Category Archives: Regulation

Public Prefers Obama To Bush Policies

America, Barack Obama, Bush, Economy, Government, Regulation, Socialism, The State

Yet more proof that Americans love a big government: “According to the latest Society for Human Resource Management/National Journal Congressional Connection Poll, conducted with the Pew Research Center, 46 percent said Obama’s path would do more to improve economic conditions in the next few years, compared to 29 percent who said policies put in place by Bush would.”

Don’t take my statement vis-a-vis statism to mean that Bush was less one than is Obama. Not true. The two men exist on the same continuum of statism. Obama has picked up where his buddy Bush left off. My point is simply this: Americans have no aversion to the president who is perceived as more of a big government guy, and is certainly no less of a central planner than was Bush.

In a really strong column I covered the other day, Anne Applebaum encapsulated the singular statism from which Americans suffer:

“…When, through a series of flukes, a crazy person smuggled explosives onto a plane at Christmas, the public bayed for blood and held the White House responsible. When, thanks to bad luck and planning mistakes, an oil rig exploded in the Gulf of Mexico, the public bayed for blood and held the White House responsible again.

In fact, the crazy person was stopped by an alert passenger, not the federal government, and if the oil rig is ever fixed, it will be through the efforts of a private company. Nevertheless, each one of these kinds of events sets off a chain reaction: A new government program is created, experts are hired, new machines are ordered for the airports, and new monitors are sent beneath the ocean. This is how we got the Kafkaesque security network that an extraordinary Washington Post investigation this week calls, quite conservatively, ‘A hidden world, growing beyond control.'”

…this hidden world, with its 1,271 different government security and intelligence organizations and its 854,000 people with top-secret security clearance, is not the creation of a secretive totalitarian cabal; it has been set up in response to public demand. It’s true that the French want to retire early and that the British think health care should be free, but when things go wrong, Americans also write to their representatives in Congress and their commander in chief demanding action. And precisely because this is a democracy [when it was meant to be a republic], Congress and the president respond, pass a law, put up a building.”

[SNIP]

Applebaum’s position, it goes without saying, has been my own for as long as I can remember.

Demographic Diversity In Borrowing, Again

Affirmative Action, Business, Economy, Journalism, Multiculturalism, Racism, Regulation

Building On yesteryear’s willful errors, the Orwellian named “Restoring American Financial Stability Act of 2010”—“the 2,300-plus-page conference bill which is designed to protect households from predatory practices by banks, subprime lenders, brokerages and other financial intermediaries”—entrenches yet more affirmative action in lending, the kind that contributed to this depression.

The fecund female who has set-up the same pigment-based privileges that guided state lenders Freddy and Fanny is Rep. Maxine Waters, D-Calif. Carl Horowitz’s Townhall column is extremely edifying (this is the kind of comment I will read on Townhall because it does vital shoe-leather journalism. Ditto Malkin’s work; she does the footwork. The punditocracy’s ignorant opinions I don’t bother with):

“… The measure, in addition to giving the U.S. Treasury the authority to liquidate banks that pose a threat to financial stability (a mixed blessing at best), all but exempts lenders from shutdown if black and other minority borrowers account for high portions of their loan portfolios, especially in minority neighborhoods. The bill states: ‘The orderly liquidation plan shall take into account actions to avoid or mitigate potential adverse effects on low-income, minority or underserved communities affected by the failure of the covered financial company.’ In other words, federal bank examiners should make every effort to keep a failing institution open so long as it underwrites lots of mortgages to the kinds of borrowers instrumental to the disaster in the first place!

There is more. The amended bill would create a Financial Stability Oversight Council headed by the Secretary of the Treasury to consider a struggling financial institution’s ‘importance as a source of credit for low-income, minority or underserved communities’ before any takeover. The measure also would establish an Office of Minority and Women Inclusion within each of the Treasury Department, Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Securities & Exchange Commission, and the Federal Reserve System. Rep. Waters’ amendment is explicit: ‘Each agency shall take affirmative steps to seek diversity in the workplace of the agency, at all levels of the agency.’

All of this looks like quota legislation, even if Rep. Waters can’t quite bring herself to admit as much. And although these diversity-or-else offices wouldn’t be vested with formal enforcement powers, one can be sure that the Justice Department, the Equal Employment Opportunity Commission and other agencies with a civil rights mandate will find every pretext possible, however flimsy, to crack down on lenders whose practices create disparate impacts by race.”

MORE.

David (Brooks) Discovers The Managerial State

Economy, Fascism, Old Right, Political Economy, Pseudoscience, Regulation, Socialism, The State

David Brooks, via Vox Day, makes a welcome discovery: The technocratic or Managerial State, a foundational concept among Old Right thinkers, Paul Gottfried, most recently. In my review of Gottfried’s superb After Liberalism, I explained:

The present managerial state certainly is not an instantiation of the liberalism of the American Founding Fathers. The post-revolution federal government was not to levy any taxes, and an expansion of its power required the consent of every sovereign state. “The American Revolution,” writes economist Murray Rothbard, “was against empire, taxation, trade monopoly, regulations, militarism and executive power,” all now implicitly embraced by the US and its Western allies.
Undergirding our public administration is an unyielding ideology bolstered by a monolith of toadying journalists and intellectuals. The dubious precepts of social psychology and the enforced “public philosophy” of pluralism have become means through which bureaucrats, educators and state-anointed experts embark on crusades against “prejudice”. Together with official multiculturalism they form an instrument of control, designed to privilege a certain position and to stigmatize those who think differently. By extension, speech codes, human rights legislation, employment quotas and other infringements, contradict the classical liberal espousal of rights to property and freedom of association.
“Unlike the communist garrison state or the Italian fascist “total state,” the managerial state succeeds by denying that it exercises power. It conceals its operation in the language of caring. But “behind the mission to sensitize and teach “human rights” lies the largely unacknowledged right to shape and reshape people’s lives. Any serious appraisal of the managerial regime,” cautions Gottfried, “must consider first and foremost the extent of its control—and the relative powerless of its critics.”

AFTER summarizing the Republican and Democratic expansion of “a vast national security bureaucracy,” and the latter’s bureaucracy accreting health care and financial reform laws, BROOKS concludes:

When historians look back on this period, they will see it as another progressive era. It is not a liberal era — when government intervenes to seize wealth and power and distribute it to the have-nots. It’s not a conservative era, when the governing class concedes that the world is too complicated to be managed from the center. It’s a progressive era, based on the faith in government experts and their ability to use social science analysis to manage complex systems.
This progressive era is being promulgated without much popular support. It’s being led by a large class of educated professionals, who have been trained to do technocratic analysis, who believe that more analysis and rule-writing is the solution to social breakdowns, and who have constructed ever-expanding networks of offices, schools and contracts.

Vox adds by alluding to the impossibility of economic calculation in a socialist system:

“The Misean [sic] concept of central information deprivation – not to be confused with F.A. von Hayek’s later refinement – first foresaw and explained this certain failure not long after the Progressive era began, in a monograph entitled Economic Calculation In The Socialist Commonwealth, published in 1920.”

UPDATED: Gold Is Bad For Government Health (Remember Executive Order 6102)

Business, Debt, Economy, History, Individual Rights, Inflation, John McCain, Regulation, Rights, Socialism, The State

The health scare bill is the gift that just keeps giving—giving-up individual freedoms to government. From a “TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE” to a “SURCHARGE ON HIGH INCOME INDIVIDUALS” to “STUDENT LOAN REFORM”; it’s all there, designed to leave little room for voluntary, peaceful exchanges. But we missed another provision among the thousands of sections the H.R.4872 Reconciliation Act of 2010 sports:

A “tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny.”

Gold is a necessary financial hedge in the survival on the road to serfdom.

UPDATE (July 24): Gold Confiscation coming? FDR, idolized by BHO and McMussolini alike—by almost all offshoots of the duopoly, in fact—forbade “the Hoarding of Gold Coin, Gold Bullion and Gold Certificates” at pains of punishment: a fine of “not more than $10,000, or “imprisoned for not more than ten years or both.”