Category: regulation

Where Does Senator Josh Hawley Stand?

Upon what basis should we make our decisions to do or not do something? Upon what basis should the government take the right to make decisions for us? The quality of our individual choices depends on the values and principles that guild us. These profoundly influence the quality of our lives in our given or chosen societies.  I have discussed this issue before:  “The great divide-who decides” 

The issue of Covid-19 vaccination mandates and related issues are currently providing vivid and noisy examples of these questions. A few of my reactionary libertarian friends (in contrast with more thoughtful libertarians) insist that it is their right to decide whether to get vaccinated or not. Perhaps, but it is not their right to knowingly infect others (the freedom to swing my fist ends at your face). Specifically, the unvaccinated do not have the right to be where they are not wanted or permitted by private establishments. Businesses (restaurants, theaters, sports events, etc.) should have the right to determine who they serve (subject to the sometimes problematic limitations imposed by the 1964 Civil Rights Act Virtually all such businesses wisely go out of their way to reassure potential customers that they are save places to visit. This generally takes the form of mandating that their employees and customers are vaccinated for Covid. In my opinion the government, in addition to collecting and disseminating the best possible information on Covid risks and how to minimize them, should protect the freedom of businesses to make Covid policies they consider appropriate to their own business and should mandate that all of the government’s own employees be vaccinated. Only specific health issues should qualify for potential exemption. Religious and other beliefs should not.

Sports, and the Beijing Winter Olympics in particular, also raise the issue of who decides to participate in the face of serious Chinese human rights violations. I generally think that sporting competitions should not be influenced by politics. So, should athletes participate in the upcoming winter Olympics and who should decide?

In his December 9 column in the Washington Post Josh Rogin makes a strong case for each of us to speak out against violations of our principles: “Enes Kanter Freedom takes bold stance on China” “’We must always take sides,’ Holocaust survivor Elie Wiesel said while accepting the Nobel Peace Prize in 1986. ‘Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Sometimes we must interfere.’”

President Biden recently declared a diplomatic boycott of the China games, meaning that the U.S. government will have no representatives there, though the American Olympic teams and individual athletes are free to make their own decisions. The Economist reported that “France will not join the partial boycott that America, Australia, Britain and Canada are calling against the Beijing Winter Olympics in protest at China’s treatment of its Uyghur minority and of Peng Shuai, a tennis star. President Emmanuel Macron complained that the Anglophone countries’ merely withholding diplomatic representation—while their athletes compete—is not an effective way to alter China’s objectionable policies.” “The Economist Morning Brief”

“Sen. Josh Hawley, R-Mo., [also] ridiculed the Biden move, echoing Hagerty’s claim that the diplomatic boycott did not go far enough.  ‘A diplomatic boycott of the Beijing Olympics is a joke,’ Hawley told the Daily Caller Monday. ‘China doesn’t care if Biden and his team show up. They want our athletes.’”  In short, Hawley wants a presidential mandate forbidding participation of American athletes in the Beijing Winter games. “Republicans blast Biden apos diplomatic”

On the other hand, Sen. Hawley opposes President Biden’s proposed mandate that every eligible person must receive an approved Covid-19 vaccination.  “Senator Hawley-Biden vaccine mandate shows contempt for religious liberty”  In this area the good Senator puts “choice” over “life.”  With regard to abortion Senator Hawley sides with “life” over “choice.”

“U.S. Senator Josh Hawley (R-Mo.) issued a statement in support of Missourians who traveled to Washington, D.C., today to participate in the 46th Annual March for Life. The group of nearly 3,000 Missourians represented all ages, from high schoolers to retirees and came from all over the state including Cape Girardeau, Jefferson City, Kansas City, Sedalia and St. Louis.

“’It’s incredible to see people of all ages and backgrounds, from Missouri and across the country, who have made the trek to our nation’s capital to speak their hearts, their minds, their faith – to tell their elected leaders that this nation was founded on the dignity of every person and that every life is worth fighting for,’ said Senator Hawley. ‘I am proud to stand for the right to life. Always.’”

“Senator Hawley commends missourians participating in march for life”

Where is Senator Hawley coming from and where is he going?  Regarding health and vaccination against Covid-19, Hawley is “pro choice” rather than “pro life.” Regarding the abortion of non-viable fetuses, Hawley is pro (potential) life rather than pro choice.  What are the principles guiding when he is one and when he is the other (beyond political expediency)? When should government mandate our choices and when not?

Which is it for gas prices?

“President Biden on Wednesday called on the Federal Trade Commission to launch an investigation into oil and gas companies, alleging that their “anti-consumer” behavior has led to higher gas prices…. ‘The bottom line is this: gasoline prices at the pump remain high, even though oil and gas companies’ costs are declining,’ Biden wrote in a letter to FTC Chair Lina Khan.” “Biden-FTC-gas-prices–Washington Post”

On the other hand, the Whitehouse website states:

“The United States has set a goal to reach 100 percent carbon pollution-free electricity by 2035,… America’s 2030 target picks up the pace of emissions reductions in the United States, compared to historical levels, while supporting President Biden’s existing goals to create a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050.”  Whitehouse fact sheet: President Biden sets 2030 greenhouse gas pollution reduction target

Which is it?  Does Biden intend to replace oil and gasoline (and coal) with carbon free energy, which would increase oil and gas prices (ultimately to infinity), or does he want to keep oil and gas prices low?

A market approach to phasing out petroleum products would be to increase their cost via a carbon tax–an approach that I support.

Social media and false information

America is suffering from the wide dissemination of misinformation.  The advent of social media on the Internet, such as Facebook, has introduced new means for the rapid and widespread dissemination of potentially deadly lies. Most of us retweeting or “sharing” lies believe them to be true. The motives of those who invent them are another matter.

Determining what information to trust has always been a bit of a challenge but social media has certainly upped the game. “What to do with social media”   “New tools require new rules”

A great deal of attention has focused on Facebook. What should it do to protect us from misinformation and who should set the rules? Facebook is a private platform on which we post our thoughts and pictures or repost information supplied by others. It does not provide content of its own. Facebook’s business model is to attract as many users/viewers as possible and to keep them happy in order to connect them with advertisers selling products that might interest them.

Some have claimed that the Facebook “like” button and other reaction indicators has enabled Facebook to direct posts that are liked or that create a strong reaction to the reacting users, thus creating echo chambers (bubbles) in which people increasingly only hear what they already agree with. If they are viewing misinformation, it risks going unchallenged.   “Must Read on Facebook”  

Without delving (again) into how well or poorly Facebook is doing its job of bringing useful information to its users, I want to address (again) the question of who should be responsible for rejecting and filtering out false information. “Facebook covid misinformation” 

Should it be the government (the Xi, Putin model only with Trump or Biden at the helm), social media themselves (the charming Mark Zuckerberg), or its users (us)?

Anyone who has read more than one of my blogs knows where I stand. America’s greatness derives from the fact that sovereignty in America resides in each individual (us) and we delegate rule making upward (to our family and friends, then our clubs and villages, then our cities and states, then to the Federal government, and finally, on a very limited basis, to the world community) as needed to protect ourselves and our property and to facilitate cooperation and commerce among us. In short, while Facebook and other social media platforms should continue to work at improving their game, the choice of what to believe should rest with each of us.

We should learn from our parents and schools how best to evaluate information and where to look for trustworthy information. The success of American democracy will depend, in part, on how well we each perform this duty. I recommend that you start with the new book by Jonathan Rauch: The Constitution of Knowledge: a defense of truth.  “Trust”

Who is to blame?

Did you know that the first Covid-19 vaccine shot reduces your body’s ability to produce white blood cells by 50% and the second shot reduces it by an additional 25%? For good measure these shots contain poisonous ingredients as well.  Did you know that “former” President Trump actually won the 2020 election? Or that former President Donald Trump’s grandfather was, “a pimp and tax evader,” and that his father was a member of the KKK. Or that Rep. Alexandria Ocasio-Cortez proposed a ban on motorcycles, and that House speaker Nancy Pelosi was diverting Social Security funding for the Trump impeachment inquiry. None of these claims are true but they were viewed and often believed by millions of Americans, often on Facebook.

Granted that it is often hard to know who or what to believe, many of these claims don’t pass the laugh test (though they are rarely funny). A debate is now underway in the U.S. over whether social media should do more to weed out such lies. (“What to do with social media”) While the best answer to this dilemma probably requires balancing several approaches, I want to focus on our own responsibility vs the government’s to sort out the “truth”. To what extent should we rely on protection by government (forgive me for referring to it as “Big Brother”) or on our own efforts to identify reliable (trusted) sources of information (“Trust”) and to develop the capacity to spot obvious or likely lies.  Where do we want the dividing line between what we do for ourselves and what we want the government to do for us?

Over the years I have defended free speech as the best way to challenge bad ideas. “Do we really need free speech”  So naturally I resist giving the government much of a roll in protecting us from offensive, or “wrong” speech. Controversies over vaccines, facemasks, climate change, oil pipelines, etc. often involve serious claims on each side that are best tested in open debate.  In my view, Facebook and other social media platforms should be free to set their own rules and standards for posts. According to The Economist “Nick Clegg, Facebook’s vice-president of policy and global affairs,… pointed out that last year the company removed 30m posts that violated its policies on terrorism and 19m posts that crossed company lines for inciting hatred.” “Facebook flounders in the court of public opinion” Their users can decide whether they agree or disagree with these rules and either stay or opt out of the social platform.

But we have an interest in and responsibility to evaluate the many claims that come our way. We can do a better job of providing our children with the tools for spotting fake or potentially fake information. Along with civics and home economics (how to cook etc.) that are (or should be) taught in high school, students should be taught how to spot and challenge highly improbably statements.

For example, it does not require any medical knowledge at all to spot the vaccine video referred to above as a fake. The medical “expert” who presents her shocking claims is anonymous, as are her credentials and medical affiliations. The vaccine she reports on and claims will kill 20 to 30% of those who take it is unnamed. All the animals it was tested on died, she said. While many of us have lost confidence in the veracity of the information provided by the Food and Drug Administration and the Center for Disease Control (drugs might be approved too slowly or too quickly, etc.) none of us would (or at least should) believe that they would approve a vaccine with the properties alleged in the video.

I have seen much better produced videos the were totally fabricated stories for reasons I find hard to understand (we shouldn’t blame Russia for everything). One very well done and potentially convincing video claimed that no plane actually crashed into the Pentagon on 9/11. Any sensible person should have doubts about claims that are so directly contradicted by pictures and reports to the contrary. But I must admit that my rejection of its big lie was fortified by the fact that at that time I lived next to the Pentagon and saw the damage to the building, and I witnessed the wreckage of the plane laid out for months in the Pentagon parking lot. I also knew a woman who died in that plane.

More could be done by social media platforms to flag potential misinformation, but it should not be censored by the government. We should strengthen our personal capacity to evaluate propaganda but most importantly we need to carefully establish news sources that we trust. Knowing that the Facebooks of the world feed us what they think we like, thus creating an information bubble, we should make the effort to check other sources for their views. We have not flourished as a nation because we turned over our care to the government even if it must provide a critical foundation for our security and interactions. 

Our Right to be Free

Our country was founded and has prospered on the proposition “that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” We jealously guard our individual liberty. We are free to decide what we want to do and how we want to do it. This liberty is subject to two major conditions: we must live with the consequences of our choices and actions, and our actions cannot interfere with the same exercise of freedom by others. We never fully live up to these high principles, but they do define the goals we continue to and should continue to aim for.

When our actions or circumstance fail to sustain us, we do step in to help those in distress, whether from family obligations or friendships or a government administered social safety net. We continue to debate and refine its features.

Determining the boundary between those actions I am free to choose, and those that unacceptably affect others is not always easy. Walking in public naked is not acceptable in most societies (except at designated nude beaches). While this would not infringe on the freedom of others to behave as they want, it would “force” them to see something they do not want to see.

I chose this example because it does not fall neatly into something purely private that I have a right to do (walking around my home naked) or something clearly and obviously damaging to others that I do not have a right to do (driving my car through my neighbor’s garden).  In the realm of social norms, I can walk in public dressed in many ways depending on the society I am in.  A man might freely walk around in a dress (if he chooses the neighborhood carefully) without getting knocked down in some societies but not in others. Such social norms are important in defining and guiding acceptable public behavior and they vary across societies and over time. Such norms are continuously debated.

But clearly my freedom to swing my fist ends where your face begins. If you are infected with a contagious disease, you do not have the freedom to walk around potentially infecting others even in the most libertarian of societies (e.g., lower Manhattan). I assume that anyone sick with Covid-19 knows that she must isolate/quarantine herself.

But what about someone who doesn’t feel sick but hasn’t been vaccinated?

Any establishment has the right to require that only vaccinated people work or shop there and/or wear face masks. And I certainly have the right to attend only those performances or eat in those restaurants that impose these requirements. These are implications of freedom.

Surely everyone understands and accepts these propositions.  So why is there such controversy over wearing masks and getting vaccinated? I don’t know the answer to this question but will suggest a few factors that I think are important. That such health issues have become so politicized is almost more distressing than the fact that in the United States 728,000 people have died from Covid-19 by October 10, 2021.

One reason is that some people are pushing back on being told what to do by the government. Such behavior is common in freedom loving children but rather unseemly in adults. Another is that vaccines were developed with miraculous speed and their effectiveness and potential side effects are not yet fully known. None the less the evidence is overwhelming that being vaccinated significantly increases your prospects of living and surviving the infection compared to those who are unvaccinated. Another is that during the Trump administration medical policy and advice became quite politicized. Many of us, often with good reason, stopped trusting the messages from the CDC and FDA. And to this day government messaging remains poor. Rather than offering advice based on the most recent evidence (which can change over time) and the reasons for those recommendations, government pronouncements are often confusing and sometimes sound like demands. Many of us have lost trust in the government’s pronouncements. Unfortunately, some people have put their trust in unreliable sources of information and even, in some cases, in deliberately malicious sources (and we can’t always blame Russia). 

Where our choices and actions affect only ourselves, we should be free to do as we like and benefit (or suffer) from the outcome. Where our actions affect others, more or less directly, social norms and government rules should limit our choices. In societies where its citizens live by the golden rule and respect these norms, beneficial behavior is followed voluntarily — enforcement is not a serious problem.  We must determine the sources of information that we trust carefully and based on such information we must treat our neighbors with the respect we expect from them.

Protecting our freedom is critical but it is not enough. We must also exercise it virtuously. The “fusion” of freedom and virtue has been (most of the time) the basis of American success. We seem at risk of losing both. Get vaccinated now for everyone’s benefit. Please.

Chinese and U.S. Models

Many aspects of our respective societies and governments follow different rules and approaches to organizing our communities. We presumably prefer (most of) our choices over theirs and vice versa. In explaining why we prefer ours, we might freely criticize theirs. But we generally have no right to demand that they abandon their approach and adopt ours.

Consider China’s Social Credit System.  In the U.S. we are “well accustomed to credit checks: data brokers such as Experian trace the timely manner in which we pay our debts, giving us a score that’s used by lenders and mortgage providers. We also have social-style scores, and anyone who has shopped online with eBay has a rating on shipping times and communication, while Uber drivers and passengers both rate each other; if your score falls too far, you’re out of luck.

“China’s social credit system expands that idea to all aspects of life, judging citizens’ behaviour and trustworthiness. Caught jaywalking, don’t pay a court bill, play your music too loud on the train — you could lose certain rights, such as booking a flight or train ticket.”  “China social credit system explained”

A good Social Credit score will ease access to loans and other good things. Compared to our approach to collecting information on our likely credit worthiness, the more comprehensive and centrally organized rating is more efficient and comprehensive. But we are very aware of the Chinese Communist Party’s sensitivity to criticism and its potential (if not certainty) for abusing such extensive access to information on our personal behavior. So, we would never allow such a system.

But what about the U.S.’s strong support (and push) for AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) laws and procedures?  How do we (how can we) justify that? The U.S. requires that all financial firms collect information about their customers (KYC–Know Your Customer) that facilitates the government’s tracing payments of potentially illegally gained money and it has forced this requirement on all countries using U.S. dollars. The cost of these requirements is enormous. But why follow allegedly illegally gained money when the government can’t prove that it was illegally gained in the first place? If it could, the government should attack the illegal activity at its source. Thus, it claims, but cannot prove, that the money was illegally earned. Not only are AML requirements very expensive but the benefits (identifying criminals) are negligible and morally indefensible. “Operation Choke Point”

The issue of whether to require a so-called vaccination passport to document that the bearer has been vaccinated in order to enter facilities that require such proof, provides another example of a clash between efficiency and convenience and privacy. The pros and cons of such documentation are currently being debated in the U.S.  “vaccine passports”

My point is that each country has its own models for organizing and sharing information and for enforcing its laws.  We have every right, and should, carefully evaluate our own practices. What China chooses to do, is China’s business. Fortunately, we live here.

Eviction Moratorium

Many people who lost their jobs because of Covid are not able to pay their rent until they return to work. What should we do about it?  Most landlords will work out an arrangement for deferred rent with tenants that are otherwise trustworthy. Most overdue debts are handled this way. But a case can be made, and has been made, for temporary government assist. Where you think the money should come from to bridge the income gap tells a lot about your general attitudes toward our market economy. When renters lose their incomes and stop paying their rent, they are passing on part of that loss to their landlords.  

But landlords are people with financial needs as well.  As noted by George Will: “As of June, landlords were owed $27.5 billion in unpaid rents. Almost half of landlords, who include many minorities, own only one or two rental units. They continue paying mortgages, property taxes, insurance and utilities while the CDC requires them to house nonpaying people or risk jail. Landlords can plausibly argue that the moratorium is a “taking.”  https://www.washingtonpost.com/opinions/2021/08/04/eviction-moratorium-exacerbated-americas-institutional-disarray/

The income supplement to out of work renters can come from the general taxpayers (us) or from landlords.  Investing in real estate is one of the primary ways in which lower middle-income families build wealth and move up the ladder. They should not be the ones to bear the cost of this assistance.  The CARES Act and subsequent programs was meant to share this burden more fairly, but its disbursements seem to have been slow.  The eviction moratorium, in addition to being illegal, is immoral.

Compromise

We are a country of citizens with a range of views on how our community should guide and regulate our interactions. But we are all anchored in our commitment to our Constitution and its Bill of Rights. What is the nature of the compromises that enable us to live, work and flourish together?

Views on the proper role of government in supporting and improving our lives are dangerously widening. To simplify the discussion with stereotypes and not always appropriate labels I will characterize Republicans as more interested in individual freedom and Democrats as more interested in helping the poor. The two parties want both but there are clear differences in emphasis and approaches. “The great divide-who decides?”

Everyone wants to help families. But consider the difference in the approach of the Democrats with Bidens American Families Plan and the Republicans with Mitt Romney’s Family Security Act. Among many other benefits, Biden’s “plan will provide a government-paid family leave program for employees who need extended paid time off for family issues… will help working families by providing government-subsidized child care… [and] will provide free universal government-run preschool, which it claims will help children academically far into the future.” These would be run by the government or pursuant to detailed government regulations. “The American Families Plan will do more harm than good”

“Romney’s Family Security Act would replace the Child Tax Credit with a $3,000 yearly benefit per child — $4,200 for kids under the age of 5 — spread out in monthly installments that begin four months before a child’s due date,…” “Romney child care benefit democrats”

The overriding difference between Biden’s and Romney’s family plans is who makes the decisions about how the assistance is used. The same overriding difference can be seen in Democrat and Republican approaches to financing education. Charter schools and, even more so, tuition vouchers favored by Republicans leave the power of choice with parents rather than public school districts (government).  Democrats distrust the judgement of individual families to decide how best to use government assistance and want to impose conditions that insure (in their minds) that it is well spent.

How can these two conflicting approaches be reconciled? Each side will need to give up something to gain what is most important to them. Democrats want to help the poor. Republicans want to protect their freedom of choice. If Democrats are willing to give up their regulation and control of how their financial assistance is used (i.e., set aside their distrust of the poor’s ability to make wise decisions for themselves) and if Republicans are willing to give up their commitment to self-sufficiency that keeps the social safety net as small as possible, Democrats can gain a more generous safety net and Republicans can gain greater freedom of choice by coming together to enact a Universal Basic Income (UBI) in place of the large number of specific government controls assistance programs.  “Our social safety net”

In addition to allowing individual recipients to determine how best to use this assistance, two broad differences between a UBI and the existing approach stand out. The first is the difference in the financial incentive to work. Unemployment insurance, for example, ends when a recipient takes a job. Most welfare programs, such as food stamps, end when the recipient’s income increases beyond some minimal level. The incomes of many now helped by Covid-19 support programs will fall if and when they return to work. A UBI is paid to everyone whether they are working or not, so any extra income earned in any way adds fully to their income. There is no financial disincentive to work.

The second major difference is the lower administrative cost and greater simplicity of a UBI compared to those of the multitude of assistance programs with their qualification criteria that it would replace. Consider the administrative challenges faced when sending checks to those qualifying under the CARES Act as part of the Covid-19 assistance. Some intended recipients were missed. Some who were not meant to receive payments received them. It took time to set up the system of payments. But with UBI monthly payments are made to everyone without further question or investigation once they are enrolled in the system (most likely administered through the Social Security System).

My proposal would also replace all income taxes (personal and corporate) with a uniform consumption tax. This combination of UBI and consumption taxation would result in the financing of government that is progressive relative to income and would resolve the dilemma of how to tax companies operating globally. For more details see my earlier blog:  “Replacing Social Security with a universal basic income”

Democrats would gain more efficient and extensive help to the poor but would have to give up oversight and control over how that help is used. Republicans would increase their control over how they live, but would have to relax their insistence on self-sufficiency. This is a compromise whose time has come.

The Great Divide–Who Decides?

The American Constitution establishes a government of limited and enumerated powers to protect the property and safety of its sovereign citizens. There is a lot in that sentence so let me unpack it. Sovereignty in the United States resides in its individual citizens. We are responsible for our own lives and how to live them. But to ensure our ability to exercise our freedom in a broader community we gave up limited powers to our government, which are checked and balanced among the three branches of government (legislative, executive, and judicial). America has flourished under this arrangement of exceptional individual freedom.  “American Exceptionalism”

Our government is meant to provide the foundation and general rules for interacting with each other. It establishes the standard units of weights and measures, voltage, assignments of radio spectrum, rules of the road, etc. It defends us from aggression both foreign and domestic and administers the enforcement of contracts (courts). In short, it establishes the agreed framework in which we each take our own decisions about where to work, what to eat, and how to spend our free time within society. If we only surrender decisions (rules) that set and enforce the standards for our interactions with others, with minimal restrictions on our own behavior, our individual freedom will be maximized to our’s and our community’s benefit. America has flourished from our extensive individual freedom.

But where exactly is the optimal boundary between our individual and community choices? Views vary about the answer and the resulting policies between those of us who want small government and those who want somewhat larger government. What are the pros and cons of each? The answer, of course, will depend on the specific issue, but I want to review the question more generally.

The benefit of being free to take our own decisions about something is that it better reflects our knowledge of our particular situation and our own tastes. We don’t make such decisions in a void, of course. We draw on our own knowledge and values (taught by our parents, schools, clubs, churches, friends, etc.). Thus, our inherited and learned culture plays a critical role in the quality of our choices. Our government can help as well by promulgating information (the state of knowledge) and/or setting standards for communicating relevant information (e.g., product labeling standards). It can also add to our knowledge by financing basic research that private firms have little or no financial incentive to undertake (as opposed to applying the knowledge gained from such research to the development of marketable applications).

We also expect government (in addition to family and community organizations) to provide help when we are financially unable to because of sickness or unemployment (the social safety net). Because America is a rich country, we expect our social safety net to be relatively generous. Here is an area were views start to diverge. If we continue to have confidence in the ability of individuals to make sensible decisions, the government should help financially but not override the recipient’s freedom to choose how to use it. This is the philosophy of a Universal Basic Income.  “Replacing Social Security with a universal basic income”

At the other end of this spectrum are those who think that in many instances government employees can make wiser and better informed decisions for us than we can ourselves. Thus, instead of money we are given food stamps. Instead of school vouchers we are provided with take it or leave it neighborhood schools. Instead of health information on food products to help our individual choice, some food and other products are banned all together, etc.

The benefit of the government taking decisions for us is that individual officials (sometimes referred to as bureaucrats) can devote more time to investigating the costs and benefits of choices and thus potentially take and impose better decisions than we can ourselves. Though that might be true “in principle,” government officials are less likely to know our particular situation and tastes. In addition, the laws and regulations adopted in Congress and by government agencies are influenced more by the interests of the subjects of their regulations (e.g., Facebook) than of their customers (us). In other words, the discipline on the behavior of private firms from market competition is weaker or totally absent on regulators.

The case of the military/industrial complex is well known. Only the government can effectively defend us from potential foreign aggressors, so we are forced to live with the inefficiencies (corruption if you like) of the near monopoly that defense firms enjoy that ensures that the DOD keeps buying their products. The B-2 stealth bomber cost $2,100 million per plane. The scandalous F-35, the plane no one wants, cost US tax payers $115.5 million per plane. But the real cost to us of the military/industrial complex is the cost in lives, equipment, and reputation of our forever wars that ensure that BAE Systems, Bell Helicopter, Boeing, Lockheed Martin, Northrop Grumman, Pratt and Whitney and a few others, keep receiving billions of tax dollars every year.

Another example of government vs individual decision making is provided by the Centers for Disease Control and Prevention (CDC) and the US Food and Drug Administration (FDA). We look to the CDC for the best scientific guidance on protecting ourselves from disease, such as Covid-19 and to the FDA to approve what drugs and vaccines we are allowed to have. During the past year the “scientific” information provided by the CDC was polluted by ill-informed political messages. Public confidence in government information plummeted and advice became sadly political. “Covid-19-why aren’t we prepared”

The FDA initially mangled the approval of Covid-19 test kits, delaying their availability, thus undermining the detect and trace strategy. “Covid-19-what should Uncle Sam do?”  Fortunately, it then relaxed its risk averse restrictions on drug approvals to grant emergency approval of several Covid-19 vaccines. As of May 7, 111 million American’s have been fully vaccinated with these vaccines, which have proved safe and effective. Many lives have been saved as a result.

Last month the FDA reverted to its more independent, scientific form when it temporarily suspended the use of Johnson and Johnson’s Covid-19 vaccine because of very rare blood clots. On April 13, the CDC and FDA issued a joint statement reporting that “As of April 12, more than 6.8 million doses of the Johnson & Johnson (Janssen) vaccine have been administered in the U.S. CDC and FDA are reviewing data involving six reported U.S. cases of a rare and severe type of blood clot in individuals after receiving the J&J vaccine.”   “Joint CDC and FDA statement on Johnson-Johnson covid-19 vaccine”  There were more than that number of such blood clots among those who had not taken the vaccine. This measure reflects government’s usual excessive risk aversion. If they do their job right (approving drugs that are safe and effective), few people notice, but if they make a mistake (thalidomide babies), they are in big trouble. So, the incentive is to be overly cautious. During the several weeks hiatus in administering the Johnson and Johnson vaccine more people died from Covid who might have been saved if they had received the vaccination, than from the rare blood clot.  The political issue, once again, is who should decide–government officials or individuals on the basis of information provided by the government (and others). “Beating covid-19-compulsion or persuasion and guidance”

A very different example of government making decisions for us comes from our trade policy. Government imposed trade restrictions, often in the form of taxes on imports (so called tariffs), restrict our individual right to chose what we buy (or sell). While there may well be national security or other national interests that justify such interference, more often they simply reflect corruption (the financial favoring of one group or industry in exchange for votes). “Trade protection and corruption”  Former President Trump’s abuse of the national security excuse to tax Canadian steel imports provides a recent example.  “Tariff abuse”  Strangely, but no doubt for the same reasons, President Biden has not yet removed these damaging tariffs.  “Trump disastrous steel tariffs”

As a final example of our choice between government and individual decision making, consider President Biden’s American Families Plan, which provides $225 million in childcare subsidies. But rather than vouchers that can be used by families as they see fit, it finances government run childcare services. “Biden’s plan for government run childcare is exactly what most moms don’t want”  Sometimes government-run and controlled services are better than those we choose ourselves in the private sector (perhaps with government financial and/or information assistance). Not that many in my opinion. But, please let’s have a serious and informative discussion of the pros and cons of each.

Vaccine Passports

Discussions of the pros and cons of mandated lock downs to stop (or slow) the spread of Covid-19 often miss the most important point. The key factor in restraining the spread of a contagious disease (beyond vaccines, basic public health measures, etc.) is the behavior of each one of us. Given our respective risk preferences the question is whether we adjust our behavior sensibly to protect ourselves and others from infection? Our behavior may be responding to government mandates to close restaurants, theaters, and factories or it may be responding to information provided by public health experts on the nature of the risks and measures to mitigate them. In the latter case our experience and that of our neighbors will depend importantly on the quality of the information provided and our trust in its efficacy. Our individual choices allow responses that are more suited to the individual situation of each actor.  “The unnecessary fight over covid-19”

In short, if governments were to say, “do whatever you want, but these are the risks as we understand them,” people would not necessarily rush to the concert hall, or baseball game, or hop on a plane. “Sports fans live attendance poll”  Offices, factories, restaurants and entertainment venues must convince their workers and customers that they have taken reasonable steps to be safe from Covid-19 (or other risks). Thus, comparing the results (infections and economic output) of lock down with no (or mild) lock down countries is not the right test.

We need to focus attention on the quality of the information being provided to the public, the public’s trust of such information, and the efficacy of the measures being taken by those offering reasons to gather in public places to enhance its safety. Those who have had Covid-19 or who have been vaccinated for it face minimum risk of catching it (again) or of spreading it and can pretty safely attend public events. Thus, a trustworthy way of establishing that fact would be very useful. I carry my vaccine certificate wherever I go but they are relatively easy to counterfeit if it became useful to do so. Thus, the reason behind the various projects to develop so called vaccine passports (better named vaccine certificates) is obvious.

The technical design, including privacy protections, raise more issues than you might at first imagine, including establishing interoperability standards and access to public records. However, the position taken by Florida Gov. Ron DeSantis defies understanding by those of us who place our individual freedom in first place. He stated that: “We are not supporting doing any vaccine passports in the state of Florida…. It’s completely unacceptable for either the government or the private sector to impose upon you the requirement that you show proof of vaccine to just simply be able to participate in normal society.”  “Biden vaccine passports-DeSantis”  This is incredibly wrong. Restaurants now serving indoors already test our temperature before allowing us to enter. I visited my credit union in the IMF building in downtown Washington, DC today and they took my temperature as well. If gatherings are not convincingly safe, sensible people won’t attend. Countries requiring arriving passengers from other countries with a high incidence of Covid-19 infections to quarantine for two weeks would presumably wave that requirement for passengers with a credible vaccine certificate.

It is hard to imagine that the public accommodation clause of the Civil Rights Act of 1964 would require a restaurant to admit and serve a customer with a contagious disease. But there are privacy and other technical concerns with implementing a reliable certificate of a covid vaccine. “The next front in the pandemic culture wars vaccine passports” The benefits to the economy and our freedoms are significant enough to make the effort to overcome them.