Quote of the Day
He gains everyone's approval
who mixes the pleasant with the useful.
Horace
Guns, Obama and the Hubris of "Effective Public Policy'
Let's be clear: nothing I've read today about 23 executive actions and calls for Congressional action will have a practical effect on Newtown-like tragedies. Bureaucrat responses (e.g., task forces, appointments, studies, etc.) are little more than political posturing to show the President is doing something, anything in reaponse. I see this as little more than a scattershot approach (no pun intended) and of course what plan has Obama ever come up with that doesn't call for spending a lot of other people's money (by one account $500M)?
From a public policy standpoint, I see this as primarily a local/state issue and within that context, a government safety policy failure. I worry about false or unrealistic expectations. There are workarounds for motivated people.
I do find the Cato Institute discussion salient; I do find the argument compelling that citizens should have access to weapons comparable to what police use to stave off attackers until reinforcements arrive. I'm less enthusiastic about throwing money at mental illness. The vast majority of mentally ill people are not violent.
John Cochran, "Two cents on the trillion dollar coin, and a debt-limit schedule": THUMBS UP!
The "grumpy economist"'s column is recommended by Cafe Hayek's Don Boudreaux, and I concur. I have seen so many people use the analogy of not paying the check after having ordered dinner. Cochran here basically debunks a number of myths: the debt ceiling serves as a check on money printing by the government because the Fed has to deal with banks and can only purchase certain assets. Redistribution is a function of fiscal vs. monetary policy. Cochran suggests that the Fed has been engaging in fiscal (vs. monetary) policy since 2008 by buying non-traditional assets like MBS and commercial paper. He then explains how the coin gimmick could have worked for a de facto bridge loan off the books without printing new money by selling its current $1T stash in Treasuries. Alternatively, the Treasury could "borrow" US debt, say held in social security reserves in an IOU shell game with the Fed. He notes that anyone redeeming a Treasury bond opens up room for a new bond under the debt ceiling, so we're only worried about bond interest.
More importantly, he exposes the disingenuous "default" rhetoric for what it is: Obama and his cronies are really looking at federal spending other than interest expense.
Finally, Cochran suggests some reforms to guard against gimmick workarounds (no coins, no use of government held debt) and more of an incremental process of lifting debt ceilings.
Political Humor
Joe Biden finally says something I can fully understand and identify with...
Musical Interlude: My Favorite Groups
The Stylistics, "I'm Stone In Love With You"
