (Daily Podcast)</title>
			<link>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1018</link>
			<description><![CDATA[]]></description>
			<pubDate>Tue, 03 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1018</guid>
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			<title>Three Cheers for Divided Government (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10931</link>
			<description><![CDATA[<p>This election day, the punditocracy is closely watching the off-year contests, thinking they predict how the president's party will do in next year's congressional midterms. If so, things don't look so hot for President Obama.</p>

<p>In New Jersey, Democratic governor Jon Corzine has done surprisingly well with his "make fun of the fat kid" reelection strategy, yet portly Republican Chris Christie retains a narrow advantage.</p>

<p>In Virginia, the GOP's Bob McDonnell is comfortably ahead in a state that Obama won by over 200,000 votes, and a Sunday poll had Conservative Party upstart Doug Hoffman 16 points ahead of his Democratic opponent in New York's 23rd congressional district.</p>



<p>If history is any guide, Democrats have reason to worry about 2010. In every midterm election but two since the end of WWII, the president's party has lost seats, and it's a fair bet that the Blue Team faces double-digit losses next year.</p>

<p>The "Hopefest 2009" aura surrounding Obama's inauguration reminds us that Americans are still suckers for the romance of Camelot. But though we periodically swoon for heroic presidents who pledge to heal the country and the world, when we sober up, we vote to check the hero's power.</p>

<p>In fact, in the past half century, voters have opted for divided government over 60 percent of the time. We Americans rest easier when the purse and sword are in different hands.</p>

<p>Why shouldn't we, given the horrors of one-party government? Whenever one faction controls both elected branches, checks and balances disappear.</p>

<p>My colleague Bill Niskanen, former chairman of President Reagan's Council of Economic Advisors, points out that since the start of the Cold War, we've had only a dozen years of real fiscal restraint: Six under Eisenhower and a Democratic Congress, and six under Clinton and a GOP majority.</p>

<p>Per Niskanen's calculations, since FDR, unified governments have spent roughly three times as fast as divided ones, and they've been much more likely to waste blood and treasure abroad.</p>

<p>The Framers tried to craft a constitution that gave politicians proper incentives to check each other. "Ambition [would] counteract ambition," as James Madison saw it, with congressmen keeping presidents honest and vice-versa.</p>

<p>Things haven't worked out as planned. Too often, party loyalty trumps constitutional fidelity, as evidenced by former House speaker Denny Hastert's self-image as a "lieutenant" of George Bush rather than a guardian of congressional prerogatives.</p>

<p>But when different parties hold the legislature and the executive, the Madisonian system works better. Divided government leads to many more congressional investigations into presidential misconduct, and, as two University of Chicago scholars demonstrated recently, "the White House's propensity to exercise military force steadily declines as members of the opposition party pick up seats in Congress."</p>

<p>When politicians wax sentimental about "the wisdom of the American people," it's usually a good idea to hold on to your wallet. If we're so smart, who's to blame for the clowns we elect?</p>



<p>But when it comes to separating the purse and the sword, we may be brighter than expected. A good chunk of us deliberately split our tickets. In 2004, two political scientists crunched the numbers, estimating that more than 20 percent of American voters were "cognitive Madisonians." In plain English, these voters consciously tried to "divide power and balance policy."</p>

<p>Even if the "cognitive Madisonians" are energized in 2010, it will be difficult for the GOP to seize the House. As analyst Charlie Cook notes, there are fewer open seats for the taking then there were during the Republican Revolution of '94.</p>

<p>Ironically enough, though, if things were easier for the Republicans, the embattled Obama might have a better shot at a successful presidency. Divided government tends to boost the president's approval rating.</p>

<p>It's no accident that the few modern presidents who left office with high popularity &#8212; Eisenhower, Reagan, and Clinton &#8212; had to battle a Congress controlled by the opposition. We tend to like the guy better when he doesn't have a free hand.</p>

<p>No doubt Obama's pulling for Corzine, Deeds, and Owens today, and for a Democratic majority in 2010. But if he knew what was good for him &#8212; and for the country &#8212; he'd silently root for divided government.</p>]]></description>
			<pubDate>Tue, 03 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10931</guid>
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		<item>
			<title>Daniel J. Mitchell debates government involvement in the economy on CNBC's Street Signs (Video Highlight)</title>
			<link>http://www.cato.org/mediahighlights/index.php?highlight_id=893</link>
			<description><![CDATA[]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/mediahighlights/index.php?highlight_id=893</guid>
		</item>
		<item>
			<title>Radly Balko paper on texting while driving is cited on CNBC's Power Lunch (Video Highlight)</title>
			<link>http://www.cato.org/mediahighlights/index.php?highlight_id=890</link>
			<description><![CDATA[]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/mediahighlights/index.php?highlight_id=890</guid>
		</item>
		<item>
			<title>David Boaz discusses several libertarian issues on FOX. (Weekly Video)</title>
			<link>http://www.cato.org/weekly/index.php?vid_id=130</link>
			<description><![CDATA[<a href='/people/david-boaz'>David Boaz</a> discusses libertarianism in the military, the White House's tiff with Fox News, pay czar Kenneth Feinberg and other issues with Judge Andrew Napolitano.]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/weekly/index.php?vid_id=130</guid>
		</item>
		<item>
			<title>Peter Bauer and the Economics of Prosperity (Daily Podcast)</title>
			<link>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1017</link>
			<description><![CDATA[]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=1017</guid>
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			<title>Reflections on Communism Twenty Years after the Fall of the Berlin Wall (Development Policy Analysis)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10909</link>
			<description><![CDATA[<p>Twenty years ago the Berlin Wall fell, marking the collapse
of Soviet communism. The failure of the communist
system was not merely economic and political;
it was a moral failure as well. Over time communism created
a deep disillusionment and revulsion among those who lived
under it. The diminished sense of legitimacy of the ruling elite
in the Soviet Union and Soviet bloc countries contributed to
the unraveling of those systems as well.</p>

<p>At the same time, there is a remarkable lack of moral
concern in the West with the atrocities committed under
communist systems, including the tens of millions of people
who perished as a result of communist policies. By contrast
there has been a great deal of impassioned condemnation
of the outrages of Nazism. The most important reason
for treating Nazism and communism differently has been
the perception that communist crimes were unintended
consequences of the pursuit of lofty goals whereas the goals
of Nazism themselves were unmitigated evil.</p>

<p>Western intellectuals who had once idealized the Soviet
Union have done little soul searching regarding the roots of
their beliefs. The long association of idealism with animosity
toward commerce and capitalism among Western intellectuals
has contributed to a reluctance to criticize a system ostensibly
established in opposition to the values they abhorred.</p>



<p>Public attitudes in former communist countries have been
conflicted because of the arguable complicity of many citizens
in keeping the old system in power. A predominant attitude
in Eastern Europe and Russia toward the former communist
systems has been a mixture of oblivion, denial, and repression.</p>

<p>Contemporary Western attitudes toward the fall of the
Soviet system suggest that political beliefs endure when they
are widely shared and can satisfy important emotional needs.</p>]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10909</guid>
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		<item>
			<title>Murderous Idealism (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10925</link>
			<description><![CDATA[<p>The Berlin Wall that came down 20 years ago this month was an apt symbol of communism. It represented a historically unprecedented effort to prevent people from "voting with their feet" and leaving a society they rejected. The wall was only the most visible segment of a vast system of obstacles and fortifications: the Iron Curtain, which stretched for thousands of miles along the border of the "Socialist Commonwealth." I am one of those who managed to cross these obstacles in November 1956, when they were partially and temporarily dismantled along the Austrian-Hungarian border. My experiences in communist Hungary, where I lived until age 24, had a durable impact on my life and work.</p>

<p>While greatly concerned with communism in the late 1940s and early 1950s, Americans -- hostile or sympathetic -- actually knew little about communism, and little is said here today about the unraveling of the Soviet empire. The media's fleeting attention to the momentous events of the late 1980s and early 1990s matched their earlier indifference to communist systems. There is little public awareness of the large-scale atrocities, killings and human rights violations that occurred in communist states, especially compared with awareness of the Holocaust and Nazism (which led to to far fewer deaths). The number of documentaries, feature films or television programs about communist societies is minuscule compared with those on Nazi Germany and/or the Holocaust, and few universities offer courses on the remaining or former communist states. For most Americans, communism and its various incarnations remained an abstraction.</p> 



<p>The different moral responses to Nazism and communism in the West can be interpreted as a result of the perception of communist atrocities as byproducts of noble intentions that were hard to realize without resorting to harsh measures. The Nazi outrages, by contrast, are perceived as unmitigated evil lacking in any lofty justification and unsupported by an attractive ideology. There is far more physical evidence and information about the Nazi mass murders, and Nazi methods of extermination were highly premeditated and repugnant, whereas many victims of communist systems died because of lethal living conditions in their places of detention. Most of the victims of communism were not killed by advanced industrial techniques.</p> 

<p>Communist systems ranged from tiny Albania to gigantic China; from highly industrialized Eastern European countries to underdeveloped African ones. While divergent in many respects, they had in common a reliance on Marxism-Leninism as their source of legitimacy, the one-party system, control over the economy and media, and the presence of a huge political police force. They also shared an ostensible commitment to creating a morally superior human being -- the socialist or communist man.</p> 

<p>Political violence under communism had an idealistic origin and a cleansing, purifying objective. Those persecuted and killed were defined as politically and morally corrupt and a danger to a superior social system. The Marxist doctrine of class struggle provided ideological support for mass murder. People were persecuted not for what they did but for belonging to social categories that made them suspect.</p> 



<p>In the aftermath of the fall of Soviet communism, many Western intellectuals remain convinced that capitalism is the root of all evil. There has been a long tradition of such animosity among Western intellectuals who gave the benefit of doubt or outright sympathy to political systems that denounced the profit motive and proclaimed their commitment to create a more humane and egalitarian society, and unselfish human beings. The failure of communist systems to improve human nature doesn't mean that all such attempts are doomed, but improvements will be modest and are unlikely to be attained by coercion.</p> 

<p>Soviet communism collapsed for many reasons, including the economic inefficiency that resulted in chronic shortages of food and consumer goods, and pervasive and mendacious propaganda, which amounted to the routine misrepresentation of reality highlighting the gap between theory and practice, and promise and fulfillment. The political will of leaders behind the Iron Curtain diminished over time -- in part because of Nikita Khrushchev's 1956 revelations about Joseph Stalin's crimes but also because of their own experiences of the system's flaws. They no longer had the will to crush dissent. In the 1980s, Mikhail Gorbachev allowed new revelations of the errors and evils of communism to be aired -- further undermining the legitimacy of communist rule.</p> 

<p>The failure of Soviet communism confirms that humans motivated by lofty ideals are capable of inflicting great suffering with a clear conscience. But communism's collapse also suggests that under certain conditions people can tell the difference between right and wrong. The embrace and rejection of communism correspond to the spectrum of attitudes ranging from deluded and destructive idealism to the realization that human nature precludes utopian social arrangements and that the careful balancing of ends and means is the essential precondition of creating and preserving a decent society.</p>]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10925</guid>
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		<item>
			<title>Increasing Risk, Hurting Patients (Commentary)</title>
			<link>http://www.cato.org/pub_display.php?pub_id=10930</link>
			<description><![CDATA[<p><strong>The cost of capping medical malpractice damages.</strong></p>

<p>A new Congressional Budget Office report estimates that a set of tort reform measures &#8212; including caps on awards for non-economic and punitive damages &#8212; would have lowered total national health care spending in 2009 by $11 billion, largely by reducing so-called defensive medicine. Damage caps, though, would result in patients losing the benefit of the market oversight and penalties associated with malpractice underwriting. Capping liability could have the unintended consequence of reducing private market efforts to investigate the risk characteristics of the individuals they insure and of hurting patients.</p>

<p>A careful reading of the report shows that a significant portion of the problem can be attributed to fee-for-service physician reimbursement, a system that fails to discourage spending on services that have "marginal or no benefit to patients." The findings suggest an alternative to caps on damages: moving Medicare recipients into managed-care arrangements where defensive medicine is controlled. The advantage of using managed-care arrangements over caps is that this would allow medical professional liability insurance underwriters to continue to provide both oversight and penalties for negligence and substandard care.</p>

<p>The medical malpractice industry provides valuable private market oversight of physicians. Underwriters review each physician annually, examining a clinician's claims history in detail and investigating myriad possible practice-related issues. Premium surcharges penalize physicians with a history of negligence or substandard care; claims-free physicians are rewarded with premium credits. In some cases, as in anesthesiology, some insurance policies dictate very specific evidence-based standards of care that must be used for coverage to apply. These financial arrangements create incentives among all physicians for risk management.</p>

<p>Physicians rejected by state-regulated "admitted" companies for substandard care are forced into the surplus lines market. There, they bear additional costs, including carrying a deductible and a much higher annual premium &#8212; generally between one-and-a-half to five times higher.</p>

<p>Once in the surplus lines market, the high cost provides a strong incentive to physicians to take steps to reduce their perceived risk so that they can return to the admitted market. Often specific remedial actions are required, particularly of those physicians with substance abuse problems. Some surplus lines companies offer risk management services on a case-by-case basis.</p>

<p>Some physicians are in the surplus lines market because they perform fairly unique or risky procedures that companies in the admitted market do not have the expertise to underwrite. The surplus lines industry plays a role when doctors are just getting experience with a new procedure, as with the introduction of laparoscopic gallbladder surgery (cholecystectomy) and bariatric procedures (including gastric bypass and lap band). Underwriters keep an eye on claims and verify a physician's training to be sure it is adequate, managing the risk associated with the introduction of new medical procedures.</p>

<p>Decisions about the tasks physicians take on are best made with information about the magnitude of the underlying risk to patients. In the surplus lines market, malpractice insurance underwriters convey this information to physicians through their brokers in the form of pricing options for insurance. One option may include surgical coverage while another option, with a lower premium, would not cover surgery. This creates the appropriate incentive for physicians to consider the risk associated with their practice patterns.</p>

<p>All of this protects consumers. The potential for surcharges or cancellation of policies offered by admitted carriers and the higher cost of obtaining insurance in the surplus lines market create an incentive for physicians to practice care that meets medical community standards.</p>

<p>Rarely, in the very worst cases, physicians will be denied coverage in the surplus lines market. It may be because the physician is such a danger to the public that there is no viable restriction that would permit the physician to continue in practice. Even when a state medical board fails to sanction a physician who should not be practicing medicine, denial of malpractice insurance precludes affiliations with most hospitals and other provider organizations, protecting consumers served by those providers. In the seven states where medical malpractice is mandated for practice, all consumers benefit from these protections.</p>

<p>Medical professional liability insurance companies use experts to assess the validity of claims against a physician. This not only works to preserve the reputation of a falsely accused physician, but pushes the entire tort system toward more accurate penalties. More accurate penalties for negligence and substandard care create incentives better aligned with society's objective of quality care.</p>

<p>The oversight, risk management, serious financial penalties for negligent and substandard care, efforts to assess the validity of claims, and policy exclusions on practice associated with medical malpractice underwriting and insurance improve safety in the provision of medical care. By setting up appropriate incentives, medical professional liability insurance can be viewed as contributing to consumer protection in the market for physician services. Putting caps on damages would inhibit these efforts and hurt consumers.</p>]]></description>
			<pubDate>Mon, 02 Nov 2009 00:00:00 EST</pubDate>
			<guid>http://www.cato.org/pub_display.php?pub_id=10930</guid>
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