Posts tagged with: government subsidies

Blog author: aknot
posted by on Thursday, July 5, 2012

Because there’s nothing sweet about it.

As the 2012 Farm Bill moves through Capitol Hill, the policy debates are ramping up. The bill, projected to seriously cut the deficit, has garnered bipartisan support thus far, but will likely meet more resistance in the House. Whether or not the 2012 Farm Bill will cut its projected $23 billion dollars is subjective. Fluctuating crop prices and the extent to which the weather cooperates (pray for rain) will determine that. What is certain, however, is that under the the proposed legislation, Americans will continue to pay too much for sugar. As it stands now, the bill keeps the existing sugar program entirely intact. This benefits the 61,000 Americans employed in the sugar industry and works to the detriment of taxpayers, sugar farmers in the developing world, and the 988,000 U.S. employees in industries that rely on sugar.

U.S. sugar policy, touched on in PowerBlogger John MacDhubain’s Tuesday post and Tad DeHaven’s Cato post from June, is essentially mercantilism and a prime example of regulation getting in the way of economic progress. On average, taxpayers spend $2.4 billion annually on sugar to raise $1.4 billion for American sugar producers.

What’s more, these government-mandated favors naturally come at the expense of others. Think of the sugar farmer in the developing world, whose access to economic liberty is severely limited by the U.S. government’s policy of price supports, trade restrictions, and domestic quotas. Then consider the American jobs lost when, about a decade ago, Life Savers moved a plant from Holland, Michigan across the border into Canada. The move cost Americans hundreds of jobs while saving the candy company $90 million. The Coalition for Sugar Reform estimates that for every American sugar growing job saved by the policy, three more are lost.

Fiscal policies cannot avoid moral consequences. Job loss and the stifling of economic development are moral issues just as much as they are fiscal or political. The way forward demands new policies rooted and sound economic and moral thinking. Presently, American sugar policy is not only fiscally inefficient, it’s morally bankrupt. And there’s the bad jokes.

Published today in Acton News & Commentary. Sign up for the free weekly email newsletter from the Acton Institute here.

Juan Williams’ Firing Might Produce Desired Results

By Bruce Edward Walker

It was a tough few days last week in Radio Wobegone. And it promises to get tougher in the days, weeks and months ahead. The base of operations for Prairie Home Companion and Car Talk is in serious hot water.

National Public Radio dismissed newsman Juan Williams for an on-air discussion he conducted with Fox News host Bill O’Reilly in which Williams confessed discomfort when observing fellow airline passengers dressed in Muslim garb. Although the conversation occurred on another network, NPR’s reaction was swift: Williams was fired, and a hailstorm ensued.

Imagine if HBO’s Bill Maher had made a similar confession: That, as an atheist, he was disturbed to see Lake Wobegone’s Pastor Inkfist boarding a plane, wearing Lutheran clerical garb. Oh, wait, Maher takes potshots at clergy, church and religion, in general, whenever his lips are moving. True, the ABC Network fired Maher shortly after 9/11 – but his remarks were far more egregiously offensive than Williams’.

Perhaps an unfair analogy, since Maher is ostensibly a comic and Williams a newsman, but it does present a comparative basis on how thin-skinned and politically correct the suits at NPR have become. When it serves their purposes, that is.

You see, I don’t believe Williams’ comments caused his firing. His words only granted cover for his firing, a move long-desired by NPR’s leadership in light of Williams’ too-often straying from the leftwing party line. Whatever the reason, it is NPR’s method that is especially deplorable. One would be more inclined to understand the executives’ decision if only they would have considered their actions in relation to the dignity that their employees deserve. Pope Leo XIII, writing in his 1891 encyclical Rerum Novarum, provided a perfect vaccine against NPR’s current public relations debacle.

Leo wrote: “Should it happen that either a master or a workman believes himself injured, nothing would be more desirable than that a committee should be appointed, composed of reliable and capable members of the association, whose duty would be, conformably with the rules of the association, to settle the dispute.” In other words, Leo called for employers to demonstrate a basic level of respect for the people who comprise their company. Dismissing Williams out-of-hand without following such simple advice has left NPR open for legitimate negative criticism.

It has also raised the issue of cutting government subsidies for the entire Corporation for Public Broadcasting enterprise. And it’s about time. Although relatively miniscule compared to other government-financed boondoggles, NPR should be allowed to sink or swim based on its own merits in the marketplace. Massive public fundraisers as well as corporate donations and sponsors foot the majority of NPR’s bills already. Liberal fat cat George Soros recently bequeathed $1.8 million of his personal fortune to NPR for the hiring of state-based reporters.

Indeed, NPR’s existence as a government-funded entity is an affront not only to secular free-market principles, but to Judeo-Christian views on subsidiarity as well. Succinctly stated, providing public monies to a direct competitor of private industry is morally wrong.

Williams, fortunately, was able to land on his feet. Fox News Network hired the revered analyst in the wake of his firing. NPR, however, may not be so lucky.

NPR’s hubris may yet be its undoing as a freeloader on the public dole. We can only hope.

From an Aug. 26 Christian Post story. (HT: Mirror of Justice):

More than 100 religious organizations are urging members of Congress to reject pending legislation that would prohibit them from considering religion when hiring.

A letter – endorsed by such groups as World Vision, Association of Gospel Rescue Missions, U.S. conference of Catholic Bishops, and Union of Orthodox Jewish Congregations of America – was delivered Wednesday.

“The law has long protected the religious freedom of both the people who receive government-funded services, and the groups that provide the services – long before President Obama, and long before President Bush,” said Anthony R. Picarello Jr., general counsel of USCCB, in a statement. “Stripping away the religious hiring rights of religious service providers violates the principle of religious freedom, and represents bad practice in the delivery of social services.”

The groups are protesting a provision in HR 5466 – a bill introduce in the House in May that would reauthorize federal substance abuse treatment funding that is administered by the Substance Abuse and Mental Health Services Administration.

Sponsored by Rep. Patrick Kennedy (D-RI), the bill includes language banning faith-based groups from receiving federal funds if they consider religion in their hiring process.

Blog author: dphelps
posted by on Tuesday, May 16, 2006
Sir Bob, Free Trader?

The May 16 Independent is guest-edited by the ubiquitous Bono and sports the RED brand–another Bono project where a share of the profits from the mag will be donated to fighting AIDS and poverty in Africa. (Other companies with RED brands include Converse, American Express, Armani, and GAP.) See the issue for yourself (where you will find a critique of subsidies, as well as Nelson Mandela giving props to RED as well as an interview with commedian Eddie Izzard–two men who much too rarely share a marquee).

What is of special interest to PowerBloggers is the article by Bob Geldof, founder of Live8, titled: Aid isn’t the answer. Africa must be allowed to trade its way out of poverty. This is the same Bob Geldof who has been lobbying for huge aid packages for twenty years, the same Bob Geldof who said “We must do something, even if it doesn’t work.” It quite something that this same fella who wrote the following:

In a time of weak world leadership, when the WTO negotiators are failing so miserably, let us remind their bosses – Bush, Chirac, Merkel et al – that we agree with them when they argue that, long term, “aid isn’t the answer”, and that the continent of Africa and its people must trade its way into the global market and sit where it rightfully belongs, negotiating as equals with the rest of us.

As always, I have no interest in questioning the intentions of Bob and Co.–I think they are the noblest of intentions, and I think more people ought to share their zeal for the poor. But could this admission that long term aid isn’t the answer mean that projects like the ONE Campaign are losing their luster? Or are people realizing that governments can’t solve poverty, but maybe the corrective is individual charity and free trade amongst free peoples?

And it is also worth noting that the cover art for the mag includes “Gen. 1:27″–I will save you the trouble of looking it up: “God created man in his own image; in the divine image he created them; male and female he created them.” I am curious how far Bono has parsed out the implications of this statement, as this verse lays the foundation for many of Acton’s economic arguments (for example, see here).

Blog author: dphelps
posted by on Tuesday, February 28, 2006
Bono and Sachs: Does The Edge feel left out?

Although I am a year behind here, I have just started reading Jeffrey Sachs’s The End of Poverty: Economic Possibilities for Our Time, paperback just released by Penguin (with a foreword by Bono!). I’ll avoid the urge to comment on everything that strikes me this or that way in the book–and I most certainly am not going to try to go head to head with Sachs on economic matters. But, being a student of language, I would like to point out a subtlety some might consider benign, but I suspect is of relevance. It exists in the following passage from the Preface to the Paperback Edition: (more…)

Blog author: jrichards
posted by on Friday, January 27, 2006

The abstract arguments for economic freedom are great for those of us who, well, like abstract arguments. But sometimes, there’s no substitute for some good, solid empirical data. That’s just what economist Richard Rahn delivers in this article in the Washington Times. If you don’t have time to read the 2006 Heritage Foundation/Wall Street Journal “Index of Economic Freedom,” at least read Rahn’s summary of it.

He starts:

Suppose you were appointed global economic czar, and your task was to bring the world’s per capita income up to the level of Ireland’s (almost that of the U.S.). Would you:

(A) Insist the world’s rich nations transfer substantial wealth though massive foreign aid to the poor nations?

(B) Insist all nations adopt policies that would make them as economically free as the top 10 freest economies today?

If you answered “B,” go to the head of the class. This shows you have a good understanding of both history and economic reality about what works and what doesn’t.

If you answered “A,” welcome to the Kofi Annan, Jacques Chirac, Gerhard Schroeder school of willful economic ignorance.

Strong assertions. Fortunately, the statistics that follow not only illustrate the connection between economic freedom and prosperity, but also the lack of connection between receiving foreign aid and prosperity. This is one of those statistics-packed articles that I would love to memorize, if I was any good at memorizing statistics.

Blog author: jcouretas
posted by on Friday, January 20, 2006
Subsidize this!

Richard Burr has an excellent commentary in the Weekly Standard on the growing — and for some reasons puzzling — popularity of hybrid vehicles. Puzzling because these things don’t get the promised gains in fuel economy and don’t seem to work very well.

Imagine buying a Chevy Impala or a Toyota Camry and being told that you can’t run the air conditioner on high. Or you need lessons from the dealer on how to brake the vehicle in order to recharge the battery more efficiently. No, you couldn’t imagine that.

Burr, who is associate editor of the Detroit News editorial page, points out that the hybrid owner is really making a statement about his or her environmental sensitivity. What’s more, the government is subsidizing these manifestoes on wheels.

Hybrids have become the environmental equivalent of driving an Escalade or Mustang. Who cares if they deliver on their promises as long as they make a social statement? Taxpayers should. The federal government subsidizes hybrid fashion statements with tax breaks that benefit the rich. The average household income of a Civic hybrid owner ranges between $65,000 to $85,000 a year; it’s more than $100,000 for the owner of an Accord. The median income of a Toyota Prius owner is $92,000; for a Highlander SUV owner $121,000; and for a luxury Lexus SUV owner it’s over $200,000.

If the government wants to subsidize automobile purchases, may I suggest it add the 2006 Camaro Concept just introduced at the Detroit Auto Show to its list of favored vehicles? It has a 400 horsepower engine with cyclinder deactivation technology that, General Motors says, gets 30 mph on the highway. A nice little government subsidy might persuade GM to put this gorgeous car into mass production all the sooner.