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Comment on the Commentary of the Day by Donald J. Boudreaux Chairman, Department of Economics George Mason University [email protected]

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Comment on the Commentary of the Day by Donald J. Boudreaux Chairman, Department of Economics George Mason University Dboudrea@Gmu.Edu Comment on the Commentary of the Day by Donald J. Boudreaux Chairman, Department of Economics George Mason University [email protected] http://www.cafehayek.com Disclaimer: The following “Letters to the Editor” were sent to the respective publications on the dates indicated. Some were printed but many were not. The original articles that are being commented on may or may not be available on the internet and may require registration or subscription to access if they are. Some of the original articles are syndicated and therefore may have appeared in other publications also. 3 August 2008 Reagan’s election. U.S. 3 August 2008 population since 1980 grew Editor, Washington Post by only 33 percent. Editor, New York Post 1150 15th St., NW Although some useful Washington, DC 20071 deregulation has occurred Dear Editor: during this time, the Dear Editor: problem is hardly a retreat You favorably quote an of government; it is, rather, analyst's assertion that In "McCain's Problem Isn't government's continued "motorists are getting His Tactics. It's GOP insidious intrusion into ever hosed" because prices at Ideas." (August 3), Greg more aspects of our lives - the pump have not fallen Anrig portrays the past 30 and, despite cuts in enough recently to reflect years as a period of marginal tax rates, its the latest fall in oil prices radically shrinking continued growth. As ("Oil Drop Brings No Relief government and galloping Milton Friedman wisely to the Pump," August 3). laissez faire. Gee. pointed out, "If you cut Methinks he mistakes taxes and revenues go up, Despite your seemingly Ronald Reagan's rhetoric you haven't cut taxes supportive accompanying for reality. enough." graph, this assertion is questionable. In inflation-adjusted dollars, Revenues have gone up. Uncle Sam's budget is now So tax cuts have been First, according to the 110 percent larger than it inadequate. figures in your own graph, was in 1980, the year of oil prices today are 55 percent higher than in late amount of oil that would the top half of the income September of 2007 (the affect global warming and distribution from receiving starting date in your Americans' use of oil only his "emergency rebate," his graph), while gasoline inconsequentially. "windfall profits" tax would prices today are 57.7 generate only enough percent higher. As 2 August 2008 funds to give each of the evidence of hosing goes, remaining households these figures are very Editor, San Francisco $750. weak indeed. Chronicle 2 August 2008 Second, if we take a longer Dear Editor: time horizon, evidence of Editor, The New York hosing disappears Barack Obama wants to Times completely. In 2004, for help consumers cope with 229 West 43rd St. example, a gallon of high gasoline prices by New York, NY 10036 gasoline retailed for about giving consumers a $1,000 $2.00 while a barrel of oil "emergency rebate"; he To the Editor: sold for about $33. Today, proposes to pay for this oil's price is higher by 275 rebate by taxing oil- Gertrude Schaffner and percent while gasoline's producers' "windfall profits" Charles Bell want more price is higher by only 100 ("Obama: Dem pushes "public investment" percent. windfall tax to fund energy because "Over the last rebates, yields a little on several years, we’ve seen 3 August 2008 drilling," August 2). evidence of infrastructure and service failure all Editor, Baltimore Sun Sen. Obama should learn around us: eroding levees, arithmetic. Total profits of collapsing bridges, Dear Editor: U.S. oil companies in 2007 overcrowded classrooms, were about $90 billion. If schools badly in need of Brad Heavner says that Uncle Sam took all of these repair, and outdated and "drilling off our coasts profits and distributed them inadequate mass transit" would have no significant equally to all households in (Letters, August 2). impact on gasoline prices - the U.S., each household not in the short term, not in would get $750. Note that It's more than a tad the long term, not ever" this is ALL profit, not just mysterious that people (Letters, August 3). If so, that portion that Sen. such as Ms. Schaffner and then Mr. Heavner is Obama divines to be Mr. Bell trust the same mistaken to worry that such "windfall." So suppose that agency that produced drilling would "increase our the Senator determines these failures - government dependence on oil and (rather aggressively) that - to remedy them. And not produce more global half of these profits are only to remedy these warming pollution," for any "windfall." That would problems that allegedly lie such impact would also be mean that each household at the core of government's insignificant. An amount of gets a mere $375. Even if responsibilities, but also to oil that would affect prices Sen. Obama's plan cure unemployment, only inconsequentially is an excludes all households in improve medical care, and Disagreeing with your raise "low pay." claim that the Federal Friends, Communications Indeed, persons such as Commission ruling in the Were he still alive, Milton Ms. Schaffner and Mr. Bell Janet Jackson/Super Bowl Friedman would today are guided not so much by case was an arbitrary celebrate his 96th birthday. trust as by an utterly naive assault on freedom of and futile faith. expression, Barry The link below takes you to Fitzsimmons mysteriously a short interview with him, 1 August 2008 finds comfort in the fact conducted just before his that government policy is death in 2006, in which he Editor, DailyBreeze.com that "our public airwaves makes a moral case for are to be used in the ending drug prohibition. Dear Editor: interest, convenience and necessity of the public" http://www.youtube.com/w Barack Obama proposes to (Letters, August 1). How atch?v=rMJ3eX4BwTA deal with rising gasoline does this regrettable fact prices by giving a $1,000 justify government I especially like his line in "emergency rebate" to oversight of private which he compares the consumers - a rebate to be expression? freedom to ingest whatever paid for by taxing the so- you want to the freedom to called "windfall profits" of And make no mistake: this say whatever you want: "I oil producers. fact is regrettable. To see don't think the state has why, imagine if all any more right to tell me In other words, a critical newsprint and ink were what what to put in my part of Sen. Obama's owned by government and mouth than it has to tell me strategy for reigning in high leased to newspapers and what can come out of my gasoline prices is to magazines. Imagine mouth." subsidize gasoline further that official policy consumption and more regarding the print media Indeed! heavily tax its production. was governed not by the This plan makes as much First Amendment but by 31 July 2008 sense as trying to put out a the proclamation that "our fire by dowsing it with jet newsprint and ink are to be Editor, New York Post fuel. used in the interest, convenience, and Dear Editor: 1 August 2008 necessity of the public." Finally, suppose that these Jacob Sullum exposes the Editor, The New York glorious words were hypocrisy of Sen. Harry Times enforced by the Federal Reid who, like nearly all of 229 West 43rd St. Print Commission. Would his colleagues, buys New York, NY 10036 anyone pretend that himself high office with the America then would have a currency of good intentions To the Editor: truly free press? drawn on taxpayers' bank accounts ("Apple Pie 31 July 2008 Pork," July 31). 30 July 2008 30 July 2008 So H.L. Mencken was not quite right when he wrote News Editor, WTOP Radio Editor, Washington Post about idealism that "Men Washington, DC 1150 15th St., NW get into trouble by taking Washington, DC 20071 their visions and Dear Sir or Madam: hallucinations too Dear Editor: seriously." This is true for Anchor Bruce Alan today most of us. But politicians reported on a study by the Re Michael Crowley's - pursuing their dangerous Economic Policy Institute. “Stevens's Payback hallucinations with other This study allegedly finds Moment” (July 30): I'm people's money and lives - (as Mr. Alan reported) that delighted to see Sen. Ted achieve power and glory U.S. trade with China since Stevens face jail time for for themselves while they 2001 has "eliminated" 2.3 his crimes while in office. get the rest of us into million jobs in America. To charge him with trouble. Sounds bad, for it sounds concealing gifts totaling as if trade with China $250,000, however, is the caused a net reduction in equivalent of charging a paid jobs in America of 2.3 confessed mass murderer million. with jaywalking. If that's the only way to bring the But a check of the study at criminal to justice, fine. But EPI's website reveals that Sen. Stevens's most the 2.3 million figure is not significant misdeeds - ones of net job losses. It of which he boasts! - are includes "lost" jobs whose his decades-long success workers have found at directing billions of employment elsewhere. taxpayer dollars to special- [http://www.epi.org/content. interest groups for no cfm/bp219 ] (That is, the reason other than the fact figure ignores job creation.) that he possessed the To be sure, EPI - an power and position to buy organization skeptical of himself even greater trade - uses language security in office by doing designed to create the so. impression that foreign trade is causing Americans Of course, punishing all the to become unemployed in criminals guilty of THAT droves.
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