In this excerpt from WichitaLiberty.TV, I introduce the video “I, Pencil” and then show the movie as created by Competitive Enterprise Institute. More about this movie may be found at ipencilmovie.org. View below, or click here to view at YouTube.
Tag: Capitalism
Richard Ranzau, slayer of cronyism
In Sedgwick County, an unlikely hero emerges in the battle for capitalism over cronyism.
Now that the result of the 2014 general election is official, Richard Ranzau has notched four consecutive election victories over candidates endorsed by the Wichita Eagle and often by the Wichita Metro Chamber of Commerce. It’s interesting and useful to look back at what the Wichita Eagle wrote during each campaign as it endorsed Ranzau’s opponent.
In its endorsements for the 2010 Republican Party primary, the Eagle editorial board wrote:
In a district reaching from downtown Wichita north to include Maize, Valley Center and Park City, Republican voters would do well to replace retiring Commissioner Kelly Parks with the commissioner he unseated in 2006, Lucy Burtnett. Her business experience and vast community involvement, as well as her understanding of the issues and thoughtful voting record during her two years on the commission, make her the pick in this primary. She would like to see a new life for the Kansas Coliseum site, perhaps including a year-round RV park, and favors the county’s continued role in Fair Fares and the National Center for Aviation Training.
The other candidate is Richard Ranzau , a physician assistant retired from the Army Reserves who believes government is out of control, who would submit all tax increases to voters, and who opposes the county’s investments in air service and aviation training.
The Wichita Metro Chamber of Commerce political action committee contributed to Burtnett.
In this election, Ranzau received 55 percent of the vote.
Then for the general election in November 2010, the Eagle editorial board wrote this:
State Sen. Oletha Faust-Goudeau, D-Wichita, is by far the better choice in the race to replace Republican Kelly Parks, who is stepping down after one term representing the county’s north-central district. Her legislative experience, civic engagement and constituent service have prepared her for a seat on the county commission, where she wants to help attract businesses and jobs and would support efforts such as the new National Center for Aviation Training. “That’s a must,” she said. It’s a concern that Faust-Goudeau has been slow to address code violations at a house she owns, but the fact that neighbors have stepped up to help says a lot about her as a person and public servant. The first African-American woman elected to the Kansas Senate, Faust-Goudeau would make a hardworking and effective county commissioner.
Republican Richard Ranzau, a physician assistant retired from the Army Reserves, holds inflexible anti-tax, free-market views that would be disastrous for the county’s crucial efforts to support economic development and invest in affordable air service and aviation training.
In this election, Ranzau again earned 55 percent of the vote.
In the August 2014 Republican Party primary, the Eagle editorial board wrote:
Carolyn McGinn is the clear choice to represent this district that includes part of north Wichita as well as Maize, Park City and Valley Center. McGinn served on the commission from 1998 through 2004. Since then, she has served in the Kansas Senate, including as past chairwoman of the Senate Ways and Means Committee. As a result, McGinn knows state and local issues well and understands how they intersect. She is concerned about the region’s stagnant economic growth. In order to get businesses to come and grow here, the county needs a stable government structure that provides essential services, she argues. McGinn is a productive problem solver who could have an immediate positive impact on the commission.
Her opponent is incumbent Richard Ranzau, who is completing his first term. He has been a fierce advocate for the Judge Riddel Boys Ranch and for fiscal responsibility. But he also frequently badgers county staff and delivers monologues about federal government problems. He argued that a planning grant was an attempt by President Obama “to circumvent the will of Congress, the states and the people.”
The Wichita Metro Chamber of Commerce also endorsed McGinn.
In this election, Ranzau received 54 percent of the vote.
For the 2014 general election, here’s what the Eagle editorial board had to say:
Democrat Melody McCray-Miller is the clear choice to represent District 4, which includes north Wichita, Maize, Park City and Valley Center. A former county commissioner and four-term state representative and a business owner, McCray-Miller understands government at both the state and local levels and how it affects communities, families and businesses. Her priorities include economic development and community livability and engagement. “I would like to put the public back in public policy,” she said, accusing her opponent of representing his ideological views and not the full district. McCray-Miller believes in a balanced, collaborative approach to dealing with issues and people, focusing on “what’s best for the county.” She also would not turn down federal funds, as her opponent has voted to do, and supports using economic incentives to attract and retain businesses.
Republican incumbent Richard Ranzau is completing his first term, which has not been productive. Though he has done some good work watchdogging county spending, Ranzau frequently badgers county staff and other presenters at commission meetings. He also has used his position as an ideological platform to rant about the federal government, including by claiming that a federal planning grant was an attempt by President Obama “to circumvent the will of Congress, the states and the people.” McCray-Miller would be a better, more-constructive commissioner.
The Wichita Metro Chamber of Commerce also endorsed McCray-Miller.
This election was closer, with Ranzau gathering 51 percent of the vote to McCray-Miller’s 49 percent.
As a private entity, the Wichita Eagle is free to print whatever it wants. So too is the Wichita Metro Chamber of Commerce free to contribute to and endorse anyone.
But these two institutions appear to be out of touch with voters.
Do you sense a pattern? Ranzau’s opponents are thoughtful, would make hardworking and effective county commissioners, are productive problem solvers, understand government at both the state and local levels, and have a balanced, collaborative approach to dealing with issues and people.
Ranzau, according to the Eagle, believes government is out of control and holds inflexible anti-tax, free-market views. He frequently badgers county staff. (Believe me, they deserve scrutiny, which the Eagle calls “badgering.”) Oh, and he’s ideological, too. That simply means he has “a system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.” As long as those ideals are oriented in favor of capitalism, economic freedom, and personal liberty, this is good. And that’s the way it is with Richard Ranzau. Would that the Wichita Eagle shared the same ideology.
I know what it is like to be on the losing side of issues year after year. Advocating for free markets and capitalism against the likes of the Wichita Eagle, the Wichita Metro Chamber of Commerce, most members of the Sedgwick County Commission, and all current members of the Wichita city council is a lonely job.
This makes it all the more remarkable that Richard Ranzau has won four consecutive elections running against not only his opponent, but also against the city’s entrenched establishment. Running against the crony establishment, that is, the establishment that campaigns against capitalism in favor of a “business-friendly” environment. The establishment that has presided over decades of sub-standard economic performance. The establishment that insisted on a sales tax that it hoped would gloss over the miserable results produced over the last two decades.
Thank goodness that defenders of capitalism are able to win an election now and then — or four in a row.
WichitaLiberty.TV: Author and philosopher Andrew Bernstein
In this episode of WichitaLiberty.TV: Andrew Bernstein is a proponent of Ayn Rand’s Objectivism, an author, and a professor of philosophy. We talk about capitalism and other subjects. View below, or click here to view at YouTube. Episode 62, broadcast October 12, 2014.
Elections in Kansas: Federal offices
Kansas Republican primary voters made two good decisions this week.
Kansas held primary elections this week. The primary election, of course, does not determine who wins the office; it only selects one Democratic and one Republican candidate to move forward to the November general election. But in many cases, the primary is the election, at least the one that really makes a difference. That’s because in Kansas, often there may be no Democratic Party candidate. Or if there is a Democrat, that candidate may have little money available to campaign in a district with a large Republican voter registration advantage.
It’s important to note that some candidates who will appear on the general election ballot in November did not appear on any primary election ballot. That’s because parties other than Democratic and Republican select their candidates in a convention. In particular, there are two prominent candidates in this category. One is Keen Umbehr, the Libertarian Party candidate for governor. The other is independent candidate Greg Orman, who is running for United States senator. Both are serious candidates that deserve consideration from voters.
Let’s take a look at a few results from the primary election.
United States Senate
In the contest for the Republican Party nomination for United States Senate, Pat Roberts won, receiving 48 percent of the vote. He moves on to face not only the Democratic nominee, but also an independent candidate who is already advertising on television. The problem Roberts faces going forward is the fallout from his scorched-earth campaign. He went negative against Milton Wolf from the start, focusing on issues that are worth considering, but quite trivial considering the big picture.
Roberts ran an advertisement near the end of the campaign that took Wolf’s words grossly out of context, and Roberts should be ashamed for stooping to that level. Another thing Roberts can be ashamed of is his refusal to debate opponents. He said he would debate. He should debate. It’s a civic obligation. He also largely avoided news media.During the campaign, I was critical of Roberts. I looked at votes he had taken while in the Senate. I looked at the way he ran his campaign. I was critical. I hope that I kept my criticism based on — and focused on — facts and issues. But another problem Roberts has is the behavior of his supporters, both official and unofficial. They too ran a scorched-earth campaign.
I’d like to show you some of the posts made on Facebook and Twitter about Wolf and his supporters, but this is a family-oriented blog. Roberts will need the support of all Kansas Republicans in the general election. He needs to hope that they don’t peel off to the Democrat or Independent candidates. Roberts needs all Kansas Republicans to vote, and vote for him. But the behavior of his campaign and its supporters has harmed Republican party unity. What’s curious to me is that I don’t think they realize the harm they have caused.United States House of Representatives, district 4
For United States House, fourth district, which is Wichita and the surrounding area, incumbent Mike Pompeo won over Todd Tiahrt, 63 percent to 37 percent. This contest was curious for a number of reasons, such as the former holder of the office seeking it again, and running against a man he endorsed twice. It attracted national attention for that reason, but also for something more important: Tiahrt was advocating for a return to the practice of earmarking federal spending. Tiahrt concentrated a few issues in a campaign that was negative from the start.Tiahrt claimed that Pompeo voted to support Obamacare seven times. But everyone who examined that claim, including several political science professors, said it was unfounded, going as far as saying it broke the truth entirely. The Tiahrt campaign also took a speech Pompeo had made on the floor of the House of Representatives and used just one sentence of it in a deceptive manner. The campaign also took a bill that Pompeo introduced — having to do with GMOs — and twisted its meaning in order to claim that Pompeo doesn’t want you to know the ingredients used in food. Tiahrt criticized Pompeo for missing some votes during the campaign, even though Tiahrt had missed many votes during his own campaign four years ago.
In the face of these negative ads, Pompeo remained largely positive. He released one television ad that rebutted the claims that Tiahrt had made. Is it negative campaigning to rebut the false accusations of your opponent? Pompeo had one ad that mentioned “goofy accusations” made by his opponent, which hardly qualifies as negative. Other than that, the Pompeo campaign remained largely positive. That is quite an accomplishment in today’s political environment.
This campaign was also marred by vitriol among supporters. In my opinion, based on my observations, the Tiahrt supporters that engaged in this behavior have some apologies to make. Pompeo goes on to face a relatively unknown Democrat in the heavily Republican fourth district.
United States House of Representatives, district 1
For United States House, first district, which is western Kansas, although the district extends east enough to include Emporia and Manhattan, incumbent Tim Huelskamp was challenged by Alan LaPolice. Huelskamp won with 55 percent of the vote. Huelskamp had faced criticism for not being supportive of various subsidy programs that benefit farmers, most notably for ethanol. Outside groups joined the race, running ads critical of Huelskamp for that reason. Some ads were critical of Huelskamp for being removed from the House Agriculture committee, that move seen as retaliation for not supporting Speaker of the House John Boehner. Huelskamp now moves on to face a Kansas State University history professor who was also the mayor of Manhattan.The meaning of these results
What do these results mean? These three elections — Senate and two House contests — attracted national attention. The Friday before the election, Kimberly Strassel wrote in the Wall Street Journal of the importance of the fourth district contest. She wrote:
A big decision comes Tuesday in the Kansas GOP primary. The Sunflower State is in the throes of political upheaval, with most of the attention on the fortunes of Gov. Sam Brownback and Sen. Pat Roberts. But the race that may say far more about the direction of the GOP is taking place in Wichita, the state’s Fourth District, in the standoff between Rep. Mike Pompeo and challenger Todd Tiahrt.
Pompeo was elected in the 2010 tea party surge, with a particular focus on liberating private enterprise. He’s made a name for himself as a leader in the fight to end corporate welfare and pork, and to cut back on strangling regulations.
After detailing some legislative activity and accomplishment, Strassel noted the difficulty that fighters for economic freedom encounter: She wrote “Such principles are precisely what conservative voters claim to demand from their representatives. Yet the antisubsidy line has hardly been an easy one, even in conservative Kansas — which collects its share of federal largess. And Mr. Tiahrt knows it.”
Continuing, she wrote: “The choice voters fundamentally face on Tuesday is whether they want a congressman who works to get government smaller for everyone and to end corporate welfare, or a congressman who grabs what he can of big government to funnel to his district, and embraces crony capitalism. The latter is a return to the unreformed GOP, a groove plenty of Republicans would happily slide back into — if only voters gave the nod. We’ll see if Kansas conservatives do.”
There’s something there that bears repeating: “Such principles are precisely what conservative voters claim to demand from their representatives.” In the case of Huelskamp and Pompeo, voters supported two candidates who have these principals, and who follow them. In the United States Senate contest, that almost happened.
In Kansas fourth district, fundamental issues of governance arise
The contest in the Kansas fourth district is a choice between principle and political expediency, and between economic freedom and cronyism.
While some news articles and political columns have described the contest for Republican Party nomination for United States House of Representatives between Todd Tiahrt and Mike Pompeo as a yawner, as between two candidates with few and only minor distinguishing positions — there are important differences. The press is starting to notice.
In the Wall Street Journal columnist Kimberly Strassel made the case for this contest’s importance as a bellwether of Republican sentiment:
A big decision comes Tuesday in the Kansas GOP primary. The Sunflower State is in the throes of political upheaval, with most of the attention on the fortunes of Gov. Sam Brownback and Sen. Pat Roberts. But the race that may say far more about the direction of the GOP is taking place in Wichita, the state’s Fourth District, in the standoff between Rep. Mike Pompeo and challenger Todd Tiahrt.
The 50-year-old Mr. Pompeo — an Army veteran, Harvard Law grad and businessman — was elected in the 2010 tea party surge, with a particular focus on liberating private enterprise. He’s made a name for himself as a leader in the fight to end corporate welfare and pork, and to cut back on strangling regulations. (Potomac Watch: A Crony Capitalism Showdown, August 1, 2014)
(If the above link does not work for you because you don’t have a subscription to the Wall Street Journal, click here.)
After detailing some legislative activity and accomplishment, Strassel notes the difficulty that fighters for economic freedom encounter: “Such principles are precisely what conservative voters claim to demand from their representatives. Yet the antisubsidy line has hardly been an easy one, even in conservative Kansas — which collects its share of federal largess. And Mr. Tiahrt knows it.”Concluding her column, Strassel outlines the choice that so many writers have failed to realize:
The choice voters fundamentally face on Tuesday is whether they want a congressman who works to get government smaller for everyone and to end corporate welfare, or a congressman who grabs what he can of big government to funnel to his district, and embraces crony capitalism. The latter is a return to the unreformed GOP, a groove plenty of Republicans would happily slide back into — if only voters gave the nod. We’ll see if Kansas conservatives do.
Another example of the difference between the two candidates is the Export-Import Bank. Conservative groups are urging that Congress not reauthorize the bank, a vote that will happen soon. The most common argument is that it harms American jobs, and there are allegations of corruption in its operations.
While in Congress, Pompeo voted against the reauthorization of the bank. He has said he would vote against its reauthorization again unless there is significant reform. Tiahrt, on the other hand, voted in favor of the Export-Import Bank. It’s representative of the type of cronyism he has supported while in office, and would likely support again, especially as his positions tack to the political left.
Finally, Tiahrt has recently criticized Charles Koch and Americans for Prosperity, leading us to wonder if Tiahrt understands or embraces the principles of economic freedom and free markets.
For Tiahrt, economic freedom is not a good thing, it seems
Kansas congressional candidate Todd Tiahrt has criticized Charles Koch and Americans for Prosperity, leading us to wonder if Tiahrt understands or embraces the principles of economic freedom and free markets.
In a recent speech, candidate for United States House of Representatives Todd Tiahrt criticized Americans for Prosperity and Charles Koch, telling an audience “in general, they try to fight programs that they think are not good for Koch Industries.”
He also said that for Mike Pompeo, Tiahrt’s election opponent who is supported by Americans for Prosperity, they “think it’s all about the money.”
These allegations are contrary to positions and actions that Charles and David Koch have taken throughout their lives. As an example, in April of this year Charles Koch penned an op-ed for the Wall Street Journal. In the article, Koch explains his involvement in public affairs:
Far from trying to rig the system, I have spent decades opposing cronyism and all political favors, including mandates, subsidies and protective tariffs — even when we benefit from them. I believe that cronyism is nothing more than welfare for the rich and powerful, and should be abolished.
Koch Industries was the only major producer in the ethanol industry to argue for the demise of the ethanol tax credit in 2011. That government handout (which cost taxpayers billions) needlessly drove up food and fuel prices as well as other costs for consumers — many of whom were poor or otherwise disadvantaged. Now the mandate needs to go, so that consumers and the marketplace are the ones who decide the future of ethanol. (Charles Koch: I’m Fighting to Restore a Free Society)
In an earlier Journal op-ed Koch wrote “Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want.”
If it was “all about the money” as Tiahrt contends, Koch Industries would join the majority of American business firms that seek to rig the system in their favor. But Charles and David Koch, along with Americans for Prosperity, do not do that. Instead, they advocate for reform.
It’s not a recent conversion, either. Charles and David Koch have promoted free markets and economic freedom for many decades. Charles Koch and others founded what became the Cato Institute in 1977, almost four decades ago. Cato has been consistent in its advocacy of economic freedom.
Even earlier that that: An issue of Koch Industries Discovery newsletter contains a story titled “Don’t subsidize me.” Here’s an excerpt describing an event that must have taken place about 50 years ago:
When Charles Koch was in his 20s, he attended a business function hosted by his father. At that event, Fred Koch introduced Charles to a local oilman. When the independent oilman politely asked about the young man’s interests, Charles began talking about all he was doing to promote economic freedom. “Wow!” said the oilman, who was so impressed he wanted to introduce the young bachelor to his eligible daughter. But when Charles mentioned he was in favor of eliminating the government’s oil import quota, which subsidized domestic producers, the oilman exploded in rage. “Your father ought to lock you in a cell!” he yelled, jabbing his finger into Charles’ chest. “You’re worse than a Communist!”
It seems the oilman was all for the concept of free markets — unless it meant he had to compete on equal terms.
Under oath
For more than 50 years, Charles Koch has consistently promoted economic freedom, even when it was not in the company’s immediate financial interest. In the 1960s, Koch was willing to testify before a powerful Congressional committee that he was against the oil import quota — a very popular political measure at the time. “I think it’s fair to say my audience was less than receptive,” recalls Koch.
Years later, Koch warned an independent energy association about the dangers of subsidies and mandates. “We avoid the short-run temptation to impose regulatory burdens on competitors. We don’t lobby for subsidies that penalize taxpayers for our benefit. “This is our philosophy because we believe this will produce the most favorable conditions in the long run,” Koch said.
It seems that candidate Tiahrt doesn’t share these principles.
Following is a transcript provided to me of remarks by Todd Tiahrt on July 25, 2014.
The Americans for Prosperity is an organization that is primarily funded by Koch Industries and, in general, they try to fight programs that they think are not good for Koch Industries. And now they’re trying to support President, excuse me, they’re trying to support Mr. Pompeo. So, I guess because Mr. Pompeo is a Harvard lawyer and President Obama is a Harvard lawyer, sometimes I accidentally slip when I say “President Obama” when I really meant to say “Mr. Pompeo,” because they’re both Harvard lawyers.
Americans for Prosperity have done some good things in the past, but today they’re on the wrong side of the truth. … Mr. Pompeo and Koch Industries think it’s all about the money. You can out-vote Charles Koch if you get one other person to vote with you. Right here we have enough people to out-vote all of the billionaires in Kansas. Right here we have enough people to out-vote most of the millionaires, but they think that they can sway the outcome of this election by just putting more and more money into it. And forget about you! … They, in Washington, are all about the money, and it’s playing out right here in the Fourth District of Kansas.
In Wichita, no difference between business and government?
In this excerpt from WichitaLiberty.TV: Leaders in Wichita often liken government decision making to running a business, but there are important differences. That Wichita’s leaders in both government and business do not understand this is problematic. View below, or click here to view at YouTube. For more on this, see In Wichita, no differentiation between business and government.
Would you rent space from this landlord?
Located across the street from the Transit Center, the city-owned garage on William Street suffers from maintenance issues that diminish its value for its intended use: retail space. Commercial retail space owned by the City of Wichita in a desirable downtown location was built to be rented. But most is vacant, and maintenance issues go unresolved.
At one time it was thought that the Wichita city-owned parking structure in the 400 block of East William Street would house retail shops along the street. But the present state of the property should cause us to be wary of government economic development efforts.
As reported by the Wichita Eagle twenty years ago on Wednesday, October 20, 1993:
The council also approved a plan to spend about $76 a square foot to construct roughly 6,000 square feet of retail space on the first floor of the parking garage. The space would lease for an estimated $8.70 a square foot.
Council member Sheldon Kamen questioned that part of the plan. ”I just can’t visualize spending $76 a square foot,” he said. “If I was a developer I wouldn’t spend $76 a square foot for retail space on William street.”
Council member Joan Cole disagreed with Kamen, calling $8.70 a “very good price” that would attract tenants. ”It is my feeling there are small operations that would find this kind of small space very attractive,” she said.
(Adjusted for inflation, these prices would be $122 and $14 today)
What has been the results of the city’s venture into commercial real estate? As can be seen in this video from September, a Wichita city government office occupied some of the space, but the office had moved to another location. Now, Wichita Festivals occupies some of the space, but much is still empty.
Rusted awnings near retail space in the city-owned garage on William Street in Wichita. Inspecting the building last September, I found that this city-owned property had maintenance issues that might, in some circumstances, be considered as contributing to blight. Based on a recent walk-by, maintenance hasn’t improved in the ten months since then. Maybe that’s why there’s apparently little demand to rent this space.
At the city-owned garage on William Street in Wichita, a duct tape repair is still in use after ten months. It’s not as though the building has many of advantages that city planners tell us are needed for a vital downtown Wichita. It’s adjacent to the block with the Eaton Hotel and the Wichita Downtown Development Corporation, the agency charged with promoting downtown. This retail space is right across the street from the city’s bus transit center. It’s also one block away from the Intrust Bank Arena, which was promoted as a driver of commerce and activity for the surrounding area. Its Walk Score — a measure promoted by city planners — is 71, which is deemed “Very Walkable. Most errands can be accomplished on foot.”
Considering all the advantages this government-owned property has, it’s failing. It’s becoming blighted. The best thing the city could do is sell this property so that the benefits of markets and the profit-and-loss system can replace management by Wichita city hall bureaucrats.
In Wichita, the attitude of some elected officials needs adjustment
In this excerpt from WichitaLiberty.TV: Attitudes of Wichita government leaders towards capitalism reveal a lack of understanding. Is only a government-owned hotel able to make capital improvements? Then, two examples of the disdain elected officials express towards their constituents who don’t agree with them. View below, or click here to view at YouTube.
After detailing some legislative activity and accomplishment, Strassel notes the difficulty that fighters for economic freedom encounter: “Such principles are precisely what conservative voters claim to demand from their representatives. Yet the antisubsidy line has hardly been an easy one, even in conservative Kansas — which collects its share of federal largess. And Mr. Tiahrt knows it.”
