Tag: freedom

Does President Trump Support “Unrestrained Freedom”?

The Republican National Committee, in the person of Chairwoman Ronna Romney McDaniel, informs me that I “have been selected to represent the Commonwealth of Virginia as a member of The President’s Club.” I know that this is an important responsibility because it comes with a Priority Mail BRE and a request for $750. There’s a lot of boilerplate in the letter about “fake news” and the Democrats and their “radical left-leaning allies.” (Really, if they’re radical, surely they’re more than “left-leaning.” Why not just come out and say it – they’re left-wingers!)

But I’m particularly struck by this line:

I believe you share President Trump’s objectives of smaller government, fiscal discipline, lower taxes, secure borders, conservative judges, a stronger military and unrestrained freedom.

Seriously – President Trump’s objective is “unrestrained freedom”?

Some of those objectives I can see. Fiscal discipline is a presumptuous claim when you’ve promised not to touch the biggest spending programs. Some of the administration’s programs might make government smaller, but others clearly would not. But seriously, “unrestrained freedom”?

For nearly two years now Donald Trump’s main policy themes have been to close our borders, to deport millions of our neighbors and co-workers, and to stop Americans from buying products made overseas. He has bullied, subsidized, and threatened businesses into making uneconomic decisions. He has also talked at length about his desire to limit freedom of speech, frustrated as he is that “our press is allowed to say whatever they want.” While Republicans and Democrats in Congress and the states work on criminal justice reform Attorney General Jeff Sessions steps up the drug war. Trump’s acceptance speech at the Republican National Convention was described in Reason as “easily the most overt display of authoritarian fear-mongering I can remember seeing in American politics.”

The idea that President Trump’s objectives include “unrestrained freedom” is ludicrous even in the context of political fundraising letters.

If Poor Nations Want Economic Convergence and Capital Accumulation, They Need Good Policy

There’s a “convergence” theory in economics that suggests, over time, that “poor nations should catch up with rich nations.”

But in the real world, that seems to be the exception rather than the rule.

There’s an interesting and informative article at the St. Louis Federal Reserve Bank which explores this theory. It asks why most low-income and middle-income nations are not “converging” with countries from the developed world.

…only a few countries have been able to catch up with the high per capita income levels of the developed world and stay there. By American living standards (as representative of the developed world), most developing countries since 1960 have remained or been “trapped” at a constant low-income level relative to the U.S. This “low- or middle-income trap” phenomenon raises concern about the validity of the neoclassical growth theory, which predicts global economic convergence. Specifically, the Solow growth model suggests that income levels in poor economies will grow relatively faster than developed nations and eventually converge or catch up to these economies through capital accumulation… But, with just a few exceptions, that is not happening.

Here’s a chart showing examples of nations that are – and aren’t – converging with the United States.

Polarization and Freedom

A new Pew poll finds that three out of four “consistent liberals” would rather live in a community “where the houses are smaller and closer to each other” but within walking distance of schools, stores, and restaurants. Conversely, three out of four “consistent conservatives” would rather live in a larger home on a large lot even if it means driving to schools, stores, and restaurants.


Source: Pew Research Center. Click chart to download Pew’s 121-page (3.5-MB) report on polarization in America.

Pew says this shows that “differences between right and left go beyond politics,” which Pew claims is one of the seven most important things to know about polarization in America. Yet the left has turned the choice between a traditional suburb and a so-called walkable community into a political issue, so it is no wonder that people’s views on this choice are polarized.

Disappointingly, Pew’s report on polarization defines everything in terms of liberal vs. conservative. Pew’s big news is that the share of Americans who are consistently conservative or consistently liberal has more than doubled since 1994–yet you have to read deep into the report to learn that these groups make up just 21 percent of the country. The report says little about the other 79 percent of Americans, yet you’d think they would be important since they outnumber the consistent ones by almost four to one.

Top Catholics Take Aim at Libertarianism

The Washington Post reports that the leaders of the world’s most hierarchical, centralized faith don’t much care for the philosophy most closely aligned with individual liberty. Huh. What gives the Post that idea? Well, the cardinal sometimes referred to as the “vice-pope” just headlined a conference in DC titled “Erroneous Autonomy: The Catholic Case against Libertarianism.” In heaping scorn on those who celebrate free minds and free markets, the conference attendees accused libertarianism of being responsible for “selfies” and of being anti-poor.

And can you blame them? Think of all those notorious selfies by prominent libertarians.

Some prominent libertarians

And, really, you have to admit they have a point on that second accusation as well. Consider that when innovation, commerce, and entrepreneurship were unleashed on a mass scale during the Industrial Revolution, poverty went into a sustained decline for the first time in the 200,000 year history of humanity. In just the last fifteen or twenty years, the poverty rate worldwide has been cut in half. And the absolute number of people living in extreme poverty has been falling since 1980. The economics preferred by libertarians–the economics of freedom–has been quite hard on poverty. I mean, if this keeps up, in another few generations, there will hardly be any poor left.

Why Did Western Nations Continue to Prosper in the 20th Century even though Fiscal Burdens Increased?

In the pre-World War I era, the fiscal burden of government was very modest in North America and Western Europe. Total government spending consumed only about 10 percent of economic output, most nations were free from the plague of the income tax, and the value-added tax hadn’t even been invented.

Today, by contrast, every major nation has an onerous income tax and the VAT is ubiquitous. Those punitive tax systems exist largely because—on average—the burden of government spending now consumes more than 40 percent of GDP.

historical-size-of-govt

To be blunt, fiscal policy has moved dramatically in the wrong direction over the past 100-plus years. And thanks to demographic change and poorly designed entitlement programs, things are going to get much worse, according to Bank of International Settlements, Organization for Economic Cooperation and Development, and International Monetary Fund projections.

While those numbers, both past and future, are a bit depressing, they also present a challenge to advocates of small government. If taxes and spending are bad for growth, why did the United States (and other nations in the Western world) enjoy considerable prosperity all through the 20th century? I sometimes get asked that question after speeches or panel discussions on fiscal policy. In some cases, the person making the inquiry is genuinely curious. In other cases, it’s a leftist asking a “gotcha” question.

Long-Run GDP

I’ve generally had two responses.

Freedom Banned in Washington

It’s hardly big news, right? Another of our freedoms gets banned in Washington every day. But this time it’s not just particular constitutional rights. They don’t like the whole idea. Or at least the word, on a license plate. 

The District of Columbia allows residents to purchase vanity license plates. And as Chris Moody and Chris Wilson of Yahoo! News describe, there are strict rules about what you can say on your vanity plate:

According to the official list of banned D.C. plate combinations, it may take some extra creativity to get your idea accepted by the city’s meticulous censors. The capital city’s DMV has a 53-page list of 26,993 license plate no-no’s that prohibit everything from praising the local baseball team to expressing disgust with the Internal Revenue Service. The list was made available through a Freedom of Information Request filed by the transparency website GovernmentAttic.org.

You can check out your own ideas at the interactive tester below. Moody and Wilson note that you can’t have such interesting plates as “GOPSUX,” “GODEMS,” “RONPAUL, “”GVTSUX,” ANTIIRS,” “OBAMA,” “BARACK,” or “OBAMA44.”

And that’s right, you can’t have a license plate reading “FREEDOM.”

You can have “LIBERTY,” though, which might suffice. Wonder how they made that distinction. I tried a few other ideas. I once noted that Starbucks wouldn’t let you print “laissez-faire” on a customized Starbucks card. D.C. is more accommodating and has no objection to “LFAIRE.” “GAY” is OK, and perhaps surprisingly so are “HOMO” and “ANTIGAY.” I’ll bet the list of banned words will be constantly growing. “FEMNIST” passes muster, and so does “ANTIFEM.” But don’t try “SEX” or “SEXY.”

Moody and Wilson noted that you can’t have “RONPAUL” or “OBAMA.” But you can have “JEBBUSH”—who is speaking at Cato tomorrow, by the way—or “JEB2016” or “JEB45.” Also “HILLARY” and “BIDEN16.” (“CHRISTIE” is too long, but you can have “CHRISTI” or indeed “CHRIST.”) Hmmm, I’m beginning to wonder why you can’t have “RONPAUL.” But you can have “RAND,” “RAND16,” or indeed “AYNRAND.”

Try your own combinations. Just don’t expect to get “FREEDOM.”

Despite their Moral Preening, Statists Would Not Want to Live in a World without Capitalism

Part of my job is to educate people about free markets and fiscal policy.

In some cases, that means providing information and analysis to those already sympathetic to limited government. There are many people who like the idea of lower tax burdens, for instance, but they may not have given much thought to the interaction of tax rates, taxable income, and tax revenue, so that’s why I put together my Laffer Curve tutorial and why I wrote about this amazing data from the Reagan tax cuts.

A more challenging part of my job is reaching people with statist instincts. I wrote a post last week mocking an absurd example of Swedish egalitarianism, but I included some serious thoughts about why some people oppose liberty. How do I reach those people, especially when there’s some very interesting evidence showing fundamental differences in how liberals, conservatives, and libertarians see the world?

I don’t have a single answer to that question. Sometimes I use the utilitarian approach and show how capitalist nations outperform statist nations, as you can see in this comparison of North Korea and South Korea, and this post comparing Argentina, Chile, and Venezuela.

In other cases, I try a philosophical approach, one example of which is this video arguing against majoritarianism.

And sometimes I use horrifying anecdotes in hopes that people will realize the risks of unconstrained government.

But perhaps the folks at the Fund for American Studies have discovered a good way of educating statists. Take a look at this clever video.

P.S. Here’s another video from TFAS that uses an unusual tactic to get people to think about the value of capitalism and free markets.

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