The Financial Stability Oversight Council (FSOC), the unelected oversight group created by the Dodd-Frank Act to monitor and regulate firms deemed to pose systemic risk to the economy (ie. “too big too fail”), has decided begun to expand its remit beyond what even the law’s authors had imagined.
Political rhetoric in the United States, particularly on the right, has a strong tendency to focus on the incomparable economic freedom of Americans and American businesses. They portray the rest of the world as more socialistic and the American system as the closest thing to a free market economy operating in the world. Yet that is far from the truth. In fact, America is swiftly being supplanted as a preferred place of business by many other countries in the rich world.
President Obama on Wednesday slightly delayed his afternoon tee time to speak about the monstrous beheading of American journalist James Foley by ISIS. It was an underwhelming address from the Leader of the Free World who finds the crown so heavy and bothersome that he puts it down aside the putting green.
Penn Jillette, the world-famous magician (and fellow of the Cato Institute), has a saying: “Everybody got a gris-gris.” By that, Jillette means everyone has some irrational belief or superstition, something one believes even when knowing it is an unreasonable. We carry these superstitions through life like talismans, and we defend them when confronted with the cold light of reason. My gris-gris is NASA.
It is a rare occurrence when Hollywood produces a film that neither glorifies the welfare-warfare state, nor vilifies capitalists and businessmen. Yet that is exactly what Marvel Studios has managed with the Iron Man series. In the character of Tony Stark we see the pinnacle of the capitalist fantasy: an ingenious businessman who values property rights and self-defense, and who does not compromise those fundamental rights in the face of government intimidation and force.
For a half century the idea that saturated fat in foods raises cholesterol and, consequently, causes heart attacks was dogma ostensibly justifying government regulation. The attacks on dietary fat have increased in recent years due to the “war on obesity.” But a new book based on nearly ten years of research has fired a devastating salvo in defense of this designated dietary enemy. The Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Healthy Diet by Nina Teicholz traces the origin of the fat myth from its faulty scientific beginning to its discrediting.
Phyllis Schlafly in her Eagle Forum article of November 15, 2006, Public Schools Define American Culture, relates the significance of Sidney Simon’s 1972 book “Values Clarification.” Simon’s book sold nearly a million copies and was widely used to teach students to “clarify” their values, such as casting off their parents’ values and making their own choices based on situation ethics. This was followed by the public schools welcoming Kinsey-trained sexperts that espoused diversity to sex-in-marriage.
It seems that when Chief Justice John Marshall was preparing the opinion for McCulloch v. Maryland he tapped into an eternal truth. “The power to tax is the power to destroy,” he wrote on behalf of a unanimous Supreme Court. Those words are no less true in 2014 than they were in 1819. Taxation appropriates money from one person or group of people in order to give it to others. There is no way to escape taxes. But there is a way to make taxes somewhat fairer. One way is to make taxes flatter and expand the tax base.
Given the successive scandals and monster laws like Obamacare that have been imposed on Americans, the federal government’s efforts to control and determine what you eat doesn’t receive the attention that it should. The ultimate question is whether the government should tell you what to eat and then seek to enforce their views about it? The answer is no.
There is a strain of thought in the American pro-liberty movement that argues for what is essentially a return to a policy of isolationism. That is the attitude typified by former Representative Ron Paul and his adherents, who have spent years calling for the withdrawal of the United States from many of its foreign treaty and institutional obligations, including the United Nations. There is a certain attractiveness to this position, especially in light of the recent exhausting and expensive wars in Iraq and Afghanistan. The claim that the War on Terror and other interventions in various countries’ affairs have created more enemies than they vanquished holds no small amount of truth.
The United States is a political anomaly. Throughout time there has never been a nation so politically, culturally, and militarily dominant. Rome, even at its height, had rivals. So too did the British Empire, which at its apex made pretense to the rule of the waves, in spite of near constant challenges to its power from forces seeking to upset or supplant it. The international stability and peace created by these great empires, the Pax Romana and Pax Britannica, the Roman Peace and the British Peace, served in their times to guarantee security and relative prosperity within their spheres of influence. Yet they could never do so unchallenged.
In a recent appearance before a congressional committee, EPA Administrator Gina McCarthy told them that the agency’s proposed sweeping carbon-regulation plan was “really an investment opportunity. This is not about pollution control.” If the plan isn’t about pollution, the primary reason for the EPA’s existence, why bother with yet more regulation of something that is not a pollutant—carbon dioxide—despite the Supreme Court’s idiotic decision that it is. Yes, even the Court gets things wrong.
America is supposed to be the land of the free, yet it is has one of the most vicious tax regimes in the rich world. Once blessed with comparatively low tax rates and levels of regulation, businesses and entrepreneurs flocked to the United States from the sclerotic systems of Europe (and elsewhere). Now American businesses are fleeing America’s shores and foreign-born entrepreneurs are less inclined to come at all.
Suppose instead of making common cause with corporate titans and Washington technocrats to impose Common Core standards uniformly on education, philanthropist Bill Gates instead used his vast wealth to create his own brand of schools to compete in a vibrant educational marketplace.
The Obama Administration has proposed its latest form of collectivist control over the American people. In a letter to Congress U.S. Treasury Secretary, Jack Lew, has called for punishment and prohibition of any company that tries to move its headquarters overseas to avoid higher taxes in the United States. Plus, Mr. Lew has the audacity to call his proposed territorial imprisonment of American business, “economic patriotism.”
All over the world, advocates of the free market are looking askance at Pope Francis. Since succeeding Benedict XVI in 2013, Pope Francis has mounted a vocal challenge to what he sees as the now dominant global ideology of capitalism.
The subject of tax inversion, in which American firms avail of lower tax rates in foreign countries by merging companies in those countries, has become very topical in the last couple weeks thanks to a decision by Abbvie, a drug company, to merger with Shire, an Ireland-based firm and move its headquarters overseas. One of at least 47 tax inversions in the last decade, the Abbvie-Shire deal is the largest such action yet, worth $54 billion. Perhaps unsurprisingly, President Obama and Democrats in Congress have become apoplectic with rage at the audacity of a business making a prudent decision to escape bloodsucking taxes.
The American presidency has grown in power almost continuously since the outbreak of World War II. The executive has risen from being simply the chief magistrate of the government to be being a quasi-legislative force, a leader who pushes an aggressive legislative agenda as well as enforcing the laws passed by the legislature. The president is frequently referred to as “the most powerful person in the world,” or “the leader of the free world.” Such appellations represent far more than good PR. They are statements of fact that the president of the United States has drastically more power and authority than any other individual on Earth. For that reason certainly, presidents should be restricted to a single term of office.
The Labour Party, the main opposition political party in New Zealand, made headlines last week when it announced its proposed policy for trying people accused of rape. According to the party’s justice spokesman, Andrew Little, the party is proposing that the burden of proof be reversed in rape trials. In other words, people accused of rape must prove their innocence.
When asked to imagine the birthplace of our contemporary republican democracy, most educated people point to the democratic traditions of ancient Athens and to the institutions and offices of the Roman Republic. Yet, Athens was destroyed and its democracy destroyed centuries before the birth of Christ, and the Roman Republic succumbed to imperial despotism in 27BC. These shining examples continued to burn as embers of remembrance long after their practical extinction, thanks to a political and intellectual class dedicated to the preservation of ancient documents and knowledge. But while preserving the records, the successor states of both Athens and Rome were neither democratic nor republican in character.