Today's Tabbloid: Medium Tobacco Fights Back (Cato at Liberty)

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8 September 2009

Today’s Tabbloid
PERSONAL NEWS FOR lgn@limitedgovernmentnetwork.com

FISCALLY CONSERVATIVE BLOG FEEDS himself on the back for overcoming difficulties as a youth, and the
speech could easily have political aims.
Medium Tobacco Fights Back
• Many people feared, thanks to politically and ideologically
[Cato at Liberty] suggestive lesson guides created by the U.S. Department of
SEP 07, 2009 08:40P.M. Education, that the speech would be an effort at indoctrination.
Critically, it was only after very loud, initial outrage that the
The New York Times has an editorial today titled “Big Tobacco Fights Department made changes to the guides and the White House
Back,” criticizing tobacco companies’ lawsuit against new advertising announced it would release the text of the speech ahead of time.
restrictions. Repeatedly, the Times attributes the lawsuit to “the Yet administration defenders act like everyone knew from the
[tobacco] industry.” outset that the speech would just be about working hard and
staying in school. And who knows what the speech might have
But as my former Cato colleague Jacob Grier notes, the biggest tobacco looked like had there not been so negative an initial reaction.
company (Philip Morris) is on the Times’s side in opposing the lawsuit.
So wouldn’t it make more sense to title the editorial “Medium-Size • Despite its generally innocuous tone, the speech does contain some
Tobacco Fights Back”? controversial political and ideological assertions, including that
“setting high standards, supporting teachers and principals, and
turning around schools” is the job of the federal government. Also,
the things the President highlights as worthy aspirations are
FISCALLY CONSERVATIVE BLOG FEEDS disproportionately government and non-profit work. And then
there’s this self-aggrandizing assertion: “Your families, your
Staid Speech Is Cold Comfort teachers, and I are doing everything we can to make sure you have
the education you need to answer these questions. I’m working
[Cato at Liberty] hard to fix up your classrooms and get you the books, equipment
SEP 07, 2009 08:39P.M. and computers you need to learn.”

After all of the rancor last week over his planned back-to-school address, • Ultimately, no matter what happens now that the speech has been
it was predictable that in the end President Obama would offer a largely published, one thing cannot be ignored or spun: When government
non-controversial speech about working hard and staying in school. If he controls education, wrenching political and social conflict is
sticks to the text released today, that is pretty much what he will do. inevitable. Americans are very diverse – ideologically, ethnically,
Unfortunately, whether or not that was his original intent – and no one morally, religiously – but they all have to support a single system of
knows for sure but the President and his advisors – many Obama government schools. As a result, they are constantly forced to fight
supporters will likely use the relatively staid final product as grounds to to have their values and desires respected, and the losers inevitably
smear people concerned about the speech as right-wing kooks or out-of- have their liberty infringed. In this case, reasonable people who
control partisans. At the very least, such an outcome would be in keeping want their children to hear the President must fight it out with
with a lot of the email I’ve gotten since the story first broke. But it will equally reasonable people who do not want their children to watch
miss several critical points: the speech in school. It’s a situation completely at odds with a free
society, but as we have seen not just with the current conflict, but
• No matter how innocuous the content of the speech, this could seemingly endless battles over history textbooks, the teaching of
certainly be an address with very political goals, intended to cast human origins, sex education, and on and on, it is inevitable when
the President in the warm glow of a man who just cares about kids. government runs the schools. Which is why the most important
From kissing babies, to photo-op reading sessions featuring cute lesson to be learned from this presidential-address donnybrook is
tikes on classroom floors, this could be just another instance of the that Americans need educational freedom. We need universal
old practice of using children as props for political gain. And how school choice or crippling conflicts like this will keep on coming,
presumptuous of the president to make himself – rather than the liberty will continue to be compromised, and our society will be
children, their teachers, and their schools – the center of attention ripped farther and farther apart.
on what is the first day of school for millions of kids. Finally, add
the parts of the speech that sound like the President patting

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Today’s Tabbloid PERSONAL NEWS FOR lgn@limitedgovernmentnetwork.com 8 September 2009

FISCALLY CONSERVATIVE BLOG FEEDS


FISCALLY CONSERVATIVE BLOG FEEDS
The Libertarian Vote in Virginia
China Moving Wrong Way on
[Cato at Liberty]
Internet Freedom [Cato at SEP 07, 2009 10:28A.M.

Liberty] In Sunday’s Washington Post, Frank B. Atkinson says that this fall’s
SEP 07, 2009 08:38P.M. gubernatorial race in Virginia will depend on

While the growth of the market in China has helped open up personal the all-important independent voters — the
space and limit control of individual lives, the Beijing authorities disproportionately moderate, young, prosperous, suburban
still attempt to limit freedom of expression. The Internet continues to and libertarian-leaning people who typically decide Virginia
be a prime target. contests.

Reports the New York Times: Background on the libertarian vote here.

News Web sites in China, complying with secret government


orders, are requiring that new users log on under their true
identities to post comments, a shift in policy that the FISCALLY CONSERVATIVE BLOG FEEDS
country’s Internet users and media have fiercely opposed in
the past.Until recently, users could weigh in on news items on Green Jobs Campaign Is
many of the affected sites more anonymously, often without
registering at all, though the sites were obligated to screen all Nonsense Anyway [Tax
posts, and the posts could still be traced via Internet protocol
addresses. Foundation]
SEP 07, 2009 12:00A.M.
But in early August, without notification of a change, news
portals like Sina, Netease, Sohu and scores of other sites The entire flap over White House green jobs “czar” Van Jones is a
began asking unregistered users to sign in under their real political one, but there is the more important economic question of why
names and identification numbers, said top editors at two of is there such an emphasis on “green jobs” in the first place.
the major portals affected. A Sina staff member also
confirmed the change. “Green jobs” are not a benefit from fighting climate change; they are
actually a cost. If it takes 20 people to produce a given amount of energy
The editors said the sites were putting into effect a in a green manner whereas it took only 2 people to produce a given
confidential directive issued in late July by the State Council amount of energy in a dirty manner, society is worse off, not better off (if
Information Office, one of the main government bodies you ignore the benefits to the environment).
responsible for supervising the Internet in China.
The benefits to the environment is the real issue here, not some shuffling
If the government of the People’s Republic of China hopes to become an of jobs between “dirty” and “clean” industries. If global warming is truly
increasingly important international power, it should begin trusting its a problem and there is a link between it and carbon emissions, then a
people to take on greater responsibility in deciding their own affairs. The carbon tax or a well-designed cap-and-trade system should be
justifications offered for the Communist Party’s monopoly of power are implemented to improve societal well-being. Otherwise, such policies
only going to grow more threadbare and unsustainable over time. would make society worse off even if jobs labeled green were created as
substitutes for dirty jobs.

Green jobs are merely a means that self-interested economic actors


would use as an input in maximizing their well-being subject to some
new constraint (i.e. environmental policy) imposed by government. In
other words, under a well-designed cap-and-trade policy or a carbon tax,
profit-maximizing firms would be induced to produce products in a way
that would impose a smaller carbon footprint (and in the process create
“green jobs”).

Finally, some critics of cap-and-trade or carbon taxes argue that such a

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Today’s Tabbloid PERSONAL NEWS FOR lgn@limitedgovernmentnetwork.com 8 September 2009

tax would decrease economic well-being. But that’s not the case if there
is truly the negative externality from carbon emissions. That’s because
the social costs of the current equilibrium exceed the private costs, and if
a cap-and-trade system was well-designed or a pure carbon tax was
imposed at the correct level, social welfare (broadly defined) would
increase. It would not decrease despite what loss in GDP or jobs statistics
are thrown out there.

The relevant issue is not jobs numbers (whether they come from
supporters or critics of environmental policies). From a public interest
perspective, it can be summed up in two general questions: (1) What are
the external costs of carbon emissions imposed on society? (2) Can the
U.S. government be trusted to improve social well-being (on net) given
both the “global” free-riding problem and the problem with
administrative costs?

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