A Government Program Which Works?

Business, Finance, Nanny Statism
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Apparently 13.2% of you have some of these in your wallet.

Is it possible? Has free-market anarchist and Austrian School Economist Michael Barnett finally discovered a government program which appears to be achieving its stated goals? Yes, my friends, I think I actually may have done just that. Now look, I understand that correlation does not imply causation, but I think there’s a strong case to be made here. I’m talking, of course, about the multitude of state and federal outreach efforts over the last two years to spread awareness of and encourage participation in Food Stamps Programs. Record numbers of Americans are receiving food stamp assistance now, more than ever before. Illinois, Oregon, Florida, and Idaho are just four of many US states which have never had so many people dependent on government to feed them. I wanted to make a play on the words “superpower” and “soup lines” (souperlines? souperpower?) to describe America’s new position in the world, but my joke writers aren’t as good as Jay Leno’s.

The world's only souperpower? See, it just doesn't work.

Specifically, according to the US Department of Agriculture 40.8 million Americans are recipients of “supplemental nutrition assistance.” Subsidies for food purchases jumped 19 percent from a year earlier and increased 0.9 percent from April. Participation has set records for 18 straight months. Well, there’s an economy in recovery! I think a little perspective is in order.

Suppose we created a new country out of every recipient of government food assistance programs in the US and named it The Stiglitzian Commonwealth of Krugmania. This new Commonwealth would be tied with Kenya as the 32nd most populous country. It would have more citizens than (in no order) Argentina, Sudan, Poland, Iraq, Venezuela, and Malaysia, just to name a few. It would have twice or more as many citizens as Chile, Niger, Netherlands, Cameroon, Angola, Cambodia, and Kazakhstan just to name a handful of the more than 160 countries which would fall into this category. But what about America’s Neighbor-to-the North? The United States has 6.5 million more people relying on food stamps than Canada has people period. My first instinct is to call that hilarious, but as that comparison sinks in, it’s rather revolting. This must be the economic recovery I kept hearing about.

Don’t despair, people. Let’s not forget the silver lining I launched this post with: we may just have discovered a government program which achieves its stated goals. That’s something, I guess.

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Greedy Businessman Does More For Environment Than Environmentalists

(Austrian) Economics, Business, Environment, Technology
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Over at Forbes.com, Reihan Salam had something rather unexpected but very welcome to say about the CEO of a major corporation:

That the success of the Kindle is good news for Amazon should go without saying. But it represents a remarkable environmental advance as well. The publishing industry in the U.S. felled roughly 125 million trees and generated vast amounts of wastewater. And, of course, physical books have to be transported by trucks, which generate carbon emissions, exacerbate congestion, increase traffic fatalities and cause wear-and-tear on already overburdened roads. One assumes that Bezos didn’t have the environment foremost in mind when he pushed the Kindle concept forward, yet he’s arguably done more to fight climate change by threatening hardcovers and paperbacks with extinction than any number of environmental activists.

Salam goes on to argue that Amazon will ‘win the internet’ through the Kindle and its rapidly growing ebook sales. I don’t know about that. What does it mean to ‘win the internet’? He only considers Facebook as a rival. What about Google? Android and ChromeOS are poised to dominate the mobile phone and tablet pc markets, putting Google into direct competition with the Kindle. Then there’s Google Search, Books, Voice, Gmail, Docs, Maps, Chrome browser, TV, and so on and so forth.

But bravo to Salam for daring to recognize in public the (probably unintended) positive environmental externalities of business decisions and technological innovation driven by profit-seeking amidst market competition — indeed, for daring to rank them on par with or above that of ‘altruistic’ environmental activists.

Cross-posted at Is-Ought GAP.

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California Gay Marriage Law Overturned: What Should Libertarians Think?

Legal System, Victimless Crimes
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According to breaking news, a federal district court has overturned Proposition 8, a ballot proposition that amended the California Constitution to prohibit same-sex marriage. Prop. 8 was meant to overturn the California Supreme Court’s ruling in In re Marriage Cases that same-sex couples have a constitutional right to marry. (Although none of the numerous reports I’ve seen note the name of the case, it is Perry v. Schwarzenegger; PDF.)

Gay rights advocates filed lawsuits to have the constitutional amendment declared unconstitutional. I predicted they would lose. First, they could not prevail on state constitutional grounds since Prop. 8 actually amended the California Constitution. You can’t argue a provision of the constitution is unconstitutional. So the question is whether this provision of the California Constitution violates the Fourteenth Amendment of the U.S. Constitution (see my The Libertarian Case Against the Fourteenth Amendment). In my view, it clearly does not; any argument that such a law violates equal protection is ludicrous–there is no way the equal protection clause at the time of the ratification of the Fourteenth Amendment (1868) was understood to be so broad as to prohibit state laws that treated same-sex unions differently than traditional, heterosexual ones. As for due process–this was a validly enacted constitutional amendment, following regular legal procedures. So it was not a violation of due process (as for the doctrine of “substantive due process“–well this is a ridiculous, obviously dishonest, invented concept; process is, um, procedural).

And yet the federal court has found a way to get its result, by twisting the law to fit its ruling–like the Supreme Court did in Bush v. Gore, with its absurd application of equal protection.

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