Following up yesterdays article, the NY Times again features Larry Reed with emphasis on how free markets will free Africa from poverty.
Once again the reporter’s overuse of the adjective “conservative” shows that he does not really understand what economic freedom is all about. Otherwise, though, an excellent article.
If you have followed New Mexico politics and the Rio Grande Foundation at all over the past year, you are probably aware of the RailRunner commuter rail train and the streetcar system that is now being fast-tracked through City Council by Mayor Chavez.
I attended a public hearing on the RailRunner in Santa Fe on Thursday, the 16th. While at least 100 people were in attendance — many of them skeptical of the RailRunner in the first place — the only real discussion focused on which of two routes should be used to lay track to downtown Santa Fe. Unfortunately, no one has any numbers on whether the system as it operates now is a success or failure. While backers of the project and the streetcar seem to think that the RailRunner’s success is self-evident, they give no data to support their claims.
The fact is that since it opened to great applause from the media and politicians, ridership on the Rail Runner is down significantly. I took a ride on it a few months ago and noted the drop in ridership and I took another ride on it on Friday, November 17. While 60 or so people were on the 7:24am train downtown, 10 or less were on the 7:35am train from downtown to Bernalillo. Even on the trip downtown there was plenty of room to spread out as each car is designed to hold 200 passengers.
Of course, the only way to really tell what is happending would be for MRCOG to release detailed ridership statistics and revenue information, but that hasn’t happened yet. Before we spend $270 million taxpayer dollars to build another rail project, shouldn’t we at least find out if the first one is achieving its goals?
Bruce Bartlett summarizes how Milton and Rose Friedman influenced my life. I am so grateful to them. Free to Choose (coauthored with Rose) should be read by all.
Friedman’s most influential publication was the slender volume, Capitalism and Freedom, based on lectures given in 1956 but not published until 1962. In that book, he put forward one of the most powerful cases for the free market ever written. Its greatest virtues were the clarity and vigor of Friedman’s exposition. It had enormous impact in making free market economics respectable once again, after being falsely blamed for the Great Depression. In his Monetary History of the United States, Friedman put principal blame for that disaster on the Federal Reserve, which allowed the money stock to shrink by one third, bringing on a massive deflation.
In 1976, Friedman was awarded the Nobel Prize in economics. The Royal Swedish Academy of Sciences cited his achievements in the fields of consumption analysis, monetary history and theory, and stabilization policy. The following year, Friedman retired from active teaching and took up residence at Stanford’s Hoover Institution. Although retired, he continued working until the very end. In 1980, Friedman probably achieved his greatest renown with the best-selling book and PBS television series, “Free To Choose,” which explained to average people why free markets work best.
A key reason for Friedman’s enormous output and influence is that he was blessed with a gifted partner, his wife Rose. A distinguished economist in her own right, she contributed heavily to her husband’s thinking, most evident in their co-written memoir, Two Lucky People, published in 1998.
Good news this morning. Freedom is featured in the NY Times.
BOWLING GREEN, Ky. — Lawrence W. Reed is one of those people with so much passion for an unusual line of work that he invented a new occupation, and it has helped shape the conservative movement from here to the Himalayas.
My only objection to the article is their overuse of the adjective “conservative.” We are not “conservative,” we are market liberals. No nanny-state conservatism for this think tank.
Update: BTW, the NY Times misunderstands the basics of economic freedom, to wit: their deciscion to place article about Milton Friedman’s death in the business section. Friedman specifically, and our think tank movement generally, tries to explain human interaction — how the world works. We are not for or against busness; we assess both sides of a transaction whether it be in a free market or in a “political” market.
I am sad to say that my hero Milton Friedman died today. Here is my favorite quote from Capitalism and Freedom. It pretty much sums up the outlook of our Foundation.
…conditions have changed. We now have several decades of experience with government intervention. It is no longer necessary to compare the market as it actually operates and government intervention as it ideally might operate. We can compare the actual to the actual. If we do so, it is clear that the difference between the actual operation of the market and its ideal operation – great though it undoubtedly is – is as nothing compared to the difference between the actual effects of government intervention and their intended effects.
BTW, if you did not guess who Fenwick was, now you know.
Considering the “thumpin’” received by Republicans in the recent elections, it is mind-boggling that the lame duck group that should have learned its lesson is instead continuing to earmark and spend its way to electoral oblivion.
According to Brian Reidl of the Heritage Foundation, this year’s final 11 appropriations bills for fiscal year 2007, which will be voted on during the current “lame-duck” session, “contain an estimated 10,000 pork projects.”
Among the more ridiculous projects is: $150,000 to study shellfish genetics at Oregon State University, $250,000 for Carnegie Hall in New York City, $232,000 for the National Wild Turkey Federation. Perhaps our elected officials should lay off the Wild Turkey and pork?
Given the incredible number of tax breaks given to New Mexico’s film industry, one might be led to believe that the industry is completely benign and obviusly beneficial regardless of whether the policies that bring the industry here in the first place are economically sound. Unfortunately (for film backers at least), a recent UCLA study of the film industry in Los Angeles found the industry to be the single most polluting industry outside of the petroleum industry in the five-county region that forms L.A.
With Governor Richardson dedicating himself and millions of our tax dollars to reducing supposedly harmful greenhouse gases, perhaps the good Guv should reconsider his willingness to bet the farm on film.
Recently on the pages of the Albuquerque Tribune, the Rio Grande Foundation and New Mexico Voices for Children have traded jabs on the issue of whether a Colorado-style Taxpayers’ Bill of Rights would be a boon or a bust for New Mexico.
While the answers to most of her criticisms are contained in my original piece, Kay Monaco is not singing a new song. In fact, her arguments are nothing more than regurgitated talking points from the Washington, DC-based Center for Budget and Policy Priorities. Of course, our side has its own talking points and those were developed by the DC-based Tax Foundation. These talking points answer most of the rest of Monaco’s assertions.
Ultimately, the conflicting points can be summed up in one line from Monaco’s piece “Fiscal conservatives are careful to overlook the most important fact when they talk about taxes – that taxes represent an investment in America.” If you believe that government at any level needs an unlimited amount of your tax dollars — state government grew by approximately 8 percent last year in New Mexico — then you need to pick up an economics book. Governments at all levels are at their best when their roles are limited. That is why the Founding Fathers wrote a Constitution that strictly limited the powers of the federal government. State governments too need to take on only those tasks for which government is best, anything else tends to wind up being wasteful and/or a hindrance to our freedoms.
Larry Reed’s recent visit to New Mexico was a big success. Diane Velasco of The Citizen covered the event and offered her own assessment of Reed’s speech and the freedom movement in New Mexico. We appreciate the coverage and hope to continue expanding the circle.
Although it would be easy to interpret the Democratic Party’s victory as a call by voters for bigger government, a new opinion poll clearly shows that while the American people have been frustated by the foibles of Republicans, their votes for change should not be confused with favoring higher taxes or more government spending. Among the nuggets contained in the recent survey is the finding that 62% of voters would like the 2003 capital gains and dividend cuts extended and 57% of voters would rather have a member of congress that cut spending rather than bringing home pork.
While it is hard to attribute national election results to any one factor — was it the Iraq War or was it spending and corruption that hurt the Republicans? — I believe that many voters simply voted for divided government.
The Rio Grande Foundation has often criticized special interest tax breaks and subsidies, so, when Larry Barker, Channel 13’s investigative journalist broke a recent story about shenanigans involving New Mexico’s film tax credit program, he contacted us for comment. The stories are posted here. Gessing appears in both stories.
As Democrats ascend to power and Republicans begin picking up the pieces of electoral defeat, there is a lot of spin going on as to what the big issues were that caused the Republicans to lose Congress. One particularly confusing bit of “analysis” was recently performed by the folks over at the Republican Main Street Partnership, which blamed the Republican Party’s defeat on its “pursuit of a far right agenda.”
If the Main Street Partnership were a libertarian group critical of Republicans’ social or Iraq War policies, this critique would make sense, but the Partnership is really a left-wing faction within the Party dedicated to fighting any efforts to restrain the growth of the federal government and specifically created in opposition to the Club for Growth.
With President Bush and the Republican-dominated Congress having grown government at rates comparable to Lyndon Baines Johnson and that left Bill Clinton in the dust, it is hard to argue that Republicans adhered to a “far-right” philosophy on spending and that cost them the election. But, when your policies have been followed and have failed so miserably, I suppose recriminations are to be expected.
The National Taxpayers Union has some excellent analysis of the Main Street Partnership’s agenda here.
Maine, a state that is as bad as New Mexico in many ways, saw its constitutional amendment to limit taxing and spending go down to defeat.
But a little good news too: the wasteful “quality of life tax” went down to defeat in ABQ.
Given the proximity of the vote to Election Day, even dedicated followers of local politics might be forgiven for having missed out on the latest folly perpetrated on local residents by the Albuquerque City Council. Yes, in the apparent belief that no tax burden is too heavy and that money grows on trees, Council voted 6-3 to extend a 1/4 percent gross receipts tax until at least 2020 (although it is hard to believe that it will ever be recinded at this point).
The Rio Grande Foundation and others are looking carefully at the way in which a tax was extended for such a long period without voter approval, so this one is not done yet. Eventually, the Legislature will be asked to spend taxpayer dollars on this ridiculously-wasteful project. Hopefully their representatives realize that Farmington, Roswell, and Las Cruces taxpayers shouldn’t be bilked out of $100+ million for a project that will only benefiit a small portion of Albuquerque.
Per pupil spending increased in real terms (adjusted for inflation) by over 50 percent from school year 1982-83 to school year 2003-04. Here is what the trend looks like in 2006 dollars:
More recent data are available for spending from New Mexico’s general fund. The increase in spending from the state’s general fund from FY89 to FY07 in real terms (adjusted for population growth and inflation) was 24 percent. Here is what the general fund trend for school spending looks like in current dollars:
That we are using more and more resources for education raises an important question: How can we be spending so much more in real terms and be doing so much worse as illustrated here and here?
In case you missed it in Saturday’s Albuquerque Journal, the Rio Grande Foundation is busy making the case against Mayor Martin Chavez’s proposed “modern streetcar” boondoggle. If you have the chance, please contact your counselors and let them know that this project is an unnecessary waste of taxpayer dollars. Better yet, take the time to come to Monday’s City Council meeting and tell them in person what a bad idea this project is. I’ll be there and I’d love to meet you!
We are proud to welcome Larry Reed of the Mackinac Center for Public Policy to New Mexico for a short visit. Larry is one of the most influential and productive leaders of the state based think tank community. His productive and articulate defense of classical liberalism has made a positive difference in all our lives; but (unfortunately) most of us don’t know it.
His compiliation of the seven principles of sound public policy should be required reading for all legislators. I was privileged to hear him present it this morning. Check it out.
It wouldn’t be like the New York Times to take a stand for smaller government, but they did run an article discussing the planned New Mexico Spaceport. One important fact that was not mentioned in the article is that New Mexico is not alone in its spaceport venture. In fact, New Mexico’s spaceport will be competing with similar ports in at least five other states and in several other nations. New Mexico can’t even get it right when it comes to making movies, it seems rather obvious that the chances of seeing any return on this, highly speculative “investment” of taxpayer dollars, is rather slim.
Although the Rio Grande Foundation cannot and does not take a position on specific candidates and their races, Bruce Bartlett makes a compelling case as to the merits of splitting control over the legislative and executive branches of our federal government. It is hard to argue with some of the data he includes as far as the relative success of limiting spending and passing necessary reforms. We’ll just have to wait until November 8 when, hopefully, the votes will be tallied and America will know who controls Congress.
According to the National Assessment of Education Progress, New Mexico is not making progress in 4th and 8th grade science. Despite the ballyhooed “reforms” of 2003 (and all the “reforms” before that) we remain near the bottom. Here is the summary for grade 4:
Here is the summary for grade 8:
Check out this stealth tax increase. The wishful thinkers now have a desire named streetcar; and you will be paying for it. If my understanding is correct, this gross receipts tax increase will prevent a scheduled one-quarter of one percent tax reduction that was scheduled to take place because of a sunset clause in the prior ordinance. And, of course, this new ordinance does not have a sunset clause — the tax increase is permanent.
There is still time to stop it. Call your councilor.
HT: Michael Brasher
Aren’t you glad you are being coerced into supporting these coming attractions? When will our government stop production of the fantasy that it can spend your money better than you can?
