Errors of Enchantment

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RGF: Driving liberals nuts!

03.20.2012

Our true mission here at the Rio Grande Foundation is the pursuit of economic freedom. A secondary, but equally-enjoyable mission is to drive left-wing liberals crazy. Check out this screed by ardent leftist (he told me once that FDR was “too conservative” for opposing public sector collective bargaining) Arthur Alpert.

Another leftist attacked me for having the audacity to be on the board of a startup charter school.

I’ll address these two in order. It almost seems that if lefties simply throw the names Koch, ALEC, and Cato, at you like a slur or an incantation, it should be enough to simply discredit one’s views. In his article he cites the role government played in laying the groundwork for innovations like the Internet, but fails to appreciate that it was the private sector that turned a defense industry initiative into a user-friendly, multi-billion (or trillion) dollar industry. If government was so great, why isn’t Communist Cuba an economic powerhouse?

Regarding Mr. Corso’s rant, he attacks charter schools, but doesn’t explain why, in New Mexico and across the country, parents of all socio-economic backgrounds continue to choose to send their children to charters. Charters are by no means “free market,” but they do represent a mild form of choice in an otherwise monopolistic, socialistic education universe.

Rather than leaving decisions up to the educrats like Corso who always seem know what is best for others’ children, I trust parents. If they don’t choose charters, then they will go away.

Join the Albuquerque Tea Party and RGF in rallying against ObamaCare!

03.20.2012

The Albuquerque Tea Party is hosting a rally this Friday against the health care law known as “ObamaCare.” In case you haven’t heard, the US Supreme Court will be holding hearings on the issue starting early next week.

Because health care freedom is so integral to Americans’ personal and financial freedoms, RGF president Paul Gessing will be rallying with the Tea Party. Look for him at the rally and ask him for a tee shirt!

Click here for details on the rally.

Hispanic critics blast Skandera (but how about their own legislators?)

03.16.2012

I read this article (just catching up with my Journal reading) with amusement and frustration. Some so-called “Hispanic leaders” are upset at Education Secretary Hanna Skandera over the achievement gap between Hispanics and whites and for other perceived slights.

I don’t know about the personal interaction Skandera has had with these people, but I can say unequivocally that it is not Hanna Skandera that is causing poor performance among Hispanics.

First and foremost, you have to look at the parents and students themselves. They must be the first point of emphasis in any discussion of educational performance.

Of course, it is easy to blame the parents. We can’t do much to change them, but we can change policies and reform the schools themselves. And, who is it that makes education policy in this State? Hint, it is not Skandera, it’s the Legislature which happens to be controlled by Hispanics. These very same people (like Ben Lujan who I ripped here) have been doing everything possible to stop Skandera’s (and Gov. Martinez’s) reforms.

Here’s my proposal to critics of the Martinez Administration’s education reforms: adopt them. If they fail, then by all means criticize. But, if you don’t like the way New Mexico’s education system is performing, meet with your legislators, complain about them in the media when they vote incorrectly (or fail to bring reform legislation to a vote). Hispanics are not some powerless minority in this state. They run the state and have done so for years. If Hispanic kids aren’t learning in school, they have no one to blame but themselves.

Dodd-Frank could kill small business loans

03.15.2012

The Rio Grande Foundation focuses primarily on state and local issues with the exception of those big issues at the federal level that could have dramatic, negative impacts on New Mexicans. One under-reported provision of the Dodd-Frank financial services reforms will negatively impact small business loans. It was brought to my attention by a local, independent banker here in Albuquerque.

I wrote a piece that was published today in the Daily Caller. Check it out here.

Salary release earns press in Four Corners (and a proclamation from Bernalillo County)

03.14.2012

The Rio Grande Foundation recently released payroll data for several New Mexico school districts here. Our transparency efforts have made waves previously in the Farmington area due to efforts by the Mayor and certain members of the City Council to increase transparency. Our recent efforts were no different.

Read an opinion piece I wrote in the Tri-City Tribune. Also, the Daily-Times covered the story. Along with Gwyneth Doland, the new Executive Director of the New Mexico Foundation for Open Government, I was pleased to accept a proclamation on Sunshine Week from the Bernalillo County Commission last night.

New York: following the New Mexico “model” for pension non-reform?

03.13.2012

Check this story out about the New York Assembly’s recent decision not to enact needed pension reforms proposed by liberal Gov. Cuomo.

According to the article:

The Assembly refused Cuomo’s suggestion to raise the retirement age from 62 to 65 even though the governor stressed that his plan would save hundreds of billions of dollars in costs toward a pension plan expected to consume 35 percent of the government’s budget by 2015. In 2001, it was 3 percent.

Here in New Mexico, some Democrats in the Legislature oppose even far more modest reforms than those being considered in New York. Of course, both states could learn a thing or two from Rhode Island where that state’s Democratically-controlled Legislature enacted needed reforms.

Mathematics is not a partisan issue!

HT: Rob Nikolewski

Are the folks at NM’s BBER “Bad Economists?”

03.12.2012

One of my favorite economics quotes is from the Frenchman Frederic Basiat who says, “There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.”

Nowhere is that more true than in a recent report that, according to reporting from Winthrop Quigley of the Journal, federal “cuts” could cost New Mexico 20,000 jobs by 2014. Leave aside the fact that sequestration will not actually “cut” anything in the federal budget (as seen in the chart below).

The fact is that reducing the growth of federal spending (or even cutting it) will free up resources for more productive uses. That is the “unseen” aspect of economics. Sure, anyone can see news reports of layoffs at the Labs and automatically assume that New Mexico’s economy is in deep trouble, but those resources (including human resources) will then be freed up for more economically-valuable uses in the private sector.

Now, it is true that New Mexico — especially if it remains so economically-unfree — may lose out to other states. That is the kernel of truth in the BBER report. But, who is to say that Gov. Martinez will not succeed in pushing a pro-growth economic agenda through the Legislature that makes New Mexico a more attractive place for business and leads our state to free market economic prosperity?

McDonalds’s responds to public pressure. How about the government?

03.09.2012

When something negative enough comes out about a corporation, the tendency is for the business to respond to public pressure and change whatever is causing the embarrassment. With the government, that is not quite the case.

Take the case of “pink slime,” the unofficial “food” that McDonald’s had at one time used in their hamburger patties. Thankfully, for those who eat McDonald’s hamburgers (or wouldn’t and will now), the company stopped using the substance. Competition from other hamburger chains and the threat of lost market share and profits likely drove the decision.

But government faces no such pressures. So, according to this article: “The United States Department of Agriculture (USDA) is buying 7 million pounds of beef containing ammonium hydroxide-treated ground connective tissue and meat scraps and serving it up to America’s school kids.” Big shock there. No one competes with the USDA. Their word is law and no one can question it, especially non-voting school kids. We’ll see if the feds respond to public pressure and this spate of bad media by banning “pink slime” in schools (what happened to Michelle Obama’s healthy schools kick, btw?).

Oddly enough, the USDA which is distributing “pink slime” is also the agency in charge of inspecting meat for safety (no conflict there!). A privatized meat inspection service could and would do a much better job. If people want to eat “pink slime,” they should be allowed and if people want higher standards than the USDA sets, they should be allowed to do that as well. Just another case of “one-size-fits-all” government from Washington.

The illegality of common core standards

03.09.2012

The issue of federal involvement in education policy has bubbled below the surface of American politics for years. President George W. Bush really pushed the federal government into education in a big way with No Child Left Behind. Now, President Obama is using “Common Core Standards” to further involve the feds in the classroom. Among other issues with this is the fact that Obama is doing so without ever having gone to Congress for approval.

Columnist George Will has an interesting article on the issue here while our friends at several free market think tanks have produced a report detailing the legal justifications and lack of legal support for what the Obama Administration is doing in education.

Lastly, I co-signed a letter that was signed by dozens of education leaders nationwide on the problem of what “Common Core” will do to innovation in education.

Great video on economic freedom

03.08.2012

The Libre Initiative held a conference in Albuquerque at which I had the opportunity to speak last week. Their mission is to spread the message of economic liberty among Hispanics in the United States. One tool they showed the gathering is this excellent video on the special relationship Hispanics have with economic freedom and why they need to be leaders in the fight to restore these freedoms, not only for themselves, but all Americans:

Lottery winner on food stamps: the problem with welfare

03.07.2012

Shame is a powerful human emotion. Unfortunately, governments do everything they can to reduce shame and replace it with dependency. The single greatest problem in New Mexico is the “culture of dependency,” not just among welfare recipients, but among businesses that feel they must rely on government subsidies to succeed.

Unfortunately, the attitudes that have exacerbated the culture of dependency in America seem to be worsening as this story on a lottery winner who still feels entitled to food stamps illustrates. Here in New Mexico, food stamp shoppers go grocery shopping at Whole Foods.

If welfare programs were run, not out of Washington, but at the state or local level, there is no doubt that more accountability would exist. Ideally, charities would be the providers of welfare, (and birth control for those who cannot afford it) however.

New Mexico School District Payroll (districts over 1,000 students)

03.07.2012

Sony Dreamworks closing shows fallacy of film subsidies

03.06.2012

It has been reported that Sony is closing its its post-production facility in Albuquerque and moving it to Vancouver. Reason cited? Subsidies, of course. New Mexico “only” offers 25 cents on the dollar to film companies that set up shop in our fair state. Vancouver, Canada, (where much of the work will be sent) offers an astonishing 46% subsidy.

While it is painful to lose those jobs, the fact is that if taxpayers are footing 25% of the bill and a company is still willing to leave the state for greener pastures, there is something wrong. What is wrong? Not even including the inherent problem in taxing one group of people to support another:

1) the film industry is extremely mobile and lacking in location-specific permanence;
2) this means that the industry is always going to look for subsidies and will never be weaned off of them;
3) policymakers are chasing this industry for non-economic or prestige reasons. The economics of these policies are secondary.

Coming soon: Screenings of “Sick and Sicker” and ObamaCare discussions

03.06.2012

Back in December, we at the Rio Grande Foundation hosted a showing of the film “Sick and Sicker” at an event in Albuquerque that was followed by a discussion of health care reform issues. led by Dr. Deane Waldman, a member of the RGF’s board of directors who is also a pediatric cardiologist.

We are hosting another showing and discussion in Roswell at the UFO Museum on the evening of March 15. Also, we will be doing a showing/discussion on Sunday, March 11 from 3pm to 5pm at the Sandia Tea Party’s meeting. If you live in the Albuquerque area and missed our previous showing, come on out.

The US Supreme Court will be hearing the ObamaCare issue later this month, but regardless of the outcome, health care and health care reforms will be important issues moving forward.

Complaining about partisanship from your own party?

03.05.2012

“I’m shocked, shocked, to hear that gambling is going on in this establishment.” That quote from “Casablanca” comes to mind every time I hear a politician bemoaning the plague of partisanship. Normally, whining about partisanship is done by someone like Sen. Olympia Snowe who is in the minority party and doesn’t really believe that fighting the battle of ideas is worthwhile in the first place.

But, the case of the latest New Mexico politician to cry “partisanship” is far more interesting: Sen. Cynthia Nava will not be running again despite the fact that she was the Chair of the Education Committee and her party, the Democrats, have been in firm control of the Legislature for decades. How is “partisanship” a problem when you are in control of the process and will have a healthy majority for the foreseeable future (at least in your own body, the Senate)?

Honestly, while Nava is nowhere near the reformer I’d want her to be in terms of leading the charge for school choice, she was a supporter of some of the Gov.’s modest reforms like the 3rd grade reading initiative. It would seem that the “partisanship” Nava is concerned about isn’t coming from Gov. Martinez and the Republicans, but rather from those in her own party who are being partisan in blocking much-needed education reforms just because they are proposed by a Republican Governor.

Am I reading too much into this? Tell me what I’m missing or why I’m wrong.

Rio Grande Foundation Hires Thomas Molitor as the New Mexico Watchdog

03.05.2012

(Albuquerque) The Rio Grande Foundation has hired Thomas Molitor as the new, New Mexico Watchdog.

Molitor is a graduate of University of California, Berkeley, School of Economics. He spent 15 years in the corporate communications field where he occupied senior management roles for agencies inside the four largest communications holding companies worldwide – Omnicom, WPP, Publicis and Interpublic. Living in Silicon Valley at the time, Thomas moved over to the world of venture capital for 10 years, having helped found three internet startup companies.

Since moving to New Mexico in 2005, Thomas has made economics, government affairs and politics a full-time obsession. He ran for the New Mexico state legislature, became a regular columnist for two years on NMPolitics.Net, wrote op-ep pieces that have appeared in the Albuquerque Journal, Huffington Post, Wall Street Journal and American Action Forum.

Thomas believes there is a modern day citizen journalist reformation emerging – an Internet Reformation. It is led by the Internet making everything in life more transparent, most importantly government affairs and how taxpayers’ money is being spent.

Prior to joining New Mexico Watchdog as a reporter, Thomas was an adjunct scholar at the Rio Grande Foundation.

Said Rio Grande Foundation president Paul Gessing, “Molitor will be a great addition to watchdog journalism in New Mexico. In recent years, we have made great strides in making government in the Land of Enchantment more accountable and transparent. Thomas Molitor will be working full-time (and more) to expand upon those successes.”

Molitor’s work, including the latest update on the “Earthstone” saga at the State Investment Council, will be available at: http://newmexico.watchdog.org/

Lab cuts an opportunity for New Mexico

03.04.2012

I had an op-ed in today’s Albuquerque Journal. You can read it over at NMPolitics.net as well without a subscription.

Anyway, the point of the article is that New Mexico’s political leaders should look at the cuts being made at Los Alamos as an opportunity to generate economic growth at home. Feel free to comment here/and/or at Heath’s site.

Bill Clinton Supports Keystone Pipeline: Will Obama be pragmatic?

03.02.2012

With all of the controversy over whether the federal government should or should not pay for birth control, the average person may be forgiven for not having seen the story that former President Bill Clinton has stepped into a separate controversy, that over the Keystone Pipeline.

To summarize, Clinton supports the Keystone XL pipeline. The fact that Clinton supports it, while Obama opposes it, illustrates one of the big differences between the two men. Clinton is a political pragmatist while Obama is an ideologue.

Only time will tell whether Clinton’s sage advice has an impact on Obama’s policies.

John Stossel to visit Albuquerque

03.01.2012

The Rio Grande Foundation hosted an incredibly well-attended luncheon 5 years ago in Albuquerque with prominent political commentator and television host John Stossel. We are excited to announce that Stossel will be returning to Albuquerque for a dinner gala on April 25, 2012. In part, he’ll be discussing his new book No, They Can’t: Why Government Fails – But Individuals Succeed

Reserve your seat today! Details on the Stossel event are available here.

Roswell voters: Raising taxes won’t spur economic development

02.29.2012

Voters in Roswell are heading to the polls now (Election Day is officially March 6) to vote on a gross receipts tax increase. The purpose of the tax will be for “economic development” as outlined in Roswell Ordinance 11- 05. Aside from that, details are somewhat unclear and analysis of exactly how raising taxes will spur economic development are lacking. It would seem that this lack of information would make the average voter skeptical about such a tax increase.

But, if that is not enough, we at the Rio Grande Foundation can add this: raising taxes on the population and business community at large in order to provide incentives and hire bureaucrats to lure businesses to town is a bad idea. It will not result in a more prosperous Roswell, but will benefit a few, favored businesses at the expense of everyone else.