Comment on the Commentary of the Day by Donald J. Boudreaux Chairman, Department of Economics [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.

25 January 2009 government spending as it 25 January 2009 is from ham sandwiches. News Editor, WTOP Radio Editor, Baltimore Sun Washington, DC Dear Editor: Dear Sir or Madam: Dan Rodricks wants You report today that "national service," and he "President Barack believes that the nation's Obama's ban on earmarks current infatuation with in the $825 billion Barack Obama provides an economic bill ideal opportunity to doesn't mean interest implement it ("Americans groups, lobbyists and poised to heed Obama's lawmakers won't be able to call to service," January funnel money to pet 25). projects. They're just working around it." Put aside the mistaken premise that each of us This news is as surprising "serves" only when working as January snow in in government programs, Buffalo. As my colleague and ask: how will Uncle Russ Roberts points out, Sam know how best to use pork is as inseparable from all the conscripted labor at his disposal? And what 200 Liberty Street producers to form earthly reason is there to New York, NY 10281 themselves into special- suppose he will deploy interest groups. These such labor according to To the Editor: interest groups divert the reasonably objective time and resources that criteria rather than The headline of your report they, as producers, would according to political fads, on Mayor Lawrence have spent doing socially partisan emotions, and Morrissey of Rockford, IL, productive things - such as interest-group influences? spending time in administering cities Washington begging pooh- efficiently - into lobbying for Sadly, Mr. Rodricks utterly bahs there for money government favors. ignores questions such as speaks volumes: "Wish List Successful rent-seekers these. His essay is in Hand, Mayor Travels to benefit, but the diversion of evidence of the truth of Washington and Finds resources from productive what He’s Not Alone" (January uses into pleading and observes in his column 24). pandering at the feet of appearing in today's politicians makes society Washington Times: Mayor Morrissey's use of poorer. "politics is about evoking his time seeking emotions, not examining government handouts is an 23 January 2009 specifics." ideal, if unintentional, tribute to a great son of Editor, Washington Times 24 January 2009 Rockford, the Gordon Tullock. Forty-two Dear Editor: Friends, years ago, in one of the most important papers Re your headline "Top My colleague and co- published in economics bailout recipients also blogger Russ Roberts here during the 20th century, major lobbyists" (Jan. 23): visits fantasy island -- in Tullock identified the While I appreciate the the form of fantasizing, in phenomenon of "rent- appropriateness of this an article at Forbes.com, of seeking." [Gordon Tullock, headline, it's discouraging a speech that an illusionary "The Welfare Costs of to realize that such a fact is president Obama might Tariffs, Monopolies and newsworthy. deliver: Theft," Western Economics http://www.forbes.com/200 Journal, Vol. 5, 1967, pp. If people were as 9/01/23/taxes-obama- 224-232] Rent-seekers credulous about non- recovery-oped- generate huge amounts of politicians as they are cx_rr_0123roberts.html waste by using resources about politicians, we'd to plead for handouts. It's routinely read headlines Too bad Russ's fine not so much the actual such as "Thief Steals fantasy isn't our reality. transfers from taxpayers to Money to Benefit Himself!" successful supplicants that or "Teenage Boys Buy 24 January 2009 are wasteful, Tullock 'Playboy' for the Pictures, showed, but the fact that Not the Articles" or "Italian Editor, The Wall Street the prospects of receiving Supermodel Marries 98- Journal these transfers prompt year-old Billionaire Only for And he threatens to act whatever insurance His Money!" "aggressively" to stop this premiums Metro pays. But alleged wrongdoing. if this outcome were 23 January 2009 certain, each and every Overlook the reality that private insurance company Friends, the only way Beijing can would be jumping at the push the price of the yuan opportunity to insure Metro. Here's an insightful op-ed lower is through inflation or The fact that government from a GMU PhD other policies that make feels obliged to serve as candidate from Ecuador, China an unattractive place Metro's insurer strongly Pedro Romero. It reveals to invest. Instead ask: why suggests that the expected not only Pedro's natural should the Obama value of Metro's future good sense and talents, administration be so upset claims on its policy exceed but -- if I dare say so -- the by Beijing pumping easy the value of the premiums excellent training that he's credit into markets at a it will pay to Uncle Sam. receiving in GMU's time when this same Taxpayers will be on the Department of Economics: administration is deeply hook for the difference. http://www.latinbusinesschr worried that credit has onicle.com/app/article.aspx become too tight? 22 January 2009 ?id=3096 22 January 2009 Friends, 23 January 2009 Editor, WTOP Radio Russ Roberts, My GMU Editor, Washington Post Washington, DC colleague and co-blogger 1150 15th St., NW at Cafe Hayek, was Washington, DC 20071 Dear Editor: interviewed yesterday on NPR's All Things Dear Editor: Interviewed this morning in Considered. Russ shares your report on how Uncle the spotlight with Paul Treasury Secretary Sam will assume many of Krugman in this seven- nominee Timothy Geithner the insurance obligations and-a-half-minute interview sides with those who for the Metro transit on Obama's plan for worry, as you put it, that system, Rep. Jim Moran "stimulating" the economy: "Beijing has kept its asserted that this http://www.npr.org/templat currency artificially low to assumption of obligations es/story/story.php?storyId= keep the prices of its goods will "cost taxpayers 99679106 cheap and generate trade nothing." surpluses. That has led to Do listen. a global capital imbalance, How absurd. Government as American consumers provision of insurance to 22 January 2009 borrowed and spent and Metro would cost taxpayers China became the United nothing only if it were Friends, States' largest foreign certain that whatever creditor" ("Geithner Says insurance claims Metro You can find here my GMU China Manipulates Its files in the future will be and Currency," January 23). lower in value than colleague 's discussion, with Tom herded, harassed and international capital flows Keene and Ken Prewitt of otherwise ruled in whatever would now lose those Bloomberg, of Obama's ways work." special classifications - just economic ideas; you might as purchases, sales, and have to scroll down a bit to And these soaring words investments between, say, find it: would have been part of Nevada and Utah are http://www.bloomberg.com/ the Declaration of adorned with no special tvradio/podcast/surveillanc Dependence. classifications. And yet, e.html surely no recession can be 21 January 2009 cured merely by Tyler, by the way, blogs at reclassifying economic the justly world-famous Editor, The Wall Street transactions. blog Marginal Revolution: Journal http://www.marginalrevoluti 200 Liberty Street But just as no such on.com/ New York, NY 10281 reclassification can cure a recession, no recession 22 January 2009 To the Editor: can be caused by the initial classification of economic Editor, Washington Post Alberto Alesina and Luigi transactions. Whatever 1150 15th St., NW Zingales say that "this foolish monetary policies Washington, DC 20071 recession is unusual is that might spark bad it was caused in large part investments, whatever Dear Editor: by a significant current- irrational bubble-izing account imbalance due to behaviors might move the President Obama's the low savings rate of market, or whatever inaugural declaration that Americans (families and unwise regulations (or lack "The question we ask government)" ("Let's of regulations) might today is not whether our Stimulate Private Risk encourage unsustainable government is too big or Taking," January 21). Not investments, it is REAL too small, but whether it so. A current-account factors such as these that works" is further evidence imbalance might reflect bear the blame for market that the wisdom and values conditions that portend unrest and not the arbitrary that animated America's recession, but it cannot measurement called the founding generations are cause a recession. "current-account lost. imbalance." To see why, suppose that If Thomas Jefferson Uncle Sam declares thought as Mr. Obama Canada, Europe, China, does, he would have and Japan to be parts of written in 1776: "We hold the United States. With no these truths to be self- further changes, most of evident, that all men are the U.S. current-account endowed by their deficit would immediately government with the disappear. Much of what unalienable right to be were formerly classified as taxed, regulated, scolded, imports, exports, and 20 January 2009 20 January 2009 "The arithmetic is mind- boggling. If 500 people Editor, The New York Editor, The Wall Street have meaningful input, and Times Journal the stimulus is almost $800 229 West 43rd St. 200 Liberty Street billion, then on average New York, NY 10036 New York, NY 10281 each person is responsible for taking more than $1.5 To the Editor: To the Editor: billion of our money and trying to spend it more During the past few days, You report that Barack wisely than we would your paper, like many Obama will call for "a new spend it ourselves." others across the country, era of responsibility" [http://econlog.econlib.org/ has been filled with ("Obama to Call for a New archives/2009/01/the_stim celebratory praise for Era of Responsibility," ulus_an.html ] America's tradition of January 20). transferring political power Absolutely no one can peacefully. I am among His actions belie his words. spend $1.5 billion of other the celebrants. By seeking an extra $800 people's money billion for "stimulus," Mr. responsibly. But my celebration is Obama will generate a tempered by the realization typhoon of irresponsibility. 19 January 2009 that ours would be an even Consider what Arnold Kling more civilized and says at the blog EconLog: Editor, Washington Post progressive society if we "How many people will 1150 15th St., NW had much less political have meaningful input in Washington, DC 20071 power to transfer - if we determining the overall had finally cast off the allocation of the billion Dear Editor: ages-old superstition that stimulus? 10? 20? It human lives gain meaning won't be more than 1000. The fawning coverage of only through subordination These people - let's say Barack Obama in today's to a grand collective that in the end 500 edition of your paper directed by Great Leaders. technocrats will play a combines with the Not until more Americans meaningful role in writing increasingly surreal replace their fascination the bill - will have homage that Americans with power and personality unimaginable power. now pay to this man-of- with a love of liberty will Remember that what they myriad-bromides to remind this country ascend to the are doing is taking our me of a piece of wisdom highest possible stage of money and deciding for us from H.L. Mencken: civilization. how to spend it. Presumably, that is "People in the mass soon because they are wiser at grow used to anything, spending our money than including even being we are at spending it swindled. There comes a ourselves. time when the patter of the quack becomes as natural and as indubitable to their ears as the texts of Holy The greatest source of Writ, and when that time lower-cost competition for comes it is a dreadful job American producers over debamboozling them." the years is not cheap [H.L. Mencken, On Politics: foreign workers; it's A Carnival of Buncombe machinery and technology. (Baltimore: Johns Hopkins Local butchers in the late University Press, 1996), p. 19th century could not 335] compete with Chicago slaughterhouses that From the likes of Bruce shipped their beef across Springsteen to the ordinary the country in new-fangled man in the street, the refrigerated railroad cars. deification of Mr. Obama is Farmers over the past two as dangerous as it is hundred years have infantile. consistently been displaced by mechanized 19 January 2009 farm machinery, improved fertilizers and pesticides, Editor, The New York better seed varieties, Times refrigeration, and better 229 West 43rd St. materials for packaging New York, NY 10036 produce for storage and shipment. Typists in the To the Editor: late 20th century were out- competed by low-cost Jeremy Weir Alderson says word-processing hardware that "the No. 1 reason for and software. imposing higher labor standards on imports isn't Lower-cost sources of to improve living standards output do not cause abroad but to maintain poverty; they alleviate it. them here" (Letters, January 19). It's true that the real motive for such standards is to protect certain producers in America from having to compete with lower-cost rivals. But it's untrue that access to lower-cost sources of goods and services cause poverty in America.