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Walter Williams hits one out of the park with Congressional Problem Creation.
Most of the great problems we face are caused by politicians creating solutions to problems they created in the first place. Politicians and a large percentage of the public lose sight of the unavoidable fact that for every created benefit, there’s also a created cost or, as Nobel Laureate Milton Friedman put it, “There’s no free lunch.” While the person who receives the benefit might not pay or even be aware of the cost, but as sure as night follows day, there is a cost borne by someone. Let’s look at a couple of congressionally created problems.
The Community Reinvestment Act of 1977, whose provisions were strengthened during the Clinton and Bush administrations, is a federal law that mandates or intimidates lenders to offer credit throughout their entire market and discourages them from restricting their credit services to high-income markets, a practice known as redlining. The Community Reinvestment Act encouraged banks and thrifts to make so-called “no doc” and “liar” loans to customers who had no realistic ability to pay them back. A decade of monetary expansion by the Federal Reserve Bank, contributing to the housing bubble, encouraged lending institutions to take risks they otherwise would not have taken. Government actions created the subprime crisis and now government-proposed “solutions,” such as foreclosure holidays, bailouts and further regulation of financial institutions, to the problems they created will create more problems. …
For some time now, Pickerhead has thought the central problem for China’s military is how to sink an American carrier. Looks like Mark Helprin, one of our country’s most strategic thinkers, might agree.
Even as our hearts go out to the Chinese who have perished in the earthquake, we cannot lose sight of the fact that every day China is growing stronger. The rate and nature of its economic expansion, the character and patriotism of its youth, and its military and technical development present the United States with two essential challenges that we have failed to meet, even though they play to our traditional advantages.
The first of these challenges is economic, the second military. They are inextricably bound together, and if we do not attend to both we may eventually discover in a place above us a nation recently so impotent we cannot now convince ourselves to look at the blow it may strike. We may think we have troubles now, but imagine what they will be like were we to face an equal.
China has a vast internal market newly unified by modern transport and communications; a rapidly flowering technology; an irritable but highly capable workforce that as long as its standard of living improves is unlikely to push the country into paralyzing unrest; and a wider world, now freely accessible, that will buy anything it can make. China is threatened neither by Japan, Russia, India, nor the Western powers, as it was not that long ago. It has an immense talent for the utilization of capital, and in the free market is as agile as a cat. …
Meanwhile, Abe Greenwald reports 2,000 Chinese troops are pressed into emergency service repairing a dam near the earthquake site.
Victor Davis Hanson reminds us the problems in our country will not magically disappear when W is no longer president.
… Last week, I asked a fierce Bush critic what he thought were the current unemployment rate, the mortgage default rate, the latest economic growth figures, interest rates and the status of the stock market.
He blurted out the common campaign pessimism: “Recession! Worst since the Depression!”
Then he scoffed when I suggested that the answer was really a 5 percent joblessness rate in April that was lower than the March figure; 95 to 96 percent of mortgages not entering foreclosure in this year’s first quarter; .6 percent growth during the quarter (weak, but not recession level); historically low interest rates; and sky-high stock market prices.
There are serious problems — high fuel costs, rising food prices, staggering foreign debt, unfunded entitlements and annual deficits. Yet a president or vice president running for office (and covered incessantly by the media) would at least make the argument that there is a lot of good news, and that the bad that offsets it could be shared by a lot of culpable parties, from the Congress to the way we, the public, have been doing business for the last 20 years. …
Big GOP loss in Mississippi yesterday. John Fund has details.
Jack Tapper, of ABC News says it’s been fourteen times Obama has blamed his staff for errors. Thinks maybe he has a problem hiring competent people.
We started covering Sen. Barack Obama’s inability to hire good staffers in June 2007, when he blamed staffers for some opposition research trying to link Sen. Hillary Clinton, D-NY, to outsourcing in India; for injecting some venom in the David Geffen/Hillary Clinton fight; and for missing an event with firefighters in New Hampshire.
In December, we noted again that Obama was blaming the answers on a 1996 questionnaire on a staffer; and was blaming his touring with “cured” ex-gay gospel singer Donnie McClurkin (which antagonized gays and lesbians) on bad vetting by his staff.
Those five buck-passing incidents were apparently not enough. …
Rich Lowry has figured out the Obama rules.
If Barack Obama gets his way, the Oxford English Dictionary will have updated its definition of “distraction” by the end of the campaign: “Diversion of the mind, attention, etc., from any object or course that tends to advance the political interests of Barack Obama.”
After his blowout win in North Carolina last week, Obama turned to framing the rules of the general election ahead, warning in his victory speech of “efforts to distract us.” The chief distracter happens to be the man standing between Obama and the White House, John McCain, who will “use the very same playbook that his side has used time after time in election after election.”
Ah, yes, the famous distractions with which Republicans fool unwitting Americans. Ronald Reagan distracted them with the Iranian hostage crisis, high inflation and unemployment, gas lines and the loss of American prestige abroad. Then, the first George Bush distracted them with the notion of a third Reagan term, as well as the issues of taxes, crime and volunteerism. After a brief interlude of national focus during two Clinton terms, another Bush arrived wielding the dark art of distraction. …
John Stossel writes on the wisdom of the crowd.
Adam Smith blog makes an important point about Burma.
The cyclone in Burma reminds us of the misery inflicted by human disasters as much as natural ones. The (all too common) human disaster of totalitarian governments leaves people trapped under regimes which think that they know best. They know best how to plan and run the economy, they know best where people should live and what they should do, they know best how people should conduct their personal, cultural and spiritual lives, and they know best how to meet what nature throws at them. …
Honor among thieves? Boston Globe op-ed says so.
… The pirates who roamed the seas in the late 17th and early 18th centuries developed a floating civilization that, in terms of political philosophy, was well ahead of its time. The notion of checks and balances, in which each branch of government limits the other’s power, emerged in England in the Glorious Revolution of 1688. But by the 1670s, and likely before, pirates were developing democratic charters, establishing balance of power on their ships, and developing a nascent form of worker’s compensation: A lost limb entitled one to payment from the booty, more or less depending on whether it was a right arm, a left arm, or a leg. …