Heh, great photoshop work from the folks at the Voice for School Choice in SC.
Cato at Liberty
Cato at Liberty
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Houston DA: Help Us Get Rid of Customers at Successful Schools!
The Houston District Attorney’s office has apparently sent out this notice:
Schools: If you have any information on someone who is attending a Houston County public school who either resides out of Houston County or out of their zone, please give us as much information as possible. Your contact information is not required; but, we will contact you if you desire. You may call 478.—.—- and leave a message or use our form below. All information provided is confidential.
Apple wants to sell more iPods. Facebook wants to sign up more members. In the free enterprise system, the incentives are aligned so that what’s good for consumers (access to things they want) is also good for producers. Not so in public schooling. Good public schools can’t get paid for serving kids outside their catchment area, so when folks try to escape lousy local schools by sneaking their kids into better ones, it actually hurts the better schools financially. So, rather than encouraging good schools to grow and take over bad ones, the status quo encourages good schools to stay as small as they can, and serve as few kids as they can. Great, huh?
Can we break up the monopoly now? Please?
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‘Tax Cuts’ and Welfare Spending
A story in the Washington Post today is headlined: “Obama Would Keep $85 Billion in Tax Breaks for Working Poor.”
The “tax breaks” in question are expansions in the earned income tax credit and the child tax credit. The Post story repeatedly calls the expansions “tax breaks” and “tax cuts.” The budget expert quoted in the story calls them “tax cuts,” and so does a House staffer and a spokesperson for the president.
But these are not tax cuts. They are expansions in the refundability of provisions in the tax code. That means that households that pay no federal income tax will receive larger welfare checks from the government under these Obama proposals.
Obama has proposed a slew of “tax cuts” that are partly welfare payments. The chart below shows the share of the 2010–2019 dollar values of these proposals that are actually increased federal spending, and not reductions in taxes. (Calculated from OMB’s May summary tables).
The Post reporter and the budget analyst quoted in the story are both fiscal experts, and they know that these “tax cuts” are not really tax cuts. But there is a growing problem in fiscal discussions that words are getting flipped upside down to mean the opposite of what a layman would understand them to mean. A classic example is how the dollar value of true tax cuts is nearly always referred to in news articles as a “cost” rather than a “saving.”
Steny Hoyer’s use of the phrase “paid for” in the health debate is another example of how Washington-speak is confusing the heck out of people.
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Speaking at Cornell
I’ll be speaking for the Freedom and Free Societies Program at Cornell University next Thursday, September 10. Details here.
I’ll also be speaking at Vanderbilt and in Nashville on September 29. Details to come.
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AFL-CIO Wants to Tax Stock Trades…to Stop Speculation
Earlier this week, the AFL-CIO, building upon a suggestion made last week in the UK, proposed that the federal government impose a 1/10 of 1 percent tax of all stock trades. The union group argues that such a tax would reduce non-productive speculative activity in the stock market.
First of all, we have all sorts of transfer taxes on housing, and yet we still had a housing bubble. So much for small taxes stopping speculative activity. If an investor expected to double his money, it seems quite a stretch to believe that such a small tax would discourage him.
More importantly, our recent financial crisis was not triggered by too much equity (like stocks) but by too much debt. In taxing stock transactions, we only add to the already favorable treatment of debt compared to equity, encouraging even greater leverage in our financial system.
The real purpose of this tax on speculation becomes apparent when the AFL-CIO suggests what the money should be used for…building new infrastructure that would require the hiring of unionized workers. The AFL-CIO should stop hiding behind the spin of stopping speculation and directly engage in the real debate: the massive size of our federal government and the unsustainable fiscal path we are on.
Captain Louis Renault Award: Politics in Government Schools?!*
As Neal and Andrew have already covered extensively, President Obama is set to address the nation’s school children, and the Secretary of Education has sent out marching orders to government teachers and lesson plans for the kids.
The administration has now backpedaled from a classic political gaffe and cleaned up the most offensive aspects; asking kids to write about how they can help, explain why its important to listen to political leaders, etc.
But I think a couple of points deserve repeating.
From a push for vastly expanding federal involvement in preschool and early education to home visitations in the health care bills, the government remains intent on expanding its dominion (And hot on the heels of President Bush’s massive expansion of federal involvement in schools).
But this problem didn’t begin with Obama and won’t end with him. Politics in the schools is what we get when the government runs our schools.
Don’t want your kids indoctrinated by government bureaucrats, special interests, or the President?
Private school choice is the only remedy, and education tax credits are the increasingly popular and successful way to deliver it.
When will a critical mass of the people realize that it is dangerous and destructive to allow the government to control the education of our children and finally do something about it?
* Captain Louis Renault reference
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Making Enemies in Afghanistan
Yaroslav Trofimov’s article in Wednesday’s Wall Street Journal explains how Ghulam Yahya, a former anti-Taliban, Tajik miltia leader from Herat, became an insurgent. The short answer: because the American master plan in Afghanistan required the retirement of warlords. The trouble is that in much of Afghanistan “warlord” is a synonym for “local government.” Attacking local authority structures is a good way to make enemies. So it went in Herat. Having been fired from a government post, Ghulum Yahya turned his militia against Kabul and now fires rockets at foreign troops, kidnaps their contractors, and brags of welcoming foreign jihadists. Herat turned redder on the color-coded maps of the “Taliban” insurgency.
That story reminded me of C.J. Chivers’s close-in accounts of firefights he witnessed last spring with an army platoon in Afghanistan’s Korangal Valley. According to Chivers, the Taliban there revolted in part because the Afghan government shut down their timber business. That is an odd reason for us to fight them.
One of the perversions of the branch of technocratic idealism that we now call counterinsurgency doctrine is its hostility to local authority structures. As articulated on TV by people like General Stanley McChrystal, counterinsurgency is a kind of one-size-fits-all endeavor. You chase off the insurgents, protect the people, and thus provide room for the central government and its foreign backers to provide services, which win the people to the government. The people then turn against the insurgency. This makes sense, I suppose, for relatively strong central states facing insurgencies, like India, the Philippines or Colombia.
But where the central state is dysfunctional and essentially foreign to the region being pacified, this model may not fit. Certainly it does not describe the tactic of buying off Sunni sheiks in Anbar province Iraq (a move pioneered by Saddam Hussein, not David Petraeus, by the way). It is even less applicable to the amalgam of fiefdoms labeled on our maps as Afghanistan. From what I can tell, power in much of Afghanistan is really held by headmen — warlords — who control enough men with guns to collect some protection taxes and run the local show. The western idea of government says the central state should replace these mini-states, but that only makes sense as a war strategy if their aims are contrary to ours, which is only the case if they are trying to overthrow the central government or hosting terrorists that go abroad to attack Americans. Few warlords meet those criteria. The way to “pacify” the other areas is to leave them alone. Doing otherwise stirs up needless trouble; it makes us more the revolutionary than the counter-revolutionary.
On a related note, I see John Nagl attacking George Will for not getting counterinsurgency doctrine. Insofar as Will seems to understand, unlike Nagl, that counterinsurgency doctrine is a set of best practices that allow more competent execution of foolish endeavors, this is unsurprising. More interesting is Nagl’s statement that we, the United States have not “properly resourced” the Afghan forces. Nagl does not mention that the United States is already committed to building the Afghan security forces (which are, incidentally, not ours) to a size — roughly 450,000 — that will annually cost about 500% of Afghanistan’s budget (Rory’s Stewart’s calculation), which is another way of saying we will be paying for these forces for the foreseeable future.
It probably goes too far to say this war has become a self-licking ice-cream cone where we create both the enemy and the forces to fight them, but it’s a possibility worth considering.