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The Value of Stephen Colbert's SuperPAC
The protracted attempt by comedian Stephen Colbert to engage the political process directly highlights the importance of speech free of baseless government restrictions. John Samples, director of the Cato Institute's Center for Representative Government, discusses the Colbert SuperPAC's meaning for campaign freedom past, present and future.
Uncle Sam and Big Business: Enemies or Allies?
Some politicians claim to be both "pro-business" and "pro-market" — as if they're the same thing. Yet today's largest corporations often stifle market competition and reap billions of dollars through a complex web of high taxes, strict regulations, and government handouts. Are government and business inherently at odds with each other? Cato On Campus hosted a lively debate on this subject on Friday, June 24th at the Cato Institute. Stay tuned for the archived version of the event, here.
Students Who Get It
John Stossel recently filmed an episode of his television show at the International Students For Liberty Conference, held in Washington, D.C., along with Cato Institute vice president David Boaz. In an article on the experience, Stossel remarks that the students really "get it." What do they get? He explains that, "(There) were hundreds of students who actually understand that government creates many of the problems, and freedom—personal and economic liberty—makes things better." In the midst of economic crisis, foreign war, and political riots, find out why Stossel claims that "After spending time with those students, I feel better about the future of America."
Are Soccer Stars Inherently Libertarian?
What does soccer have to do with libertarian principles? Apparently, the world's most popular sport proves free market economic theories correct. Dan Mitchell, Senior Fellow at the Cato Institute, explains that a recent study by scholars (who usually write about un-libertarian social welfare issues) shows that international soccer stars are very sensitive to nation's tax policies. Since soccer stars can vote with their feet, watching their behavior as it relates to shifting policies provides a clear lesson: countries with low, flat tax rates attract better soccer players. The study even shows that lowering taxes can in some cases actually raise total tax revenue because of the influx of high earning players. The Laffer Curve scores again.
The Internet and Social Media: Tools of Freedom or Tools of Oppression?
Freedom movements around the world are using Twitter and Facebook to express dissent and to organize, particularly in the Middle East. It might be fair to say that the Internet is becoming the platform for political liberation. But the "just add Internet" thesis has its skeptics, who argue that, in fact, the Internet may give authoritarian governments the upper hand. Social media platforms are very amenable to government surveillance, and revolution doesn't come easy, online or off. Should lovers of freedom be saying "Internet FTW!" or is it one big "#InternetFAIL"?
This cutting edge debate took place at the Cato Insitute on Friday, February 25th. The event archive will soon be updated, and made available here.
The Case for Gridlock
In the most recent Policy Analysis released by the Cato Institute, political science professor Marcus E. Ethridge explains that while President Obama and Progressives don't like it, the American Framers intended for government to be gridlocked. Since the New Deal, administrative agencies have sought to realize the public interest more effectively by circumventing the checks and balances as originally designed. However, "A large and growing body of evidence makes it clear that the public interest is most secure when governmental institutions are inefficient decisionmakers." Ethridge finds that by maintaining a system that fosters gridlock, American politics will more likely reflect true democratic interests rather than be steered by narrow, well-organized groups.
Cato Scholars Evaluate State of the Union Address
A group of Cato scholars -- ranging in discipline from education to foreign policy to economics to health care and more -- analyze President Obama's State of the Union speech. They evaluate the strength of his policy positions, including what he did well and what he could do to improve.
Debate Kicks Off New Semester
With a dynamic economy and the highest unemployment rate in decades, policymakers -- particularly those in the new Congress -- are faced with some difficult questions: Are social welfare policies driving the country into the ground, or are they providing stability to build the foundation for the future? What's the government's role in alleviating poverty and those in hard economic times?
In the effort to provide engaging opportunities for students, Cato On Campus' first event of the new year, on January 28th, will pit three scholars' views against the each other on the topic of "Social Welfare Policies." The debate will take place on January 28th, and will include Michael Tanner (Cato Institute), Isabel Sawhill (Brookings Institution), and Peter Edelman (Georgetown University Law School). Check out their viewpoints and bios, and register for the event today!
How Does Your Governor Rank?
Cato has recently released the new "Fiscal Policy Report Card on America's Governors," an annual report that grades all 50 state governors' job performance based on fiscal responsibility. Cato scholar Chris Edwards examines the tax and spending decisions made by governors since 2008. Governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades. Only four governors were awarded an "A" in this latest report card -- how does your state's governor rank?
Growth: Jobs, Spending, Sunsets
American Action Forum is hosting an event on Tuesday morning, September 21, at 9am on Capitol Hill.
An excerpt from the event page: "The Congress faces two imperatives and a choice. It must support job creation and it must solve the fiscal crisis. It also faces a decision on raising taxes at the end of 2010. In Washington, it is all too often that two people cannot agree on the right direction to go. Join us and our distinguished panel as we discuss options for future economic growth."
How the American Public Views Its Government
Government spending watchdog group Bankrupting America posts a new video about public opinion and government, specifically focusing on stimulus spending. For more imformation on out-of-control government and what can be done about it, visit Cato's Downsizing Government website.
'Mosque' Debate Is a Red Herring
Cato vice president Gene Healy comments that the so-called "9/11 mosque" has nothing to do with this nation's largest (and growing) problem: out of control debt. Nonetheless, politicians on both sides of the aisle have devoted a copious amount of time to the issue. Such political pandering distracts from real, constuctive change in government. "You see," says Healy, "cutting government is hard, and often unpopular." It should, therefore, be no surprize that politicians will want to avoid addressing difficult issues, and rather opt to battle over low-hanging fruit. Establishment politicians want to play average citizens for "suckers," says Healy. "It remains to be seen whether they'll play along."
'Repeal ObamaCare' Rap Video
In response to the ObamaCare law that passed earlier this year, the Galen Institute has released a rap video entitled 'Fellin' It.' The rappers discuss the negative effects of the legislation, providing both possible solutions and reasons to oppose the law, with a chorus that says, "If you feel how I feel, then we need to repeal."
Perhaps this video will inspire you to enter the Cato On Campus YouTube video contest. (You could win a trip to next year's Cato University in San Diego!)
Gambling: Free to Lose?
Gambling has been around for much of human history. But as it grows from a local practice to an international online phenomenon worth $335 billion, people begin raising questions. Cato scholar Radley Balko participates in the Economist's debate series, on the resolution: "This house believes there should be no legal restrictions on gambling." Blako describes many practical reasons why gambling creates perverse incentives, but says that the best reason to legalize gambling is upon the grounds of individual liberty. "If liberty means anything at all, it means the freedom to make our own choices about our own lives, our money, our habits and how we spend our leisure time, even if they happen to be choices other people would not make for themselves." Check out the debate and share your thoughts here.
White House Press Challenges Pols with ... Squirt Guns?
Cato vice president Gene Healy notes that many D.C. reporters seem to be getting a little too cozy with the pols they’re suppose to be covering; as evidenced by the recent pool party hosted by Vice President Biden for Washington reporters. Has what used to be an adversarial relationship between the press and the power elites they cover become a parasitic love-fest?
Are We Still 'Free to Choose'?
In a throw-back article on Milton Friedman's seminal work, 'Free to Choose,' John Stossel recounts the value of Friedman's 1980 argument and reasserts its relevance today. "If we are free to make our own choices, we prosper. That was a new idea to many back then," says Stossel, adding that 30 years later American and other nations "still have not learned Friedman's lesson." Stossel notes that of particular importance to the freedom to choose is being forced to suffer and live with consequences of one's choices. What, then, would Friedman have thought of America's recent propensity for bailouts?
VAT Attack!
Politicians have begun to more frequently toss around the concept of a VAT, or value added tax. A VAT attempts to spread the cost of the tax across the production chain, resulting in a cumulative amount close to that of a national sales tax. Cato tax scholar Dan Mitchell comments that while a VAT has some virtue, the biggest problem with the proposed policies is that they do not attempt to replace current taxes with a VAT, they simply aim to add it. The deeper problem is that politicians will likely use the additional revenue not to reduce the burden on citizens, but will allocate it to special interests in order to buy votes and stay in office. Mitchell notes, “real-world evidence shows that VATs are strongly linked with both higher overall tax burdens and more government spending.” If the goal is to simplify government and eliminate waste, a VAT is definitely not the way to go.
Big Government's Cronies
When government officials and businesses get buddy-buddy on some sort of initiative, it usually behooves a concerned citizen to take a closer look. John Stossel does just that in his look at the Obama administration's connection with Serious Materials, a window manufacturer. Stossel outlines the story of the two parties' relationship, and at one point explains how they literally get in bed with each other, as the official in charge of allocating government stimulus dollars (tax payers' money) is married to one of Serious Materials' vice presidents. Sound funny to you? Stossel thinks so. Check out his article, and also his recent television show describing this same phenomenon, which he refers to as ”Crony Capitalism.”
The Audacity of Posturing
In President Obama's most recent weekly radio address, he decried the Supreme Court's decision to unrestrict free speech and listed various things that he has done in the past year to "clean up" special interest groups in politics. However, it seems his words are just rhetoric. Tim Carney, columnist at the Washington Examiner, explains that "the image of Obama as a reformer is at odds with his behavior as president." Obama has signed bills that benefit big businesses, given handouts to big unions that supported his campaign, and brought multiple lobbyists into his administration. Carney advises that, “we should interpret Obama's teeth gnashing over the court ruling the same way we should take his scolding of Wall Street: as nothing more than political posturing.”
Massachusetts Votes to Limit Government
David Boaz, Cato's Executive VP, reflects on the revolutionary nature of Republican Scott Brown's win in the special election for the Massachusetts Senate seat left open upon Ted Kennedy's death late last year. Boaz explains that the election demonstrates more than simply a big Red win in a Blue state. Pundits have been describing Brown's win in terms like "canary in the mine," "depth charge," "shock waves," "nuclear explosion," and "full freak-out." For Dems, this could mean that it's back to the drawing board on healthcare. But Boaz adds that they would do better to look even further, as the people of the bluest of blue states have sent quite a message: big government is not what the American people want. Is it time for some revolution?
Tale of Debt: An American Story
Trying to understand how the U.S. government works is a complicated task. This brief video by The Heritage Foundation makes understanding the debt limit a bit easier by presenting a clearly worded narrative that lays out the problems the U.S. is facing in an engaging allegory.
We Miss You, Bubba
Cato executive vice president David Boaz writes that while Bill Clinton was no champion of liberty, he would be welcomed back to replace President Obama. From spending, to free trade, to regulation, to welfare, Clinton's record starkly contrasts Obama's interventionist and big-government approach. Much of this was possible because of divided government, as the Republicans held Congress for six of Clinton's eight years. All of these factors led Boaz to implore, "Come back, Bill, all is forgiven. Or most, anyway. As long as you bring a Republican Congress with you."
Unemployment Continues to Rise Despite Stimulus Spending
While the government has spent over 32% of the stimulus so far, unemployment remains 11% higher than the Obama administration's projections of the worst case scenario. Mercatus Center budget scholar Veronique de Rugy provides an update on stimulus spending and unemployment. The Obama administration projected that unemployment would peak at 8.8% without a stimulus package; unemployment figures have been at 10% or greater for the past three months. De Rugy's work comes at a time when some are considering a second stimulus. To that she says, "It seems clear that for the sake of taxpayers and for the sake of job creation, a second stimulus is absolutely the wrong idea." Her Working Paper, entitled 'Stimulus Facts,' is available here.
Federal Salaries Explode
Cato scholar Chris Edwards decries the out-of-control pay increases in the Federal sector. While mom-and-pop stores and average Janes and Joes are taking pay cuts in the struggling economy, Uncle Sam is doling out raises. Since the economic recession began, the number of federal employees making over $150,000 has doubled. Edwards also notes that that figure doesn't even take into account the average $41,000 benefits packages of those on Uncle Sam's payroll. These figures must leave the American people asking how government could possibly make policies that benefit us, when they don't even know where we're coming from.
Can't Read the bills? Start with Constitution.
Cato VP Gene Healy asks congress why they can't be bothered to be held to the same standards as the American public. Congressmen and bureaucrats continue to pass longer and longer legislation without reading it, to which the public is bound by law to obey. Healy comments on the Waxman-Markey (Cap and Trade) bill and the Senate Finance Committee's health care bill, 1,427 and 1,502 pages respectively. If reading the bills is too exhausting, Healy suggests congressmen start with reading the Constitution - afterall, "it's short and written in plain English."
Video: Trillion-shmillion... who cares?!
The 2009 U.S. budget deficit reached a record $1,400,000,000,000 (that's what $1.4 trillion looks like actually written out). Reason's Nick Gillespie remarks on the deficit and makes it a bit more real by explaining how much it could buy. Oh, and if you can't get your head wrapped around such a huge figure, don't worry, because next year's budget deficit is forecast to be another $1,400,000,000,000.
Cato Institute Downsizing Government
The Cato Institute has launched a new website, www.DownsizingGovernment.org, that addresses the enormous size and scope of the US government. The site provides data, graphs, podcasts, blogs and videos, and includes a department-by-department guide to cutting the federal government's budget. The site states that, "This website is designed to help policymakers and the public understand where federal funds are being spent and how to reform each government department." Cato scholars Chris Edwards, Tad DeHaven, Dan Griswold, Sallie James, Dan Mitchell and others contribute to the site's content.
Keynes, his followers, still wrong
Cato scholar and Hoover Institute fellow Tibor Machan reflects on the re-emergence of John Maynard Keynes in current political discourse. Michan notes that while some of Keynes' theories have been recently cited, other ideas and his personal philosophy have evaded the public eye, mainly because they are fundamentally flawed.
"It seems that for Keynes the sole avenue for self-improvement is to go to governments and seek their coercive support. Among other things what he fails to notice, as did Burke and other statists, is that government is composed of people and all the people with the power (some) others bestow upon them (or they grab) are susceptible to all the foibles Keynes attributed to people in general."
Roughly, if people are flawed, why is giving government (made up of people) immense power and elite status to dictate whatever policies it sees fit a good idea? Machan responds, "Keynes was wrong back then, and his followers are wrong now in thinking that our salvation lies with government."
Mr. President, what happened to "transparency"?
Cato director of information policy studies Jim Harper updates his analysis of President Obama's promise to put all spending bills, especially those with earmarks, online for the public to see at least 5 days in advance of signing them. He includes an in depth table of the 61 bills signed so far, along with dates of posting. "I’ve amended the chart to highlight an interesting thing," Harper writes, "Two-thirds of the time (41 of 61), the White House has held bills for five days or more before President Obama has signed them. The only thing keeping him from fulfilling his promise as to these bills is the simple failure to post them on Whitehouse.gov."
Financial System Needs Less Regulation
Cato scholar Mark Calabria discusses President Obama's approach to reforming the national financial system. He notes that while reform is much needed, the wrong kind of reform will lead to even greater trouble than has been experienced over the past year. About Obama's plans, Calabria says, "The President’s plan chooses convenient targets and protects entrenched interests, rather than address the true underlying causes of the crisis." He notes that not addressing the problems that instigated the bubble and burst in the first place is a grave error. "Without real reform — fixing Fannie and Freddie, scaling back the massive subsidies for leverage in our tax code, loose monetary policy – it will only be a matter of time before the next crisis hits."
Federal Pay Outpaces Private Sector Pay
Cato scholar Chris Edwards contrasts workers paid by government and those compensated in the private sector. Using data from the Bureau of Economic Analysis, he finds that average pay is almost double what it is in the private sector, and more than double when considering benefits. There are various criticisms (addressed here), but Edwards notes that the most striking point is that this discrepancy has drastically increased over the past decade. He concludes that, "It’s time to put a stop to this. Federal wages should be frozen for a period of years, at least until the private-sector economy has recovered and average workers start seeing some wage gains of their own."
I Am Finally Scared of a White House Administration
Cato Senior Fellow Nat Hentoff, this week on RealClearPolitics.com, writes an article about the truly scary parts of the new healthcare plans. He discusses that the real danger in Obamacare is not just whether or not the bill passes or what's included in it, but the inevitable developments following new laws. "Whatever bill passes, hundreds of bureaucrats in the federal agencies will have years to promulgate scores of regulations to govern the details of the law," states Hentoff. He concludes with the point that whatever is not ruled out, could eventually be slipped in.
Why Orwell Matters
From 'Animal Farm' to '1984' to 'Shooting an Elephant', George Orwell has become known as both provocative and influential. Economist Russ Roberts and author Christopher Hitchens discuss George Orwell on EconTalk. Hitchens comments on the experiences that formed Orwell's perspective and development of his life's work, while simultaneously describing Orwell's effect on the realms of society and politics. Along the way, Hitchens makes the case for why Orwell matters.
Reason Foundation's 23rd Annual Report on Privatization and Outsourcing
The Reason Foundation has long been a proponent for liberty, and has just released its Annual Privatization Report. From public-to-private parking meters in Chicago to "contract cities" in Georgia, this report studies current U.S. trends. Leonard Gilroy, the editor of the report, comments that "Interest in privatization is sky-high and rightly so. Now more than ever, policymakers need to study their priorities, re-examine what are really core government functions, and then tap the private sector's expertise in all of the areas where they can save taxpayer money and improve the quality of services."
Obama vs. Mathematics
Cato Scholar Jagadeesh Gokhale and Warton School professor Kent Smetter write in a National Review article addressing President Obama's apparent challenge to the mathematical realities of his health-care plan. They cite that "The House plan has a present-value shortfall of $13.6 trillion," following with an analysis that "Shoring up these programs — another Obama campaign promise — would require collecting 328 percent more tax revenue from the rich." They conclude that such a policy shift would come at the cost of the American economy.
Americans Want to Have their Cake and Eat it Too
What do cake, jugglers and frogs have in common with the American economy? John Stossel thinks quite a bit, as he links to a Barron's editorial. The article explains that "The party in power believes that Americans can eat their cake and have it, too, just as the other party did when it was in power. (The cake party is always in power.)"
Does Inequality Still Matter?
Cato scholar Will Wilkinson addresses why talk of income inequality has to a great degree disappeared from national discourse. He notes that there are many variables in evaluating income inequality, and that economic crisis complicates the issue. However, he adds that silence on the topic is also due to "the corruption of a political system in which crises are used to pay off the governing party's allies."
Staying Sane When You are the President
In his weekly newspaper column, Cato VP Gene Healy writes about the tendency of American presidents to feel a little "larger than life." From LBJ, to Nixon, to Bush, and even Obama, Healy remarks that "modern presidents... live in an atmosphere that can make even the most well-adjusted personalities intoxicated with power."
Bailouts Could Hit $24 Trillion?!
"These promises could make the implosion of Fannie Mae and Freddie Mac look like a lemonade stand closing," said Cato Executive VP David Boaz. In this post he discusses an article by ABC News regarding the escalating cost of our nation's current 'bailout' mentality, and the potential price tag of such efforts.
Too Big to Fail, Read, Count, or Stop
Economists Adam Smith and Bruce Yandle write in Cato's Regulation magazine about the expanision of government in practically every market arena, and outline the implications of such a change. They warn that, "the ongoing entanglement between politics and the market means there will be much to fail, much to read, much to count, and little hope of stopping any of it."
Watch your mouth... and your thoughts!
Cato Legal Policy Analyst David Rittgers appears on the Glenn Beck show, discussing several attacks on key liberty issues: limiting free speech, criminalizing thought crime, imprisonment for blog posts, and reversing double-jeopardy.
Sarah's Swan Song
Cato Vice President Gene Healy, in his weekly column in the Washington Examiner, writes about the tendencies of the Republican party and adds perspective on how that might be changed. "It's one thing to reject liberal elitism. It's another thing to become so consumed with annoying liberals that you cleave to anyone they mock, and make presidential virtues out of shallow policy knowledge and lack of intellectual curiosity."
At Least Some Are Coming Around
By Daniel J. Mitchell: "The class-warfare crowd in Washington wants bigger government and higher tax rates, so it’s a bit shocking to see that a group of Northeastern Democrats are slashing tax rates. Yet that is exactly what Maine’s politicians are doing. The Governor even makes the common-sense observation (that so far has escaped President Obama’s attention) that there won’t be any jobs without investors and entrepreneurs."
Dick Cheney Is Becoming Obama's Enabler
In a recent op-ed, Cato Vice President Gene Healy discusses the recent tour of former Vice President Dick Cheney and writes: "Whatever you think the right policy is regarding enemy combatants, warrantless wiretapping, and "enhanced interrogation," the differences between Obama and Bush are far more stylistic than substantive."
David Boaz Speaks at Dartmouth
On Wednesday, May 13, Cato's Executive Vice President, David Boaz spoke at Dartmouth College on "the need to prevent the U.S. government from encroaching on freedoms." The event was sponsored by the Dartmouth College Libertarians.
January YouTube of the Month
Congratulations to Matt Bufton of the University of Windsor for submitting Cato on Campus' January YouTube of the Month. His video, "Health Care in Canada" provides a short discussion of how Canada's health care system actually prohibits competition, something almost no other developed country does.
Obama and Presidential Power: Change or Continuity?
What: Policy Forum Where: Cato Institute Description: Featuring Louis Fisher, Specialist on the Constitution, Law Library of Congress; and Jeffrey Rosen, Professor, The George Washington University School of Law. Moderated by Gene Healy, Vice President, Cato Institute.
Obama Stimulus Bears a Closer Look
By Will Wilkinson: "Last week in his big economic stimulus speech, President-elect Barack Obama promised less waste and a sunny new climate of transparency. Obama says, "We'll invest in what works." This week, we're asking, "So, what works?"
Nanny State Makes Poor Babysitter for Americans
Radley Balko, policy analyst for the Cato Institute, writes, "Is the "coarsening" of American culture really having all of the ill social effects conservatives say it is? The data overwhelmingly suggests not. Nearly every social indicator is trending in a direction we ought to find comforting."
Keynsian Economics is Wrong
Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.
Bush and Obama Opt for Corporatism Over Freewheeling Capitalism
The auto industry just got its bailout. Cato's Executive Vice President, David Boaz, explains that with the recent bailouts, "the government is seeking to support existing businesses. That isn't laissez-faire. It isn't what free-market advocates support. But it is what Bush is doing and Obama wants to continue."
Bankruptcy Doesn't Equal Death
Don Boudreaux, chairman of the George Mason University department of economics, writes, "A government bailout of the Big Three keeps huge amounts of productive inputs in firms that can't use them efficiently. Forcing taxpayers to subsidize the continued employment of gargantuan quantities of raw materials, labor and capital goods in unproductive pursuits is a recipe for economic stagnation. The popular and politically convenient myth has matters backwards: The bigger the unprofitable firm, the more vital it is that it be allowed to fail."