I'm back already

My procedure went unexpectedly well and I am now out of hospital and back to normal.  So I am posting today but will be observing my usual Sabbath tomorrow

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Shutdown alarm is unfounded

There's a view that the President is elected to adminster the law only, not to create it or force it to be created.  Trump, however, is doing what he does on the authority of the voters. They voted for the wall in voting for him.  It was his big issue.  He has a democratic mandate to build the wall. So I think we have here a case of divided authority rather than one branch of government usurping the authority of another

According to Congressional Budget Office (CBO) data, the federal government spent $3.9 trillion in 2017. In Argentina, total federal spending in 2017 was $161 billion.

The above statistical disparity rates mention in consideration of all the hand wringing related to the partial federal government shutdown in the U.S. Supposedly an elongated one would slam the brakes on the U.S. economic expansion. No less than J.P. Morgan CEO Jamie Dimon observed this week that a prolonged shuttering of one quarter of the federal government could “reduce growth to zero.”

Dimon would be wise to relax. So would others convinced that government spending is a substantial driver of U.S. economic vitality. Nothing could be further from the truth.

Implicit in what’s wholly false is that Argentina’s economy is a fraction of the U.S.’s simply because its politicians are quite a bit more parsimonious than are the members of Congress. Such a view isn’t serious, but it’s a reminder of just how much statistics can obscure reality.

Simply put, Argentina’s federal spending is a fraction of U.S. federal spending precisely because its economic output is a fraction of what takes place stateside. Just the same, federal spending in the U.S. dwarfs that of other countries precisely because the U.S. economy is quite a bit larger than other country economies.

Governments only have money to spend insofar as the private sector in countries produces wealth for them to spend. Congress was able to spend $4.1 trillion (according to CBO data) in 2018 because American output is many multiples of $4.1 trillion.

Governments can’t stimulate economic growth with spending; rather their spending is only possible because of economic growth. Applied to the partial shutdown of the federal government, what limits government spending logically cannot limit economic growth. Figure that if there were a permanent cessation of a quarter of federal activity, the result would be trillions worth of extra resources for private actors to put to work.

Readers might think about the above for a moment. When our federal government spends, it means that Nancy Pelosi, Mitch McConnell and Donald Trump are playing a substantial role in the allocation of trillions worth of wealth first created in the private sector. On the other hand, when fewer dollars flow to Washington it happily means that people like Jeff Bezos, Peter Thiel and Travis Kalanick have more in the way of resources to experiment with. Yet defenders of the big government status quo persist.

In a client report written last week, Regions Bank chief economist Richard Moody lamented that the partial shutdown would disrupt the “flow of economic data” at a “most inopportune time given increased uncertainty about over the course of the U.S. economy.” Moody unwittingly makes the case the case for a more permanent shutdown.

Lest he forget, arguably the most scrutinized of all economic statistics produced by the federal government is the one that measures the rate of unemployment in the U.S. Yet too often unsaid here is how totally unnecessary the report is. The Bureau of Labor Statistics (BLS) employs 2,500 people at a cost of $640 million annually to produce its monthly unemployment report. Each month, meanwhile, the private company ADP releases a report two days ahead of the BLS's that nearly mimics the BLS's, all at no expense to the taxpayer. There is a market demand for reliable employment data, and the market is providing it. What works for unemployment can logically work for any other statistic that economists claim to be necessary for them to do their jobs. If it’s necessary, private actors can do it without burdening every American with the cost.

The point of all this is that true believers in limited government would be wise to not let this partial government shutdown go to waste. Instead, proponents of a shrunken federal footprint should seriously address whether or not many people in a country populated by over 300 million have actually noticed a difference in their lives in the past few weeks. 

Indeed, arguably the most vivid lesson of the shutdown is being overlooked. 800,000 furloughed federal employees, and what, exactly, is the noticeable harm?  The media trumpet the federal employees’ missed paychecks and niche difficulties faced by the citizenry (economists and financial types lacking economic data, for instance), but what goes unreported is that for 95% of the population, life goes on essentially unaffected in any material way. What better evidence that our government spending is mostly waste and make-work?

So while alarmists will continue to promote false notions about the “lost” economic growth that will result from the political class wasting fewer dollars, reality will continue to intrude on what’s not serious as most get on with their lives properly indifferent to what at least temporarily limits the activities of ¼ of our federal behemoth.

Which brings up a challenge that is also an opportunity. What hasn’t affected voters after three weeks will similarly not affect them after three years. If Republicans really want to prove how unnecessary our $4 trillion federal government is, keep it shut down through the 2021. The economy will boom in the interim thanks to a shrunken federal burden, and a long-term point will have been made about the good of shrinking Leviathan to all of our betterment.

SOURCE 

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The 7 Most Insane Licensing Proposals of 2019 (So Far)

State lawmakers target pet groomers, drain cleaners, interior designers, pecan buyers, athletic trainers, antler dealers, and....art therapists?

The new year brought the opening of many state legislative sessions, and the opening of state legislative sessions has brought a predictable but disappointing flurry of new licensing proposals.

Today, nearly 30 percent of American workers need a license to do their jobs, up from just 5 percent in the 1950s. The majority of that growth, as the White House noted in a 2016 report on licensure, comes "from an increase in the number of professions that require a license rather than composition in the workforce."

Some states seem to have gotten wise to the economic problems that excessive licensing can cause—one study has found that licensing laws across all 50 states resulted in 2.85 million fewer jobs and cost consumers more than $200 billion annually. As Reason detailed last week, the governors of Ohio and Idaho took action in early 2019 to join three other states—Louisiana, Nebraska, and Oklahoma—in approving important reforms that curtail the power of licensing boards and increase economic freedom.

Unfortunately, many state lawmakers seem determined to continue the expansion of occupational licensing into professions where there is little public health or safety justification for these barriers to employment.

"We know occupational licensing reduces consumer choice, increases prices, and keeps people out of jobs. It also criminalizes innocent behavior," says Shoshana Weissman, digital media director and policy fellow at the R Street Institute, which tracks these and other state legislative proposals, and advocates for licensing reforms. "Are we willing to fine people or throw them in jail for practicing interior design or being a health coach without a license? This is insanity and it hurts real people."

Insanity, indeed. Here are the five worst occupational licensing proposals of 2019—so far.

Pet Groomers (New Jersey and New York)

Two states are proposing new regulations for anyone who makes money by bathing, brushing, clipping, or styling a pet, and New Jersey's proposal is a particularly good example of how bad licensing laws get on the books.

The bill offered by three members of the state assembly would create a new licensing board—the New Jersey State Board of Pet Groomers—consisting of three members of the public, three pet groomers, two veterinarians, and one governor-appointee. The bill, as currently written, would delegate pretty much all rulemaking authority to the newly created board. The board would get to set qualification requirements, including a written and practical test that applicants would have to pass, and would determine licensing fees as well as fines for unlicensed pet grooming. The board would also be empowered to investigate and even shut down pet groomers that it determined were not meeting the board's standards.

All of that might sound fine—no one wants their pet to get a bad haircut—but those types of provisions are the makings of an anti-competitive cartel. The groomers and veterinarians on the board have an incentive to limit competition and control a majority of the votes. By proposing to delegate so much authority to the board, the state lawmakers have effectively eliminated their own role in the lawmaking process—and are effectively allowing the board to do whatever it wants.

That's not just unwise, it might also run afoul of a 2014 Supreme Court ruling that requires state lawmakers to actively supervise licensing boards.

Pecan Buyers (Texas)

Should it be a crime to buy nuts without a government-issued permission slip? At least one state lawmaker in Texas (Rep. Mary González) thinks so. Her bill would require anyone "engaged in the business of purchasing in-shell pecans from a pecan producer" to be licensed by the state—though grocery stores would be exempted.

Getting the license would require the payment of a fee of $400 and showing government-issued identification. What's really pernicious about González' proposal, though, is the record-keeping requirement imposed on those licensed pecan buyers. Licensed pecan buyers would have to maintain up-to-date records of all purchases, including the date and location of the transaction, the license plate number of the seller's vehicle (along with the make and model), and the address "or physical location of the tree" where the pecans originated.

Failure to keep those records accurately would trigger a $250 fine, and each violation could be another fine. Assuming that pecan buyers in Texas are probably buying thousands if not millions of pecans every month, well, those fines could add up fast.

Athletic Trainers (West Virginia)

Despite living in one of America's least healthy states, three state lawmakers in West Virginia have decided that what their state really needs is fewer personal trainers.

There are plenty of reasons to be skeptical of the need for a license like this, of course, but the bill also highlights another problem with licensing laws in general. Buried way down on the 14th page of the proposal is a clause that would allow the state board of physical therapy (which would be given power over athletic trainers) to block applicants who have committed a "felony or other crime involving moral turpitude" along with anyone who is judged to be "guilty of unprofessional conduct" as determined by the board itself.

As we've covered at Reason on many occasions, banning individuals with criminal records from getting licenses is bad policy. It continues to punish someone long after they've paid their debt to society, it decreases employment, and it increases recidivism—because the best predictor of whether someone will commit another crime after getting out of prison is whether they have a job or not. The use of deliberately vague language ("moral turpitude" and "unprofessional conduct") gives the state board even greater authority to block would-be personal trainers from getting licensed.

Antler Dealers (Nevada)

A full legislative committee in the Nevada Assembly has teamed up to introduce a bill on behalf of the state Department of Wildlife to create a new licensing category for people who sell or trade antlers. The bill would make it a crime to "engage in the business of buying, selling, trading or dealing in certain antlers or any head or skull of a big game mammal without first obtaining an antler dealer's license," though the proposal does not include any details for how violators would be punished.

There's no testing or mandatory training requirements included in the bill—a would-be antler dealer only has to sign up with the Department of Wildlife and pay a fee—making this the least bad form of licensing. Still, it would likely restrict the ability of non-Nevada residents to sell antlers in Nevada, and...do we really need a license for selling antlers in the first place?

Art Therapists, Drain Cleaners, and Interior Designers (Massachusetts)

Yes, these are all serious proposals.

Sen. Diana DiZoglio (D-First Essex) wants to license practitioners of art therapy, which is "a mental health discipline that integrates use of psychotherapeutic principles, art media, and the creative process." That sounds like it might help some people cope with stress or more severe mental disorders, but it also really doesn't sound like something that needs a permission slip from the government.

Meanwhile, Sen. Barry Finegold (D-Middlesex) has a bill to license drain cleaners under the auspices of the Board of Examiners of Plumbers—which really sounds like it should be abolished, rather than expanded—and to impose unspecified civil penalties against anyone who dares to make money by cleaning a drain without the state board's permission.

And Sen. Joan Lovely (D-Second Essex) is proposing to make Massachusetts the fourth state to adopt licensing for interior designers, presumably to protect her constituents from the dangers of mismatched drapes and ugly throw pillows. The proposal would create a new board to regulate interior designers, and the bill specifies that four of the five members of the board must be "engaged in the practice of interior design." I'm sure they can be trusted to write rules that don't restrict their own competitors.

SOURCE 

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When single-payer medicine kills

The deaths of up to 250 patients who died following heart surgery at an NHS hospital are to be reviewed.

All the patients underwent surgery at St George's Hospital in Tooting, south London, between April 2013 and September 2018.

The review, commissioned by NHS Improvement, comes after the hospital suspended complex heart surgery last year to improve services.

A leaked report previously suggested that poor relationships at the cardiac unit contributed to a higher mortality rate.

The review only applies to cardiac surgery at St George's, and does not include other associated specialities - for example, cardiology.

The panel will examine the safety and quality of care that patients who died during or after cardiac surgery at St George's received during the review period.

They will do this by reviewing the medical records of deceased cardiac surgery patients, as well as any investigations conducted by the Trust at the time of the patients' deaths.

The panel is likely to review between 200-250 deaths as part of this process, which will take place between six and 12 months to complete.

The period between April 2013 and March 2017 has been identified as a time when the trust had a statistically higher mortality rate compared with the other 31 cardiac surgery centres in the UK.

The panel will also review deaths between April 2017 and 1 September 2018, when improvements were being made.

Last summer a leaked report  warned that a "toxic" feud between two rival camps at the unit left staff feeling a high death rate was inevitable.

St George's Hospital heart unit was consumed by a "dark force" and patients were put at risk, the investigation concluded.

The damning review was written by former NHS England deputy medical director Mike Bewick in response to higher mortality rates at the hospital.

He found the south London facility had a cardiac surgery death rate of 3.7 per cent - above the national 2 per cent average, reports said.

Internal scrutiny was said to be "inadequate" and the department was riven between "two camps" exhibiting "tribal-like activity".

Professor Bewick's review was quoted as saying: "Some felt that there was a persistent toxic atmosphere and stated that there was a 'dark force' in the unit."

Conversations with 39 members of staff revealed they were shocked by the death rate, but "most felt that poor performance was inevitable due to the pervading atmosphere".

The independent reviewer examined "disturbing and often difficult information", concluding an "existential threat" was posed to the unit because staff and patients would go elsewhere if problems persisted.

SOURCE 

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For more blog postings from me, see  TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH,  POLITICAL CORRECTNESS WATCH, AUSTRALIAN POLITICS, and Paralipomena (Occasionally updated),  a Coral reef compendium and an IQ compendium. (Both updated as news items come in).  GUN WATCH is now mainly put together by Dean Weingarten. I also put up occasional updates on my Personal blog and each day I gather together my most substantial current writings on THE PSYCHOLOGIST.

Email me  here (Hotmail address). My Home Pages are here (Academic) or  here (Pictorial) or  here  (Personal)

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