March 28, 2012

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Mark Helprin was in the Journal yesterday wondering why the president wishes to emulate Europe. 

Both in his re-election campaign and as the core principle of his presidency, Barack Obama asks America to cast off reliance on the free market—because, in his characterization, the free market “doesn’t work”—in favor of the European model of ever-tightening, ever-regulating, ever-expanding governance. This he does, astonishingly, at the very moment of the European model’s long-predictable crisis, collapse, bankruptcy, and devolution.

With his trademark certainty he proposes—indeed, at times commands—that we follow him over the Niagara to which his back is turned. The writer Henry James cautioned that, “It’s a complex fate, being an American, & one of the responsibilities it entails is fighting against a superstitious valuation of Europe.” Promiscuous endorsement of things European, inveterate in the president’s academic coterie, has long been characteristic of American snobs. As Harvard once dispatched missionaries to better the savages, it now sends students abroad so they might better us. To be wrong on both counts requires congenital blindness to the facts, which suggest that despite our own grievous failings Europe is hardly worthy of imitation.

As a museum of culture, it has few competitors. Europeans make better movies; their cuisine is better (except in Eastern Europe, Central Europe, Scandinavia, England, Ireland, the Low Countries, Germany and Switzerland); and they do a better job of suppressing modern architecture, for which they are to be commended.

But in suppressing and over-engineering their economies they court national bankruptcies. Just as reckless are their efforts to ameliorate economic stagnation via the all-guzzling welfare state. Shall we create more jobs by aping Europe, which since 1990 has averaged 9.16% unemployment while ours was 5.95%?

European structural unemployment is supposedly tolerable in the context of less income inequality and greater social analgesia, but although income equality may be the socialist ideal, isn’t the more civilized object to provide as abundantly as possible rather than to annihilate the potential for envy? Incomes are perfectly level in the Gulag, whereas in Boston and Singapore they are not. …

 

Bill McGurn of the WSJ was featured in a recent issue of Hillsdale College’s Imprimis. His subject was public employee unions.

These days, when conservatives get together to discuss the debilitating role played by government workers, we reassure ourselves with statements by FDR and labor leader Samuel Gompers about the fundamental incompatibilities between a union of private workers working for a private company and a union of government workers laboring for our city, state, or federal governments. We also trace the line of expansion to various events, including John F. Kennedy’s executive order that opened the path for collective bargaining for public employees at the federal level.

I don’t want to rehash that today. Today I want to talk about the situation as we find it, and suggest that the first step toward a cure is to diagnose the illness accurately. This means changing the way we think of public sector unions. And in what I have to say, I will concentrate on public sector unions at the state and local levels. …

… Let me start with the relationship between government employee unions and our elected officials. On paper, it is true, mayors and governors sit across the table from city and state workers collectively bargaining for wages and benefits. On paper, this makes them management—representing us, the taxpayers. But in practice, these people often serve more as the employees of unions than as their managers. New Jersey has been telling here. Look at our former governor, Jon Corzine. …

… When workers at Rutgers University were planning to unionize, he (Jon Corzine) turned up at their rally. This was too much even for the liberal Star Ledger, which—in an article entitled “Jon Corzine, Union Rep?”—noted that Mr. Corzine’s appearance at the rally raised the question whether he truly understood that “he represents the ‘management’ side in ongoing contract talks with state employees unions.”

Manifestly, the problem is not that Mr. Corzine and other elected leaders like him—mostly Democrats—do not understand. In fact, they understand all too well that they are the hired help. The public employees they are supposed to manage in effect manage them. The unions provide politicians with campaign funds and volunteers and votes, and the politicians pay for what the unions demand in return with public money. …

… My second point relates to my first. Not only have the public unions too often become the dominant partner in the relationship with elected officials, but the contracts and the spending that goes with them are setting the other policy agenda. In other words, even when we recognize that the packages favored by public employees are too generous, we think of them simply as spending items. We need to wake up and recognize that in fact these spending items are the tail wagging the dog—that they set tax and borrowing decisions rather than follow from them.

Take the case of Northvale, a small, affluent town of about 4,600 people at the northeast tip of New Jersey. Its median income is about $99,000, comfortably above both the New Jersey and national levels, and its budget is $21.8 million. Of this, $13.2 million—or nearly two-thirds—goes to the schools. The lion’s share of that, of course, goes to salaries and benefits.

Northvale’s school budget is voted on in the spring. That’s part of the scam, because turnout for these elections is much lower than it is in November for the regular elections. With lower turnout, it’s easier for teachers and other interested parties to dominate the elections. Thus the great bulk of Northvale’s budget is not determined in the regular elections, or by the mayor and city council. Effectively, it is determined by the education lobby and school officials—who in turn are chosen in elections involving only 20 percent of the electorate. …

.. My father was a federal employee, as an FBI agent. I spent some time as a government worker in the White House. I also know many fine and devoted people on the public payroll who work hard, are good at what they do, and earn everything they get. But there are also those who work without results. I believe Americans are a generous people who can recognize the difference. We need to restore our public sector to a place where those in charge can make those distinctions and allocate rewards and resources accordingly.

In the meantime, I think the best thing we can do is speak honestly. That is what Mr. Christie is doing in New Jersey. His style isn’t for everyone. Yet his popularity suggests that Americans appreciate a politician willing to talk about the reality of public employee unions today—and the unreasonable costs they are imposing on our society.

We’ll never return to the ideal of public service until the rest of us start speaking honestly as well.

 

It was October 2009 when a reporter asked Pelosi about the constitutionality of the healthcare law. She answered, “Are you serious? Are you serious?”  The NY Times profiles the law professor who led the charge that became the very bad day the Affordable Care Act had yesterday at the Supreme Court.

When Congress passed legislation requiring nearly all Americans to obtain health insurance, Randy E. Barnett, a passionate libertarian who teaches law at Georgetown, argued that the bill was unconstitutional. Many of his colleagues, on both the left and the right, dismissed the idea as ridiculous — and still do.

But over the past two years, through his prolific writings, speaking engagements and television appearances, Professor Barnett has helped drive the question of the health care law’s constitutionality from the fringes of academia into the mainstream of American legal debate and right onto the agenda of the United States Supreme Court.

“He’s gotten an amazing amount of attention for an argument that he created out of whole cloth,” said one of his many critics, Douglas Laycock, a professor at the University of Virginia Law School. “Under existing case law this is a very easy case; this is obviously constitutional. I think he’s going to lose eight to one.”

On Monday, as the court began three days of arguments, questioning by the nine justices suggested they were ready to review the law now rather than wait until it has fully kicked in. That lays the groundwork for arguments for the challenge championed by Professor Barnett: that Congress’s power to set rules for commerce does not extend to regulating “inactivity,” like choosing not to be insured.

Professor Barnett, who watched Monday from the spectator seats, was not the first to raise the constitutional critique of the health law, but more than any other legal academic, he is associated with it. …

 

Andrew Malcolm has late night humor.

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