Showing posts with label Regulation. Show all posts
Showing posts with label Regulation. Show all posts

Wednesday, February 9, 2011

Government and the law of unintended consequences

I generally don't trust government for solutions to problems, and I don't subscribe to the idea that government programs, regulations and intervention in our lives are any kind of solution. It's not. Usually, government makes it worse. Just look at the history of the Community Reinvestment Act and most of our "welfare" programs. Here's a couple more:

PROMISES, PROMISES: 'Widows' tax' lingers
Tens of thousands of the nation's war widows find it perplexing and downright disrespectful to their late military husbands: In order to fully collect on insurance their husbands bought for them when alive, they must marry another man.

Credit card rates at record highs near 15%
Interest rates are now hovering near record highs, at an average rate of 14.72%. And if your credit is bad enough, you could even end up with a rate as high as 59.9% APR. That's because while the CARD Act helped crack down on certain fees and requires more disclosures, it didn't cap every credit card holder's worst enemy: interest rates. Sure, the new rules prevent banks from raising most interest rates retroactively, but there's no limit on the rates they can charge new customers.

In my own personal experience, my credit union raised my interest rate, unannounced, from 5.9 percent to 8.9 percent, just before the CARD act went into effect. Recently, I purchased a TV from Sears with a no-interest-for-15-months deal. When I use the card next time, the interest rate on purchases is 24.95 percent. Incredible. And I have a very high credit score. It will be interesting to see how low I can get them to go; if not, I'll cancel and shop elsewhere...

While some regulation and oversight is necessary, government meddling usually goes way too far, and makes things worse. It's called the law of unintended consequences.

Wednesday, February 2, 2011

Obama, I think, needs to go

First there was the creating of "czars" and the attempt -- so far successful -- of ruling by edict. Take the EPA for example, which has taken upon itself to create regulations not authorized by Congress. Now Obama is threatening a veto if Congress reins in this rule by edict way of doing things.

As Thomas Sowell writes:

In a classic example of this process, the EPA has decided that since milk contains oil, it has the authority to force farmers to comply with new regulations to file "emergency management" plans to show how they will cope with spilled milk, how farmers will train "first responders" and build "containment facilities" if there is a flood of spilled milk.
The Equal Employment Opportunity Commission has expanded its definition of "discrimination" to include things that no one thought was discrimination when the Civil Rights Act of 1964 was passed.

The Federal Communications Commission is trying to expand its jurisdiction to cover things that were never included in its jurisdiction, and that have no relationship to the reason why the FCC was created in the first place.

Then, when Obama won't enforce Federal law in regards to the borders and immigration, and a state decides to do it themselves, what does he do? Does he step up enforcement? No. He sues Arizona and slaps ass with the President of Mexico? Who's side is this idiot on?

When he imposes a job-killing moratorium on drilling in the Gulf (since then, only one or two permits have been approved by Obama's henchmen), a Federal judge said no. He did it anyway.

Next, a Federal judge rules that Obamacare is unconsitutional. Well, regardless of whether you might agree or disagree, a ruling by a Federal court behooves the administration to alter its programs. Obama has said he will ignore the Federal judge. If Obama is ignoring legal rulings, this is a basis for -- yes -- impeachment.

And we all know (or at least those of us who can see clearly) that Obama's foreign policy has been a nightmare. Now, he's ok with allowing the Muslim Brotherhood -- which actually does have direct ties to 9/11 -- to help form a new government in Egypt. To a known terrorist organization, of all things. Ah, but only if they promise to give up violence. Fat chance.

His failed fiscal policies, his failed foreign policy, and his outright rejection of Federal law adds up to one thing: when do the impeachment hearings begin?