In order to create better telecom infrastructure, New York state law gives private telecom firms the power to take private property in exchange for just compensation. Verizon used this power to build terminal boxes on thousands of pieces of private property, thus essentially permanently occupying a part of the properties. Verizon is one of a few companies that enjoy this extraordinary, state-granted privilege to build things on other people’s property without their permission.
Those companies, however, must compensate the owners (at least theoretically) for these sorts of takings of property. Kurtz v. Verizon New York, Inc. arises from a putative class action alleging that Verizon failed to compensate 30,000-50,000 property owners for building terminal boxes on their property. Although Verizon is required to give property owners their “full compensation rights,” the plaintiffs argue that the company continuously flouts this requirement “as a matter of corporate policy and practice,” thus violating both the plaintiffs’ rights to procedural due process—for example, by not even notifying them that their property was being taken—and their Fifth Amendment rights to not have their property taken for public use without just compensation.
The U.S. Court of Appeals for the Second Circuit, however, ruled that the plaintiffs couldn’t proceed with their claims because of a case called Williamson County Regional Planning Commission v. Hamilton Bank of Johnson City (1985), in which the Supreme Court ruled that plaintiffs with takings claims have to seek relief from state courts before proceeding with a federal claim. Otherwise, the case will be dismissed for being not “ripe”—not ready for a federal court to hear the case.
Read more at http://www.cato.org/blog/supreme-court-should-remove-kafka-esque-burden-vindicating-property-rights
2015-01-03
Cato: Police Misconduct: The Worst Case in October
Over at Cato’s Police Misconduct website we have identified the worst case for the month of October.
The worst police misconduct of October goes to the officers who shot David Hooks in his own home during a drug raid based on an invalid warrant and the tip of an informant who was allegedly high on meth. The informant, Rodney Garrett, had just stolen a vehicle from the Hooks’ home when he was either arrested or turned himself into the police (reports vary). Garrett told police that the 20g bag of meth he had had been stolen from Hooks’ pickup truck.
That same night, the Laurens County Drug Unit pushed through a warrant based primarily on Garrett’s word, and at 10:55 pm, executed a no-knock warrant despite the fact that the warrant did not authorize one–at a home that the police knew had just previously been burglarized two nights earlier. Hooks’ wife Teresa saw armed, hooded figures in black rushing towards the back door and woke her husband, thinking the burglars had returned. David Hooks got his gun, and when the SWAT team knocked in the back door without announcing their presence, he didn’t even have the opportunity to get a shot off before officers fired between 16 and 18 rounds, killing him.
Read more at http://www.cato.org/blog/police-misconduct-worst-case-october-0
The worst police misconduct of October goes to the officers who shot David Hooks in his own home during a drug raid based on an invalid warrant and the tip of an informant who was allegedly high on meth. The informant, Rodney Garrett, had just stolen a vehicle from the Hooks’ home when he was either arrested or turned himself into the police (reports vary). Garrett told police that the 20g bag of meth he had had been stolen from Hooks’ pickup truck.
That same night, the Laurens County Drug Unit pushed through a warrant based primarily on Garrett’s word, and at 10:55 pm, executed a no-knock warrant despite the fact that the warrant did not authorize one–at a home that the police knew had just previously been burglarized two nights earlier. Hooks’ wife Teresa saw armed, hooded figures in black rushing towards the back door and woke her husband, thinking the burglars had returned. David Hooks got his gun, and when the SWAT team knocked in the back door without announcing their presence, he didn’t even have the opportunity to get a shot off before officers fired between 16 and 18 rounds, killing him.
Read more at http://www.cato.org/blog/police-misconduct-worst-case-october-0
Cato: U.S. Should Talk to North Korea, Whoever Is in Charge
Power is like quicksilver. It often slips through the fingers of those attempting to grasp it. Who is in power in North Korea? Maybe 31-year-old Kim Jong-un. Maybe not.
The Democratic People’s Republic of Korea’s Kim disappeared from public view for 40 days. On his return Pyongyang only released undated still photos.
There’ve been no untoward troop movements or party conclaves in the North, though some other signs seemed conflicting. Whoever reigns, there is little reason to hope for nuclear disarmament.
To the contrary, the North appears to be increasing production of fissile material, moving ahead on ICBM development, and upgrading rocket launch facilities. Even a seemingly secure Kim, the “Great Successor” whose father concocted the North’s “military first” policy, would hesitate challenging the armed services by trading away its most important weapon.
Yet there are signs of change elsewhere. The economy appears to be growing, with more consumer goods evident, especially in Pyongyang.
Read more at http://www.cato.org/blog/us-should-talk-north-korea-whoever-charge
The Democratic People’s Republic of Korea’s Kim disappeared from public view for 40 days. On his return Pyongyang only released undated still photos.
There’ve been no untoward troop movements or party conclaves in the North, though some other signs seemed conflicting. Whoever reigns, there is little reason to hope for nuclear disarmament.
To the contrary, the North appears to be increasing production of fissile material, moving ahead on ICBM development, and upgrading rocket launch facilities. Even a seemingly secure Kim, the “Great Successor” whose father concocted the North’s “military first” policy, would hesitate challenging the armed services by trading away its most important weapon.
Yet there are signs of change elsewhere. The economy appears to be growing, with more consumer goods evident, especially in Pyongyang.
Read more at http://www.cato.org/blog/us-should-talk-north-korea-whoever-charge
Cato: Should Republicans Restore the Judicial Filibuster?
When Republicans take control of the Senate in January, should they revive the judicial filibuster that Democrats instituted in 2003 when George W. Bush was president, but ended last November when Republicans were filibustering Obama nominees? That heads-I-win-tails-you-lose question probably answers itself, but the background is a bit more complicated.
In fact, in a post I rushed into print yesterday morning I mangled some elementary filibuster facts, which I partially corrected late in the day after a reader kindly alerted me to the error. I’m tempted to say that an impostor was writing under my name, but the better explanation perhaps is too little sleep from following overnight election returns. In any event, it turns out that Harry Reid, having gone “nuclear” by ending the judicial filibuster a year ago is in no worse shape going into the next two years, as I’d initially implied, than he would have been had he kept it in place. It’s after that, if there’s a Republican president, that he’ll no longer have the filibuster at hand.
So what’s going on here? Let’s start at the beginning. Article I, section 5 of the Constitution says that “Each House may determine the Rules of its Proceedings.” As students of the subject know, those rules can be arcane. And they change, about which there are also rules. The filibuster is a case in point. It’s nowhere in the Constitution, and it’s changed over the years. On the merits, a good case can be made on either side of the practice. In general, it can keep bad (or good) laws from being enacted—or bad (or good) laws from being removed. In the abstract, therefore, it’s a wash. Empirically, it depends on the history of its use—and where you sit.
Read more at http://www.cato.org/blog/should-republicans-restore-judicial-filibuster
In fact, in a post I rushed into print yesterday morning I mangled some elementary filibuster facts, which I partially corrected late in the day after a reader kindly alerted me to the error. I’m tempted to say that an impostor was writing under my name, but the better explanation perhaps is too little sleep from following overnight election returns. In any event, it turns out that Harry Reid, having gone “nuclear” by ending the judicial filibuster a year ago is in no worse shape going into the next two years, as I’d initially implied, than he would have been had he kept it in place. It’s after that, if there’s a Republican president, that he’ll no longer have the filibuster at hand.
So what’s going on here? Let’s start at the beginning. Article I, section 5 of the Constitution says that “Each House may determine the Rules of its Proceedings.” As students of the subject know, those rules can be arcane. And they change, about which there are also rules. The filibuster is a case in point. It’s nowhere in the Constitution, and it’s changed over the years. On the merits, a good case can be made on either side of the practice. In general, it can keep bad (or good) laws from being enacted—or bad (or good) laws from being removed. In the abstract, therefore, it’s a wash. Empirically, it depends on the history of its use—and where you sit.
Read more at http://www.cato.org/blog/should-republicans-restore-judicial-filibuster
Cato: Can a State Punish You for Advertising Your Business Without a License?
Under Ohio law, it isn’t illegal to buy gold, it isn’t illegal to sell gold, and it isn’t illegal to talk about buying and selling gold. But—and it’s a significant “but”—if you talk about buying gold, you’re not allowed to actually buy any. At least not without a license.
That’s right: in Ohio, it’s illegal for anyone who advertises a willingness to buy gold to do so without a license. Obtaining and maintaining that license isn’t easy, or cheap. Licenses must be renewed every year, and license holders have to make daily reports to the police detailing their purchases. This law creates a two-tiered system: dealers who have complied with the onerous licensing regime may freely advertise their businesses, while others can’t so much as put up a sign reading “We Buy Gold” without facing criminal prosecution and fines of up to $10,000 per transaction.
Read more at http://www.cato.org/blog/can-state-punish-you-advertising-business-without-license
That’s right: in Ohio, it’s illegal for anyone who advertises a willingness to buy gold to do so without a license. Obtaining and maintaining that license isn’t easy, or cheap. Licenses must be renewed every year, and license holders have to make daily reports to the police detailing their purchases. This law creates a two-tiered system: dealers who have complied with the onerous licensing regime may freely advertise their businesses, while others can’t so much as put up a sign reading “We Buy Gold” without facing criminal prosecution and fines of up to $10,000 per transaction.
Read more at http://www.cato.org/blog/can-state-punish-you-advertising-business-without-license
Cato: Yes, Florida, the Constitution Protects Property Rights
David and Susan Kentner own residential lots along San Carlos Bay in Sanibel, Florida. Because their property is along the high-tide line, the Kentners enjoy an age-old common-law right to build docks over the water abutting their property, subject to reasonable regulation. But Sanibel passed an ordinance forbidding the Kentners and others from taking advantage of this common-law right. The city claimed that the ordinance was necessary to protect seagrass, which it called an “invaluable natural resource.”
Whether or not seagrass is invaluable, the city passed the ordinance without considering whether seagrass was actually present in the areas subject to the ordinance and whether modern technology could effectively be used to avoid harming the seagrass. Moreover, there is evidence that the city passed the ordinance in order to satisfy the aesthetic preferences of certain interest groups and to enhance the property values of other dock-holders. On top of that, in 2006 the city issued itself an exemption to build a dock in San Carlos Bay, explaining that it should be allowed to build a dock because no seagrass was found on the site.
Read more at http://www.cato.org/blog/yes-florida-constitution-protects-property-rights
Whether or not seagrass is invaluable, the city passed the ordinance without considering whether seagrass was actually present in the areas subject to the ordinance and whether modern technology could effectively be used to avoid harming the seagrass. Moreover, there is evidence that the city passed the ordinance in order to satisfy the aesthetic preferences of certain interest groups and to enhance the property values of other dock-holders. On top of that, in 2006 the city issued itself an exemption to build a dock in San Carlos Bay, explaining that it should be allowed to build a dock because no seagrass was found on the site.
Read more at http://www.cato.org/blog/yes-florida-constitution-protects-property-rights
2015-01-02
Cato: U.S.-Mexico Sugar Agreement: A Tribute to Managed Markets
The U.S. Department of Commerce (DOC) announced Oct. 27 that it had reached draft agreements with Mexican sugar exporters and the Mexican government to suspend antidumping and countervailing duty (AD/CVD) investigations on imports of sugar from that country. Commerce has requested comments from interested parties by Nov. 10, with Nov. 26 indicated as the earliest date on which the final agreements could be signed. Given the obvious level of consultation by governments and industries on both sides of the border leading up to this announcement, it’s reasonable to presume that the agreements will enter into effect within a few weeks.
Suspension agreements that set aside the AD/CVD process in favor of a managed-trade arrangement are relatively rare. They sometimes are negotiated when the U.S. market requires some quantity of imports, and when the implementation of high AD/CVD duties would be expected to curtail trade severely. This would have been the case, assuming the duties actually had entered into effect. However, as this recent blog post indicates, it’s not at all clear that the U.S. International Trade Commission (ITC) would have determined that imports from Mexico were injuring the U.S. industry. A negative vote (a vote finding no injury) by the ITC would have ended these cases and left the U.S. market open to imports of Mexican sugar.
Read more at http://www.cato.org/blog/us-mexico-sugar-agreement-tribute-managed-markets
Suspension agreements that set aside the AD/CVD process in favor of a managed-trade arrangement are relatively rare. They sometimes are negotiated when the U.S. market requires some quantity of imports, and when the implementation of high AD/CVD duties would be expected to curtail trade severely. This would have been the case, assuming the duties actually had entered into effect. However, as this recent blog post indicates, it’s not at all clear that the U.S. International Trade Commission (ITC) would have determined that imports from Mexico were injuring the U.S. industry. A negative vote (a vote finding no injury) by the ITC would have ended these cases and left the U.S. market open to imports of Mexican sugar.
Read more at http://www.cato.org/blog/us-mexico-sugar-agreement-tribute-managed-markets
Cato: Report Concludes that Yucca Mountain Is Safe
For decades, the federal government has struggled with the issue of storing waste from commercial nuclear reactors and defense-related nuclear activities. The government has spent billions of dollars planning for nuclear waste disposal, but the creation of a permanent storage site is years behind schedule due to federal mismanagement and safety concerns. A new report confirms that the current proposed site, Yucca Mountain in Nevada, is safe for use.
The United States has more than 65,000 metric tons of spent nuclear fuel with the volume expected to double by 2055. The Nuclear Waste Policy Act of 1982 aimed to create a permanent disposal site for radioactive waste by 1998. After many studies, Yucca Mountain was chosen as the single national disposal site in 1987, and engineers and construction crews went to work. Between 2001 and 2007 the project’s total life-cycle cost estimate increased from $77 billion to $106 billion, measured in constant 2012 dollars.
Read more at http://www.cato.org/blog/report-concludes-yucca-mountain-safe
The United States has more than 65,000 metric tons of spent nuclear fuel with the volume expected to double by 2055. The Nuclear Waste Policy Act of 1982 aimed to create a permanent disposal site for radioactive waste by 1998. After many studies, Yucca Mountain was chosen as the single national disposal site in 1987, and engineers and construction crews went to work. Between 2001 and 2007 the project’s total life-cycle cost estimate increased from $77 billion to $106 billion, measured in constant 2012 dollars.
Read more at http://www.cato.org/blog/report-concludes-yucca-mountain-safe
Cato: Managed Trade for Sugar from Mexico?
Mexican Economy Secretary Ildefonso Guajardo was in Washington this week arguing on behalf of an agreement to suspend the U.S. antidumping/countervailing duty (AD/CVD) investigation against imports of sugar from Mexico. The case will soon enter its final phase, with the U.S. International Trade Commission (ITC) expected to determine early next year whether the U.S. sugar industry has been injured by imports from Mexico.
In the context of North American sugar politics, an agreement to suspend the AD/CVD process and implement a managed-trade arrangement makes some sense. Both U.S. and Mexican sugar industries already are more or less wards of the state, or at least are very heavily guided and controlled by their respective governments. Both governments have given indications that they are interested in settling this dispute. The history of bilateral sugar trade has been dominated by government intervention rather than by free-market economics. It seems almost natural to take the next obvious step by allowing Mexican sugar to enter the United States only under terms of a suspension agreement (i.e., with the quantity limited or the price set high).
Read more at http://www.cato.org/blog/managed-trade-sugar-mexico
In the context of North American sugar politics, an agreement to suspend the AD/CVD process and implement a managed-trade arrangement makes some sense. Both U.S. and Mexican sugar industries already are more or less wards of the state, or at least are very heavily guided and controlled by their respective governments. Both governments have given indications that they are interested in settling this dispute. The history of bilateral sugar trade has been dominated by government intervention rather than by free-market economics. It seems almost natural to take the next obvious step by allowing Mexican sugar to enter the United States only under terms of a suspension agreement (i.e., with the quantity limited or the price set high).
Read more at http://www.cato.org/blog/managed-trade-sugar-mexico
Cato: Letting it Go: Ukraine’s Frozen Future
Secretary of State John Kerry met late yesterday in Paris with Russian Foreign Minister Sergei Lavrov. Though somewhat overshadowed by Kerry’s meetings with Iran, the meeting nonetheless provided some fascinating clues as to where the Ukraine crisis is headed.
First, international tensions over Ukraine seem to be slowly relaxing, although violence continues to mar the ceasefire in the Donbas itself. Russian troops are withdrawing from the border, as specified in the Minsk Protocol. The United States is making encouraging noises about the possibility of sanction removal. More importantly, Kerry made a clear point of emphasizing Russian-American cooperation and announced that the two countries would engage in intelligence sharing on ISIS. This represents a major about-face for the Obama administration, which just six months ago said its goal was to “isolate President Vladimir Putin.” It seems that faced with the difficulty of managing simultaneous conflicts – something the White House is not good at – officials are opting for a more conciliatory approach to Russia.
Read more at http://www.cato.org/blog/let-it-go-ukraines-frozen-future
First, international tensions over Ukraine seem to be slowly relaxing, although violence continues to mar the ceasefire in the Donbas itself. Russian troops are withdrawing from the border, as specified in the Minsk Protocol. The United States is making encouraging noises about the possibility of sanction removal. More importantly, Kerry made a clear point of emphasizing Russian-American cooperation and announced that the two countries would engage in intelligence sharing on ISIS. This represents a major about-face for the Obama administration, which just six months ago said its goal was to “isolate President Vladimir Putin.” It seems that faced with the difficulty of managing simultaneous conflicts – something the White House is not good at – officials are opting for a more conciliatory approach to Russia.
Read more at http://www.cato.org/blog/let-it-go-ukraines-frozen-future
Cato: China’s Curious Restraint
Beijing’s behavior on the international stage over the past few months has been surprisingly restrained—in marked contrast to an earlier, lengthy period of assertive, if not abrasive, conduct toward its neighbors. Not too long ago, policymakers in the United States and throughout East Asia were alarmed by China’s initiatives. Beijing’s territorial claims in the South China Sea were breathtakingly broad, leading to nasty incidents with the Philippines, Vietnam, and other nations. Even worse were the confrontations between China and Japan over islands in the East China Sea, along with Beijing’s unilateral proclamation of an extensive Air Defense Identification Zone in that same area, which led to a surge of tensions with Japan, South Korea, and the United States.
Two developments illustrate the new, less confrontational trend in China’s policy. One is Beijing’s concerted diplomatic courtship of such countries as South Korea, Vietnam, and Sri Lanka. As I discuss in a recent article in China-U.S. Focus, even such longstanding rivals as Japan and India have been recipients of this Chinese “charm offensive.”
Read more at http://www.cato.org/blog/chinas-curious-restraint
Two developments illustrate the new, less confrontational trend in China’s policy. One is Beijing’s concerted diplomatic courtship of such countries as South Korea, Vietnam, and Sri Lanka. As I discuss in a recent article in China-U.S. Focus, even such longstanding rivals as Japan and India have been recipients of this Chinese “charm offensive.”
Read more at http://www.cato.org/blog/chinas-curious-restraint
Cato: Promoting Democracy in Hong Kong: Combining Prudence with Idealism
Hong Kong is part of China. But administered separately from the rest of the People’s Republic of China, the territory respects civil liberties while hosting the world’s freest economy.
Demonstrators are pressing Beijing to make good on its promise of democratic rule and free elections. But the PRC will not, indeed, cannot, give residents of Hong Kong what it refuses to give the rest of its citizens. The city’s future depends on finding a compromise that preserves Hong Kong’s freedom and peace.
The British colony grew out of imperial China’s weakness. London seized Hong Kong Island, then the Kowloon Peninsula, and later “leased” the New Territories. In 1997 the latter’s 99-year term ran out. At which point Beijing was legally entitled to take back the New Territories.
Dividing Hong Kong would have been a practical nightmare. And Beijing might not have continued to honor territorial cessions forced more than a century before. So in 1984 London agreed to the full territory’s return.
Read more at http://www.cato.org/blog/promoting-democracy-hong-kong-combining-prudence-idealism
Demonstrators are pressing Beijing to make good on its promise of democratic rule and free elections. But the PRC will not, indeed, cannot, give residents of Hong Kong what it refuses to give the rest of its citizens. The city’s future depends on finding a compromise that preserves Hong Kong’s freedom and peace.
The British colony grew out of imperial China’s weakness. London seized Hong Kong Island, then the Kowloon Peninsula, and later “leased” the New Territories. In 1997 the latter’s 99-year term ran out. At which point Beijing was legally entitled to take back the New Territories.
Dividing Hong Kong would have been a practical nightmare. And Beijing might not have continued to honor territorial cessions forced more than a century before. So in 1984 London agreed to the full territory’s return.
Read more at http://www.cato.org/blog/promoting-democracy-hong-kong-combining-prudence-idealism
Cato: Unsettling Cotton Settlement at the WTO
Last week the U.S. government settled a long-running trade dispute with Brazil, winning taxpayers the privilege of continuing to subsidize America’s wealthy cotton farmers in exchange for our commitment to subsidize Brazilian cotton farmers, as well. That’s right! We get to pay U.S. cotton farming businesses to overproduce, export, and suppress global prices to the detriment of Brazilian (and other countries’) cotton farmers provided that we compensate the Brazilians to the tune of $300 million.
Some background. Ten years ago, in a case brought by Brazil, the WTO Dispute Settlement Body ruled that the United States was exceeding its subsidy allowances for domestic cotton farmers and that it should bring its practices into compliance with the relevant WTO agreements. After delays and half-baked U.S. efforts to comply, Brazil sought and received permission from the WTO to retaliate (or, in WTO parlance, to “withdraw concessions” because opening one’s own market in a world of mercantilist reciprocity is, perversely, considered a cost or concession). Under the threat of such retaliation, instead of bringing its cotton subsidies into WTO compliance, the U.S. government agreed to pay $147 million per year to Brazilian farmers so that it could continue subsidizing U.S. farmers beyond agreed limits. That arrangement prevailed for a few years until the funds were cut during the budget sequester earlier this year – an event that triggered a renewed threat of retaliation from Brazil, which now has been averted on account of last week’s $300 million settlement.
Read more at http://www.cato.org/blog/cotton-tobacco-settlements-will-expedite-wtos-corrosion
Some background. Ten years ago, in a case brought by Brazil, the WTO Dispute Settlement Body ruled that the United States was exceeding its subsidy allowances for domestic cotton farmers and that it should bring its practices into compliance with the relevant WTO agreements. After delays and half-baked U.S. efforts to comply, Brazil sought and received permission from the WTO to retaliate (or, in WTO parlance, to “withdraw concessions” because opening one’s own market in a world of mercantilist reciprocity is, perversely, considered a cost or concession). Under the threat of such retaliation, instead of bringing its cotton subsidies into WTO compliance, the U.S. government agreed to pay $147 million per year to Brazilian farmers so that it could continue subsidizing U.S. farmers beyond agreed limits. That arrangement prevailed for a few years until the funds were cut during the budget sequester earlier this year – an event that triggered a renewed threat of retaliation from Brazil, which now has been averted on account of last week’s $300 million settlement.
Read more at http://www.cato.org/blog/cotton-tobacco-settlements-will-expedite-wtos-corrosion
Cato: Yes, Fixing Higher Ed Means Eliminating Federal Aid
National Review Online is in the midst of its “education week” – including offerings by yours truly and Jason Bedrick – and today brings us a piece by AEI’s Andrew Kelly on how to fix our higher ed system. Unfortunately, while he largely nails the problems, he stumbles on the solution.
Kelly is absolutely right when he criticizes the Obama administration for demonizing for-profit colleges – see my piece for the evidence that for-profits are not the problem – while simultaneously observing how odd it is for conservatives to decry as some great violation of free-market ideals attacks on institutions that get the vast majority of their funds through Washington. He is also right that the entire ivory tower is awash in waste and failure, and all institutions – for-profit or putatively not-for-profit – are self-interested money-grubbers. Finally, he correctly notes that it is a big problem that by far the largest student lender is the Bank of Uncle Sam, who basically gives to anyone who can breathe.
Read more at http://www.cato.org/blog/yes-fixing-higher-ed-means-eliminating-federal-aid
Kelly is absolutely right when he criticizes the Obama administration for demonizing for-profit colleges – see my piece for the evidence that for-profits are not the problem – while simultaneously observing how odd it is for conservatives to decry as some great violation of free-market ideals attacks on institutions that get the vast majority of their funds through Washington. He is also right that the entire ivory tower is awash in waste and failure, and all institutions – for-profit or putatively not-for-profit – are self-interested money-grubbers. Finally, he correctly notes that it is a big problem that by far the largest student lender is the Bank of Uncle Sam, who basically gives to anyone who can breathe.
Read more at http://www.cato.org/blog/yes-fixing-higher-ed-means-eliminating-federal-aid
Cato: Should Intellectual Property Be in Trade Agreements?
After I complained recently that arguments for including intellectual property (IP) in trade agreements needed to specify what level of protection is desirable, Tom Giovanetti responded by asking for my view on a more basic question: Should IP—regardless of the level of protection—be in trade agreements at all? My colleague Bill Watson has previously set out a political argument for removing it, which is that achieving free trade is becoming very difficult when IP issues get inserted into trade negotiations. Let me add to his argument the following: If IP is in, then there is really no boundary to what can be in, and the result is trade agreements that look like “global governance” agreements.
Returning to Tom’s question, I should say at the outset that Tom doesn’t really say explicitly why IP should be in trade agreements. He doesn’t explain how IP rules fit within the general concept of trade liberalization, or what scope he sees for trade agreements. What are his limits for what should be covered in trade agreements? I’m really not sure. Instead, the main focus of Tom’s argument for including IP in trade agreements seems to be that the United States exports lots of IP-related goods, and therefore it is in the nation’s interest to have IP rules in there.
Read more at http://www.cato.org/blog/should-intellectual-property-be-trade-agreements
Returning to Tom’s question, I should say at the outset that Tom doesn’t really say explicitly why IP should be in trade agreements. He doesn’t explain how IP rules fit within the general concept of trade liberalization, or what scope he sees for trade agreements. What are his limits for what should be covered in trade agreements? I’m really not sure. Instead, the main focus of Tom’s argument for including IP in trade agreements seems to be that the United States exports lots of IP-related goods, and therefore it is in the nation’s interest to have IP rules in there.
Read more at http://www.cato.org/blog/should-intellectual-property-be-trade-agreements
Cato: Little Evidence Supports the FDA’s Proposed Food Label Rules
In the upcoming issue of Regulation magazine, Robert Scharff, associate professor in the Department of Consumer Sciences at the Ohio State University, and Sherzod Abdukadirov, research fellow in the Regulatory Studies Program at the Mercatus Center at George Mason University, argue that the FDA’s two proposed rules on food nutrition labeling are supported by little evidence and should be scrapped.
The food labeling rule would, as Scharff and Abdukadirov explain, result in a number of changes “involving both formatting and content changes to labels, increases in recordkeeping, and new analytic requirements.” The second rule, the serving size rule, would affect packages that contain a small number of servings.
Read more at http://www.cato.org/blog/little-evidence-supports-fdas-proposed-food-label-rules
The food labeling rule would, as Scharff and Abdukadirov explain, result in a number of changes “involving both formatting and content changes to labels, increases in recordkeeping, and new analytic requirements.” The second rule, the serving size rule, would affect packages that contain a small number of servings.
Read more at http://www.cato.org/blog/little-evidence-supports-fdas-proposed-food-label-rules
Cato: Amtrak Shouldn’t Get to Write Its Own Ticket
Article One, Section One of the Constitution vests “all legislative powers” in Congress. The sovereign power to make laws comes from the people, so their representatives—Congress—should make those laws.
It sounds simple enough, but once the federal government started ballooning in size and regulating everything under the sun, that simple understanding had to go. There was too much governing for Congress to handle on its own, so the courts adjusted, allowing a proliferation of government agencies to exercise lawmaking power, within certain guidelines.
Read more at http://www.cato.org/blog/amtrak-shouldnt-get-write-its-own-ticket
It sounds simple enough, but once the federal government started ballooning in size and regulating everything under the sun, that simple understanding had to go. There was too much governing for Congress to handle on its own, so the courts adjusted, allowing a proliferation of government agencies to exercise lawmaking power, within certain guidelines.
Read more at http://www.cato.org/blog/amtrak-shouldnt-get-write-its-own-ticket
Cato: The Federal Government and American Indians
As research for this essay on the Bureau of Indian Affairs, I visited the Smithsonian National Museum of the American Indian (NMAI). I found virtually no information useful for my project.
I stopped by the museum information desk on the way out and said something to the effect, “There is very little here about the relationship between Indians and the federal government, yet that relationship is central to the story of American Indians over the last two centuries.” A few months ago, I emailed a similar complaint to the head of the NMAI, and he did kindly respond to me.
Read more at http://www.cato.org/blog/federal-government-american-indians
I stopped by the museum information desk on the way out and said something to the effect, “There is very little here about the relationship between Indians and the federal government, yet that relationship is central to the story of American Indians over the last two centuries.” A few months ago, I emailed a similar complaint to the head of the NMAI, and he did kindly respond to me.
Read more at http://www.cato.org/blog/federal-government-american-indians
Cato: The World Needs More Energy, Not Less
This week, a few major media outlets covered my take on the effectiveness and judiciousness of President Obama’s call, at the U.N. Climate Summit, for all countries of the world to make pledges of how and how much they are going to reduce their national carbon dioxide emissions. It should be no surprise that I think such actions would be ineffective and imprudent.
My biggest criticism is that not all countries of the world are at the same stage of energy development. While the developed nations may have all the energy supplies they want and need, most developing countries do not. So, while developing countries pursue “luxuries” like indoor lighting and clean cooking facilities (not to mention improved sanitation), developed countries are awash in the luxury of debating whether to alter the relative components of their fuel mix in hopes that it may (or may not) alter the future course of the climate.
Read more at http://www.cato.org/blog/world-needs-more-energy-not-less
My biggest criticism is that not all countries of the world are at the same stage of energy development. While the developed nations may have all the energy supplies they want and need, most developing countries do not. So, while developing countries pursue “luxuries” like indoor lighting and clean cooking facilities (not to mention improved sanitation), developed countries are awash in the luxury of debating whether to alter the relative components of their fuel mix in hopes that it may (or may not) alter the future course of the climate.
Read more at http://www.cato.org/blog/world-needs-more-energy-not-less
Cato: Long-Term Solutions to the Ukraine Crisis
As I argued in a piece over at Forbes yesterday, western sanctions to roll back Russian action in Ukraine have been largely ineffectual. These sanctions - including asset freezes and visa bans – are ‘targeted’ at those suspected of having influence on Putin. Yet the sanctions, designed to be minimally painful for European states, are toothless - the majority of individuals sanctioned have only a minimal role in policy – and they won’t fix the long-term problem.
Over 150 individuals have been sanctioned by the United States and European Union, including 65 Ukrainian rebels, whose inclusion is presumably intended to inhibit their ability to wage conflict. The remainder are Russian, but most have no access to the corridors of power. Anatoly Sidorov, for example, the Commander of Russian military units in Crimea, is likely uninvolved in the policy formulation process. Other names are stranger, such as Ramzan Kadyrov, head of the Chechen republic. No doubt, he’s a trenchant proponent of the rebels, but he doesn’t influence Russian policy. In all, I estimate only a small proportion of those included in joint sanctions are actually involved in high-level decisionmaking.
Read more at http://www.cato.org/blog/long-term-solutions-ukraine-crisis
Over 150 individuals have been sanctioned by the United States and European Union, including 65 Ukrainian rebels, whose inclusion is presumably intended to inhibit their ability to wage conflict. The remainder are Russian, but most have no access to the corridors of power. Anatoly Sidorov, for example, the Commander of Russian military units in Crimea, is likely uninvolved in the policy formulation process. Other names are stranger, such as Ramzan Kadyrov, head of the Chechen republic. No doubt, he’s a trenchant proponent of the rebels, but he doesn’t influence Russian policy. In all, I estimate only a small proportion of those included in joint sanctions are actually involved in high-level decisionmaking.
Read more at http://www.cato.org/blog/long-term-solutions-ukraine-crisis
Cato: The Constitutional Dimension of Your Morning Commute
Over the last few years, D.C.-area drivers may have noticed the continual increases in toll fares on the Dulles Toll Road, the highway going through the Northern Virginia suburbs past Dulles Airport. Indeed, since 2005, the toll for the typical round-trip commuter has more than quadrupled from $1.50 to $7.00, with more increases coming. These extra toll dollars haven’t been going for upkeep or expansion of the highway, however, but instead have been funding the over-budget and under-performing construction of the Metro’s Silver Line extension.
While originally slated to fund only 25% of that cost, commuters are now looking at paying more than half of the $5.6 billion (and counting) total cost, with years of construction still to come. The entity in charge of the construction project (and of gouging the toll road’s commuters) is the Metropolitan Washington Airports Authority, a public body established to govern Dulles and Reagan National airports at the behest of the Department of Transportation. But who’s actually in charge of the MWAA, and to whom can beleaguered commuters turn for relief? Although created by an interstate compact between D.C. and Virginia, the MWAA was granted all of its authority by an act of Congress, and the highways and airports that it oversees are federal property.
Read more at http://www.cato.org/blog/constitutional-dimension-morning-commute
While originally slated to fund only 25% of that cost, commuters are now looking at paying more than half of the $5.6 billion (and counting) total cost, with years of construction still to come. The entity in charge of the construction project (and of gouging the toll road’s commuters) is the Metropolitan Washington Airports Authority, a public body established to govern Dulles and Reagan National airports at the behest of the Department of Transportation. But who’s actually in charge of the MWAA, and to whom can beleaguered commuters turn for relief? Although created by an interstate compact between D.C. and Virginia, the MWAA was granted all of its authority by an act of Congress, and the highways and airports that it oversees are federal property.
Read more at http://www.cato.org/blog/constitutional-dimension-morning-commute
Cato: The Naked Truth about TSA Spending
Governments tend to spend money on low-value activities because they do not have market signals or customer feedback to guide them. In this report, I examined the problem with respect to the Transportation Security Administration. As one example, TSA’s SPOT program for finding terrorists spends more than $200 million a year with few if any benefits.
Further confirmation of TSA’s misallocation problem comes from a new academic study looking at the full-body “nudie” scanners installed in U.S. airports at great expense between 2009 and 2013. A team of university researchers bought a Rapiscan Secure 1000 backscatter X-ray machine and began testing it on various types of weapons and explosives.
Read more at http://www.cato.org/blog/naked-truth-about-tsa-spending
Further confirmation of TSA’s misallocation problem comes from a new academic study looking at the full-body “nudie” scanners installed in U.S. airports at great expense between 2009 and 2013. A team of university researchers bought a Rapiscan Secure 1000 backscatter X-ray machine and began testing it on various types of weapons and explosives.
Read more at http://www.cato.org/blog/naked-truth-about-tsa-spending
Cato: Cops and the Cash They Confiscate
Today the Washington Post is starting a series of articles entitled, “Stop and Seize,” which take a critical look at the power of the government to take cash away from people using civil asset forfeiture laws. Here are a few of the findings from the Post investigation:
* There have been 61,998 cash seizures made on highways and elsewhere since 9/11 without search warrants or indictments through the Equitable Sharing Program, totaling more than $2.5 billion. State and local authorities kept more than $1.7 billion of that while Justice, Homeland Security and other federal agencies received $800 million. Half of the seizures were below $8,800.
* Only a sixth of the seizures were legally challenged, in part because of the costs of legal action against the government. But in 41 percent of cases — 4,455 — where there was a challenge, the government agreed to return money. The appeals process took more than a year in 40 percent of those cases and often required owners of the cash to sign agreements not to sue police over the seizures.
Read more at http://www.cato.org/blog/cops-cash-they-confiscate
* There have been 61,998 cash seizures made on highways and elsewhere since 9/11 without search warrants or indictments through the Equitable Sharing Program, totaling more than $2.5 billion. State and local authorities kept more than $1.7 billion of that while Justice, Homeland Security and other federal agencies received $800 million. Half of the seizures were below $8,800.
* Only a sixth of the seizures were legally challenged, in part because of the costs of legal action against the government. But in 41 percent of cases — 4,455 — where there was a challenge, the government agreed to return money. The appeals process took more than a year in 40 percent of those cases and often required owners of the cash to sign agreements not to sue police over the seizures.
Read more at http://www.cato.org/blog/cops-cash-they-confiscate
Cato: Supreme Court Must Resolve Obamacare Chaos
When the Affordable Care Act was being debated in Congress, former House Speaker Nancy Pelosi infamously insisted that “we have to pass the bill to find out what’s in it.” It turns out, however, that the Obama administration—which has been making it up as it goes along with regard to ACA enforcement—doesn’t care “what’s in it.”
The IRS in particular has been implementing Obamacare as it thinks the law should be, not as it is. The ACA encourages states to establish health insurance exchanges by offering people who get their health coverage “through an Exchange established by the State” a tax credit—a subsidy to help them pay their premium. In the event a state declines to establish an exchange, Section 1321 further empowers the Department of Health and Human Services to establish federal exchange in states that decline to establish their own exchanges (without providing for the premium subsidy).
When, contrary to the expectations of the law’s achitects, 34 states declined to establish an exchange—two more have since failed—the IRS decided that those getting their insurance on federally established exchanges should qualify for tax credits regardless of the statutory text. In conflict with the U.S. Court of Appeals for the D.C. Circuit in a similar case called Halbig v. Burwell, the Fourth Circuit in King v. Burwell found the legal text to be ambiguous and thus deferred to the IRS interpretation.
Read more at http://www.cato.org/blog/supreme-court-must-resolve-obamacare-chaos
The IRS in particular has been implementing Obamacare as it thinks the law should be, not as it is. The ACA encourages states to establish health insurance exchanges by offering people who get their health coverage “through an Exchange established by the State” a tax credit—a subsidy to help them pay their premium. In the event a state declines to establish an exchange, Section 1321 further empowers the Department of Health and Human Services to establish federal exchange in states that decline to establish their own exchanges (without providing for the premium subsidy).
When, contrary to the expectations of the law’s achitects, 34 states declined to establish an exchange—two more have since failed—the IRS decided that those getting their insurance on federally established exchanges should qualify for tax credits regardless of the statutory text. In conflict with the U.S. Court of Appeals for the D.C. Circuit in a similar case called Halbig v. Burwell, the Fourth Circuit in King v. Burwell found the legal text to be ambiguous and thus deferred to the IRS interpretation.
Read more at http://www.cato.org/blog/supreme-court-must-resolve-obamacare-chaos
2015-01-01
Cato: Net Neutrality — or Destroying Internet Innovation and Investment?
The Sunlight Foundation reports that the Federal Communications Commission has received more than 800,000 public comments on the topic of “net neutrality,” more than 60 percent of them form letters written by organized campaigns and more than 200 from law firms on behalf of themselves or their clients. That’s an impressive outpouring of public comments.
But Berin Szoka, a long-ago Cato intern who now runs TechFreedom, argues, “This debate is no longer about net neutrality. A radical fringe has hijacked the conversation in an attempt to undo two decades of bipartisan consensus against heavy-handed government control of the Internet.” TechFreedom has just launched DontBreakThe.Net, a web-based campaign to expose the danger facing the internet from well-meaning demands for something called “net neutrality.
Read more at http://www.cato.org/blog/net-neutrality-or-destroying-internet-innovation-investment
But Berin Szoka, a long-ago Cato intern who now runs TechFreedom, argues, “This debate is no longer about net neutrality. A radical fringe has hijacked the conversation in an attempt to undo two decades of bipartisan consensus against heavy-handed government control of the Internet.” TechFreedom has just launched DontBreakThe.Net, a web-based campaign to expose the danger facing the internet from well-meaning demands for something called “net neutrality.
Read more at http://www.cato.org/blog/net-neutrality-or-destroying-internet-innovation-investment
Cato: Washington Should Stop Praising Military Tyranny in Egypt
CAIRO—Egypt’s capital is crowded, busy, confused, and messy. Security isn’t obvious, until you get close to a sensitive site, such as the Interior Ministry.
The military has taken firm control, elevating its leader, Abdel Fata al-Sisi, to the presidency. The army permitted dictator Hosni al-Mubarak’s ouster by street protests in 2011 because he planned to turn military rule into a family dynasty.
If ousted president Mohamed al-Morsi and the Muslim Brotherhood been defeated in a future election, they would have been discredited peacefully. However, the coup turned the movement’s members into angry victims. In Cairo they took over Rab’a al-Adawiya and al-Nahda Squares, just as the anti-Mubarak and anti-Morsi crowds had done in Tahir Square.
The military government responded with a campaign of premeditated murder.
Read more at http://www.cato.org/blog/washington-should-stop-praising-military-tyranny-egypt
The military has taken firm control, elevating its leader, Abdel Fata al-Sisi, to the presidency. The army permitted dictator Hosni al-Mubarak’s ouster by street protests in 2011 because he planned to turn military rule into a family dynasty.
If ousted president Mohamed al-Morsi and the Muslim Brotherhood been defeated in a future election, they would have been discredited peacefully. However, the coup turned the movement’s members into angry victims. In Cairo they took over Rab’a al-Adawiya and al-Nahda Squares, just as the anti-Mubarak and anti-Morsi crowds had done in Tahir Square.
The military government responded with a campaign of premeditated murder.
Read more at http://www.cato.org/blog/washington-should-stop-praising-military-tyranny-egypt
Cato: Gov. Quinn Vetoes Rideshare Bill
Earlier this week, Illinois Gov. Pat Quinn (D) vetoed HB 4075, a ridesharing bill backed by Illinois’ taxi industry that was overwhelmingly passed by the state House and Senate earlier this year. If the bill had been signed into law, Illinois drivers using ridesharing services for more than 18 hours a week would have had to adhere to burdensome regulations such as a requirement for a chauffeur’s license. The bill would also have created a new legal category (“commercial ridesharing agreements”) and required rideshare companies to provide its drivers with the commercial liability insurance used for taxis. Quinn should be praised for vetoing the bill. However, given the bill’s popularity among state legislators, there is a chance of an override of the veto.
The Illinois House passed HB 4075 in April by 80 votes to 26. In May, the Illinois Senate passed the bill by 46 to 8. In order to override a veto, 36 votes are needed in the Senate and 71 are needed in the House.
Read more at http://www.cato.org/blog/gov-quinn-vetoes-rideshare-bill
The Illinois House passed HB 4075 in April by 80 votes to 26. In May, the Illinois Senate passed the bill by 46 to 8. In order to override a veto, 36 votes are needed in the Senate and 71 are needed in the House.
Read more at http://www.cato.org/blog/gov-quinn-vetoes-rideshare-bill
Cato: When a Hamburger Becomes a Doughnut and Other Lessons About Tax Inversions and Globalization
So Burger King plans to purchase Canadian doughnut icon Tim Hortons and move company headquarters north of the border, where corporate tax rates are as much as 15 percentage points lower than in the United States. Expect politicians at both ends of Pennsylvania Avenue to accuse Burger King of treachery, while spewing campaign-season pledges to penalize these greedy, “Benedict Arnold” companies.
If the acquisition comes to fruition and ultimately involves a corporate “inversion,” consider it not a problem, but a symptom of a problem. The real problem is that U.S. policymakers inadequately grasp that we live in a globalized economy, where capital is mobile and products and services can be produced and delivered almost anywhere in the world, and where value is created by efficiently combining inputs and processes from multiple countries. Globalization means that public policies are on trial and that policymakers have to get off their duffs and compete with most every other country in the world to attract investment, which flows to the jurisdictions where it is most productive and, crucially, most welcome to be put to productive use.
Read more at http://www.cato.org/blog/when-hamburger-becomes-doughnut-other-lessons-about-tax-inversions-globalization
If the acquisition comes to fruition and ultimately involves a corporate “inversion,” consider it not a problem, but a symptom of a problem. The real problem is that U.S. policymakers inadequately grasp that we live in a globalized economy, where capital is mobile and products and services can be produced and delivered almost anywhere in the world, and where value is created by efficiently combining inputs and processes from multiple countries. Globalization means that public policies are on trial and that policymakers have to get off their duffs and compete with most every other country in the world to attract investment, which flows to the jurisdictions where it is most productive and, crucially, most welcome to be put to productive use.
Read more at http://www.cato.org/blog/when-hamburger-becomes-doughnut-other-lessons-about-tax-inversions-globalization
Cato: Free Trade Within Countries
Trade policy people spend most of their time talking about free trade between countries. But there is still some work to do on free trade within countries. Some Canadians are making a push right now, as Canadian business groups are calling for Canada’s leaders “to dismantle internal trade barriers and ensure the free movement of goods, services, capital and labour between all parts of the country.”
Read more at http://www.cato.org/blog/free-trade-within-countries
Read more at http://www.cato.org/blog/free-trade-within-countries
Cato: Africa: the Good, the Bad and the Ugly
Last week, President Obama hosted the U.S.-Africa Leaders Summit in Washington, D.C. He welcomed over 40 African heads of state and their outsized entourages to what was a festive affair. Indeed, even the Ebola virus in West Africa failed to dampen spirits in the nation’s capital. Perhaps it was the billions of dollars in African investment, announced by America’s great private companies, that was so uplifting.
Good cheer was also observed in the advertising departments of major newspapers. Yes, many of the guest countries paid for lengthy advertisements–page turners–in the newspapers of record. That said, the substantive coverage of this gathering was thin. Neither the good, the bad, nor the ugly, received much ink.
What about the good? Private business creates prosperity, and prosperity is literally good for your health. My friend, the late Peter T. Bauer, documented the benefits of private trade in his classic 1954 book West African Trade. In many subsequent studies, Lord Bauer refuted conventional wisdom with detailed case studies and sharp economic reasoning. He concluded that the only precondition for private trade and prosperity to flourish was individual freedom reinforced by security for person and property.
Read more at http://www.cato.org/blog/africa-good-bad-ugly
Good cheer was also observed in the advertising departments of major newspapers. Yes, many of the guest countries paid for lengthy advertisements–page turners–in the newspapers of record. That said, the substantive coverage of this gathering was thin. Neither the good, the bad, nor the ugly, received much ink.
What about the good? Private business creates prosperity, and prosperity is literally good for your health. My friend, the late Peter T. Bauer, documented the benefits of private trade in his classic 1954 book West African Trade. In many subsequent studies, Lord Bauer refuted conventional wisdom with detailed case studies and sharp economic reasoning. He concluded that the only precondition for private trade and prosperity to flourish was individual freedom reinforced by security for person and property.
Read more at http://www.cato.org/blog/africa-good-bad-ugly
Cato: Crony Catfish
If you were looking for an example to show just how awful the legislative process is in Washington, the ongoing saga over catfish inspection is just perfect. On its face, the 2008 law requiring the U.S. Department of Agriculture to inspect catfish facilities seems relatively benign. Who doesn’t want safer catfish? In reality, though, the law has nothing to do with food safety and everything to do with supporting the Southern catfish industry at everyone else’s expense.
Switching catfish inspection from the FDA (where it is now) to the USDA won’t make catfish any safer. This isn’t really a controversial point, either. The USDA itself has said that catfish is a low risk food and can’t explain how its inspections will reduce that risk in any meaningful way. The Government Accountability Office has advised Congress to repeal the program.
The new inspection regime is slated to cost taxpayers $14 million more per year than the current one. But there’s actually a much greater harm being done here.
Read more at http://www.cato.org/blog/crony-catfish
Switching catfish inspection from the FDA (where it is now) to the USDA won’t make catfish any safer. This isn’t really a controversial point, either. The USDA itself has said that catfish is a low risk food and can’t explain how its inspections will reduce that risk in any meaningful way. The Government Accountability Office has advised Congress to repeal the program.
The new inspection regime is slated to cost taxpayers $14 million more per year than the current one. But there’s actually a much greater harm being done here.
Read more at http://www.cato.org/blog/crony-catfish
Cato: Maybe U.S. Should Defend South Korea by Letting it Develop Nuclear Weapons
U.S. foreign and defense policy long has been brain dead. ‘Whatever has been must ever be’ seems to be the Pentagon’s mantra. That’s the typical response to the idea that Washington should bring home its troops and allow South Korea to defend itself.
The Republic of Korea has grown up and surged past the North. The ROK should use its abundant wealth and larger population to close the military gap. Just as most Americans expect those on welfare to get a job to take care of themselves and their families, the ROK should step up and take care of itself.
There may be good arguments against the proposal. But I have yet to hear them. Instead, what dominates is the tyranny of the status quo.
Read more at http://www.cato.org/blog/maybe-us-should-defend-south-korea-letting-it-develop-nuclear-weapons
The Republic of Korea has grown up and surged past the North. The ROK should use its abundant wealth and larger population to close the military gap. Just as most Americans expect those on welfare to get a job to take care of themselves and their families, the ROK should step up and take care of itself.
There may be good arguments against the proposal. But I have yet to hear them. Instead, what dominates is the tyranny of the status quo.
Read more at http://www.cato.org/blog/maybe-us-should-defend-south-korea-letting-it-develop-nuclear-weapons
Cato: Japan Moves Closer to Defending Itself like a Normal Country
Prime Minister Shinzo Abe has begun to transform Japan into a normal country. Tokyo plans to take a more active role internationally. Eventually it should take over responsibility for defending itself.
As military occupier after World War II, the United States imposed Article Nine of the Japanese constitution, disarming Tokyo. But in recent years, Washington has pushed Japan to do more militarily.
So far, Tokyo simply has revised its interpretation of Article Nine. Japan’s “Self Defense Force” will be allowed to cooperate with other countries in combat.
Overseas the response was mixed. Naturally, the United States was pleased. China was unhappy. Other nations, such as Australia, were supportive.
Some critics still worry about Tokyo’s ultimate intentions, as if the Japanese had a double dose of original sin. But Japan, with a stagnant economy, middling (and declining) population, and pacifist ethos, doesn’t look much like the next global dominatrix.
Read more at http://www.cato.org/blog/japan-moves-closer-defending-itself-normal-country
As military occupier after World War II, the United States imposed Article Nine of the Japanese constitution, disarming Tokyo. But in recent years, Washington has pushed Japan to do more militarily.
So far, Tokyo simply has revised its interpretation of Article Nine. Japan’s “Self Defense Force” will be allowed to cooperate with other countries in combat.
Overseas the response was mixed. Naturally, the United States was pleased. China was unhappy. Other nations, such as Australia, were supportive.
Some critics still worry about Tokyo’s ultimate intentions, as if the Japanese had a double dose of original sin. But Japan, with a stagnant economy, middling (and declining) population, and pacifist ethos, doesn’t look much like the next global dominatrix.
Read more at http://www.cato.org/blog/japan-moves-closer-defending-itself-normal-country
Cato: Russia, Sanctions, and Food
The Russian government announced on August 6 that it will ban imports of most food and agricultural products from Australia, Canada, the European Union, Norway and the United States for one year. The full extent of the ban, as well as its effects on exporters and Russian consumers, are not yet clear. It is interesting, though, to contrast this action with an earlier effort to use food sanctions as a diplomatic weapon: the 1980 embargo of U.S. grain sales to the Soviet Union.
The Soviets had invaded Afghanistan in December 1979 with 80,000 troops and 1800 tanks. President Carter responded by cancelling private contracts to supply 17 million metric tons (MMT) of U.S. wheat and corn to the Soviet Union. However, he chose to allow shipment of 8 MMT that had been agreed as part of the 1975 U.S.-Soviet Grains Agreement. Sales in excess of the level assured in the Grains Agreement were embargoed.
Read more at http://www.cato.org/blog/russia-sanctions-food
The Soviets had invaded Afghanistan in December 1979 with 80,000 troops and 1800 tanks. President Carter responded by cancelling private contracts to supply 17 million metric tons (MMT) of U.S. wheat and corn to the Soviet Union. However, he chose to allow shipment of 8 MMT that had been agreed as part of the 1975 U.S.-Soviet Grains Agreement. Sales in excess of the level assured in the Grains Agreement were embargoed.
Read more at http://www.cato.org/blog/russia-sanctions-food
Cato: Virginia Reaches Deal With Uber and Lyft
Today the Commonwealth of Virginia reached a temporary agreement with Uber and Lyft, both of which provide ridesharing services via their apps. Under the terms of the agreement, both companies have been granted broker’s licenses and are allowed to operate provided they meet a number of conditions, which are outlined in today’s press release from Virginia Attorney General Mark Herring’s office.
Uber and Lyft have both praised the agreement, which comes two months after the Virginia DMV issued the companies cease and desist letters.
Read more at http://www.cato.org/blog/virginia-reaches-deal-uber-lyft
Uber and Lyft have both praised the agreement, which comes two months after the Virginia DMV issued the companies cease and desist letters.
Read more at http://www.cato.org/blog/virginia-reaches-deal-uber-lyft
Cato: Undercurrents of Liberty in China
BEIJING, CHINA—Everything in China is big. Including the battle over its future.
I recently returned from the People’s Republic of China. It’s always a fascinating place with a future as yet unresolved.
The country is growing economically, but no one really believes the government’s statistics. The “one child” policy has created a birth dearth that may leave the PRC old before it grows rich.
The PRC’s future is not yet determined. Politics remains authoritarian, and it isn’t obvious that democracy would yield a meek Beijing. Nationalism could become an even more dangerous force without the current government’s power to close off discussion.
Nevertheless, the young are restless. Those I met had little patience with the Chinese Communist Party.
Many hoped to go to America for school, for both its educational opportunities and personal freedoms. Moreover, they weren’t afraid to speak out in front of others.
Read more at http://www.cato.org/blog/undercurrents-liberty-china
I recently returned from the People’s Republic of China. It’s always a fascinating place with a future as yet unresolved.
The country is growing economically, but no one really believes the government’s statistics. The “one child” policy has created a birth dearth that may leave the PRC old before it grows rich.
The PRC’s future is not yet determined. Politics remains authoritarian, and it isn’t obvious that democracy would yield a meek Beijing. Nationalism could become an even more dangerous force without the current government’s power to close off discussion.
Nevertheless, the young are restless. Those I met had little patience with the Chinese Communist Party.
Many hoped to go to America for school, for both its educational opportunities and personal freedoms. Moreover, they weren’t afraid to speak out in front of others.
Read more at http://www.cato.org/blog/undercurrents-liberty-china
Cato: Ukraine Crisis Reminds Americans Why NATO Should Not Expand
The bitter conflict in Ukraine drags on. Russia continues to destabilize Kiev and NATO remains divided on how to respond.
Washington has taken the lead against Moscow even though America has little at stake in Russia’s misbehavior. In fact, the crisis has generated a spate of U.S. proposals to take military action and expand NATO.
For instance, Sen. John McCain urged adding Ukraine to the “transatlantic” alliance. Former UN ambassador John Bolton suggested including Georgia and Ukraine. Other proposed candidates for the alliance include Armenia, Bosnia-Herzegovina, Finland, Kosovo, Macedonia, Moldova, Montenegro, and Sweden.
Efforts to expand NATO are strikingly misguided. The end of the Cold War eliminated the reason for creating the alliance.
However, alliance advocates acted like nothing had changed and proposed new justifications for the old organization. Member governments eventually turned NATO into a mechanism to integrate Central and Eastern European states.
Read more at http://www.cato.org/blog/ukraine-crisis-reminds-americans-why-nato-should-not-expand
Washington has taken the lead against Moscow even though America has little at stake in Russia’s misbehavior. In fact, the crisis has generated a spate of U.S. proposals to take military action and expand NATO.
For instance, Sen. John McCain urged adding Ukraine to the “transatlantic” alliance. Former UN ambassador John Bolton suggested including Georgia and Ukraine. Other proposed candidates for the alliance include Armenia, Bosnia-Herzegovina, Finland, Kosovo, Macedonia, Moldova, Montenegro, and Sweden.
Efforts to expand NATO are strikingly misguided. The end of the Cold War eliminated the reason for creating the alliance.
However, alliance advocates acted like nothing had changed and proposed new justifications for the old organization. Member governments eventually turned NATO into a mechanism to integrate Central and Eastern European states.
Read more at http://www.cato.org/blog/ukraine-crisis-reminds-americans-why-nato-should-not-expand
Cato: D.C. Circuit Rules that Obamacare Is a “Tax” but Not a “Bill for Raising Revenue”
The D.C. Circuit Court of Appeals today tossed out the latest constitutional challenge to Obamacare, which argues that if the individual mandate is a “tax,” as the Supreme Court said it is, it’s still unconstitutional because it did not originate in the House of Representatives, as the Constitution requires. I argued the case on behalf of entrepreneur Matt Sissel in May.
Today’s decision, written by Judge Judith Rogers and joined by Judges Cornelia Pillard and Robert Wilkins, holds that while the mandate may be a “tax,” it isn’t a “bill for raising revenue,” and is therefore exempt from the Origination Clause.
What’s the difference between a tax and a bill for raising revenue? Some court decisions have held that there are things that may appear to be taxes but are actually only penalties designed to enforce other kinds of laws. For example, in a 1943 case called Rodgers v. United States, the court of appeals said that a tax that was imposed on people for growing more wheat than the government allowed (that’s the same wheat law that was at issue in the infamous Wickard v. Filburn) wasn’t really a tax, but just an enforcement penalty or a fine. Such penalties aren’t “bills for raising revenue,” so they don’t have to start in the House.
The problem with that line of argument is that in NFIB v. Sebelius, the Supreme Court said that the individual mandate, whatever else it might be, is not a penalty or a fine. That’s just why Chief Justice Roberts concluded that it was a tax! And that means that no such exemption should apply.
Read more at http://www.cato.org/blog/dc-circuit-rules-obamacare-tax-not-bill-raising-revenue
Today’s decision, written by Judge Judith Rogers and joined by Judges Cornelia Pillard and Robert Wilkins, holds that while the mandate may be a “tax,” it isn’t a “bill for raising revenue,” and is therefore exempt from the Origination Clause.
What’s the difference between a tax and a bill for raising revenue? Some court decisions have held that there are things that may appear to be taxes but are actually only penalties designed to enforce other kinds of laws. For example, in a 1943 case called Rodgers v. United States, the court of appeals said that a tax that was imposed on people for growing more wheat than the government allowed (that’s the same wheat law that was at issue in the infamous Wickard v. Filburn) wasn’t really a tax, but just an enforcement penalty or a fine. Such penalties aren’t “bills for raising revenue,” so they don’t have to start in the House.
The problem with that line of argument is that in NFIB v. Sebelius, the Supreme Court said that the individual mandate, whatever else it might be, is not a penalty or a fine. That’s just why Chief Justice Roberts concluded that it was a tax! And that means that no such exemption should apply.
Read more at http://www.cato.org/blog/dc-circuit-rules-obamacare-tax-not-bill-raising-revenue
Cato: We Shouldn’t Follow Germany on Minimum Wage
President Obama included a much discussed proposal to increase the national minimum wage to $10.10, from its current level of $7.25. To date, the proposal has gone nowhere in Congress. In the meantime, some cities and states have introduced or approved increases in their minimum wage rates. Ten states and the District of Columbia have enacted increases in the 2014 session so far. In June, the Seattle City Council unanimously voted to increase their minimum wage to $15. In San Francisco, Mayor Ed Lee followed suit and has introduced a ballot measure to increase their minimum wage to $15 an hour.
Germany is currently grappling with the ramifications of imposing a national minimum wage, and the lessons we can learn from their experience should deter calls for raising the minimum wage here.
Read more at http://www.cato.org/blog/we-shouldnt-follow-germany-minimum-wage
Germany is currently grappling with the ramifications of imposing a national minimum wage, and the lessons we can learn from their experience should deter calls for raising the minimum wage here.
Read more at http://www.cato.org/blog/we-shouldnt-follow-germany-minimum-wage
Cato: Who Is Transit for?
Rail advocates often call me “anti-transit,” probably because it is easier to call people names than to answer rational arguments. I’ve always responded that I’m just against wasteful transit. But looking at the finances and ridership of transit systems around the country, it’s hard not to conclude that all government transit is wasteful transit.
Nationally, after adjusting for inflation, the APTA transit fact book shows that annual taxpayer subsidies to transit operations have grown from $1.6 billion in 1970 to $24.0 billion in 2012, yet per capita ridership among America’s urban residents has declined from 49 to 44 trips per year. A lot of that money ends up going to unionized transit workers, but the scary thing is that these workers have some of the best pension and health care plans in the world that are mostly unfunded–which means that transit subsidies will have to increase in the future even if no one rides it at all.
Read more at http://www.cato.org/blog/who-transit
Nationally, after adjusting for inflation, the APTA transit fact book shows that annual taxpayer subsidies to transit operations have grown from $1.6 billion in 1970 to $24.0 billion in 2012, yet per capita ridership among America’s urban residents has declined from 49 to 44 trips per year. A lot of that money ends up going to unionized transit workers, but the scary thing is that these workers have some of the best pension and health care plans in the world that are mostly unfunded–which means that transit subsidies will have to increase in the future even if no one rides it at all.
Read more at http://www.cato.org/blog/who-transit
Cato: Government Can’t Rewrite Obamacare Text Without Legislation
The D.C. Circuit ruled today that the government isn’t Humpty Dumpty and so statutory text doesn’t mean whatever the government says it means. The provision at issue, which grants tax credits for people to buy health insurance, only applies to people buying policies through “exchanges established by the State”–which in any sane world can’t apply to exchanges established by the federal government. The fact that the vast majority of states have declined the federal government’s offer to establish exchanges–the list grows daily as initially supportive states’ exchanges fail–and that the resulting system thus doesn’t function as Obamacare’s supporters hoped is of no moment.
Read more at http://www.cato.org/blog/government-cant-rewrite-obamacare-text-without-legislation
Read more at http://www.cato.org/blog/government-cant-rewrite-obamacare-text-without-legislation
Cato: U.S. Should Test China’s Disenchantment with North Korea
Evidence mounts that the Chinese government is mightily annoyed with its volatile North Korean ally. Long gone are the days when Chinese officials invariably described the relationship between their country and North Korea as being “as close as lips and teeth.” In a new article in China-U.S. Focus, I show how the chill in the bilateral relationship has been growing for years and has now reached unprecedented levels. A stark indication was Chinese President Xi Jinping’s recent state visit to South Korea, which became a blatant snub to Pyongyang. Xi did not even bother to stop in the North Korean capital either before or after his summit meeting with South Korean President Park Geun-hye.
The main reason for Beijing’s annoyance has been North Korea’s repeated defiance of China’s warnings not to conduct nuclear tests or missile tests. Both Kim Jong-un and his father and predecessor as North Korea’s supreme leader, Kim Jong-il, ostentatiously ignored Beijing’s admonitions that such conduct was provocative and disruptive. Xi’s courtship of Seoul sends a new warning to Pyongyang that there may be a high price to pay for such defiance.
Read more at http://www.cato.org/blog/us-should-test-chinas-disenchantment-north-korea
The main reason for Beijing’s annoyance has been North Korea’s repeated defiance of China’s warnings not to conduct nuclear tests or missile tests. Both Kim Jong-un and his father and predecessor as North Korea’s supreme leader, Kim Jong-il, ostentatiously ignored Beijing’s admonitions that such conduct was provocative and disruptive. Xi’s courtship of Seoul sends a new warning to Pyongyang that there may be a high price to pay for such defiance.
Read more at http://www.cato.org/blog/us-should-test-chinas-disenchantment-north-korea
Cato: Politicians Befriend Big Business, Undermine Free Market
The recent primary defeat of House Majority Leader Eric Cantor was one of the bigger shocks to American politics in some time. Congressional leaders, known to bring home the bacon for local folks, usually are handily reelected.
But Cantor’s loss will do more than simply reshuffle the biggest offices on Capitol Hill. He gave lip service to fiscal responsibility but was, argued Nick Gillespie of Reason, “atrocious and hypocritical in all the ways that a Republican can be,” constantly voting to grow government.
Indeed, Cantor’s constituency was as much corporate America as it was Virginia voters. Business was counting on him to help reauthorize the Export-Import Bank, known as “Boeing’s Bank” for lavishing extensive benefits on one company; extend terrorism risk insurance, which transfers financial liability for loss from firms to taxpayers; and preserve Fannie Mae and Freddie Mac, which nearly wrecked the economy while subsidizing homeowners, builders, and lenders.
Read more at http://www.cato.org/blog/politicians-befriend-big-business-undermine-free-market
But Cantor’s loss will do more than simply reshuffle the biggest offices on Capitol Hill. He gave lip service to fiscal responsibility but was, argued Nick Gillespie of Reason, “atrocious and hypocritical in all the ways that a Republican can be,” constantly voting to grow government.
Indeed, Cantor’s constituency was as much corporate America as it was Virginia voters. Business was counting on him to help reauthorize the Export-Import Bank, known as “Boeing’s Bank” for lavishing extensive benefits on one company; extend terrorism risk insurance, which transfers financial liability for loss from firms to taxpayers; and preserve Fannie Mae and Freddie Mac, which nearly wrecked the economy while subsidizing homeowners, builders, and lenders.
Read more at http://www.cato.org/blog/politicians-befriend-big-business-undermine-free-market
Cato: Hold Pakistan Accountable For Blasphemous Oppression
In a world aflame, religious minorities are among those who suffer most. Pakistan is notable for its failure to protect religious liberty, the most basic right of conscience.
The State Department recently reported on Pakistan that “The constitution and other laws and policies officially restrict religious freedom and, in practice, the government enforced many of these restrictions. The government’s respect for and protection of the right to religious freedom continued to be poor.”
Minority faiths frequently face violent attack. Although Islamabad does not launch these assaults, it does little to prevent or redress them. This failure, the State Department explained, “allowed the climate of impunity to continue.”
Read more at http://www.cato.org/blog/hold-pakistan-accountable-blasphemous-oppression
The State Department recently reported on Pakistan that “The constitution and other laws and policies officially restrict religious freedom and, in practice, the government enforced many of these restrictions. The government’s respect for and protection of the right to religious freedom continued to be poor.”
Minority faiths frequently face violent attack. Although Islamabad does not launch these assaults, it does little to prevent or redress them. This failure, the State Department explained, “allowed the climate of impunity to continue.”
Read more at http://www.cato.org/blog/hold-pakistan-accountable-blasphemous-oppression
Cato: Ignoring the Law of Supply and Demand
A recent report from Fannie Mae finds that baby boomers are not leaving their comfortable suburban homes for lively inner-city communities with walkable streets. As a news article about the report observes, this challenges the “conventional wisdom that ‘empty nester’ baby boomers would eventually downsize from the homes where they raised families, flocking instead to apartments or condos.”
Rather than conventional wisdom, it would be more accurate to say that this notion was wishful thinking among urban planners who believe more Americans should be packed into high-density “compact cities” where they will get around by foot, bicycle, or transit rather than by automobile. In contrast, demographers have known that populations of virtually all age groups, whether millennials or empty nesters, are growing faster in the suburbs and exurbs than in the cities. After all, the baby boomers’ parents overwhelmingly preferred to “age in place” rather than move when their children left home; why should baby boomers be any different?
Read more at http://www.cato.org/blog/ignoring-law-supply-demand
Rather than conventional wisdom, it would be more accurate to say that this notion was wishful thinking among urban planners who believe more Americans should be packed into high-density “compact cities” where they will get around by foot, bicycle, or transit rather than by automobile. In contrast, demographers have known that populations of virtually all age groups, whether millennials or empty nesters, are growing faster in the suburbs and exurbs than in the cities. After all, the baby boomers’ parents overwhelmingly preferred to “age in place” rather than move when their children left home; why should baby boomers be any different?
Read more at http://www.cato.org/blog/ignoring-law-supply-demand
Cato: How Destroying Fish Is Not Like Destroying Financial Records
Overcriminalization is a significant problem in the United States, particularly federal overcriminalization. There are a variety of reasons for this, but one is that federal prosecutors consistently stretch laws to encompass conduct that the law was never meant to cover. Normal people who committed minor infractions will often find themselves facing long prison sentences that are entirely disproportionate to the wrongness of the act. Such is the case in an upcoming Supreme Court case, Yates v. United States.
While commercial fishing in the Gulf of Mexico, John Yates had his catch inspected by the Florida Fish and Wildlife Commission for whether it complied with size restrictions. Finding some undersized fish, officials cited him for a civil violation and he was ordered to bring the undersized fish back to the docks. Instead, he threw them overboard. While he probably knew he would face a fine, what he could not have foreseen was his subsequent criminal prosecution under the Sarbanes-Oxley Act three-years later.
Read more at http://www.cato.org/blog/how-destroying-fish-not-destroying-financial-records
While commercial fishing in the Gulf of Mexico, John Yates had his catch inspected by the Florida Fish and Wildlife Commission for whether it complied with size restrictions. Finding some undersized fish, officials cited him for a civil violation and he was ordered to bring the undersized fish back to the docks. Instead, he threw them overboard. While he probably knew he would face a fine, what he could not have foreseen was his subsequent criminal prosecution under the Sarbanes-Oxley Act three-years later.
Read more at http://www.cato.org/blog/how-destroying-fish-not-destroying-financial-records
Cato: Subsidies Make Businesses Weaker
The technical arguments against the Export-Import Bank are provided in this excellent summary by Veronique de Rugy. However, one argument against Ex-Im and other business subsidies is not stressed enough in policy debates: subsidies weaken the businesses that receive them.
Subsidies change the behavior of recipients. Just like individual welfare reduces work incentives, corporate welfare dulls business competitiveness. Subsidies give companies a crutch, an incentive not to improve efficiency or to innovate, as I noted here.
Yesterday, I looked at Chapter 1 of Burton and Anita Folsom’s new book, Uncle Sam Can’t Count, which examines federal fur trading boondoggles of 1795-1822.
Now let’s look at Chapter 2, which focuses on the steamboat industry of the 19th century. The historical lesson is clear: subsidies make companies weak, inefficient, and resistant to innovation.
Read more at http://www.cato.org/blog/subsidies-make-businesses-weaker
Subsidies change the behavior of recipients. Just like individual welfare reduces work incentives, corporate welfare dulls business competitiveness. Subsidies give companies a crutch, an incentive not to improve efficiency or to innovate, as I noted here.
Yesterday, I looked at Chapter 1 of Burton and Anita Folsom’s new book, Uncle Sam Can’t Count, which examines federal fur trading boondoggles of 1795-1822.
Now let’s look at Chapter 2, which focuses on the steamboat industry of the 19th century. The historical lesson is clear: subsidies make companies weak, inefficient, and resistant to innovation.
Read more at http://www.cato.org/blog/subsidies-make-businesses-weaker
Cato: New York Caps Uber “Surge” Pricing
Yesterday the New York attorney general reached a deal with the company Uber to cap its “surge” pricing during emergencies. The company, which uses an app to summon cars via a user’s smartphone, uses an algorithm that increases prices during periods of high demand, including emergencies and bad weather, to encourage more of its drivers to work. The agreement was reached in accordance with the City of New York’s law against price gouging, passed in 1979.
Was the agreement a good idea? In the cover story of the Spring 2011 issue of Regulation, Texas Tech researcher Michael Giberson examines the role of high prices and the resistance to them during emergencies.
Read more at http://www.cato.org/blog/new-york-caps-uber-surge-pricing
Was the agreement a good idea? In the cover story of the Spring 2011 issue of Regulation, Texas Tech researcher Michael Giberson examines the role of high prices and the resistance to them during emergencies.
Read more at http://www.cato.org/blog/new-york-caps-uber-surge-pricing
Cato: Hobby Lobby Demonstrates That Expansive Government Is Religious Liberty’s Worst Enemy
The federal government has taken over ever larger swaths of American life, most recently health care. ObamaCare demonstrates that as state dictates expand, religious liberties recede.
The Supreme Court’s ruling in Burwell v. Hobby Lobby was extremely narrow but also extremely important. Religious liberty is the first freedom and must be protected from government.
The Founders chose not to create a church-based government. Previous experiments had turned out tragically for both human liberty and religious faith.
Religion’s relationship to politics has become more important as politics has swallowed more of American life. In 1789, the new national government was minuscule. Moreover, in America’s early days, there was a shared Biblical worldview, if not faith, and a common belief in the value of civil religion.
However, that world has disappeared. Today there is little government does not do, pushing ever more aspects of life into the public square. Equally important, Americans have increasingly divergent views of the transcendent. The First Amendment simultaneously guarantees individuals the right to practice and denies government the right to impose. There may be no more tortured area of federal jurisprudence.
Read more at http://www.cato.org/blog/hobby-lobby-case-demonstrates-expansive-government-religious-libertys-worst-enemy
The Supreme Court’s ruling in Burwell v. Hobby Lobby was extremely narrow but also extremely important. Religious liberty is the first freedom and must be protected from government.
The Founders chose not to create a church-based government. Previous experiments had turned out tragically for both human liberty and religious faith.
Religion’s relationship to politics has become more important as politics has swallowed more of American life. In 1789, the new national government was minuscule. Moreover, in America’s early days, there was a shared Biblical worldview, if not faith, and a common belief in the value of civil religion.
However, that world has disappeared. Today there is little government does not do, pushing ever more aspects of life into the public square. Equally important, Americans have increasingly divergent views of the transcendent. The First Amendment simultaneously guarantees individuals the right to practice and denies government the right to impose. There may be no more tortured area of federal jurisprudence.
Read more at http://www.cato.org/blog/hobby-lobby-case-demonstrates-expansive-government-religious-libertys-worst-enemy
Cato: North Korea Threatens the World: Washington Should Talk to Pyongyang
North Korea has imprisoned one American since 2012 and announced its intention to try two other U.S. citizens recently arrested for “perpetrating hostile acts.” Having no diplomatic relations with the Democratic People’s Republic of Korea, the Obama administration cannot even inquire as to the prisoners’ welfare. The U.S. should open official ties with the DPRK.
Recognition confirms geopolitical reality rather than validates government policy. Nevertheless, politics long has dominated diplomacy surrounding the Korean peninsula.
Washington and Pyongyang never recognized each other. South Korea and Japan also do not have relations with the North. Throughout the Cold War the Soviet Union and People’s Republic of China did not deal with the Republic of Korea.
But after the end of the Cold War Russia and then China recognized the South. In contrast, two decades later the allied powers still have not formally acknowledged North Korea’s existence.
Read more at http://www.cato.org/blog/north-korea-threatens-world-washington-should-talk-pyongyang
Recognition confirms geopolitical reality rather than validates government policy. Nevertheless, politics long has dominated diplomacy surrounding the Korean peninsula.
Washington and Pyongyang never recognized each other. South Korea and Japan also do not have relations with the North. Throughout the Cold War the Soviet Union and People’s Republic of China did not deal with the Republic of Korea.
But after the end of the Cold War Russia and then China recognized the South. In contrast, two decades later the allied powers still have not formally acknowledged North Korea’s existence.
Read more at http://www.cato.org/blog/north-korea-threatens-world-washington-should-talk-pyongyang
Cato: The End of Forced Union Dues?
Defenders of the status quo in education have long used lawsuits to protect themselves from competition and force state legislatures to increase funding. Lately, rather than merely play legal defense, some education reformers have turned to the courts to push reform. In some cases, the long-term prospects of positive reform through litigation are slim, even when the court’s ruling is favorable.
However, one lawsuit currently making its way through the court system has the potential to remove a major obstacle to reform: compulsory union dues. In 19 states, would-be government school teachers are forced either to join the teachers union or to remain a non-member but pays dues anyway—sometimes more than $1,000 per year.
Read more at http://www.cato.org/blog/end-forced-union-dues
However, one lawsuit currently making its way through the court system has the potential to remove a major obstacle to reform: compulsory union dues. In 19 states, would-be government school teachers are forced either to join the teachers union or to remain a non-member but pays dues anyway—sometimes more than $1,000 per year.
Read more at http://www.cato.org/blog/end-forced-union-dues
Cato: Hobby Lobby’s Aftermath—and Its Implications for Freedom
Not to be missed, the Wall Street Journal offers us two house editorials this morning plus the always colorful online thoughts of James Taranto, all on the Left’s hysterical reaction to Monday’s Supreme Court decision in the Hobby Lobby case. With his usual wit, Taranto presents a rich catalog of the “aggressively ignorant commentary” while the first of the editorial board’s offerings is a clear-eyed statement of the raw politics behind this “ignorance.” It starts with White House press secretary Josh Earnest’s initial remarks—conveniently ignoring that the decision rested not on the Constitution but on a statute that Congress passed all but unanimously—then continuing to Hillary Clinton’s remarkable outburst—likening the result that flows from the statute her husband promoted as president to the treatment of women that we see in the worst Middle Eastern despotisms.
Read more at http://www.cato.org/blog/hobby-lobbys-aftermath-its-implications-freedom
Read more at http://www.cato.org/blog/hobby-lobbys-aftermath-its-implications-freedom
Cato: London Cabbies Hold Uber Regulation Protest
Today, thousands of drivers of London’s iconic black cabs are taking part in a possibly illegal demonstration in response to how Transport for London (TfL), the city’s transportation agency, is treating Uber. The drivers plan to cause congestion which Kabbee, a mini cab app company, believes will cost the London economy an estimated £125 million. Licensed taxi drivers are also holding protests related to Uber across other European cities today.
The Licensed Taxi Drivers Association (LTDA) believes that Uber, the San Francisco-based transport technology company, is operating illegally in London. Thanks to the Private Hire Vehicles (London) Act 1998, it is illegal for a London vehicle with a private hire vehicle license to have a taximeter. Up until yesterday Uber’s website stated that anyone who wanted to be an Uber driver in London must have a private hire vehicle license. Today those requirements remain the same, however in response to the London protest Uber has opened to licensed black cabs.
Read more at http://www.cato.org/blog/london-cabbies-hold-uber-regulation-protest
The Licensed Taxi Drivers Association (LTDA) believes that Uber, the San Francisco-based transport technology company, is operating illegally in London. Thanks to the Private Hire Vehicles (London) Act 1998, it is illegal for a London vehicle with a private hire vehicle license to have a taximeter. Up until yesterday Uber’s website stated that anyone who wanted to be an Uber driver in London must have a private hire vehicle license. Today those requirements remain the same, however in response to the London protest Uber has opened to licensed black cabs.
Read more at http://www.cato.org/blog/london-cabbies-hold-uber-regulation-protest
Cato: Is the Constitution Relevant Today?
In the Washington Post, Paul Kane reports that recent experiences with ultra-conservative Senate candidates have made Republican leaders fearful of candidates like Rep. Paul Broun in Georgia. There may be reasons for party leaders or voters to have doubts about Broun, but I hope they aren’t actually concerned about the purported problem that Kane identifies:
Broun is prone to fiery speeches invoking the Founding Fathers and applying those 1789 principles to issues 225 years later.
Seriously? He thinks the Constitution is still the law of the land? And that the framework it established for individual rights and limited government is still relevant today? Do Republican leaders really think that’s a bad message? Or does the Washington Post?
Read more at http://www.cato.org/blog/constitution-relevant-today
Broun is prone to fiery speeches invoking the Founding Fathers and applying those 1789 principles to issues 225 years later.
Seriously? He thinks the Constitution is still the law of the land? And that the framework it established for individual rights and limited government is still relevant today? Do Republican leaders really think that’s a bad message? Or does the Washington Post?
Read more at http://www.cato.org/blog/constitution-relevant-today
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