We live in a time when government is a form of theater; that is, it manages us by appearing to manage us. The current administration, perhaps because it came in with so much support, has broken new ground in what I’m calling Fantasy Government. It rails against health insurance companies, after giving them everything they want; it makes a show about debating our presence in Afghanistan, when all that is debated is the number of troops; it bemoans excessive bonuses on Wall Street, after making those bonuses possible. And now, it demands that public schools “reform” themselves, in terms so vague that any school can appear to comply while doing nothing.
The latest administration push is to promote merit pay for public school teachers rather than the guaranteed pay scales achieved by teachers unions. Secretary of Education Arne Duncan is using the $4.35 billion “Race to the Top” funds as incentive for “progress towards” merit pay.
It is at this point that the reader will be wondering whether I’m a pro-union stooge defending the status quo or a “change agent” who sees how merit pay works in the private sector to enhance performance, and wants to extend that benefit to teaching.
Sorry to disappoint: I’m not really in either camp. I write here to suggest only that the Obama administration, and the states reacting to its efforts, are not promoting a policy on teacher merit pay, but merely broaching the subject, or, if you will, making noise. In pursuance of the Race to the Top funds, the California state legislature and Governor Schwarzenneger have eliminated a law that forbade use of student test scores in evaluating teachers. That’s the easy part.
by John Browne – Senior Market Strategist, Euro Pacific Capital
Over the past two years, the federal government and the Federal Reserve have dispersed trillions of public dollars, run up enormous deficits, and kept interest rates at zero. In just about any economic textbook, this combination of policies would be described as the perfect recipe for inflation. Yet, with the exception of the usual increases in health care and education, prices by and large are not rising. Many have concluded that our economic leadership has simply outsmarted the textbooks.
The benign CPI figures are serving as a rallying point behind which the financial talking-heads are forming a parade of optimism. The low CPI is their ‘proof’ that inflation is not a pressing concern. This view is two dimensional.
Inflation is classically described simply as an increase in the money supply. Although these changes will impact price levels, it doesn’t necessarily follow that prices will rise when inflation is high. Instead, inflation may merely result in stable prices at a time when prices would otherwise be falling.
In the popular mentality, however, inflation is simply defined as prices rising. After decades of steadily rising prices, people seem to have forgotten that prices sometimes fall. In light of the bursting of a number of record-breaking, government-fueled asset bubbles, prices should be declining across the board (as they did in the Great Depression). The fact that prices are stable, or have even rallied in some sectors, indicates that inflation is already spreading across the economy.
“Educate and inform the whole mass of the people. Enable them to see that it is their interest to preserve peace and order, and they will preserve them. And it required no very high degree of education to convince them of this. They are the only sure reliance for the preservation of our liberty.” – Thomas Jefferson, 1787
After the lecture from LBCCS founder Paul Fiske who related how our founding fathers viewed education, Ryan Burgett, chairman of LBCCS and I (as a member of LBCCS) took questions and there was one question I was unable to answer without a projector, which was the breakdown of spending by the federal Department of Education, which is below or can beviewed online here.I also gave a short synopsis of the history and issues I have with this Department.
About a week ago, John Stossel announced on his blog that he’s leaving ABC and the primetime show 20/20 and will be starting up a new hour-long, prime time, weekly program on the Fox Business Channel.
As for the content of the program, Stossel states:
In my new job, I want to dig into the meaning of the words “liberty” and “limited government”. ABC enabled me to do some of that, but Fox offers me more airtime and a new challenge.
I’m still considering what I will do with my own show, one hour each week. Economics certainly. Exercises in understanding libertarianism. My “take” on the issues of the day. Kind of like this blog. In fact, maybe we’ll call it, Stossel’s Take?
In fact he asks for your ideas if you care to submit them. I look forward to his program, since it appears he won’t be hampered as much by the whims of the ABC editors and producers. At least, his new program will be less likely to be pushed out by Michael Jackson news.
Wow, this one is a doozy! A ton of new bills were introduced in Congress on Friday: 188 in total. For those who haven’t read this series of articles from the beginning, there are a few things to keep in mind…
When taking a look at the list below, keep in mind that the U.S. Constitution, which created our Federal Government, clearly enumerated 18 specific functions that it is given. For all other things, the 9th and 10th amendment make it clear that the individual states have the power. Note that it states in the Constitution that it is the Supreme Law of the Land, which can be usurped by no other. This means that all opinions to the contrary made by the Supreme Court are technically invalid. Throughout the past couple of hundred hears the Supreme Court has rule one way or another on some “interpretation” of the Constitution, but in fact no interpretation is necessary, as the intention of the founding fathers are quite clear. For example, if the “general welfare” clause or the “interstate commerce” clause was intended to be used as a catch-all for any arbitrary piece of legislation, then the 10th amendments which reads:
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
would be completely meaningless. So simple logic, in addition to the writings of Madison and other founding fathers, dictates the notion that the Federal Government was set up to have very little power, and that these United States are intended to be a loose federation of sovereign states.
Only due to politician’s greed and overwhelming desire for power does the Constitution get relegated to the trash heap.
So, despite the noble intentions of many of these bills, it doesn’t mean they are legal.
No one is bound to obey an unconstitutional law and no courts are bound to enforce it.
– 16 Am. Jur. Sec. 177 late 2d, Sec 256
Of the bills introduced yesterday, these are ones that are clearly not legitimate functions of the Federal Government [as always, my commentary will appear in red]:
HR1892 – To designate the facility of the United States Postal Service located at 102 North Main Street in Cedarville, Ohio, as the “William ‘Brent” Turner Post Office’.
HR1929 – To establish the Fannie Mae and Freddie Mac Investigative Commission to investigate the policies and practices engaged in by officers and directors at Fannie Mae and Freddie Mac responsible for making the decisions that led to the enterprises’ financial instability and the subsequent Federal conservatorship of such enterprises. [Keep in mind that Fannie Mae and Freddie Mac have been basically nationalized, which is, of course, unconstitutional.]
HR1925 – To designate as wilderness certain Federal portions of the red rock canyons of the Colorado Plateau and the Great Basin Deserts in Utah for the benefit of present and future generations of Americans.
HR1924 – To amend the Indian Law Enforcement Reform Act, the Indian Tribal Justice Act, the Indian Tribal Justice Technical and Legal Assistance Act of 2000, and the Omnibus Crime Control and Safe Streets Act of 1968 to improve the prosecution of, and response to, crimes in Indian country, and for other purposes.
HR1922 – To require the Federal Energy Regulatory Commission to hold at least 1 public hearing before issuance of a permit affecting public or private land use in a locality.
HR1921 – To establish an Office of Public Advocate within the Department of Justice to provide services and guidance to citizens in dealing with concerns involving the Federal Energy Regulatory Commission, and for other purposes. [Fantastic! Create another layer of bureaucracy to help people deal with bureaucracy...]
HR1978 – To authorize the Attorney General to make grants to improve the ability of State and local governments to prevent the abduction of children by family members, and for other purposes.
HR1977 – To require the Consumer Product Safety Commission to study drywall imported from China in 2004 through 2007, and for other purposes.
HR332 – Providing that the House of Representatives will focus on removing barriers to a prosperous economy and therefore renew the dream. [Reading the full text of the bill it all sounds nice, but it's really nothing more than platitudes. Nothing will come of this. It's not recommending anything concrete.]
HR1971 – To provide for the elimination of duties on certain comforter shells
HR1970 – To amend title XVIII of the Social Security Act to exempt unsanctioned State-licensed retail pharmacies from the surety bond requirement under the Medicare Program for suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS).
HR1969 – To promote freedom and democracy in Vietnam. [Oh god. Oh god, no! Haven't we gotten ourselves into enough jams with this interventionist crap?]
Yesterday in Congress, fifty-four new bills were introduced. Due to recent controversy, and for those who start reading this series of articles in the middle, I will include the following boilerplate information in every article.
When taking a look at the list below, keep in mind that the U.S. Constitution, which created our Federal Government, clearly enumerated 18 specific functions that it is given. For all other things, the 9th and 10th amendment make it clear that the individual states have the power. Note that it states in the Constitution that it is the Supreme Law of the Land, which can be usurped by no other. This means that all opinions to the contrary made by the Supreme Court are technically invalid. Throughout the past couple of hundred hears the Supreme Court has rule one way or another on some “interpretation” of the Constitution, but in fact no interpretation is necessary, as the intention of the founding fathers are quite clear. For example, if the “general welfare” clause or the “interstate commerce” clause was intended to be used as a catch-all for any arbitrary piece of legislation, then the 10th amendments which reads:
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
would be completely meaningless. So simple logic, in addition to the writings of Madison and other founding fathers, dictates the notion that the Federal Government was set up to have very little power, and that these United States are intended to be a loose federation of sovereign states.
Only due to politician’s greed and overwhelming desire for power does the Constitution get relegated to the trash heap.
So, despite the noble intentions of many of these bills, it doesn’t mean they are legal.
Of the bills introduced yesterday, these are ones that are clearly not legitimate functions of the Federal Government [as always, my commentary will appear in red]:
S-753 – A bill to prohibit the manufacture, sale, or distribution in commerce of children’s food and beverage containers composed of bisphenol A, and for other purposes. [What's the purpose of this? There's already S-593. See my comments here about this issue.]
S-754 – A bill to provide for increased Federal oversight of methadone treatment/
HR308 – Honoring the life, legacy, and memory of Pedro Pablo Zamora y Diaz, an extraordinary educator and activist, and a pioneer in the battle against the HIV/AIDS epidemic.
HR309 – Expressing the sense of the House of Representatives that North Korea should immediately stop any hostile rhetoric and activity towards the Republic of Korea and engage in mutual dialogue to enhance inter-Korean relations.
HR310 – Honoring the life of Coach Kay Yow in remembrance of her passing, and recognizing her dedication to the sport of basketball, her commitment to women and women’s health, and her contributions to the State of North Carolina.
Yesterday in Congress, fifty-one new bills were introduced. Due to recent controversy, and for those who start reading this series of articles in the middle, I will include the following boilerplate information in every article.
When taking a look at the list below, keep in mind that the U.S. Constitution, which created our Federal Government, clearly enumerated 18 specific functions that it is given. For all other things, the 9th and 10th amendment make it clear that the individual states have the power. Note that it states in the Constitution that it is the Supreme Law of the Land, which can be usurped by no other. This means that all opinions to the contrary made by the Supreme Court are technically invalid. Throughout the past couple of hundred hears the Supreme Court has rule one way or another on some “interpretation” of the Constitution, but in fact no interpretation is necessary, as the intention of the founding fathers are quite clear. For example, if the “general welfare” clause or the “interstate commerce” clause was intended to be used as a catch-all for any arbitrary piece of legislation, then the 10th amendments which reads:
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
would be completely meaningless. So simple logic, in addition to the writings of Madison and other founding fathers, dictates the notion that the Federal Government was set up to have very little power, and that these United States are intended to be a loose federation of sovereign states.
Only due to politician’s greed and overwhelming desire for power does the Constitution get relegated to the trash heap.
So, despite the noble intentions of many of these bills, it doesn’t mean they are legal.
Of the bills introduced yesterday, these are ones that are clearly not legitimate functions of the Federal Government [as always, my commentary will appear in red]:
HCR89 – Supporting the goals and objectives of the Prague Conference on Holocaust Era Assets.
HCR86 – Authorizing the use of Emancipation Hall in the Capitol Visitor Center for the unveiling of a bust of Sojourner Truth.
HCR87 – Observing the 15th anniversary of the Rwandan genocide and calling on all responsible nations to uphold the principles of the Convention on the Prevention and Punishment of the Crime of Genocide.
HR298 – Congratulating the on-premise sign industry for its contributions to the success of small businesses.
HR299 – Expressing the sense of the House of Representatives that public servants should be commended for their dedication and continued service to the Nation during Public Service Recognition Week, May 4 through 10, 2009, and throughout the year.
HR300 – Congratulating Camp Dudley YMCA of Westport, New York, on the occasion of its 125th anniversary.
HR301 – Honoring the life of Dr.John Hope Franklin
The debauchery on Capitol Hill continues unabated, with an amazing ninety-three new bills introduced yesterday in Congress, many of which attempt to do the same thing. How many of these bills do you think are Constitutional? (Answer: very few). Here are some of the worst:
HR1652 – To require institutions receiving certain assistance from the Troubled Asset Relief Program or the Federal Reserve to have employee bonus payment plans approved in advance of the payments being made. [Each member of Congress must operate in a bubble, and/or they're all hoping for the "credit" if their bill is passed. This is at least the fifth bill on this subject in the past three days!]
HR1650 – To enhance the oversight authority of the Comptroller General of the United States with respect to expenditures under the Troubled Asset Relief Program. [Yet another TARP regulation bill. The full text of the bill is not currently available, so I couldn't tell if it specifically mentions employee bonuses so I could add it to the list above. Why don't these people just come out and admit that this TARP garbage is immoral an unconstitutional in the first place?]
S-651 – A bill to amend the Internal Revenue Code of 1986 to impose an excise tax on excessive bonuses paid by, and received from, companies receiving Federal emergency economic assistance, to limit the amount of nonqualified deferred compensation that employees of such companies may defer from taxation, and for other purposes. [Number 7, by Sen. Max Baucus [D-MT]…]
HR1649 – To authorize the Secretary of Education to make grants to reduce the size of core curriculum classes in public elementary and secondary schools, and for other purposes.
HR1645 (also S-638) – To provide grants to promote financial and economic literacy. [While I think it's critical that people become more financially and economically literate, government should certainly not be the teacher, or else we'll end up with more Keynesian nitwits that have destroyed our economy to date. Rather, people can take Chris Martenson's Crash Course for free, and read books like Hazlitt's Economics in One Lesson and Tom Woods' Meltdown.]
HR1643 (also S-648) – To amend title XVIII of the Social Security Act to establish a prospective payment system instead of the reasonable cost-based reimbursement method for Medicare-covered services provided by Federally qualified health centers and to expand the scope of such covered services to account for expansions in the scope of services provided by Federally qualified health centers since the inclusion of such services for coverage under the Medicare Program.
HR1642 – To provide loans and grants for fire sprinkler retrofitting in nursing facilities.
HR1641 – To amend the National Trails System Act to provide for a study of the Cascadia Marine Trail.
HR1640 – To amend the Truth in Lending Act to protect consumers from usury, and for other purposes. [Caveat emptor. The process of buying a home would be much quicker and hassle-free if not for the myriad of regulations and bureaucratic red-tape imposed by the federal, state, and local governments.]
Liberty Maven
by John Browne – Senior Market Strategist, Euro Pacific Capital
Last night with the
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