Topic: Government and Politics

Nanny State Doesn’t Like Competition - the English Version

A previous post by David Boaz poked fun at bureaucrats in Michigan for threatening a woman for the ostensible crime of keeping an eye on her neighbors’ kids without a government permit. English bureaucrats are equally clueless, badgering two women who take turns caring for each other’s kids. The common theme, of course, is that bureaucrats lack common sense – but the real lesson is that this is the inevitable consequence of government intervention (especially when politicians say they are “doing it for the children). The BBC reports:

England’s Children’s Minister wants a review of the case of two police officers told they were breaking the law, caring for each other’s children.

Ofsted said the arrangement contravened the Childcare Act because it lasted for longer than two hours a day, and constituted receiving “a reward”.

It said the women would have to be registered as childminders.

…Ms Shepherd, who serves with Thames Valley Police, recalled: “A lady came to the front door and she identified herself as being from Ofsted. She said a complaint had been made that I was illegally childminding.

“I was just shocked - I thought they were a bit confused about the arrangement between us. So I invited her in and told her situation - the arrangement between Lucy and I - and I was shocked when she told me I was breaking the law.”

…Minister for Children, Schools and Families Vernon Coaker insisted the Childcare Act 2006 was in place “to ensure the safety and wellbeing of all children”.

Debt Aggravates Spending Disease

USA Today’s Dennis Cauchon reports that ”state governments are rushing to borrow money to take advantage of cheap and plentiful credit at a time when tax collections are tumbling.” That will allow them to “avoid some painful spending cuts,” Cauchon notes, but it will sadly impose more pain on taxpayers down the road.

When politicians have the chance to act irresponsibly, they will act irresponsibly. Give them low interest rates and they go on a borrowing binge. The result is that they are in over their heads with massive piles of bond debt on top of the huge unfunded obligations they have built up for state pension and health care plans.

The chart shows that total state and local government debt soared 93 percent this decade. It jumped from $1.2 trillion in 2000 to $2.3 trillion by the second quarter of 2009, according to Federal Reserve data (Table D.3).

Government debt has soared during good times and bad. During recessions, politicians say that they need to borrow to avoid spending cuts. But during boomtimes, such as from 2003 to 2008, they say that borrowing makes sense because an expanding economy can handle a higher debt load. I’ve argued that there is little reason for allowing state and local government politicians to issue bond debt at all.

Unfortunately, the political urge to spend has resulted in the states shoving a massive pile of debt onto future taxpayers at the same time that they have built up huge unfunded obligations for worker retirement plans.

We’ve seen how uncontrolled debt issuance has encouraged spending sprees at the federal level. Sadly, it appears that the same debt-fueled spending disease has spread to the states and the cities.

A Federal Ban on Texting While Driving?

text-messaging-while-drivingIn response to claims that texting-while-driving (TWD) causes traffic accidents, Congress is considering “a federal bill that would force states to ban texting while driving if they want to keep receiving federal highway money.”

This approach to forcing a particular policy on the states mimics the 1984 Federal Uniform Driving Age Act, which threatened to withhold federal highway funds unless states adopted a 21-year-old minimum legal drinking age. The justification for that law was reducing traffic fatalities among 18-20 year olds.

A federal ban on TWD is not compelling:

1. Federal imposition of the 21-year old minimum drinking age did not save lives.

2. A ban on texting might increase other distractions: adjusting the radio, putting on makeup, eating a sandwich, reading a map, and so on. Relatedly, the evidence that TWD causes accidents is far from convincing. Traffic fatalities per vehicle mile travelled have declined substantially over the past 15 years, despite the explosion in text messaging.

3. TWD has benefits, not just costs. Truckers, for example, claim that

Crisscrossing the country, hundreds of thousands of long-haul truckers use computers in their cabs to get directions and stay in close contact with dispatchers, saving precious minutes that might otherwise be spent at the side of the road.

4. If the benefits of banning TWD become clear, most states will ban on their own.

Thus laws that penalize TWD might make sense. But this is an issue for states, not the federal government.

C/P Libertarianism, from A to Z.

Nanny State Doesn’t Like Competition

“A Michigan woman who lives in front of a school bus stop says the state is threatening her with fines and possibly jail time for babysitting her neighbors’ kids until the bus comes,” CNN reports.

Lisa Snyder of Middleville, Mich., says she takes no money for watching the three children for 15-40 minutes each day so that the neighbors can get to work on time.

The Department of Human Services, acting on a complaint that Snyder was operating an illegal child care home, demanded she either get a license, stop watching the kids or face the consequences, WZZM says.

Snyder calls the whole thing “ridiculous” and tells the Grand Rapids TV station that “we are friends helping friends!”

A DHS spokesperson tells the station that it has no choice but to comply with state law, which is designed to protect Michigan children.

She’s not getting paid. She’s possibly not even letting the neighbor kids into her house. The kids are waiting for a school bus in front of her house, and she’s told her neighbors she’ll keep an eye on their kids. And the government wants her to get a license. (Something similar is happening in Britain.)  This is what people mean when they warn that an ever-expanding government threatens the values of neighborliness and community. When the government provides services for free, or when it erects obstacles to individuals’ providing those services, it reduces private provision and simultaneously increases the demand for government services. If you make it illegal for neighbors to watch one another’s kids, you weaken ties of neighborhood and community.

Our nanny-state government not only wants to take care of us from cradle to pre-K to K-12 to homebuying to medical care to retirement to grave, it not only considers adult Americans “just like your teenage kids, [not] acting in a way that they should act,” it not only wants to “nudge” us into acting the way it thinks we should, now it thinks that neighbors should have to get a license to keep an eye on the kids congregating in front of their homes. It’s enough to make you think we have too much government.

Climate Change and Health Care: Free Lunches?

In the debate over health care reform, advocates of expanded government health insurance suggest we can pay for this by making Medicare and Medicaid more efficient.

In Paul Krugman’s most recent column, he makes a similar claim about reducing greenhouse gas emissions:

The evidence suggests that we’re wasting a lot of energy right now. That is, we’re burning large amounts of coal, oil and gas in ways that don’t actually enhance our standard of living — a phenomenon known in the research literature as the “energy-efficiency gap.” The existence of this gap suggests that policies promoting energy conservation could, up to a point, actually make consumers richer.

Both claims of a “free lunch” are heroic, at best.

In the case of health insurance, Medicare and Medicaid are inefficient, but to make them more efficient we have to reduce government subsidy for health insurance, not expand it.

In the case of energy efficiency, more energy-efficient practices exist (e.g., replacing incandescent light bulbs with CFLs), but they are expensive: if they actually made consumers richer, most would be using them already.

Now the fact that expanded government health insurance and increased energy efficiency would cost more, not less, does not prove they are bad ideas (that’s a separate discussion). But it means society must evaluate a tradeoff, not just assert we can have something for nothing.

C/P Libertarianism, from A to Z

Under Current Law, Can the Government Ban Books?

The Citizens United case currently before the Supreme Court may radically reshape campaign finance law for years to come. Former FEC commissioner Bradley A. Smith spoke at a forum on the case a day before the rehearing before the high court.

According to Smith, who is also the founder of the Center for Competitive Politics,  under current law, the government does have the power to ban certain books  if those books are published by a corporation, as ruled by the Supreme Court in 1990.

Watch: