Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Category Archives: Constitution

Harvard Professor Calls OWS Protesters “Inchoate”

#OWS 3,000 strong to defend wall street

After being asked about the walkout of a few of his students from his Economics 10 class on November 2, Harvard professor Greg Mankiw responded with an open letter in the New York Times. The walkout involved only about 30 or 40 of the 750 students who usually attend, he noted. In addition, some other students entered his class as a “counter protest,” and at least one of the original protesters returned to his class because he didn’t want to miss his lecture.

His biggest disappointment, he said, was “at how poorly informed the…protesters seemed to be. As with much of the Occupy movement across the country, their complaints seemed to me to be a grab bag of anti-establishment platitudes without much hard-headed analysis or clear policy prescriptions.” He allowed that perhaps the protesters “were motivated by an inchoate feeling that standard economic theory is inherently slanted.” (Emphasis added.)

“Inchoate” is defined as “imperfectly formed or formulated.” And indeed that is the proper descriptor of the Occupy Wall Street movement. From its de facto website one learns such “anti-establishment platitudes” as

OWS is fighting back against the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations…. [OWS] aims to fight back against

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The Story Behind the Best- and Worst-Run States

Seal of Wyoming

In its second annual survey of the best- and worst-run states, 24/7 Wall St. noted some significant changes but the same message: “States can do a great deal to control their fate.”

The report noted:

Well-run states have a great deal in common with well-run corporations. Books are kept balanced. Investment is prudent. Debt is sustainable. Innovation is prized. Workers are well-chosen and well-trained. Executives, including elected and appointed officials, are retained based on merit and not politics.

Based on data collected from numerous sources such as Standard & Poor’s, the Bureau of Labor Statistics, the U.S. Census Bureau, and the Tax Foundation24/7 Wall St. then ranked each state on its performance in 10 categories. The study concluded that the best-run state was

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Institute for Justice Celebrates 20 Years of “Litigating for Liberty”

Institute for Justice

Economist and conservative commentator Don Boudreaux attended the opening of the Institute for Justice (IJ) on September 10, 1991, and thought to himself at that time that “it sounded like a good idea.” Looking back at what IJ has accomplished since then, Boudreaux says, “IJ’s success over the past two decades is nothing short of phenomenal.”

At the ceremony marking the beginning of IJ, co-founder Clint Bolick spelled out exactly what they intended to do, and recognized the enormous changes in the way of their doing it. IJ is going to be focused, he said, on “removing barriers to opportunity and helping low-income people earn their share of the American Dream.” For instance:

Little Devon Williams, who was able to escape the cesspool of the Milwaukee Public Schools and instead get a good education in an excellent neighborhood private school, thanks to

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Market Economy Now a Game of Russian Roulette

Russian Roulette (game show)

Four of MF Global’s former clients have made public their experiences with the failed financial derivatives broker, each of them losing their money and two of them their businesses as a result of MF Global’s bankruptcy.

One, a commodity trading advisor who wishes to remain anonymous, described her experience when she first learned that MF Global was in trouble:

At first, as I heard, I was quite relaxed because I thought we’ve been through this a number of times in the industry. Usually the client has the opportunity to move [her] accounts—it just gets moved. [But] I knew on Monday something was fishy when they turned off my terminal…. Later in the day when [my] funds were frozen—that had never happened before. And then I knew that we were in trouble, because things were not happening in the way they were supposed to happen…. This was unprecedented.

Not only did she lose $100,000 of her own money, she lost her business as well, with three of her major European clients telling her that they never

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Liberty University Allows Concealed Carry on Campus

Students for Concealed Carry on Campus

Lynchburg, Virginia‘s Liberty University Chancellor Jerry Falwell, Jr. announced a change in policy that now allows students, staff, and visitors with concealed weapons permits to carry guns on campus. He commented that the new policy “adds to the security and safety of the campus and it’s a good thing. If something—God forbid—ever happened like what happened at Virginia Tech, there would be more than just our police officers who would be able to deal with it.” He added, “I think it’s consistent for a school, for a student body that’s strongly in favor of the Second Amendment…to have policies that are at least as lenient as a number of other universities.”

Although the new policy still prevents students from carrying guns into dormitories and classrooms, and those who do decide to carry on campus must pass a background check in addition to meeting Virginia’s requirements for a concealed weapon permit, Liberty senior Craig Storrs, who heads up the local chapter of Students for Concealed Carry on Campus, was ecstatic: 

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Options After the Supercommittee Failure

Newly Released Superman Returns Logo

Barring a miracle, the Supercommittee will announce Monday morning its failure at coming up with legislation to reduce the projected combined federal budget deficits over 10 years by $1.2 trillion, or $120 billion per year, starting in January 2013. Without enactment of these cuts, under the Budget Control Act the automatic option, called a sequester, will kick in, with $600 billion of the $1.22 trillion in cuts coming from defense spending. Social Security, Medicaid, and other low-income programs are exempt from the cuts, and cuts to Medicare would be modest.

Of course, there is the slim possiblity that the Supercommittee could come up with the cuts, in which case Congress would be expected to vote the legislation up or down without amendment. There are other possibilities too. The Supercommittee could “split the baby” and come up with a bipartisan deal that cuts less than the $1.2 trillion, leaving Congress to find the balance before the automatic cuts kick in. The Supercommittee could even hand Congress a package that includes tax increases as well as spending cuts.

But as of this writing, these possibilities appear unlikely. What appears more likely to happen is that, following a failure of the Supercommittee to present a bill, Congress will

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Gaming the Taxpayer-Funded Clean Energy System

Burn Money

Green Energy

The increase in federal subsidies for clean energy development from $17 billion in 2007 to $37 billion in 2010 has resulted in a “gold-rush mentality” among developers, according to the New York Times.

One of the primary beneficiaries of the rush to feed at the golden trough is David Crane, CEO of NRG Energy, who exclaimed that this was a once-in-a-generation opportunity: “We intend to do as much of this business we can get our hands on. I have never seen anything…in my 20 years in the power industry that involved less risk than these projects. [We are] just filling the desert with [solar] panels.”

Crane was joined by Kevin Smith, CEO of SolarReserve, another company enjoying federal subsidies, who said, “It is like building a hotel, where you know in advance you are going to have 100 percent room occupancy for 25 years.”

NRG Energy’s massive solar panel development, California Valley Solar Ranch, consists of nearly one million solar panels that will, according to proponents, produce enough electricity, on clear days, to power 100,000 homes (at least for a couple of hours each day when the sun is near its peak, and if those numbers aren’t being gamed). It also consists of massive subsidies from

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Solyndra Just the Tip of the Alternative Energy Iceberg

Solar Panels

In late October White House Chief of Staff William Daley ordered a complete review of all loan guarantees the Department of Energy has made to various energy projects. The review “is a tacit acknowledgement that the loan program [that supported the now-bankrupt energy company Solyndra]…has raised enough internal concern that an outside assessment is necessary…”, according the Washington Post.

While the review is supposed to take 60 days and will no doubt be an attempt to whitewash failed efforts by the government to jumpstart the economy through its support of the green industry, a look at past efforts is more than sufficient to conclude that such “investments” are more properly labeled “boondoggles” and an enormous waste of taxpayer money.

The spin on the review is already in. When Daley named Herbert Allison, a former assistant Treasury secretary, to head it up, he said:

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Niall Ferguson Ignores God-Given Rights

Crop of Niall Ferguson

Niall Ferguson, professor at Harvard and the London School of Economics, summarized his latest book, Civilization: The West and the Rest for Newsweek magazine’s The Daily Beast by stating that he is not a “declinist” but is instead expecting an imminent collapse of the United States. He wrote: “I really don’t believe the United States…is in some kind of gradual, inexorable decline…. …in my view, civilizations don’t rise…and then gently decline, as inevitably and predictably as the four seasons…. History isn’t one smooth, parabolic curve after another. Its shape is more like an exponentially steepening slope that quite suddenly drops off like a cliff.”

As evidence Ferguson points to the lost city of the Incas, Machu Picchu, which was built over a hundred years and collapsed in less than ten. He notes that the Roman Empire collapsed in just a few decades in the early fifth century, while the Ming dynasty ended with frightening speed in the mid-17th century.

He tries to explain why the West, and especially and specifically the United States, is set up for a similar collapse through the use of

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The Best Way Back to a Gold Standard

Dollar versus DOW

In his Forbes magazine article published Thursday, Nathan Lewis makes it sound easy to get back to a gold standard. After all, it has been accomplished numerous times in history around the world, including in America following the Civil War.

The first way is a “return to prior parity,” which would mean making a dollar redeemable in gold at $35 an ounce. Lewis points out that this would be impossible as it would entail a huge shrinkage in the money supply and a consequent depression. So option one is out.

The second way is to make a dollar redeemable in gold at a figure close to gold’s current price at between $1,500 and $1,700 an ounce. Lewis notes that this would also require a major restructuring—“a long price adjustment”—in his words, and “would probably cause a recession.” Not such a good option.

Lewis says there is a third option:

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Jon Corzine Proves Regulation is Rigged

Our Governor

After spending the entire weekend trying to sell his company, MF Global, Chairman Jon Corzine finally capitulated, and his board declared bankruptcy on Monday morning, October 31. It was during negotiations with a potential suitor for the business, Interactive Brokers (IB), that word leaked out that customers’ monies were missing, and IB left Corzine to fend for himself. A board meeting was hastily called and ended Corzine’s dream of building another Goldman Sachs with other peoples’ money.

It isn’t as if the regulators were asleep. According to the New York Times, alarm bells went off last June when regulators from the Financial Industry Regulatory Agency (FINRA) first discovered that

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Rick Perry’s “Cut, Balance, and Grow” Plan Doesn’t Cut Much

Rick Perry Speaks at the Values Voter Summit

Texas Governor and Republican presidential candidate Rick Perry spelled out the details of his “Cut, Balance, and Grow” flat tax plan on October 25, saying that “the U.S. government spends too much. Taxes are too high, too complex, and too riddled with special-interest loopholes. And our expensive entitlement system is unsustainable in the long run.” Perry’s plan would offer taxpayers a choice between a new flat rate of 20 percent on incomes over $50,000, or their current income tax rate. The plan would allow them to file their taxes on a postcard, eliminating the enormous current compliance costs in filing their Form 1040s. Various deductions and exemptions would be eliminated, he says, thus improving incentives for entrepreneurs to invest, create, and hire.

In addition, Perry would cap government spending at 18 percent of the country’s Gross Domestic Product (GDP), and put a freeze on

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Harrisburg’s Incinerator: A Story of Unintended Consequences

Northwest Incinerator

Image by reallyboring via Flickr

The announcement on Wednesday that the City Council of Pennsylvania’s capital city, Harrisburg, voted to file for bankruptcy was the latest in a long series of federal mandates, bad luck, and poor planning that has plagued the city since the early 1970s.

The Harrisburg Resource Recovery Facility, less elegantly referred to as “the incinerator that burns money,” was built in 1972. The estimated cost to build it was $15 million and was sold to the city based on projections that it could burn enough trash to generate sufficient steam to be sold to cover its costs and debt service. But unexpected repairs required additional financings so that by the time the Environmental Protection Agency (EPA) discovered it was emitting unacceptably high levels of dioxins and shut it down, the city owed

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Top Economists Tell How to Grow Jobs

GROWTH

Image by SamuelBenoit (.wordpress.com) via Flickr

Now that the Senate has officially and resoundingly defeated President Obama’s jobs bill (The American Jobs Act), the question remains: just how do real jobs grow?

Matt Welch, writing in the November issue of Reason magazine, reminds his readers of what doesn’t work: government promotion of ideology. The Solyndra debacle is the most recent but not the only example. In May 2010 the President gushed over the positive impact Solyndra was having in growing jobs in the “green” sector:

We invested…in clean energy because not only would this spur hiring by businesses but it creates jobs in sectors with incredible potential to propel our economy for years, for decades to come. And we can see the positive impacts right here at Solyndra…

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The US Post Office: Price it to Sell!

Image taken by User:Minesweeper on December 14...

Image via Wikipedia

Now that Congress has extended the due date for the Postal Service’s $5.5 billion pension plan payment to November 18th, various proposals to modernize and “rightsize” the service have appeared. The most comprehensive is the Issa-Ross Postal Reform Act, which endeavors to allow the service the freedom to do what needs to be done to keep it operating as a quasi-government agency.

If approved by Congress, the Act would:

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Kucinich Wants to Replace the Fed with a New Monetary Authority

Dennis Kucinich

Image by Rusty Darbonne via Flickr

Rep. Dennis Kucinich’s recent offering of his “National Emergency Employment Defense Act” (NEED Act) is designed to remove all money creation powers from the Fed to a newly established congressional agency, the Monetary Authority. According to Kucinich, the bill “would reassert congressional sovereignty and regain control of monetary policy from private banks [the Federal Reserve]” by placing that control into the hands of “a separate Monetary Authority made up of experts…responsible for managing monetary policy.” That Monetary Authority would advise the…

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$5 Debit Card Fee: Blame Durbin, Dodd, Frank, the Fed—Not Banks

Sen. Durbin Answers Press

Image by TalkMediaNews via Flickr

On Thursday, Bank of America announced that, starting the first of the year, they would be charging debit card users $5 a month for the privilege as a way to recoup lost income under new rules from the Federal Reserve. The rules, which took effect on Saturday, October 1, limit the amount banks may charge merchants accepting debit cards to 21 cents per transaction, down from 44 cents previously. Under the Dodd-Frank bill passed in 2010—initially proposed by former Senator Chris Dodd (D-Conn.) and Representative Barney Frank (D-Mass.)—banks processing the transactions will see their income from those fees drop by about $10 billion a year, all in the name of fairness and equity, according to the Federal Reserve, which determined that the new fees are “reasonable and proportional.” According to industry sources, the real cost of handling each debit card transaction amounts to “a penny or two,” and so politicians decided

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Competing Currencies Would Expand Freedom, Limit Government

Dollar

Image by Images_of_Money via Flickr

One of the expert witnesses testifying before Ron Paul’s Domestic Monetary Policy and Technology Subcommittee on Tuesday was Dr. Lawrence H. White, professor of Economics at George Mason University. His testimony reinforced the case for Paul’s bill, HR 1098, the “Free Competition in Currency Act of 2011” by outlining its benefits in introducing freedom of choice into the realm of currencies.

White compared competition in currencies to competition in package delivery services among Federal Express, United Parcel Service, and the U.S. Postal Service. That competition has lowered

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Ron Paul Calls for Competing Currencies

A Stack of Bills

Image via Wikipedia

On March 15, Rep. Ron Paul (R-Texas) introduced H.R. 1098, better known as the “Free Competition in Currency Act of 2011,” which would repeal the legal tender laws in the United States Code (Section 5103 of Title 31). In its elegant simplicity (the bill is only three pages), it would be the first step to restoring a sound currency by allowing American citizens to choose which currency among competing currencies works best for them.

In his “Texas Straight Talk” for July 11, Paul presented the case for competing currencies and promised that

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Bernanke’s Last Two Economy-Boosting Tools

Tools

Image via Wikipedia

In his talk on Thursday to the Economic Club of Minneapolis, Federal Reserve Chairman Ben Bernanke warned the Congressional Supercommittee not to cut government spending by too much, and that if the economy continues to slide into another recession, the Fed has tools to meet the challenge.

Speaking over the heads of his audience directly to the Supercommittee, Bernanke warned that

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.