Category Archives: Freedom of Association

Opening the floodgates…

From tonight’s State of the Union address:

“Last week, the Supreme Court reversed a century of law to open the floodgates for special interests — including foreign corporations — to spend without limit in our elections,” Obama said. “Well I don’t think American elections should be bankrolled by America’s most powerful interests, or worse, by foreign entities. They should be decided by the American people, and that’s why I’m urging Democrats and Republicans to pass a bill that helps to right this wrong.”

In the video, Justice Samuel Alito can be seen visibly disagreeing with this sentiment. First, I’m glad someone can stand up against a President who respects the independence of the judiciary so little that he calls them out in the State of the Union. Such moves reek of political hackery that should be far beneath the President. Second, Obama’s assertion is flatly wrong.

Obama contends that the floodgates have been suddenly opened for corporations to have undue influence over candidates and politicians simply because campaign spending limits have been lifted. How, in a country where a single mother can be ordered to pay $1.92 million for sharing music because of a law bought and paid for by the recording industry, can it be claimed that the influence of corporate interests is at all inhibited?

In the recent health care debates, WalMart was on the front lines of the cheering, hoping that they could dupe Democrats into using the law to skewer their smaller competitors. In the same debate, the SEIU managed to secure a sweetheart deal for unions where the “Cadillac” tax would not be borne if the gold-plated health care plan was a result of collective bargaining (read: union strong-arming).

The history of the last half-century in Washington is one where incumbents and party-anointed successors enter into perpetual quid pro quo relationships with special interests. Legislators get things from special interests in return for political and legislative favors. We all know that this is the way things work. We all hope that when we send “our guy” to Washington that he’ll be the one to change it.

In real life, there is no Mr. Smith. Even when someone like Jeff Flake comes to Washington and tries to fight for the people he is rebuffed. The self-styled ruling class in Washington depends on having a monopoly on the influence of big business and special interests.

It is not the thought of special interests influencing politics that scares the ruling class. It is the thought of special interests influencing politics without them that does.

Influence peddling and vote buying are expected in the halls of power. Interests are allowed nearly unlimited access as long as they come in as supplicants to the ruling class. Once the same interests attempt to take their message from K Street to Main Street, the law is brought down upon them as they are accused of trying to corrupt the political process.

With that in mind, let’s look at what the President really meant behind the doublespeak:

“Last week, the Supreme Court reversed a century of law to open the floodgates for special interests — including foreign corporations — to speak directly to the people,” Obama said. “Well I don’t think that the course of American politics should be interfered with by the American people. It should be decided by the ruling class in cooperation with America’s most powerful interests, and that’s why I’m urging Democrats and Republicans to pass a bill that helps to right this wrong.”

The Supreme Court had the temerity to undercut the system of influence carefully constructed by the Republicratic ruling class over the last century. Obama is leading the charge to restore the power that the Supreme Court, and the Constitution, has denied them.

May more Americans have the courage to challenge Obama and the ruling class on this.

The real right to health care

The healthcare industry in the US is a complex issue. Small businesses ask “How do self-funded health plans work?” Major corporations look for ways to reduce healthcare costs. Individuals below the poverty line often struggle to receive treatment. The list goes on. And Democrats are addicted to saying that there is a right to health care, and subsequently hammering anyone who opposes their disastrous reform bill as opposing that right. The truth is, there is a right to health care, and it is consistently opposed by the left, not the right.

Put simply, each person has the right to seek the health care he deems appropriate for him and his family within the limits of his budget or insurance. However, even a simple visit to the dentist because of toothache can end in a costly bill. Anyone in this position might be pleased to know that hydrogen peroxide may temporarily help an aching tooth. Anyhow, a corollary to this is that each person has the right to seek the health insurance that he deems appropriate. This same right applies when buying TVs, cars, dinner, books, etc., and is fundamental to a free existence.

First, an example from Britain of a grievous violation of this right:

If health care is a fundamental right, equality under the law would seem to require that everyone have the same level of care, regardless of their resources. That principle was illustrated by the case of Debbie Hirst, a British woman with metastasized breast cancer who in 2007 was denied access to a commonly used drug on the grounds that it was too expensive.

When Hirst decided to raise money to pay for the drug on her own, she was told that doing so would make her ineligible for further treatment by the National Health Service. According to The New York Times, “Officials said that allowing Mrs. Hirst and others like her to pay for extra drugs to supplement government care would violate the philosophy of the health service by giving richer patients an unfair advantage over poorer ones.” The right to health care is so important, it seems, that it can nullify itself.

Mrs. Hirst was forced into a system where the right to seek appropriate care was appropriated by the government. When the National Health Service exercised a right that did not belong to it, Mrs. Hirst tried to use the resources available to her to reassert her right to seek health care. She was told if she were to do so, she would be forced out of the program that provides the only affordable health care for the lower and middle classes in the UK.

Take that example and apply it to the Reid bill. Centralized authority regulating what health insurance can and can’t cover, can and can’t cost, how much doctors will get paid by the public option… From Richard Epstein in the Wall Street Journal:

Normally, insurers have the power to underwrite-to choose their line of business, to select and to price risks, and to decline unattractive risks. Not under the Reid bill. In its frantic effort to expand coverage to the uninsured, the bill will create state health-care exchanges supported by generous federal subsidies to unspecified millions of needy and low-income individuals. Any health insurance carrier that steers clear of these exchanges cannot keep its customers. Any insurance carrier that enters Mr. Reid’s inferno will lose its financial shirt.

Here are some reasons why. Initially, all insurers have to take all comers and to renew all policies except for nonpayment of premiums. Insurers are not allowed to take into account differential risks based on pre-existing conditions. And the premium differentials based on such matters as age and tobacco use are smaller than the market spreads. If too many customers demand coverage from a given insurer to insure efficiently, it’s the government that will decide how many they have to keep and who they are.

Next, it’s the government that requires extensive coverage including “ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health and substance abuse disorder services, prescription drugs, rehabilitative and habilitative [sic!] services and devices, laboratory services, preventive and wellness services and chronic disease management, pediatric services, including oral and vision care.” The price squeeze gets even tighter because in every required area of care a collection of government standards will help set the minimum level of required services.

Ostensibly, the Reid bill does not impose any direct price controls on what health insurers can charge for this veritable cornucopia of services. But the bill’s complex, cooperative federalism scheme authorizes state regulators, after recommendations from the federal government, to exclude insurers from the exchanges if their prices are too high, which would again be a competitive death knell. Exile from the exchange does not, however, restore traditional underwriting controls, as the Reid bill and other federal and state regulation continue to apply to these firms.

The bill is designed to turn the health industry from servants of payers (primarily employers, insurers, and the government) into a servants of Congress and the President.

We are headed towards a day where our fundamental right to seek health care is non-existent, replaced by a state of submission where our betters in Washington decide what health care we should get. Anyone who equates a right to health care with taxpayer subsidized health care is mounting an assault on the real right to health care. Call them out, prove them wrong, and shout them down.

UPDATE 12/23: Added the section from Richard Epstein.

Leave Us the HELL ALONE

Crossposting something my wife wrote, from here:

I’ve been in an incredibly foul mood the last couple of days, and until this morning I did not understand why.

We’re planning on moving to where we actually want to be. We’re constantly being asked why we want to move to the middle of nowhere. I tell everyone, “because I feel hemmed in and trapped.” Almost no one understands what I mean. Until this morning I could not explain the feeling of being a rat in a cage. Now I can.

This morning I woke up on my “don’t remove the tag” mattress, walked through my building code compliant house, used the federally compliant toilet, dressed the kids and drove them to their “state certified” charter school where they’ll eat a state approved lunch.

I got back in my state registered, emissions compliant, insured (by state requirement) car and drove the legal speed limit back to the house. I then walked through my Scottsdale code compliant yard (no weeds in our “desert” landscaping”)into the house, drank pasteurized (USDA required) juice, and ate cereal processed in an inspected facility with milk from an USDA compliant dairy. I then took my FDA approved prescription pills (from a licensed pharmacy of course) and played with the state-licensed dogs.

I took a call on my federally taxed cell phone (instead of the federally taxed landline), stopped by our FDIC insured bank (which received TARP money that it didn’t want and is not allowed to pay back), and drove along city streets (paid for by sales and property taxes) to the closest Costco (which has a business license of course and pays mandated worker’s comp). I bought beef franks made from inspected beef in an inspected facility, buns made in an OSHA compliant factory, and a gallon of Frank’s in an approved plastic bottle.

All of this before 10:15 am.

This is not restricted to me of course. This is a normal daily life for the vast majority of Americans. Almost everything we do is touched by one agency or another.

In preparation for moving, I’ve been researching what I want to do with the land. It’s not like we can ask a Portland landscaping design professional because Portland tends to have a bit more in the way of natural rainfall, that said there are some landscaping plans we could enquire about. We want to build our own house and outbuildings and drink our own water and make our own electricity. This sounds like a daunting task for us to undertake, but we’re going to get various contractors to help with the workload that will range from Window Installtors to WDR Metal Roofing Contractors.

In order for this to work we have to:

* Buy land with the proper zoning.
* Wait for the required escrow to be completed.
* Apply for building permits and well permits.
* Possibly apply for a zoning variance in order to raise a wind turbine.
* Build code-compliant buildings.
* Wire the electricity according to code (although we may need to call someone like these electricians in John’s Creek to help us with this).
* Pay sales tax on all materials used.

My biggest dream is to grow an orchard (and we know we can call on someone like these Certified Forth Worth Tree Service Experts to help maintain the trees), plant some vegetables and grains, and raise our own milk and meat. In order for this to happen, we have to

* Buy only trees that can be delivered to the correct state (as decided by each state’s government).
* Use only approved pesticides (like we could buy anything else).
* Buy a tractor (with applicable state tax).

If we find ourselves with an excess of food and would like to sell it we have to

* Apply for a license.
* Obtain a tax i.d. number.
* Collect sales tax.
* Label the goods according to code.
* Submit to random inspections of the dairy operation.
* Submit to random inspections of the meat process.
* In order to sell prepared foods (like jams) submit to inspections of the “commercial” kitchen (which cannot be used to prepare the family’s food).
* Pay sales tax on all goods and materials used.

In order to set up the business properly, we have to

* Apply for a business license.
* Obtain a tax i.d. number.
* Obtain permission from the state to use the name.
* Collect sales tax.

God forbid we deal with the local fauna. We plan on moving in an area thick with moose and wolves, but in order to hunt we have to obtain

* A hunting license.
* A controlled-hunt tag for the moose (if we’re lucky enough to get one).
* Forget about the wolves, they’re “protected”.

Should we need to protect our livestock from the moose or wolves we are allowed to dispose of the threat, but we must

* Inform game and fish.
* Turn the carcass over to the state.

If we use firearms to dispose of the threat, we must

* Use a “legal” firearm (as determined by the NFA and ATF).
* If we choose to use a suppressor (because of dogs, horses, and our own hearing) we must pay the stamp.

This doesn’t even account for all of the hoops the realtor and the vendors have to go through.

All of this instead of

* Pay for property. Make contract with owner.
* Build.
* Dig well.
* Wire.
* Buy tractor.
* Plant.
* Sell food.
* Sell services.
* Protect livestock.

No wonder I feel trapped. I can’t do a single thing with my own property that doesn’t involve one government agency or another (or several). I feel like a rat being funneled through a maze, and I am cognizant of the danger that someone will block off the exit. It’s my claustrophobia writ large.

This is just wrong. I’m a grown woman. Why does the government have to meddle in all of my affairs? Why do I have to jump through hoops just to accomplish the most simple things in life?

It’s all about power and control. Always has been always will be.

I’m sure in the beginning the encroachment began with simple things. After all, isn’t the government supposed to protect our rights? Isn’t having a dedicated police force, justice system, military, etc. worth a little in taxes?

Then a little more encroachment. Who can disagree with a little tax to pay for state roads? That’s entirely reasonable, right?

Then enforcement of standards. Who can disagree with licensing teachers? Making sure underage kids can’t marry?

Then the panics set in. Contaminated meat? The government should “do something” so it won’t happen again! E coli? Pasteurize EVERYTHING!

Of course, the NIMBY’S added their own input. Nuclear power plant? Not in my backyard! Enforce zoning so I won’t have to worry about it! Require my neighbor to clean up their yard so my house values don’t go down!

Then the lobbyists. Require farm inspections and multiple hoops so small farmers give up and “our big backers don’t have competition”. Give into the “green” lobby so they don’t pull their campaign contributions.

Of course there’s always the pure tax whores. “It’s just a little reasonable fee. On everything. You want to pay your share, right?”

Of course all of this gets codified into law, and the ultimate persuasive tactic is put into play.

“You don’t want to be a criminal, do you? You don’t want to go to prison, do you?”

This is exactly how we went from a system in which the government’s job of protecting our rights to a system where government determines WHO is ALLOWED to trample on our rights.

Well I have a message for all you busybodies, bureaucrats, rent-seekers, and whored-out legislators.

LEAVE US THE HELL ALONE.

Get out of my contracts.

Get off of my land.

Leave my property alone.

Stay the hell out of my bedroom.

Most of all, KEEP YOUR NOSES OUT OF MY BUSINESS.

And everyone else’s for that matter.

Mel

I haven’t mentioned my wife here very much, because she generally doesn’t write about libertarian issues; but I have to say, for this (and so many other reasons. For one thing, she’d rather buy guns, boats, motorcycles, and airplanes than shoes or jewelery), I am the luckiest man in the world. I happen to think this piece is the best thing she’s ever written.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

The Battle Between the Right to Medical Care vs. Government ‘Medicine’

For decades the cost of medical care has risen relative to prices in general and relative to people’s incomes. Today [1994] a semi-private hospital room typically costs $1,000 to $1,500 per day, exclusive of all medical procedures, such as X-rays, surgery, or even a visit by one’s physician. Basic room charges of $500 per day or more are routinely tripled just by the inclusion of normal hospital pharmacy and supplies charges (the cost of a Tylenol tablet can be as much as $20). And typically the cost of the various medical procedures is commensurate. In such conditions, people who are not exceptionally wealthy, who lack extensive medical insurance, or who fear losing the insurance they do have if they become unemployed, must dread the financial consequences of any serious illness almost as much as the illness itself. At the same time, no end to the rise in medical costs is in sight. Thus it is no wonder that a great clamor has arisen in favor of reform – radical reform – that will put an end to a situation that bears the earmarks of financial lunacy.

Thus begins an essay that noted Objectivist economist George Reissman penned during Clinton’s efforts to ‘reform’ health care.

Given the current debate, it’s a good essay to reread, and the folks at the Mises Institute have obliged by posting it on their fine website.

Reisman argues against many of propositions that are assumed to be true by proponents of govenrment medicine, economic ideas that are based on primitive emotions and have no basis in actual economics: » Read more

I am an anarcho-capitalist living just west of Boston Massachussetts. I am married, have two children, and am trying to start my own computer consulting company.

Why Do We Need Expensive College Degrees to Get A Simple Job?

Enrollment in U.S. higher education, by institution type: 1967–97

Enrollment in U.S. higher education, by institution type: 1967–97

Until 1960 or so, the percentage of people getting college degrees was relatively low. There was plenty of work for people who had ‘merely’ graduated from high school, and a high school graduate could support a family.

Then came the Vietnam War, where the United States government would happily enslave high-school graduates, but not students in college. The number of students entering college zoomed upward, and the number of colleges proliferated.

But the war ended in the early 1970’s, and the U.S. government stopped enslaving young men, although it does reserve the capability to start doing so at any time.

Yet, despite this pressure, the number of people entering college continued to increase. Why? Quite simply because it started to become difficult for a high school graduate to find a job. If you’ve finished high school and you’re wondering whether to go to college or get a job, you could look at these College and Career Resources to see if they can help you make your decision. However, an increasing number of companies have started demanding a college degree for jobs that clearly don’t require anything more than the education that could be acquired at a half-way decent high school. Some employers even use an employment testing solutions to help to assess their new employees to see if they able to do the job.

Why would employers do this? What could prompt such a strange change? As usual, dig down into the matter, and the answer becomes clear. In a paper posted at the John William Pope Canter for Higher Education, Bryan O’Keefe and Richard Vedder argue that the reduced employment opportunities for high-school graduates and the resulting rise of the higher education bubble is an unintended consequence of the 1964 Civil Right Act, namely this part of Section VII:

It shall be an unlawful employment practice for an employer –

(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin; or

(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual’s race, color, religion, sex, or national origin.

At the time this law was passed employers routinely classified prospective employees via pre-employment testing. This testing was used to determine things like knowledge, technical aptitude, personality compatibility and, yes, the race of applicants. At the time the law was being debated, its opponents raised the objection that this law could outlaw non-racist testing alongside racist testing. Nowadays in many countries laws similar to these are no longer legal and using such methods would give an employee grounds to seek legal advice. For example, in the UK, employees who have been subjected to related methods could get in touch with lawyers similar to these employment solicitors birmingham in order to file a case on discriminatory hiring practices. However, it was a different environment back then and there were many arguing against the attitudes that governed employment. The proponents of the bill replied:

There is no requirement in Title VII that employers abandon bona fide qualification tests where, because of differences in background and educations, members of some groups are able to perform better on these tests than members of other groups. An employer may set his qualification as high as he likes, he may test to determine which applicants have these qualifications, and he may hire, assign, and promote on the basis of test performance.

Of course, like Madison’s claims that the Federal Government would obviously be limited to the powers described in Section 8 of Article I of the U.S. Constitution, these legislators claims did not survive actual contact with the courts. In the case Griggs v. Duke Power, the U.S. Supreme Court described what criteria can be used for pre-employment testing:

  • A test where members of one race performed more poorly than members of another race – demonstrating a “disparate” performance – was assumed to be discriminatory with respect to race, even if that was not the intention of the test.
  • Tests with disparate results are illegal unless the test has a direct business necessity.

Since, most businesses weren’t interested in wasting money on tests that were not necessary to screening out unfit employees or identifying the most fit employees, they were stunned. The Supreme Court had a very complicated definition of what constituted “Direct Business Necessity”, one that was difficult to meet and gave considerable deference to the employee of the Equal Opportunity Commission who was deciding whether or not to accuse a company of illegal discrimination. Sadly lots of people are discriminated against at work for various reasons, if you feel this has happened to you, you could contact somewhere like https://www.hattonjameslegal.co.uk/ to help you out. When applying for jobs, only the simplest tests, such as requiring a prospective driver to pass a driving test could reasonably pass muster. Other tests, which businessmen clearly felt were useful to reducing the risk of hiring the wrong person for the job, now could get them sued.

Companies began casting about for a way to screen out the-incompetent or unfit in a way that would not result in them being sued. The simplest solution is to demand a college degree. Any racial discrimination demonstrated in the pool of degreed people would be the colleges’ liability, and the business could get on with the business of hiring new employees without being worried about lawsuits.

It has taken thirty years for this unfortunate unintended consequence to play out;

  • People entering the workforce have been kept idle for four years unnecessarily.
  • People entering the workforce are saddled with debts that are difficult to pay off.
  • Colleges have gotten away with lowering educational standards because their graduates are in such high demand.

When summed across the millions of people who have entered the workforce in the last two decades, the economic costs imposed by this well-intended but horrendously misguided effort are staggering. They include

  • Almost 100 million man-years’ lost productivity.
  • An additional 10 million man-years spent paying off college loans
  • Increased pressure on children to engage in organized activities designed to win the child a scholarship at the expense of their personal development.

Had the proponents of the Civil Rights Act limited their aim at racial discrimination by the government, they would have been crafting a very socially beneficial law. But by seeking to use the law to force people not to racially discriminate, they wreaked massive damage on the economy. Ironically, this damage disproportionately affects minorities who are far more likely to be at the mercy of awful government schools than other ethnic/racial groups.

I am an anarcho-capitalist living just west of Boston Massachussetts. I am married, have two children, and am trying to start my own computer consulting company.
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