Tracing consequences both seen and unseen.
David M. BrownWhat if there were deficit thinking, thinking deficit, on a desert island?
Posted at 1:43 am on August 9, 2011, by David M. Brown

Let’s attempt the program of “economic stimulus” on a desert island. Five persons have survived the shipwreck. Joe is good at gathering berries and reeds, and dressing wounds; Al is good at fishing, hunting and basket-weaving; Bob is good at making huts and gourd-bowls; and Sam, who wants to spend all his time sharpening sticks, and who regards any other kind of employment as beneath him, cannot produce a tool of any usefulness.

Let more and more of the resources that would have been exchanged in life-fostering and productivity-fostering trade between Joe, Al and Bob be confiscated by a fifth person, the king (who happens to have the only gun, a Kalashnikov that he grabbed from the ship before it crashed; elsewise no one would listen to him). And let this confiscated wealth (after a suitably large finder’s fee for the king has been deducted) be given to Sam to subsidize his slow and pointless blunt-stick production, since it would allegedly be unacceptable for Sam to have to accept alms in accordance with the sympathies and judgments of his fellows. And let the king perpetually demand more and more “revenue” to distribute and perpetually bray that criticism of his taxing and spending policies by “economic terrorists” is undermining confidence in the island’s economy.

What are the effects of this confiscatory and redistributive process on the prospects for the islanders’ survival? Discuss.

[Cross-posted to Davidmbrowndotcom.]


Filed under: Culture, Economic Theory, Efficiency, Finance, Food Policy, Gains From Trade, Government Spending, Health Care, Labor, Law Enforcement, Local Government, Market Efficiency, Nanny State, Philosophy, Politics, Property Rights, Taxes, Trade, Unintended Consequences
Comments: None
 

John W. PayneWhat’s the Biggest Problem for Blacks in America?
Posted at 1:37 am on January 4, 2011, by John W. Payne

Linguist John McWhorter argues that it’s the drug war, and I’m inclined to agree:

…[W]ith no War on Drugs there would be, within one generation, no “black problem” in the United States. Poverty in general, yes. An education problem in general—probably. But the idea that black America had a particular crisis would rapidly become history, requiring explanation to young people. The end of the War on Drugs is, in fact, what all people genuinely concerned with black uplift should be focused on, which is why I am devoting my last TNR post of 2010 to the issue. The black malaise in the U.S. is currently like a card house; the Drug War is a single card which, if pulled out, would collapse the whole thing.

That is neither an exaggeration nor an oversimplification. It comes down to this: If there were no way to sell drugs on the street at a markup, then young black men who drift into this route would instead have to get legal work. They would. Those insisting that they would not have about as much faith in human persistence and ingenuity as those who thought women past their five-year welfare cap would wind up freezing on sidewalk grates.

There would be a new black community in which all able-bodied men had legal work even in less well-off communities—i.e. what even poor black America was like before the ’70s; this is no fantasy. Those who say that this could only happen with low-skill factory jobs available a bus ride away from all black neighborhoods would be, again, wrong. That explanation for black poverty is full of holes. Too many people of all colors of modest education manage to get by without taking a time machine to the 1940s, and after the War on Drugs black men would be no exception.

And in this new black community, young black men, much less likely to wind up in prison cells or caskets, would be a constant presence—and thus stay in the lives of their children. The black male community would no longer include a massive segment of underskilled, drug-addicted ex-cons churning in and out by the thousands year after year, and thus black boys growing up in these communities would not see this life as a norm. They would grow up to get jobs, period.

And something else these boys would not grow up with is a bone-deep sense of the police—and thus whites—as an enemy. Because there would be no reason for the police to prowl through his neighborhood.

That’s from McWhorter’s latest piece in The New Republic, and the whole thing is well worth reading. It should come as little surprise that policies created and implemented as a cudgel against minorities have disproportionately harmed them, and it’s long overdue that Americans admit to themselves that the drug war has never been about public health or safety but about persecuting cultural groups that middle class whites didn’t care for.

Cross-posted at Rough Ol’ Boy.


Filed under: Drug Policy, Law Enforcement, Nanny State
Comments: None
 

John W. PayneAll Your Property Are Belong to Us
Posted at 1:31 pm on November 17, 2010, by John W. Payne

The Drug Enforcement Agency (DEA) and the Missouri Highway Patrol are attempting to seize a large tract of land in central Missouri known as Camp Zoe. The land is owned by Jimmy Tebeau, front man for The Schwag, the band that gives name to the Schwagstock festivals held on the property several times a year. The DEA and highway patrol allege that Tebeau knowingly allowed people to sell drugs on the property, but Tebeau has not been charged with any crime. Such charges are not necessary, however, because under the rules of civil asset forfeiture, it is the property — not the person, who has all sorts of troublesome rights — that is charged with the crime.

This procedure is rooted in medieval superstition — essentially, people believed that property used to commit a crime was haunted — and it biases the outcome in the government’s favor in a number of ways. First and foremost, in a civil case the government can win with a preponderance of the evidence as opposed to the much higher burden of a reasonable doubt necessary to convict a person of a crime. Also, because there is no person on trial, the owner has no Fifth Amendment right against self-incrimination, and anything he says could be used later if criminal charges are ever brought.

Under Missouri state law, this seizure would be impossible because Missouri requires the owner to be convicted of a related felony before the property can be forfeited to the state. The feds are involved, though, so that minor detail becomes unnecessary. The Missouri Highway Patrol also stands to profit handsomely from pursuing forfeiture at the federal level instead of the state level, should they be successful. That’s because under the rules of equitable sharing, the federal agency will kick back up to 80 percent of the proceeds from the forfeiture, which — assuming Zoe sold at its $600,000 assessed value — would give the highway patrol up to $480,000. Property forfeited through Missouri state law must be given to a state fund for school construction in order to eliminate any incentive for police to enrich themselves by confiscating property, but the federal government has given them an easy way of working around the obvious intent of state forfeiture reforms.

The police allege that Tebeau knowingly allowed people to sell drugs at Camp Zoe. That’s a difficult allegation to prove, because unless they have proof that he was involved in dealing drugs — which seems doubtful, considering the lack of a criminal charge — it would require knowing his mental states. However, according to the official statements of the DEA and the Highway Patrol, the law enforcement agents deliberately allowed and contributed to the sale of drugs on the property. This highlights a contradiction in law enforcement goals caused by asset forfeiture. It seems that the police were pursuing the property instead of trying to prevent crimes. Undercover agents buying drugs could have arrested any dealers that sold to them on the property and made a show of it to deter other people from doing the same, but instead they chose to pursue a forfeiture case, in which they stand to gain over half a million dollars, by allowing people to sell drugs for four years.

Finally, I wonder how much property the feds could seize under the rationale that drugs are sold there by visitors. I think we can safely include every venue ever played by the Grateful Dead, Widespread Panic, the Flaming Lips, Government Mule, Phish, and Moe, among others. Furthermore, even land already owned by the federal government would not seem to be immune. Rainbow gatherings are held regularly on national forest land, and the Black Rock Desert where Burning Man is held is federal property. I don’t think anyone can credibly claim that the government doesn’t know what sorts of illicit activities can occur at these events. Simply put, if these are the legal standards, massive amounts of private property are subject to seizure anytime the DEA, or another federal regulatory agency, decides to investigate.

(Headline reference here for any of you who don’t remember the early 2000s.)


Filed under: Drug Policy, Law Enforcement, Property Rights
Comments: 4 Comments
 

Henry Hazlitt"[T]he whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
Henry Hazlitt, Economics in One Lesson
Search

Categories

Blogroll

Syndication

Contributors

Archives

Recent Entries