Copy of Letter Sent to Reince Priebus

August 15, 2016
Mr. Reince Priebus
Chairman
Republican National Committee

 

Sir:

 

I have written this in response to your fund raising letter dated July 29, 2016. Please be aware that I changed my voter registration after Donald Trump captured the Republican Presidential nomination and hijacked what used to be known as the Party of Lincoln. I am now registered as a Libertarian. You can save some stamp money by ending the solicitation letters.

 

In addition, please note that I have also written to my Congressman, Chris Smith. First, I asked him where he stood with respect to Trump. Second, after hearing no reply to my initial query, I wrote again asking him to oppose Trump. Thus far I have not had the courtesy of a reply, notwithstanding the fact that his office has had well over 1 month to respond.

 

According to the August 9, 2016 Trentonian, Mr. Smith’s office is still not responding to queries about whether Congressman Smith supports Trump. Please note that it is highly unlikely that I will vote to re-elect Mr. Smith while he remains in hiding. And I am certainly not going to give the Republican Party a dime until such time as it is repopulated with adults.

 

Perhaps that will happen by 2020. We shall see. But in the meantime I do not wish to be associated with a bunch of lemmings as they prepare to enthusiastically hurl themselves over the cliff Trump has so thoughtlessly prepared for them.

 

Very truly yours,

 

Joseph F Benning
On Liberty Watch
www.onlibertywatch.org

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The Bidding War Begins

We are now at that point in the Presidential race where the two major combatants begin to offer payoffs to interest groups in order to buy their votes come November. But instead of payoffs, the candidates refer to “investments”. This time the primary payoff target is construction workers. The preferred payoff mechanism is infrastructure spending.

 

The Columbus Dispatch reports that Hillary Clinton plans “…to invest in infrastructure as a way to create more jobs.” She promises “…to improve schools and water systems, expand broadband access and invest in clean energy.” She will “…unleash the power of the private sector to create more jobs at higher pay.” She will “…create an infrastructure bank to collect public and private money”, which is a surefire way to create conflicts of interest and special deals for insiders, a specialty of the Clintons.

 

Not to be outdone, Donald Trump upped the ante. According to CBS News, Trump says the “… the U.S. government should exploit historically low interest rates and borrow hundreds of billions—if not trillions of dollars—to repair aging infrastructure across the country.” Trump didn’t specify how much but when asked if it could be more than the $500 billion Hillary Clinton proposed, Trump said “You’d need a lot more than that to do it right”.

 

In this he appears to be in the camp of Paul Krugman who insists that there is “an overwhelming case for more government borrowing” to invest in infrastructure, in part because interest rates are historically low.

 

Thus far none of the candidates (or Krugman for that matter) has explained why taking capital from the private sector is going to produce a net increase in wealth. That would require making the case that these (unspecified) public sector investments would be more efficient than private sector investments would be. That argument ought to test to patience of even the most credulous voters.

 

On the surface, the proposed infrastructure spending would create construction jobs that are easily observable. But what is more important is what you can’t easily see: the jobs and wealth that are not created in the private sector as a result of capital being transferred from the private sector to the public sector. That is the crux of the matter, and it explains why investment decisions generally belong in the hands of private actors rather than politicians.

 

It is clear that Clinton and Trump are on the same side. Each professes to believe that transferring more capital from the private sector to the public sector for infrastructure investment results in net job and wealth creation. Not surprisingly, neither has offered a shred of evidence to support this.

 

It is also worth noting that the great majority of public infrastructure investment is done at the state and local level. And it is financed in the municipal bond market. In 2014 for instance, the Congressional Budget Office notes that public spending on transportation and water infrastructure amounted to $416 billion, of which $320 was state and local spending and $96 billion was federal.

 

That is as it should be. The people who use the infrastructure should be the ones who pay for it. They can pay for it a number of ways: for example through state and local income, excise and sales taxes, user fees, tolls and licenses. But there isn’t any reason why the construction and maintenance of municipal bridges and city subway systems should be financed by the federal government.

 

Separating the locus of taxes from the provision of services is an affront to federalism. It is a ploy designed to obfuscate the distribution of costs and benefits. It raises costs by hiding them; it encourages political bargaining as a substitute for market prices, and increases corruption, a subject with which both the Clinton and Trump camps are all too familiar.

 

There are ways to invest in needed public infrastructure that are transparent and more reliant on market mechanisms. Neither of the two major candidates seems to be interested in going there. That’s not surprising either.

Please take a look at John Stossel’s video below on infrastructure.

 

JFB

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#Never Trump. Ever.

Donald Trump has now gone so far over the line that the excuse well has run dry. Here he is (below) suggesting that the only way to stop Hillary Clinton from nominating liberal Supreme Court Justices is to assassinate her.

Inevitably he and his sycophants will claim it was all supposed to be a joke. Sure it was. And even if this was a particularly ham handed attempt at humor, it still doesn’t matter. Nobody who jokes about assassinating political opponents belongs in office. Period.

JFB

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The Candidates are Starting to Talk Econ

We are rapidly approaching what is one of the most predictably awful exercises in a presidential campaign. The candidates are about to present their economic “plans”. We can expect the candidates to recite the usual pieties about tackling the deficit, and eliminating waste, fraud and abuse. At the same time they will save social security and Medicare, and create good paying middle-class American jobs in manufacturing.

 

For some reason or other the notion that the President can “manage” the economy has taken hold of the body politic like a dog on a mailman’s ankle. While it is certainly true that good economic policy will encourage economic growth, innovation and wealth creation, it is just as true that bad economic policy will tend to discourage those results. Which is to say that government can set the conditions that individuals and firms need to prosper, but that government is utterly incapable of doing much more than that.

 

The basic conditions that are necessary (but not sufficient) for prosperity are well known. They include free and competitive markets, the rule of law, an independent judiciary and protection of property rights, contract enforcement, sensible regulations, low taxes, neutral monetary policy, and political stability. Beyond that, government intervention generally results in more harm than good.

 

For example, the idea that government is going to “create jobs” and raise (real) wages is simply nonsense. Entrepreneurs and businesses create jobs as they seek to make profits. Real wages eventually rise (or fall) to the point where they equal marginal productivity. Firms assume the risks of hiring workers when they see the possibility to profit by creating new goods and services, or by improving on existing ones. They do not create jobs for their own sake. In fact businesses try to minimize inputs (like labor and capital) with respect to outputs. That’s how they maximize profits, which is the point of the enterprise.

 

On the other hand, government is incapable of creating jobs on balance, except insofar as those jobs are necessary to allow the larger economy (and society) to function efficiently and effectively. Sure, a government agency can hire somebody to dig holes in the sand and then hire someone else to fill the holes back in. But, with apologies to Lord Keynes, that doesn’t really create net employment because no wealth is created. Resources are just wasted. The money spent in make-work projects could have been spent on productive activity that actually created wealth. That would result in economic growth and greater opportunity.

 

Every dollar that government spends is a dollar taken from the private sector. With that in mind there are two tests that should be applied to the candidates’ economic policy proposals. First, is the policy directed at producing a public good. A public good is defined as one where (a) consumption is non-rival and (b) the costs of excludability are prohibitively high. For example, the classic example is defense. We all benefit from defense, and one citizen’s protection does not detract from another’s. Consumption is therefore non-rival.

On the other hand, only one of us can eat a given ice cream cone. An ice cream cone stands as a private good in contrast to defense, which is a public good.

 

The question of excludability of consumption addresses the problem of free riders. A classic example here is a lighthouse. The idea is that once the lighthouse is built, it is virtually impossible to stop a ship from using its beacon even if the ship hasn’t paid a fee. Since free-riders can’t be stopped from using the lighthouse’s services, the returns from building lighthouses are less than they should be, so fewer than the optimal quantity of lighthouses get built. The argument is that government should step in and supply lighthouses to rectify market failure.

 

(However, it is worth noting that in The Problem of the Lighthouse, economics Nobel laureate Ronald Coase pointed out that the problem could easily be solved by checking ships registries and charging on that basis.)

 

After the public goods question is resolved, the second test comes to the fore, namely the question of opportunity cost. Every dollar government spends is taken from the private sector, either directly by taxation, or indirectly by borrowing in competition with the private sector. So each dollar government spends should produce more goods and services (that the citizens actually want) than would have been produced by the private sector, had government not acted.

 

So we have three basic criteria for evaluating the candidate’s economic policy proposals. Are the policy proposals aimed at producing public goods as opposed to private benefits? Will the diversion of private sector funds to the public sector produce a result in a net output gain? Will the candidate’s respective economic proposals serve to strengthen or weaken the conditions necessary for prosperity?

These are the criteria that On Liberty Watch will use to evaluate the economic policy proposals of the candidates.

JFB

 

 

 

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Truth, Justice and the Progressive Way

Hillary Clinton and the Case of Shahram Amiri

According to the Daily Beast, Iran confirmed that it executed Shahram Amiri, an Iranian nuclear scientist who reportedly gave intelligence to the United States about Iran’s nuclear program. The AP reports that Amiri defected to the United States around 2009 and then returned to Iran in 2010 to a hero’s welcome after he claimed that the US had abducted him.

 

It turns out that Amiri was obliquely referenced in e-mails exchanged between Hillary Clinton and one of her top aides, Jake Sullivan. And those e-mails made it reasonably clear that Amiri was operating under his own volition. Once the Iranians found that out, there was little question what would come next. And it did.

 

As students of world politics are aware, Iran has a particularly brutal way of carrying out executions. Unlike everywhere else in the world where hanging breaks the condemned prisoner’s neck and kills quickly, the Iranians use the “short drop” method. The condemned prisoner is placed standing on a stool under the gallows with a noose around his neck. His hands are tied behind his back. The stool is kicked away and the prisoner is left to strangle for 10 to 20 minutes until he finally dies.

 

Congratulations Secretary Clinton for safeguarding top-secret US information on your private server. It shouldn’t take much imagination to realize that recruiting foreign informants and spies for a Clinton Administration just got that much more difficult.

 

Hillary Clinton Short Circuits

Hillary Clinton insists she didn’t lie when she claimed that James Comey vouched for the truthfulness of her e-mail testimony. She merely “short-circuited”. Leave aside the eight lies Comey specifically identified. She now claims she was referring not to her Congressional testimony which was public and under oath; she was actually referring to her testimony before the FBI which was not public, not given under oath, and for which there is no transcript. Good thing that’s cleared up.

 

The Progressive Assault on the Bill of Rights Continues

Led by the New York Times and Elizabeth Warren, progressives are now attacking think tanks because – horror of horrors – they (or at least some) get funding from corporations. (Somehow union funding is sacrosanct). Anyway, the argument is that corporate funding for research produces suspect results. Here, for instance, is Elizabeth Warren on the subject.


If we are to assume, as Warren apparently does, that researchers’ conclusions are tailored to meet the objectives of funders, what are we to think of researchers who receive grants from government agencies? After all, governments spend an awful lot of money funding research. According to Issues in Science and Technology, “…Non-defense R&D settled down by the middle of the 1970s to make up roughly 10% of the domestic non-discretionary budget, and there it has stayed for almost 40 years…during both Republican and Democratic administrations and Congresses….”

 

Are we to assume that researchers who receive some (any) corporate funding are dishonest, but that somehow researchers who get government grants are as pure as the driven snow? If so, why? And who will be the arbiter of what constitutes quality research? We currently have in place a system of peer review, transparency, refereed journals, and reputation. It’s not perfect; nothing ever is.

 

The progressive solution to the imaginary problem of corporate funding of policy research is to attack the first amendment rights of those who disagree with polite opinion by using a process of intimidation. For example, the Times notes that “…a group of Democratic state attorney’s general is investigating whether Exxon Mobil worked with certain think tanks in past decades to ‘cover up’ its understanding of fossil fuels’ impact on climate change, in part by financing reports questioning the science, a suggestion the company rejects.”

 

So the party of science wants to use the police power of the state to stifle the speech rights of scientists of who disagree with them.

 

To be sure scientists do complain about a lack of government funding for Research and Development, and certainly corporate R&D funding has been on the rise in both relative and absolute terms. That, by the way, is all to the good. It is called investment. And let’s acknowledge that there is pressure on government R&D budgets, just as there is in all discretionary spending. And to some degree corporate spending may be closing a gap stemming from a fall off in government’s discretionary spending.

R&D

R&D Spending

But we should be clear why there is such pressure on discretionary spending. It is because of runaway entitlement spending of the sort championed by—Senator Elizabeth Warren.

(More R&D spending data is available at this link.)

Which brings us back to another question for Saint Elizabeth of Massachusetts. If she is so concerned about the corrupting influence of money in politics, why is she silent about the hundreds of millions of dollars the Clintons’ have hoovered up from some of the most repressive regimes on earth?

 

We are waiting for an answer, Senator.

JFB

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Trump on Nukes

The trickle of Republican defectors is about to turn into a torrent. Donald Trump, who was formerly described as merely being “inconsistent” is increasingly being described as erratic, unpredictable and unstable. That’s because he is. And his poll numbers are about to crater. Here is why.

 

Joe Scarborough reports that several months ago during a foreign policy briefing by an expert Trump asked three times why we couldn’t use nuclear weapons if we had them. Please see the stunning video at the link below in which Scarborough interviews Michael Hayden and tells the nuclear weapons story. This video ought to bother even the most die hard Trump supporters.

 

The Scarborough video link is here.

 

Perhaps we are about to get to the point Senator Lindsey Graham predicted when he said that love of country would overwhelm hatred of Hillary.

 

JFB

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Hillary’s War on the Bill of Rights

To the surprise of exactly no one, Hillary Clinton’s acceptance speech was mainly the same old plodding boilerplate that she has been droning on about for decades. But it’s worth going through, because underneath it all lies a collection of truly awful ideas. Not least among them is an assault on the Bill of Rights.

 

Let’s begin by using the transcript of the speech published by the NY Times.

 

“My primary mission as President” said Mrs. Clinton, “will be to create more opportunity and more good jobs with rising wages right here in the United States. From my first day in office to my last!”

 

This would come as quite a surprise to the Founders because among other things, they had more important things to do than dream up mission statements with the help of focus groups. Instead, they cut right to the chase. Here, for example, is what the Presidential oath of office actually says:

 

“I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States.”

 

This is no small point inasmuch as the Democratic Convention delegates decided to wrap themselves in faux fealty to the Constitution. For example, the NY Times correctly describes Khizr Khan as the most powerful speaker at the convention. Mr. Khan, a Muslim American who lost his son, an Army Captain, in the Iraq war, issued a strong rebuttal to Donald Trump when he pulled a copy of the Constitution out of his pocket and said “Mr. Trump have you even read the Constitution?”

 

The same question may be asked of Hillary Clinton, graduate of Yale Law school.

 

Nowhere for instance does the U.S. Constitution refer to creating “good jobs with rising wages”. But it does refer to freedom of speech, religion and assembly. Specifically the First Amendment reads:

 

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

 

That simply will not do in Hillary Clinton’s America. She promises to change the First Amendment to overturn Citizens United so that incumbents can regulate the political speech of their adversaries. Actually she hasn’t even bothered to wait for a Constitutional amendment. She (like Donald Trump) has already begun to use government power to silence adversaries.

 

As Judge Andrew Napolitano has pointed out, the prohibition against using government power to silence free speech is universally understood to refer to all agencies and branches of government, not just the Congress. And yet, both Hillary Clinton and Donald Trump used the Secret Service illegally during their respective conventions to harass and silence dissenters.

 

Here is an excerpt from Judge Napolitano describing the situation:

“…When the Republican leadership wanted to quell a “Never Trump” boomlet on the convention floor, it had the Secret Service remove all reporters and producers — including some of my Fox News colleagues — from the floor. And when the Democratic leadership wanted to silence a pro-Bernie Sanders onslaught on the convention floor, it had the Secret Service confiscate Sanders placards from delegates on the floor.”

 

So both the Republican and Democratic nominees used the Secret Service as a private security force to quash dissent under the pretext of maintaining security for nominees who were not being threatened.

 

The 1st amendment, which Justice Brennan described as foundational, is not the only one to which Hillary Clinton is hostile.

 

She has no intention of defending the 2nd amendment, which guarantees the right of a citizen to bear arms. Neither is she a fan of the 4th amendment, which guarantees the right of people to be secure against unreasonable search and seizure. For example, Time magazine reports that she has called for more surveillance of social media and those who travel “to countries with a terrorist presence.” That encompasses roughly every country in the world.

 

It is also difficult to imagine Hillary Clinton coming to the defense of the takings clause of the 5th amendment. That clause reads:
“…[No person] shall be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”

 

When asked about the use of eminent domain, Clinton’s campaign responded as follows: “… she will pull together all agencies with project permitting and eminent domain authority to pursue a comprehensive strategy for modernizing America’s energy that creates jobs, reduces greenhouse gas emissions, improves safety and powers a 21st century economy. This whole-of-government strategy will streamline an inefficient and patchwork permitting process while respecting landowners’ property rights and improving transparency and public participation.” (Emphasis added).

 

Let’s translate this into English. Government, in the name of efficiency, (Seriously?), will grab private property while “respecting” landowners’ property rights. Nowhere does she say that landowners will be justly compensated as the law demands. And there is a good reason why she doesn’t. Regulatory takings made without any compensation, much less just compensation, are an integral part of the Administrative state because they disguise the cost of a whole host of policies that depend on these takings, especially environmental policies.

 

Nor has Mrs. Clinton voiced any disapproval over the summary execution of U.S. citizens who find themselves on the Presidential “kill list” that authorizes drone strikes around the world. And yes, there is a “kill list” that has been implemented and reported in the NY Times, the New Yorker, and the Huffington Post, among others.

 

So it goes for the 5th amendment.

 

Then there is the 6th amendment, which guarantees, “…The accused shall enjoy the right to a speedy and public trial, by an impartial jury…” So that amendment goes out the window with the 5th unless you believe that being placed on a Presidential “kill list” constitutes a speedy and fair public trial. As progressives apparently do.

 

The 10th amendment, part of the architecture of federalism, reserves to the States or the people powers not delegated to the United States by the Constitution. Hillary Clinton’s plan for “free college” for students in families making under $125,000 turns state university systems into wholly owned subsidiaries of the federal government. In fact her desire for an expansion of the cradle-to-grave welfare state is nothing less than an attempt to further centralize policy and power in the hands of Washington, and is an affront to federalism. So out goes the 10th amendment.

 

And we haven’t even had a chance to consider the merits of her policy proposals.

 

That will have to come later.

JFB

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Donald Trump: Comedian

Donald Trump now says he was only joking when he invited Russian intelligence agencies to find and release Hillary Clinton’s 30,000 missing e-mails.

Sure he was. Watch his delivery in the video below and see what a thigh slapper his joke is.

But the hilarity doesn’t end there.

There is that great joke he told about about defaulting on the national debt. Or was it abandoning NATO, or the bit about deporting 11 million people, or that great riff about Ted Cruz’s father and the Kennedy assassination that was so hysterical. Then there is the whole birther routine.

And Trump says that he is the only one who can solve the nation’s problems. Now there’s a joke for you.

JFB

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Quick Hits July 25, 2016

More Hacks
Hillary Clinton’s campaign manager Robby Mook charged that leaked DNC e-mails were leaked by Russian intelligence agencies for the purpose of helping Donald Trump. The Clinton campaign also argues, rather implausibly, that the candidate’s home brew server was not hacked.

For his part, Donald Trump has suggested that he might not back NATO countries in the Baltics were they to be attacked by Russia.

Democratic Dismay
Democrats feigned dismay at the chants of “lock her up” at the Republican convention. Bernie Sanders supporters took to the streets of Philadelphia on Sunday chanting, ”lock her up” and carrying “Hillary for Prison” signs. Now they are really dismayed.

 

Waserman Schulz Tossed Overboard
Debbie Wasserman Schulz will resign as head of the DNC. Her position became untenable after Wikileaks published about 20,000 hacked e-mails showing that the supposedly neutral DNC actively worked to derail the Sanders campaign for the benefit of Hillary Clinton.

 

Trump Appears to Get a Post Convention Bounce
In a four-way matchup Donald Trump leads Hillary Clinton 44% to 39%, with Gary Johnson (Libertarian) getting 9% and Jill Stein (Greens) getting 4%. Clinton also got her worst-ever rating in trustworthiness with 68% saying she is not honest and trustworthy. Meanwhile, in the wake of his defiant speech at the Republican convention Ted Cruz’s favorable ratings have plummeted among Republicans. Only 33% have a positive impression of him versus 60% before the speech.

 

Bryan Pagliano: The Missing Man in the Clinton e-Mail Scandal
The Daily Beast takes a behind-the-scenes look at the case of Bryan Pagliano, the tech who set-up Hillary’s Clinton’s private server. Pagliano was on the State Department payroll as a political appointee while also being paid by Hillary Clinton’s campaign on the side. Pagliano, who was given use immunity by the FBI, still asserts his Fifth Amendment rights. The Daily Beast investigates.

JFB

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Vote Your Conscience

“I am your voice,” bellowed Trump from the podium. “I alone can fix it. I will restore law and order”. The audience went wild, bursting into applause.

 

Hail Caesar! Hail Trump!

 

The day before Ted Cruz, calling on the spirit of Lincoln, implored voters to go out and “…vote your conscience….” That was, in the minds of Trump supporters, the ultimate tergiversation. So they booed him offstage. Perhaps by now it has finally dawned on Trump supporters that if people actually did go out to vote their consciences, candidate Trump would lose in a landslide. And rightly so.

 

 

Consider: The morning after his acceptance speech, Trump was back to implying that Ted Cruz’s father was vaguely connected to the Kennedy assassination. He did so by citing a story in the National Enquirer—yep—the very same National Enquirer that you see in the grocery store at the checkout counter.

 

According to Slate, Trump apparently referenced a story that had appeared in the National Enquirer with the headline: “Ted Cruz’s Father Now Linked to JFK Assassination”. About the Enquirer Trump went on to say “This was a magazine that, in many respects, should be well-respected”.

 

The man is simply unhinged. As are his supporters. After all, they are apparently willing to take seriously a man who cites lurid headlines from the National Enquirer as a legitimate source of information. Such is the mindset of Trump’s cult-of-personality following.

 

Behind every political personality cult lurks an authoritarian, and the followers, a mob. Putin or Peron, Mussolini or Mao—take your pick. It makes little difference. Switch the Mao jacket for an Armani suit and you still have an authoritarian. The only question: how far he will go? The answer: as far as he can. That is why we should be grateful the Founders created the separation of powers. And why we should vigorously resist the efforts of Republican central planners (Trump) as well as Democratic ones (Obama, Clinton et. al.).

 

Republicans used to argue that government was too big and too powerful; that the separation of powers was needed to prevent the concentration of government power in one place; that the market, which relied on voluntary transactions, was the best way to serve the needs of consumers and allocate resources. Most of all they argued that freedom depended on property rights, the sanctity of contract, the rule of law, a robust civil society and a culture of individual responsibility and accountability. That went out the window in Cleveland.

 

Vote your conscience.

 

JFB

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