Coyote Blog

From Kevin Drum, it's good when progressives make it clear to everyone what they want:  Control!

[emphasis added]  It's just that, left to their own devices, both humans and corporations
tend to act solely in their own self-interest. That's why we have laws
to control human behavior, and it's why we need laws and regulations to
control corporate behavior. I prefer a society in which people don't
gun each other down in the streets, and I also prefer a society in
which middle class workers prosper when the economy grows. I support
laws that encourage both.

Woah!  Can't let all those damn individuals do whatever they please of
their own voluntary self-interest.  Don't they know they are supposed
to do what we intellectuals think best for them?  I want to repeat
this line:

That's why we have laws
to control human behavior

Actually, in governments with a strong grounding in individual rights,
we have laws to prevent people from acting using force or fraud on
other individuals.  So yes, we do have laws to stop people from
shooting each other, but these laws are philosophically a long step away from
laws that tell people what wage they can and cannot legally accept.   Preventing someone from using force against another is waaaaaaay different than using government force to prevent one or more individuals from acting voluntarily in their own self-interest.  The whole point of government in a free society is to prevent people
from trying to control each other by force, not, as Drum wants, for the
government to be the very agent of this control and coersion. 

People who root for more government control need to learn their lesson.  Both parties tend to set up mechanisms of control as if their own guys are going to run this machinery forever, only to freak out when the opposition party takes over and uses this machinery of control for its own purposes.  Thus Democrats lament that the machinery they built to control the drug market gets taken over by Republicans to ban the morning after pill, and that the public education system Democrats so love is co-opted by ID curriculum.  As I wrote here:

Again we hear the lament that the game was great until these
conservative yahoos took over.  No, it wasn't.  It was unjust to scheme
to control other people's lives, and just plain stupid to expect that
the machinery of control you created would never fall into your
political enemy's hands.

Drum makes these statements in the context of arguing that moderate Democrats should be irate about Wal-Mart and should be seeking to have the government sit on Wal-Mart in some way:

And one of the things that's changed is that Wal-Mart has gotten a lot
bigger, unions have continued shrinking, working class wages have
stagnated, and corporate power has grown tremendously. It's perfectly
rational for even moderate, pro-business Dems to look at the record of
the past couple of decades and conclude that things have gotten pretty
far out of whack and that Wal-Mart is a good symbol of this imbalance

One problem with this meme beyond the others I have pointed out in the past is that Wal-Mart is generally not supplanting (with one exception) unionized retailers.  In fact, the implication that Wal-Mart is somehow setting back unionization is actually a complete reversal of how Wal-Mart used to be hammered by critics.  Traditionally, Wal-Mart has been blamed for replacing small stores and family businesses which certainly aren't unionized, usually don't have health plans, and often pay lower wage scales than Wal-Mart does.  Now they are trying to reverse history, and claim instead that Wal-Mart has somehow been supplanting high-paid union jobs.  The only place where this could be argued to occur is in the supermarket business, where strong unions have dominated.  But these old-line unionized supermarkets were falling to competition from other supermarkets even before Wal-Mart came along.  And as to all those Chinese imports, well, I would LOVE to see a liberal try to twist themselves into a pretzel to make a progressive argument for why an impoverished person in China counts for less than a middle class person in the US.

The only real change in employee's fortunes is that employees who work for Wal-Mart are now more visible than they were when they worked for thousands of tiny local retailers, but are they really worse off and more powerless, or just a better target for populist rhetoric?  In fact, even if pay and benefits are the same as in a small store (and I think Wal-marts are probably better), Wal-Mart also offers opportunities for advancement and training far, far beyond the ma and pa store.

By the way, you know its election time when you hear this:

The American economy has changed for the worse over the past couple of decades if you're part of the working or middle class

Ahh, it reminds me of those heady days when Clinton was able to portray a modestly growing economy under Bush 1 the "worst economy since the great Depression."   Election rule to remember:  Republicans try to get elected by running down the morality of Americans, Democrats do so by running down their economic success.

Postscript:  I will admit there is one group who sometimes must accept wages that are not the result of pure voluntary agreement with an employer: Illegal immigrants.  Those who read this blog a lot will know I am very pro-immigration, and would like to see full, open immigration and there be no such thing as an "illegal" immigrant, except in narrow cases of convicted criminals, etc.  Illegal immigrants in many ways have the same problem as prostitutes, in that they have only limited legal redress when they are victims of force or fraud in their work.  Making currently illegal immigrants legal would do more to help disenfranchised workers than any slate of goofy government legislation to try to reinvigorate unions.

Update:  My past response to charges of widening income distribution was:  So what?  Also alot more links here.

I guess Exxon must be happy that after a really long run, they may finally be handing off the title of the left's great Satan to Wal-Mart.  Ezra Klein thinks government intervention to change the practices of Wal-Mart's managers, consumers, and employees is one of "the two or three most important issues facing the country" (hat tip: Instapundit).

Eegad!  My response in his comments:  "My guess is what is really worrying to you is that there is a large
group of people voluntarily and by individual choice making decisions
you don't agree with (e.g. to shop at Wal-Mart or to work at Wal-Mart)
and you are frustrated that no one has yet allowed you to become
economic fuehrer so that you can override by government coersion the
actions of individuals so you can force them to make decisions the way
that you think they should."

I have pointed out the great irony before that those who call themselves "progressive" are actually inherently conservative, hating capitalism for its chaos and unpredictability.  They hate new business models and often make common cause with incumbent competitors to get the government to halt such new competition (e.g. protection of US auto and steel vs. imports).

Update:  Sabastion Mallaby has an editorial in the Washington Post criticizing moderate Democrats for jumping on the anti-Wal-mart bandwagon

Update#2:  I realized that I forgot my usual caveat in my defense of Wal-Mart:  That is, Wal-Mart totally pisses me off in their rent-seeking from local government, benefiting from tax breaks and even eminent domain actions their competitors do not get the benefit of.  Also, I think their stores are aesthetic hell-holes I enter only under duress.  Wal-Mart has problems, I just don't agree they are the ones their critics harp on.  Tim Worstall's article reminded me I forgot this part.

I'm not really into all that crime drama and true crime stuff.  I have not watched a singled episode of either CSI:Whatever or America's Most Wanted.  I don't even know what the whole Scott Peterson thing was about.  But from 1996 to 1999, I lived in Boulder, Colorado.  And for much of that time, the murder of JonBenet Ramsey dominated the news.  You may think you got tired of hearing about it, but in Boulder we lived in it like a fish lives in water.  There was no escaping it.  One could become an expert on the case just by osmosis.  The local paper seemed to have a whole section dedicated to the case.  The US could have invaded a small nation in Asia and I would have missed it in those years.

That being said, I can't believe this guy they arrested in Thailand did it.  Or at least did it alone.  There is just too much evidence in the case that if the murderer was not one of the parents, it at least had to be someone very close to the family.   I won't bore you with specifics:  If you don't know it all by heart, you certainly don't want to hear it from me.  But someone will somehow have to explain all the ransom note stuff.  Someone who knew JonBenet would have an incentive to fake up the ransom note as a way to create a motive for the killing that diverted police attention away from people close to the child (who are always the police's first suspects).  But why would a mysterious third party feel such a need, and how did the ransom demand exactly match the amount of Mr. Ramsey's recent bonus check?  And if the Ramseys are entirely innocent, they have a lot of explaining to do about why they did absolutely everything they could to impede the investigation into the daughter's death.   Already his story is breaking down.  I guess the guy could conceivably be involved but in that case expect the story to be bizarre.

Update: In searching for news on this case, I found this insightful analysis of her murder based on astrology:

This opposition squares another opposition: the
opposition between the Sun and the Moon. The Sun often represents the
father in a birthchart
and the Moon the mother, and here it appears that the father was the
more nurturing parent and the mother was more dominant. Jonbenet's Moon
conjuncts the Midheaven, or cusp of the tenth house of career and
public life, showing Patsy Ramsey (Moon) was instrumental in Jonbenet's
young stage life (having herself been a beauty queen). The Sun, or the
father, is conjunct the cusp of the fourth house of the home and
Jonbenet may have been close to her father, but the square of both Mars
and Pluto to both the father and mother archetypes (Sun and Moon) shows
that there was very little safety in the relationship with either
parent. Pluto in particular, when in challenging aspect to the Sun (the
essential Spirit) and the Moon (emotional security and safety), can be
deeply frightening and there is a sense that the parents, and life
itself, are dangerous.

LOL, this is only a short taste of a much longer analysis.

My Congressman, John Shadegg, is a generally reliable opponent of taxes and expansions of government.  So why is he sponsoring this garbage:

The House last week overwhelmingly approved and sent to the Senate
bipartisan legislation by Congressmen Brad Sherman and John Shadegg to
fund joint research by Americans and Israelis into alternative energy
sources.

"Cutting-edge research by top scientists from the United States and
Israel could reduce our reliance on foreign oil by promoting more
efficient uses of traditional energy sources and by developing energy
alternatives," Sherman said.

The Shadegg-Sherman legislation would establish in the Department of
Energy an International Energy Advisory Board to advise the secretary
on the $20-million-a-year grant program authorized by the bill. The
United States-Israel Energy Cooperation Act would encourage cooperation
on research, development, and commercialization of alternative energy,
improved energy efficiency and renewable energy sources.

Why, why, why?  I understand, but don't accept, the political pressure to increase alternative energy spending (though see here on its effectiveness) but why are we creating yet another program and grant bureaucracy?  And why should the funds not be spent on the most promising research out of the entire superset of possible projects but be narrowly focused on only investing in a portfolio of projects presumably combining US and Israeli citizens?

In this post I said:

I could spend all day discussing the follies of anti-trust law.  But
one of the memes that still seems to hang on is that anti-trust was
designed as a form of consumer protection, with the government
protecting consumers from the monopoly power of consolidated
enterprises.

I am not enough of a business historian to comment on whether
anti-trust has ever been used for consumer protection, but it is clear
that it is not any more.  That has been one very expensive lesson we
can all learn from the Microsoft anti-trust cases, both in the US and
Europe.

Here is further proof.  NicSand, who used to have 2/3 of the retail channel for sandpaper locked up with exclusive deals, is complaining that 3M has usurped them and has taken their market share.   NicSand enjoyed monopoly margins for years, finally faced long-overdue price competition from 3M, and lost a lot of the business.  So they sued for anti-trust.

Between 1997 and 2000, 3M entered into contracts to supply automotive sandpaper
to Advanced Auto, Autozone, CSK and KMart and did so at prices ranging from 10%
to 30% over NicSand's costs. But nothing about this sequence of events suggests
an antitrust violation. As to the market share that 3M garnered over these
years, "it takes one to know one" is hardly an accredited hallmark of antitrust
liability"”particularly when NicSand's apparent solution to this problem is not
to encourage the entry of other suppliers to this lopsided market but to
preserve its 67% market share. As to 3M's discounting, NicSand of course has no
right"”under the antitrust laws no less"”to preserve 40"“50% margins on a product
that (so far as the allegations are concerned) does not take any ingenuity to
make. One can fairly doubt the size of NicSand's and 3M's R&D departments
for automotive sandpaper.

Unable to argue that 3M's discounting amounted to anything but legitimate (and
apparently long-overdue) competition, NicSand focuses on the fact that 3M
entered into exclusive contracts with the four large retailers that switched
from NicSand to 3M. Yet according to NicSand's amended complaint, the retailers
made exclusivity one of the preconditions for doing business with a new
supplier. The complaint says that the large retailers (1) choose to carry just
one brand of automotive sandpaper for sale to consumers, (2) re-negotiate these
one-brand contracts just once a year, (3) require a new supplier to purchase the
retailer's existing supply of automotive sandpaper, (4) require a new supplier
to provide racks and other display equipment, (5) require a new supplier to
produce a full line of automotive sandpaper and (6) require a new supplier to
provide a discount on the retailer's first order. NicSand of course complied
with these requirements in obtaining the supply business it held in 1997, and 3M
complied with them in winning some of that business away. If retailers have made
supplier exclusivity a barrier to entry, one cannot bring an antitrust claim
against another supplier for complying with that precondition. Put another way,
NicSand did not sue 3M insisting that it had a right to share shelf space; it
sued 3M because it wanted that shelf space all to itself"”just as it had it in
1997. This is precisely the kind of all-for-one-and-all-for-one competitor claim
that the antitrust laws do not protect.

Anti-trust is not about the consumer.  It is about one company trying to use the government to sit on its competitors.

Update: Oh, and in case you thought liscencing of professionals was about consumers rather than protecting incumbent competitors, example number 439,126:

If you've spent as much time on farms as I have, you may imagine that
floating horse teeth has something to do with a backup of equine urine. It
actually refers to the time-honored practice of filing horses' teeth to prevent
them from getting uncomfortably long. At the behest of veterinarians (who
else?), the state of Minnesota is trying to limit
the service to veterinarians, and the Institute for Justice (who else?) is challenging
the protectionist regulations in state court.

Should you balk at going to veterinary school just so you can file horse
teeth for a living (a technique veterinary schools don't even teach), Minnesota
will give you a pass if you 1) have more than 10 years of experience or 2) pass
an exam given by the Dallas-based International Association of Equine Dentistry.
"To qualify to take the IAED's test," I.J. notes, "you must float the teeth of
250 horses under the supervision of an existing IAED member. Not only are there
no IAED members in Minnesota, it is illegal to float without a license. So, to
abide by the law in Minnesota, you must break it."

The one the government did not support, plan for, or subsidize.

It increasingly looks like hybrids, particularly newer plug-in hybrids, will be the high MPG, low-emission technology winner in the foreseeable future.  The US and California governments, among others, have subsidized (and at times mandated) pure electric vehicles, hydrogen vehicles, natural gas powered vehicles, and fuel cell powered vehicles.  While some governments have come along with ex-post-facto promotions of hybrids (e.g. ability to use the carpool lane), hybrids have been developed and won in the market entirely without government help and in places like California, effectively in the face of government opposition (because they were stuck on zero emission vehicles, low-emission vehicles were opposed)

Plug in hybrids have many of the advantages of electric vehicles without the range problems.  They use standard gasoline so they avoid the new fuel distribution issues of natural gas and hydrogen.  And fuel cell technology may be great one day but is not there yet.  I was reminded of all this by this article by Stephen Bainbridge on why the EV-1 failed.

Update:  This reminds me of the 19th century transcontinental railroads - UP, SP, NP, GN etc.  Only one of these transcontinentals did not get any federal land grants or government financing -- the Great Northern of James J. Hill -- and not coincidently the GN was the only one not to go bankrupt in the close of the century.

Blogging has been light, as I have been working on the publication of my new novel called "BMOC".  We're a number of weeks from getting it through Ingram and onto Amazon, etc. but it is available today at my Lulu storefront.  If you order the printed version from Lulu, be careful!  The Lulu UPS shipping options are really overpriced.  Only the regular US mail delivery is a very good deal.  For those of you who have the version with the old purple cover, this is an updated version.

Once it gets some broader distribution, I'll be running a special event on this site.  Details later.

Update: Web site for BMOC book by Warren Meyer

From Don Boudreaux at Cafe Hayek:

In yesterday's Wall Street Journal, Lawrence Lindsey wrote
about the Chinese government's policy of not allowing the value of the
yuan to rise against that of the dollar:

America, however, benefits from this arrangement. The Chinese clearly
undervalue their exchange rate. This means American consumers are able
to buy goods at an artificially low price, making them winners. In
order to maintain this arrangement, the People's Bank of China must buy
excess dollars, and has accumulated nearly $1 trillion of reserves.
Since it has no domestic use for them, it turns around and lends them
back to America in our Treasury, corporate and housing loan markets.
This means that both Treasury borrowing costs and mortgage interest
rates are lower than they otherwise would be. American homeowners and
taxpayers are winners as a result.

The Chinese are holding on to a Trillion dollars in US currency, with the main effect of subsidizing lower prices and interest rates for US consumers.  What a deal!  (I took a more tongue-in-cheek approach to the same issue here)  I know most commentators instead want to focus on the threat of China suddenly dumping those dollars, disrupting US markets.  People need to understand that the cost of doing the latter is enormous for China, not only in lost value of their dollar-denominated assets but in lost exports as the value of the Yuan would spike.  To test the hypothesis of holding dollars as a strategic weapon, would you feel more secure in the US if the government held a trillion dollars of yuan?  Why?  I would in fact feel more vulnerable to China, dependent on the health of their economy.  I personally am a big believer that Chinese investments in the US are great, and will act as a stabilizing influence in the future. 

By the way, while the above refers the Chinese government holdings of US financial assets, Cafe Hayek also points to an article by John Makin of the AEI who observes that the trade deficit is a misnomer, as the US is providing services that are not counted, specifically wealth-protection services:

In summary, Makin argues that one of the reasons foreigners sell so
many goods and services to Americans and then consistently refrain from
buying an equivalent amount (in value terms) of goods and services from
Americans is that foreigners have a high demand for "wealth-storage"
services supplied by dollar-denominated assets.

The fact that global savers accommodate U.S.
consumers by keeping U.S. interest rates lower than they otherwise
would be and the dollar stronger than it otherwise would be is simply a
manifestation of America's comparative advantage at supplying wealth
storage facilities.

In
other words, there's no real imbalance.  If the services supplied by
"wealth-storage facilities" were counted in international commercial
accounts as "services," then the U.S. current-account would not be in
deficit.

I have written before about why we should not fear the trade deficit with China, and why the word "deficit" is itself a misnomer, here and here.

For years I have argued against economic boycotts against nations such as Cuba and China, arguing instead for business interaction and engagement.  In China, for example, I think Pandora's box is open, and there's no reversing the effects of China's engagement with the US, no matter how much the Chinese government may think they can control the tide of modernity. 

Jacob Weisberg has similar thoughts in Slate, and argues further that sanctions merely play into the hands of dictators:

America's sanctions policy is largely consistent, and in a certain sense,
admirable. By applying economic restraints, we label the most oppressive and
dangerous governments in the world pariahs. We wash our hands of evil, declining
to help despots finance their depredations, even at a cost to ourselves of some
economic growth. We wincingly accept the collateral damage that falls on
civilian populations in the nations we target. But as the above list of
countries suggests, sanctions have one serious drawback. They don't work. Though
there are some debatable exceptions, sanctions rarely play a significant role in
dislodging or constraining the behavior of despicable regimes.

Beyond the propaganda value Weisberg discusses, sanctions also create scarcity which is useful to the most brutal dictators, as they can use their powers of allocating resources to reward supporters and starve out opponents.  My guess is that Saddam Hussein used his oil for food resources in this way.

I would be interested in a historical analysis of the effect of sanctions in the South African decision to end apartheid.  Was this more due to sanctions or engagement, since a mix were employed.

A couple of days ago I expressed frustration at finding a source for even-handed analysis of climate issues.  As someone who accepts more warming than zero but less than Al Gore espouses, I'd like to find a source of climate analysis that I could count on to look at all sides of the issue.  Recently the Prometheus web site was recommended to me.  I am still reviewing it, but you might want to check it out.

By the way, coming soon is the climate cage match to be held by the US House of Representatives.

One of the ways I like to pass the time on long drives (we went to San Diego this week with the kids) is to listen to audio books in the car.  For this trip, my wife picked out Kenneth Davis's Don't know much About History.  This particular version had been edited down to a quick 3-1/2 hours.

Its of course impossible to edit American history down to this short of a time, but we thought it might be enjoyable for the kids.  Also, I am used to the general "America sucks and its heros suck too" tone of most modern revisionist history, so I was kind of prepared for what I was going to get from a modern academician.   But my God, the whole history of this country had been edited down to only the bad stuff.  Columbus as a source of genocide -- the pettiness of American grievances in the revolution -- the notion that all the ideals of the Revolution were so much intellectual cover for rich men getting over on the masses -- the alien and sedition acts -- slavery -- massacre of Indians and trail of tears -- more slavery -- civil war -- mistreatment of the South after the war by the North -- more massacre of Indians -- Brown vs. board of education -- the great depression as the great failure of laissez faire economics -- did Roosevelt know about Pearl Harbor in advance -- McCarthyism -- racism and civil rights movement.   All of this with numerous snide remarks about evil corporations and rich people and the never-ending hosing of the poor and women/blacks/Indians (often in contexts entirely unrelated to what he is talking about, such that the remark is entirely gratuitous).

That's as far as we have gotten so far, but I am really giving you a pretty honest outline of the segments.   I have zero problem admitting that America's treatment of its native populations was shameful and worth some modern soul-searching.  Ditto slavery.  But to focus solely on this litany, with nothing about the rising tide of standard of living for even the poorest, of increasing health and longevity, of the intelligent ways we managed expansion (like the homestead act), of having the wealth and power to defeat fascism and later communism in the 20th century when no one else could do it.  Of creating, in fits and starts and with many long-delayed milestones, the freest country in the world.  Of a history where every other democratic revolution of the 18th and 19th century failed and fell into chaos and dictatorship but this one succeeded.  He begins the book by saying that he is bravely going to bust all the myths we have grown up with, but in essence helps to reinforce the #1 myth of our era:  That America is a bad actor on the world stage and less moral than the countries around us.

Which of course, is insane.  And remember, I am the first one to criticize our government over any number of issues, but the moral relativism that academics apply to America represents a shameless lack of correct context.  To borrow from a famous saying, I am willing to admit that America has the most shameful history, except for that of every other country in the world.

Postscript: I don't even deny that a book with the premise that "schools and media often gloss over the bad stuff, so I want to let you know that America has a dark side too" would be a perfectly viable project.  However, this book represents itself as a general history text, and does not claim this particular mission as its context.  By the way, I am not sure what country he is living in if he thinks this stuff is not taught in schools.  My kids' schools totally wallow on all the bad stuff - the racism, the environmental problems, etc.  I would be willing to bet more graduates of public schools today could answer "Maintenance of slavery" to the question "what was the biggest failure of the Constitution" than they could answer the question "Why did the US Constitution succeed when so many other democratic revolutions failed?"  The latter is a much more interesting question.  Of course, in this audio book, predictably, Mr. Davis addresses the former in great depth and never even hints at the latter.

Frequent readers of this blog will know that this quote from Milton Friedman on licensing is one of my favorites:

The justification offered is always the same: to protect the consumer. However, the reason
is demonstrated by observing who lobbies at the state legislature for
the imposition or strengthening of licensure. The lobbyists are
invariably representatives of the occupation in question rather than of
the customers. True enough, plumbers presumably know better than anyone
else what their customers need to be protected against. However, it is
hard to regard altruistic concern for their customers as the primary
motive behind their determined efforts to get legal power to decide who
may be a plumber.

Ilya Somin at Volokh has an interesting post (though right this moment their site seems to be down) about the American Bar Associations (ABA) role in accrediting colleges.

To my mind, the problem goes beyond the shortcomings of specific ABA standards.
The real mistake is allowing an organization with a blatant conflict of interest
to take over the accreditation role in the first place. As an interest group
representing lawyers, the ABA has an obvious stake in limiting entry into the
profession so as to decrease the competition faced by its members. One way of
doing so is by restricting the number of accredited law schools, at least in the
vast majority of states that require all or most aspiring lawyers to attend an
ABA-accredited school in order to take the bar exam.  We would not allow an
organization run by Chrysler, GM, and Ford to set regulatory standards
determining who has the right to sell cars in the United States. Requiring ABA
accreditation for law schools is the exact equivalent in our industry....

To be completely clear, I am NOT arguing that the ABA should be prevented from
certifying schools as meeting what it considers to be appropriate standards. I
am merely suggesting that ABA accreditation should not be required by law as a
prerequisite for allowing a school's graduates to take the bar. If ABA
accreditation really is a sign of school quality, then applicants can take that
into account in making their decisions on what school to attend, just as they
currently consider US News rankings and other data. If some form of legally
mandated accreditation is needed (and I highly doubt that it is), the system
should be run by an independent agency insulated as much as possible from
control by the ABA and other interest groups representing practicing lawyers.
There should be similar insulation, by the way, from influence by established
law schools, since we too have an obvious self-interest in limiting competition
by preventing new entry into the legal education market.

I could spend all day discussing the follies of anti-trust law.  But one of the memes that still seems to hang on is that anti-trust was designed as a form of consumer protection, with the government protecting consumers from the monopoly power of consolidated enterprises.

I am not enough of a business historian to comment on whether anti-trust has ever been used for consumer protection, but it is clear that it is not any more.  That has been one very expensive lesson we can all learn from the Microsoft anti-trust cases, both in the US and Europe. 

If you remember the US cases, Sun, Netscape, Oracle and other Microsoft competitors, having failed to best Microsoft in the marketplace, went running to the FTC to get them to sit on Microsoft for them.  And they were successful, with a series of high-profile settlements.  Nowhere was there even a hint that these cases were about the consumer -- in fact, the settlement demanded was to remove functionality and free add-on components from the Windows OS, making it less attractive to consumers.

We can see this again in the recent decision by an EU court, which seems very happy to use anti-trust law to step on an American competitor in favor of local companies (my emphasis added).

Microsoft was fined $357 million, on top of the record $613 million
fine it paid in the original order. It also faces new penalties of
$3.82 million a day beginning July 31....

The commission has said that it is concerned about Vista's Internet
search capabilities and method of managing digital rights. Regulators
also are worried about the implications for competitors of a new
technology for saving documents that is similar to the Portable
Document Format developed by Adobe Systems Inc.

Microsoft's chief crime is not doing enough to help competitors compete against them:

The fines announced Wednesday come after the EU told Microsoft to
supply "complete and accurate technical specifications" to developers,
so they could make software for servers that help computers running
Windows, printers and other devices on a network talk to each other. It
accused Microsoft of using its monopoly position with Windows to elbow
into the server software market.

Kroes said Microsoft's earlier efforts had not come even close to a readable manual developers could use.

Again, settlements are taking the form of defeaturing the product consumers get:

Smith said Microsoft had suggested various ways it could offer Vista in
Europe, to address concerns about XPS. One option is to ship Vista
without it, while another is to include ways for PC makers or others to
either remove certain XPS utilities or make them invisible.

And, by the way, this certainly gives one a lot of confidence in the due process the courts in Europe are going to give you as an American:

"In some ways, these fines are only partially about complying with the
... prior case, and half about sending a message to Microsoft that the
European Commission is not going away,"

You get that?  It sounds like a mafioso beating someone up because they didn't show him enough respect.

By the way, I am frustrated with Microsoft and their pricing as well.  Rather than run to the government, though, I have employed this and this and this.

I have written several times about the phenomena of certain nativist Americans who get absolutely freaked out whenever they even encounter Spanish in the good old USA.  Here is another example of what I have started calling Spanish Derangement Syndrome:

A Spanish-language billboard promoting iced coffee is getting a chilly reception from some Bogota officials.

Mayor Steve Lonegan said the McDonald's billboard on River Road near
Elm Avenue and the railroad overpass is offensive because it sends the
message that Spanish speakers and immigrants do not need to learn how
to speak English.

Boy would this guy ever blow a gasket here in Phoenix!  So I have a counter proposal.  Everywhere that Steve Lonegan travels overseas, I think they should remove their English signs and everyone should refuse to speak English.  No English signs in airports, no English-speaking people at the hotel desk, no International Herald Tribune on the newsstand.   After all, having English signs and English-speaking customer contact people all over, say, Germany, just sends the message that Americans don't have to learn German to travel there.

I am reminded that nearly every country in the world has an "American School" where expats send their kids to learn in English and avoid as much contact and assimilation as possible with the local populous.  For example, I had several business associates in Singapore who all sent their kids to the local American School.  Can you imagine what a hissy-fit nativists in the US would throw if there were similar Mexican schools in the US?

Update:  By the way, I don't have any particular problem with English as a criteria for citizenship, but not for mere presence in the country.  Note that I don't consider citizenship the restrictive license that nativists do, as I explained here, among other places.

Also, one would be hard-pressed to argue that the Constitution somehow restricts first amendment speech protections to speech made in English.

Update #2:  Formatting has wigged out a couple of times with this post, with the word "English" formatted out on separate lines each time it appears.  Weird.  Hacker?

Well, yet another key international soccer match, this time the most important game of all, the World Cup Finals, was decided by penalty kicks.  Penalty kicks are the most absurd way to determine a championship that I can imagine.  They are barely one step removed from a coin toss in terms of their ability to really determine who the best team is.   Its like giving up on a baseball game in the 12th inning and settling it with a home run derby.

I understand that in regular matches and probably in pool play, logistics require that games not go on for hours and penalty kicks make sense.  But by the time you get to the quarterfinals, and certainly the finals, why can't they just play the freaking game until someone wins?  That's what they do in the Stanley Cup, and in US pro football -- each have ways of settling ties quickly for regular season games, but once crunch time comes, they play until there is a winner.  In Wimbledon, they settle sets with tie breakers but come the fifth set, they play until someone wins.  Its not like the stadium is booked for anything else the rest of the day.  And do they really think anyone in the stands is going to get tired and go home?  Pro hockey fans will tell you there is no more compelling time in their sport than overtime in a Stanley Cup Final.  How great would it have been to have just left the two teams on the field until one was a winner, even if that took two more hours?  I mean, they have waited four years for this moment, they can't put in a few more minutes on the field?

As an American non-soccer guy, I have really given this World Cup a chance.  I was in England for much of the tournament, so I not only watched but got to experience some of the excitement of the populous.  And I have, excluding the silly play-acting fake injury thing, mostly enjoyed the games.  But they lost me right at the end.  Settling their once-every-four-years world championships with ridiculous penalty kicks demonstrates to me that soccer types have no respect for their own game.  After just 30 minutes of overtime, they give up on their own game and have teams play a different game to determine a winner. So if they don't have respect for their own game, why should I have any?  Americans are never going to fall in love with a game that decides its championships with the moral equivalent of a coin flip.

Update:  First, though this post was applied to soccer, its not just a soccer rant.  I went on the same rant several years ago when the Olympic ice hockey gold was awarded with a shootout.

Second, I get it that the athletes are tired.  I'm not going to put my toe in the water on the "what sport requires the most athleticism" debate, except to say that soccer is right up there, with its 45 minutes of continuous play each half.  (But I will say that, having personally played rugby for years, rugby is right up there too -- one thing soccer aficionados don't acknowledge is how much physical contact and going down on the ground frequently -- for more than just a fake injury -- takes out of you above and beyond just continuous running.)

My point is that shoot-outs are a different game - they are not real soccer.  Yes they use the same equipment and have roughly the same goal (to get the ball in the net) but by that definition "horse" is real basketball.  Anyone up for settling an NBA finals after two overtimes with a game of horse?  The beauty of soccer is in the passing and the assists, in the clever footwork, in the wing trying to use his speed to turn the corner.  Where are those in a shootout?

If athletes are getting exhausted, it just increases the likelihood that someone will score and end the game, since it is as true in soccer as any other sport that fatigue hurts defense more than offense.  And this might stop teams that play a defensive game in overtime, who are clearly playing for the shootout.

And think of posterity.  No one is going to remember this World Cup final game except to say that Italy beat France on penalty kicks.  But what if the game went 3-1/2 hours in a grueling test of endurance before France finally punched it in, all the players too exhausted to celebrate.  People would talk about the match for years.  I'm not saying you play this way for every run of the mill international competition.  But wouldn't it be nice once every four years to actually decide the championship actually playing soccer, rather than horse?

Update #2: Per a couple of commenters, nothing in this post is meant to imply that sports that are more popular in the US are not without their flaws.  Silly set-piece fist fights in hockey and the unfairness of overtime rules in football (putting too much emphasis on winning the coin toss) come to mind immediately.

Happy Birthday to the greatestn nation on earth.  I spend a lot of time criticizing our leaders and their policies, but there is no place else I would live.  The US Constitution is still, over two-hundred years after its creation, the greatest single document ever written.  Many other countries since have written constitutions and spilled tons of ink pontificating on theories of government, but none have had similar success in protecting individual rights while creating an environment where every individual can focus their productive energies in whatever direction they choose with generally minimal interference.

A while back I wrote about how wealth was created, and I pointed out that the great leaps we have made in human well-being over the last two hundred or so years stem from two effects:

Sure, our leaders, our military, and sometimes the nation as a whole screws up.  I and others are quick to point these screw-ups out and sometimes we find ourselves wallowing in them.  But at the end of the day, unlike in the majority of countries in the world, these screw-ups are treated as such, talked about and debated, and dealt with rather than treated as the norm. 

Take the US military in an occupying role in Iraq.  Out of 100,000 or so people, you are going to have some criminals who commit criminal acts, even in the military.  The US army, unlike nearly every occupying army in history, generally treats its soldiers' crimes as crimes, and not as the inherent right of victors to rape and pillage.  US soldiers who have committed crimes in Iraq will generally go to jail, while worse malefactors in most armies, even the holier-than-thou UN peacekeepers who seem to be engaging in rape and white slavery around the world, generally go unpunished.  For all the crap the US military takes around the world, I bet you that if you took an honest vote on the question of "Which world army would you choose to occupy your country if you lost a war" most people would answer the US.  If for no other reason because, despite all the charges of imperialism, our armies eventually leave rather than remain on as lingering masters.

So tomorrow, I will start dealing out more crap to our leaders, to the administration, to Congress, to the SCOTUS, and most especially to most every bureaucrat who thinks they can better manage my business or my property.  But today I will step back and see the forest rather than the trees, and observe I am dang lucky to be an American.

For further thoughts, I refer you to .  They tend to celebrate first the "right to vote", when in fact many people get to vote but few enjoy the freedoms we do.  The greatness of our country is in our protection of individual liberties and the rule of law.  And the great insight our country was founded with is that rights flow from the very fact of our humanity -- they are not granted to us by kings or Congress.  This last is perhaps most important, as I wrote:

At the end of the day, our freedoms in this country will only last so
long as we as a nation continue to hold to the principle that our
rights as individuals are our own, and the government's job is to
protect them, not to ration them.  Without this common belief, all the
other institutions we have discussed, from voting to the rule of law to
the Constitution, can be subverted in time

Now I am off to see Buckingham Palace.  If I see the Queen, would it be in bad taste to wish her a happy Fourth of July?

I write in this blog often on my frustrations with regulation, but last night I learned, if I did not know it already, that things could be much worse.  I had dinner with some friends in London who are in the middle of a home improvement and renovation project on their 1830's era townhouse.  Now, I just completed a renovation of my own (1980's era) home in Phoenix, and, while home improvement is always frustrating, I at least had few problems with the city.  Phoenix will let you do about anything you want to your home as long as you respect your setbacks and don't install a nuclear reactor.

My London friends were not so lucky.  Their home is rated a class 2 historic structure, which means it gets a bit less scrutiny than class 1 palaces and stuff, but it still comes in for a lot of regulation.  Their plans had to be approved in detail, and I mean in gory detail, with the local history Nazis.  And this is for a building that really has little historic or aesthetic value (the owners would be the first to admit this) in a neighborhood that was nearly blighted thirty years ago. 

My hosts pointed out the dining room lighting, which was really dim (you could not see your food very well) band told me that the authorities would not let them add lighting fixtures to the room.  No doorways, moldings, or walls could be changed.  The funniest example of this was a doorway cut in a wall 20 years ago.  The government inspector came through the house and said "well, that door is not historic but I like it so you can't change it."  They thought the inspector was joking, but, after a lot of effort to get approval to change the door, found out she was not kidding. 

The staircase to the top floor (originally the servant's quarters) was steep and unsafe for their children, but the inspector insisted it could not be changed because the "logic" of having the servant's quarters accessible by a difficult staircase needed to be maintained.  The homeowners rebuttal that they had no servants and were more concerned with safety than the history of class differences in Britain had no effect.  In several cases where the homeowners argued that the portions of their house they wanted to change was not original to the house (and therefore not covered by restrictions) it was made clear that the burden of proof was on them, the homeowners, and not on the government.

As one other funny sidebar, the basements and below grade areas of these homes apparently don't fall under this scrutiny or are exempted in some way.  As a result, everyone in his neighborhood seems to be tunneling out into their backyards to expand their house.  One homeowner bought three adjacent homes and tunneled out enough area for an indoor underground swimming pool.

Can you imagine if someday the US government decided that those 1970's homes were subject to such historic restrictions?  Suddenly, by government fiat, instead of being stuck forever with insufficient lighting and unsafe staircases, you might get stuck with orange shag carpet and gold-mirrored walls.  If you think this is ridiculous, read this.

Suffice it to say, I am tired of a relatively small group of people imposing their wishes on other people's property, a practice I call eminent domain without compensation.  If you want something specific done to a piece of property, then buy it and have at it.

For a while now I have meant to write a post on immigration and terrorism, specifically to refute the argument made by anti-immigration folks that cracking down on immigration is an important part of the war on terror.  Now, I tend to agree that we are too slow in kicking out visitors who commit crimes.  I've always thought in fact that if Mexico found itself send millions of productive workers to the US only to get back a stream of the small percentage who were thugs and criminals they might finally address the root causes of why their own country can't offer productive people any opportunity.

But the guard-the-border folks go further than this, arguing we must stop all immigration with troops and "minutemen" at the border as part of the effort to defend ourselves from terrorism.  I've always thought that this was a fabricated argument, since its so easy to prove that fear of terrorism is not their real motive for troops at the border (if it were, then why are all the troops going to the Mexican border - shouldn't the long stretches of empty land on the Canadian border be just as vulnerable to terrorists?  In fact, it is Canada and not Mexico where Islamic terrorist cells have been found in the last month).

Open and legal immigration would make finding illegal entry of terrorists much easier.  Right now, by pushing Mexican immigrants out into desert, rather than marked border crossings, one gives terrorists a very large haystack to hide in.  Terrorists with violent intent must somehow be sorted out from millions of perfectly peaceful immigrants looking for work.  Arizona Watch quotes James Valliant:

If every person who wanted into America in order to find work was legally
permitted into America, I'll bet they'd be happy to stop by the front gate, show
some i.d., get checked against a terrorist watch-list, etc. Only those with
criminal records, or reasons to flee justice, those with contagious diseases,
and, well"¦ terrorists would have any reason to "jump the gate" at all.

This would concentrate our resources on those who actually posed a threat to
the country. Thousands of border patrol agents would, then, not be going after
thousands "“ ultimately, accumulated millions "“ of people everyday, but just a
few hundred "“ ultimately, a few thousands. I, personally, prefer those odds when
it comes to catching terrorists and mass-murders.

Per the NY Times:

As he left the soccer field after a club match in the eastern German
city of Halle on March 25, the Nigerian forward Adebowale Ogungbure was
spit upon, jeered with racial remarks and mocked with monkey noises. In
rebuke, he placed two fingers under his nose to simulate a Hitler mustache and thrust  his arm in a Nazi salute.

In April, the American defender Oguchi Onyewu, playing for his
professional club team in Belgium, dismissively gestured toward fans
who were making simian chants at him. Then, as he went to throw the
ball inbounds, Onyewu said a fan of the opposing team reached over a
barrier and punched him in the face....

Players and antiracism experts said they expected offensive behavior
during the tournament, including monkey-like chanting; derisive
singing; the hanging of banners that reflect neofascist and racist
beliefs; and perhaps the tossing of bananas or banana peels, all
familiar occurrences during matches in Spain, Italy, eastern Germany
and eastern Europe.

I am sure many American black athletes still have stories to tell about encountering racism, but didn't we at least climb out of this kind of pit of overt racism forty years ago or so?  While European sophisticates have looked down their noses at US racial problems, European monocultures seem now not to be ahead of us but behind us in dealing with ethnic diversity.  Though there do seem to be plenty of Americans who long to take our country back to being a monoculture.

I missed it when it first came out, but Jack Benway over at Arizona Watch has a nice post in defense of free immigration.  His point, as was mine here, is that the problem is the welfare state, not immigration. 

A prohibition on immigration from any source country violates the basic
principles upon which the US was founded "“ that life, liberty and property are
the inalienable rights of all people unless they sacrifice them by the forceful
denial of another person's pursuit of these same rights. These rights don't stop
at the US border. This does not mean that immigrants should not be screened and
naturalized and subject to the laws of the US. It does mean that the
artificially low quotas that place the current illegals in the position of
criminals by virtue of their presence here are morally wrong. These laws must be
repealed.

And chaos will ensue. What about all the services these illegals use at the
expense of taxpayers? We can't afford this. That's correct, we can't, so stop
offering these entitlements and services "“ to everyone.

Finding this post helps me roughly double my estimate of open immigration supporters here in Arizona (from 1 to 2).

Update:  This issue is really a heated on in Arizona.  It has even divided the writers at Arizona Watch, with Bridgett disagreeing significantly from Jack.

So we're going to build a wall and send an army to the border.

Maintaining a military to defend a group of people against outsiders who wish to use force against them is one of the core functions of government.  Even crazed libertarian anarcho-capitalists like myself concede it as a function of government.  If libertarians were to have their version of the ten commandments, the only phrase that would have to be on the stone is "Thou shalt not deal with thy neighbor through force or fraud."  The government maintains police and a military to handle the people who wish to violate this one commandment.

Throughout the years, countries have built armies and fortifications to defend against invaders who wanted to loot their lands, or steal their property, or impose their own version of racial or religious uniformity.  The US Army itself has fought for freedom, it has fought to restore democracy and individual rights, it has fought to stop genocides. 

Today, the US Army sallies forth again, to fight for and defend .... what? 

It fights to stop waves of Mexican immigrants that are dangerous because they ... want to freely exchange their labor with US Citizens?

It fights to protect Americans from ... competition for unskilled labor jobs?

It valiantly rides forth to make sure Americans never face the horror of ... interacting with someone with only broken English?

The soldiers racing to the borders are not fighting for me, because I am not in danger.  And neither is anyone around me here in Arizona -- no one from outside the border is threatening me with force or fraud (surprisingly frequent emailers sending me messages about Mexicans all being diseased criminals notwithstanding).  Its not like I live blithely ignorant of the border area in Kansas.  I life in Phoenix, and run businesses  right down on the border.  I don't feel a threat or danger.  In fact, the only danger I see is that the army may come down and drag families who are my friends out of their homes and out of the country (or into concentration camps, as one conservative writer longed for).

Immigration opponents are sometimes a little hazy about what danger they are trying to fix.  I agree there is a problem with the welfare state when it meets immigration, which I discussed here and proposed a solution for it here.  Democratic politicians still are confused on this particular problem, wanting some immigration solution but refusing to consider limiting access to the welfare state.   If the problem is infrastructure (police, prisons, schools, etc.) then it could be possible to provide national funds to border regions for this purpose, rather than for armies and walls (the Feds, after all, are handing out hundreds of billions to New Orleans).  And if the problem is too many people who don't look like us Anglo-Saxons, well, sorry  (If you don't think that this is the real issue for many anti-immigration folks, think about the recent scare headlines that soon a majority in the US may be Hispanic.  Can you imagine similar anxiety over the headline "majority of US may soon be of Canadian descent"?)

Update:  Nick Gillespie comments on the fact that Congress has given its official sanction to my speaking English.

Thank you, Middle Eastern 9/11 hijackers, for finally getting the point
through our thick skulls (forgive our slowness, but all too many of us are
descended from immigrants) that the greatest security threat to the United
States is the influx of Spanish speakers from across the border with Mexico.

Christ, it's bad enough that we have to eat foreign food, live in states
with Spanish-derived names, and answer that extra question about which
language to use at the ATM. (Thought experiment: How much is that extra
second or two of time slowing down the U.S. economy and driving down our
productivity, precisely at the moment when the Chinese are breathing down
our
necks like a bunch of post-industrial railroad coolies? You can be damn sure
that the Chinese government doesn't allow ATM users to pick their own
language.)

As I have written before, I have gotten more bizzaro emails on my pro-immigration stand than anything else I have written about.  Gillespie apparently has had the same experience.

This week, the US took a step to normalize relations with Libya:

The United States restored
full diplomatic ties with Libya on Monday, rewarding the
longtime pariah nation for scrapping its weapons of mass
destruction programs and signaling incentives for Iran and
North Korea if they do the same

The logic was that Libya still is a sucky dictatorship, but it has taken some important steps forward into the light which we want to reward.  Perhaps more importantly, the administration acknowledges that increasing intercourse with the western democracies tends to have liberalizing effects in countries in this world of open communications (see: China).  Its a difficult trade-off, but I am fine with this.  Certainly we are no virgin in terms of having diplomatic relations with bad governments.

My question is:  Why doesn't this same logic apply to Cuba?  I think it is pretty clear that embargo and shunning over the past 40+ years have had as much effect as they are going to have.  Why not try engagement?  I think this particularly makes sense well before the chaos that may ensue after Castro's death.  If anything, just by reading the behavior of Cuban expats, Cubans remind be of the Chinese in terms of their entrepreneurship, and I certainly think engagement has worked better than shunning in China. 

Of course I already know the answer to my question:  Because Cuban expats make up a large voting block in the most critical presidential election swing state and no candidate wants to be soft on Castro.  But this seems to make it even more of an opportunity for a second-term president who doesn't have to contest Florida again.

Update:  Yes, I did indeed spell it "Lybia" at first.  Seems vaguely Feudian.  Excuse 1:  Blogging is a real time function.  Excuse 2:  Its just a hobby.  Excuse 3:  I was a mechanical engineer in school

Per the WSJ($):

Last week the House of Representatives expressed its
collective outrage over high gas prices by voting as a herd, 389-34, to
make gasoline "price gouging" a federal felony.

Really. This command and control legislation reads
like the kind of law passed by the old Soviet Politburo. If an oil
company is found guilty of charging a "grossly excessive" price for
gasoline, it could face a $250 million fine and its executives face
imprisonment. Even neighborhood service station owners could be
sentenced to two years in jail and a $2 million fine for the high crime
of charging too much at the pump.

So what is price gouging?  What is the objective standard that we can all apply to our behavior to know clearly, before the fact, if our actions are legal or illegal?

One small problem is that no one in Washington can seem to define what
constitutes price gouging. Under the House legislation, the bureaucrats
at the Federal Trade Commission would define a "grossly excessive"
price and then, once prosecutors charge some politically vulnerable
target, juries across the country would decide who's guilty and who's
not. A Senate version, sponsored by Maria Cantwell of Washington,
contains terms like "excessively unconscionable price increases" and "a
gross disparity" between the normal price and the price during a
shortage or an emergency.

If this passes, there are two, and only two, ways this can be enforced:

1. The standards remain incredibly vague, such that there is no objective way to know if you are guilty of a felony until you are in front of a jury listening to the verdict.  Some juries will may decide 6 cents over cost is gouging, others may decide its 50 cents.  But you won't know until you hear the jury's verdict.
2. In an effort to deal with the problem of having no objective standard in advance, a federal bureaucracy is created to set detailed lists of allowable prices, essentially subjecting retail gasoline sales to price controls.  The prices set by regulators will either be above the price the market would have set, meaning that the price-setting is a meaningless waste of money, or it will be less than that set by the market, such that gas shortages and lines will ensue. 

These are the only two choices.  You only have to look at past history with oil price controls, airline regulation, railroad regulation, wage and price controls, etc. to know just how bad this will end.

As Jeff Flake of Arizona, one of the brave 33 no votes, tells us: "None
of my colleagues actually believes this will reduce prices, and many
realize it will ultimately make shortages worse." Yet this is what
happens when petrified politicians allow mob rule to trump economic
common sense.

My company operates several retail gasoline outlets.  We at best break even and probably lose money on the gas, but we continue to sell it to bring people into our stores and because there are so few other local retailers (we are in very rural areas).  If this law passes, I am just not going to risk going to jail because some economically ignorant jury in the future can't figure out that gas is more expensive in rural areas or because some tragic and sympathetic figure decides to sue me.  I'm out.  And if someone observes that in the rural areas in which we operate, consumers will probably be worse off if we exit, then Congress should have thought of that before they passed this Marxist-populist legislation.

Up to now, it was for this and only this reason that I tended to vote Republican more than Democrat.  I held my nose and looked past family-values-based censorship and stupid drug law enforcement and regulation of sexual choices and xenophobic immigration policies and all the rest of the conservative baggage solely because Republicans tended to pass less stupid dumbshit socialist destructive economic regulation than the Democrats. 

I've always told people that as a libertarian for whom neither party is internally consistent, you just have to pick the issues you vote on.  If I was gay or needed frequent abortions or was Howard Stern, I would vote Democrat.  Trying to run a small business against a growing tidal wave of government taxes and regulations, I often vote Republican.   If every Republican was (were?  I always get that subjunctive thing mixed up) like Jeff Flake, I would continue to vote for them.  Right now, though, I may go back to sitting on my hands or vote for whatever goofy person the Libertarian Party has put forward.

I just can't figure out who is making all these imagined profits.  I don't know any retailers of gasoline who make any real money on gasoline sales.   For god sakes, typical gasoline margins are 5-12 cents a gallon, and the credit card processing fee alone at $3 a gallon uses up 9 cents of that!  And even the great Satan ExxonMobil, in their greatest most profitable quarter ever, made a profit of 9.7% of sales, barely above the US industrial average and well below that of most well-known consumer products companies.  If anyone is making profits they don't deserve, it is Hugo Chavez and the Saudi princes, but I don't think there is much we are going to do about that.  And, if one is concerned with pricing in emergencies, I have actually pleaded for gouging when the alternative was not being able to find gas at all.

If Congress really wants to do something about gas prices, it could consider:

• Reducing gas taxes, which take more our of a gallon of gas than any private entity makes in profit
• Opening up exploration in the ANWR and on the US east coast
• Making it easier to build new refining capacity in the US
• Restructuring rules to reduce the number of EPA-mandated unique local gasoline blends are required
• Remove the 40+ cent tariff on important ethanol, which federal rules effectively require in gasoline and which is in short supply domestically

By the way, in the past several weeks, Congress has rejected legislation on every one of these items in favor of this silly gouging legislation.  The WSJ offers this final thought:

If service stations are guilty of extortion because their prices are
rising more than their costs, then are we to have pricing police
preventing homeowners from selling their houses for two or three times
what they bought them for, or movie theaters from charging $6 for
popcorn that costs 25 cents to produce, or Barbra Streisand from
commanding a $1 million fee for a single performance? Now that
Republicans have surrendered to the political expediency of price
controls on big oil, they won't have much standing to stop Democrats
from imposing price ceilings on pharmaceutical drugs, school supplies,
medical equipment, and the like.

Want to get worked up about price collusion in the oil industry?  Don't waste your time.  No study has ever found collusion effects that raised US gasoline prices more than a few percent, and only for a very short period of time.  The reason is that in a free market, there is too much incentive for new entrants undercutting a price collusion attempt.  Railroads and airlines have probably the most severe economic incentives to collude, and they have never pulled it off for any period of time EXCEPT when the government stepped in to enforce the arrangement (e.g, airline controls pre-deregulation).

If you want to see a real cartel at work raising prices at the expense of consumers, check out this from the Mises Blog:

The raisin agricultural marketing order (AMO), with roots in the
Depression-era Agricultural Marketing Agreement Act, is rationalized as
a way to "stabilize" prices. However, it allows the Raisin
Administration Committee (RAC), controlled by producers, to determine
how much of each crop can be sold, with the rest forced into storage.
That power to jointly restrict output to raise price makes it a cartel.
A cartel with so many members would not usually succeed, and the mere
attempt would be prosecuted if antitrust laws were applied, but AMOs
are enforced by the government, through the USDA...

The RAC "stabilization" is accomplished by restricting sales, often
substantially. "Free tonnage" has been as low as 53% of the crop in
2001, and less than 80% in most years. That helps producers by harming
consumers, turning price "stabilization" into price enhancement....

The raisin cartel's effects on American consumers can also be seen
in the gap between the "free tonnage" prices and "reserve pool" prices
for raisins destined for low value markets. In 2001, those prices were
$877.50 per ton versus $250 per ton; in 1998, it was $1250 versus $357;
in 1984 and 1994, the differential approached 10 to 1.

More than any subject on Coyote Blog, my immigration posts have engendered more disapproving comments than anything else I have written.  I won't repeat my position except to say that I don't care if immigration is currently illegal, because my point is that it should be legal.  In short, my stance has been that our rights do not flow from the government but from our basic humanity, and therefore activities like association, employment decision-making, and property purchase should not be contingent on citizenship.  Its one of those arguments where I wish many on my side of the argument would shut up -- If the best argument you can muster for immigration is 'who will pick the lettuce', you are not helping very much. 

For the first 150 years of this country's history, our country was basically wide-open to immigration.  Sure, there were those opposed (the riots in NYC in the 19th century come to mind) but the opposition was confined mainly to xenophobes and those whose job skills were so minimal that unskilled immigrants who could not speak English were perceived as a threat.   It was only the redistributionist socialism-lite of the New Deal and later the Great Society that began to make unfettered immigration unpopular with a majority of Americans, who rightly did not wish to see the world's poor migrate to the US seeking an indolent life of living off of government handouts.

But, as Congress debates a series of immigration plans that make not sense and don't seem internally consistent, I will propose my own.  I hope that this plan will appeal to those who to date have opposed immigration because of the government handout problem.  I am sure it will continue to be unappealing to those who fear competition in the job market or who don't like to be near people who don't speak English very well.  This is an elaboration of the plan from this post:

1. Anyone may enter or reside in the US. The government may prevent entry of a very short list of terrorists and criminals at the border, but everyone else is welcome to come and stay as long as they want for whatever reason.  Anyone may buy property in the US, regardless or citizenship or residency.  Anyone in the US may trade with anyone in the world on the same terms they trade with their next door neighbor.
2. The US government is obligated to protect the individual rights, particularly those in the Bill of Rights, of all people physically present in our borders, citizen or not.  Anyone, regardless of citizenship status, may buy property, own a business, or seek employment in the United States without any legal distinction vs. US "citizens"
3. Certain government functions, including voting and holding office, may require formal "citizenship".  Citizenship should be easier to achieve, based mainly on some minimum residency period, and can be denied after this residency only for a few limited reasons (e.g. convicted of a felony).  The government may set no quotas or numerical limits on new citizenships.
4. All people present in the US pay the same taxes in the same way.  A non-citizen or even a short term visitor pays sales taxes on purchases and income taxes on income earned while present in the US just like anyone else.  Immigrants will pay property taxes just like long-term residents, either directly or via their rent payments.
5. Pure government handouts, like Welfare, food stamps, the EITC, farm subsidies, and public housing, will only be available to those with full US citizenship.  Vagrancy and squatting on public or private lands without permission will not be tolerated.
6. Most government services and fee-based activities, including emergency services, public education, transportation, access to public recreation, etc. will be open to all people within the US borders, regardless of citizenship status, assuming relevant fees are paid.
7. Social Security is a tough beast to classify - I would put it in the "Citizen" category as currently structured (but would gladly put it in the "available to everyone" category if SS could be restructured to better match contributions with benefits, as in a private account system).  But, as currently configured, I would propose that only citizens can accrue and receive SS benefits.  To equalize the system, the nearly 8% employee and 8% employer social security contributions will still be paid by non-citizens working in the US, but these funds can be distributed differently.  I would suggest the funds be split 50/50 between state and local governments to offset any disproportionate use of services by new immigrants.  The federal portion could go towards social security solvency, while the state and local portion to things like schools and medical programs.

With this plan, we return to the America of our founding fathers, welcoming all immigrants who are willing to take the risk of coming here.  We would end the failed experiment of turning citizenship from a voting right into a comprehensive license that is required to work, own property, or even associate and be present within the US border.  Since immigrants today who are "illegal" pay no income or social security taxes into the system today (they do pay sales and, via rent, property tax), this plan would increase tax revenues while reducing some welfare state burdens.

I think if you asked many prospective immigrants, they would agree to this deal - no handouts, just a fair chance to make a living and a life.  However, immigrant advocacy organizations are hugely unlikely to accept this plan, as most seem today to have been co-opted by various Marxist organizations who are opposed to anyone opting out of the welfare state (it is no coincidence that the recent immigration policy protests all occurred on May Day, the traditional Soviet-Marxist holiday).

Finally, I would like to offer one thought to all those who worry about "absorbing" ten or fifteen million new immigrants.  First, I would argue that we have adopted many more immigrants than this successfully in this country's history, including my grandparents and probably yours.  Second, I would observe that as recently as the last several decades, we managed to absorb 40 million new workers quite successfully, as I wrote here:

Check this data out, from the BLS:

• In 1968, the unemployment rate was 3.8%.  22.9 million women were employed in non-farm jobs, accounting for 34% of the work force.
• In 2000, the unemployment rate was 4.0%.  62.7 million women were employed in the work force, accounting for 48% of the total
• In these years, the number of women employed increased every single year.  Even in the recession years of 1981-1983 when employment of men dropped by 2.5 million, women gained 400,000 jobs

This is phenomenal.  After years of being stay-at-home moms or whatever, women in America decided it was time to go to work.  This was roughly the equivalent of having 40,000,000 immigrants show up on our shores one day looking for work.  And you know what? The American economy found jobs for all of them, despite oil embargos and stagflation and wars and "outsourcing".