Voice For Liberty

Tag: Economic freedom

Economic freedom means property rights are protected under an impartial rule of law, people are free to trade with others, both within and outside the country, there is a sound national currency, so that peoples’ money keeps its value, and government stays small, relative to the size of the economy.

  • Year in Review: 2014

    Year in Review: 2014

    Here is a sampling of stories from Voice for Liberty in 2014.

    January

    A transparency agenda for Wichita
    Kansas has a weak open records law, and Wichita doesn’t want to follow the law, as weak as it is. But with a simple change of attitude towards open government and citizens’ right to know, Wichita could live up to the goals its leaders have set.

    New York Times on Kansas schools, again
    The New York Times — again — intervenes in Kansas schools. As it did last October, the newspaper makes serious errors in its facts and recommendations.

    Visit Wichita, and pay a tourism fee
    The Wichita City Council will consider adding a 2.75 percent tax to hotel bills, calling it a “City Tourism Fee.” Welcome to Wichita!

    Wichita’s growth in gross domestic product
    Compared to peer areas, Wichita’s record of growth in gross domestic product is similar to that of job creation: Wichita performs poorly.

    The death penalty in Kansas, a conservative view
    What should the attitude of conservatives be regarding the death penalty? Ben Jones of Conservatives Concerned about the Death Penalty spoke on the topic “Capital Punishment in Kansas from a conservative perspective: Is it a failed policy?”

    Kansas school test scores, the subgroups
    To understand Kansas school test scores, look at subgroups. Sometimes Kansas ranks very well among the states. In other instances, Kansas ranks much lower, even below the national average. It’s important for Kansans — be they citizens, schoolchildren, parents, education professionals, or (especially) politicians of any party — to understand these scores.

    The state of Wichita, 2014
    Wichita Mayor Carl Brewer delivered the annual State of the City address. He said a few things that deserve discussion.

    February

    In Wichita, why do some pay taxes, and others don’t?
    A request by a luxury development in downtown Wichita raises issues, for example, why do we have to pay taxes?

    Wichita considers policy to rein in council’s bad behavior
    he Wichita City Council considers a policy designed to squelch the council’s ability to issue no-bid contracts for city projects. This policy is necessary to counter the past bad behavior of Wichita Mayor Carl Brewer and several council members, as well as their inability to police themselves regarding matters of ethical behavior by government officials.

    Our Kansas grassroots teachers union
    Letters to the editor in your hometown newspaper may have the air of being written by a concerned parent of Kansas schoolchildren, but they might not be what they seem.

    Wichita’s legislative agenda favors government, not citizens
    This week the Wichita City Council will consider its legislative agenda. This document contains many items that are contrary to economic freedom, capitalism, limited government, and individual liberty. Yet, Wichitans pay taxes to have someone in Topeka promote this agenda.

    Wichita planning documents hold sobering numbers
    The documents hold information that ought to make Wichitans think, and think hard. The amounts of money involved are large, and portions represent deferred maintenance. That is, the city has not been taking care of the assets that taxpayers have paid for.

    In Wichita, citizens want more transparency in city government
    In a videographed meeting that is part of a comprehensive planning process, Wichitans openly question the process, repeatedly asking for an end to cronyism and secrecy at city hall.

    March

    Special interests struggle to keep special tax treatment
    When a legislature is willing to grant special tax treatment, it sets up a battle to keep — or obtain — that status. Once a special class acquires preferential treatment, others will seek it too.

    In Wichita, West Bank apartments seem to violate ordinance
    Last year the Wichita City Council selected a development team to build apartments on the West Bank of the Arkansas River, between Douglas Avenue and Second Street. But city leaders may have overlooked a Wichita City Charter Ordinance that sets aside this land to be “open space, committed to use for the purpose of public recreation and enjoyment.”

    In Wichita, pushing back at union protests
    A Wichita automobile dealer is pushing back at a labor union that’s accusing the dealer of unfair labor practices.

    Wichita City Council to consider entrenching power of special interest groups
    The Wichita City Council will consider a resolution in support of the status quo for city elections. Which is to say, the council will likely express its support for special interest groups whose goals are in conflict with the wellbeing of the public.

    State employment visualizations
    There’s been dueling claims and controversy over employment figures in Kansas and our state’s performance relative to others. I present the actual data in interactive visualizations that you can use to make up your own mind.

    State and local government employment levels vary
    The states vary widely in levels of state government and local government employees, calculated on a per-person basis. Only ten states have total government employee payroll costs greater than Kansas, on a per-person basis.

    April

    Wichita not good for small business
    When it comes to having good conditions to support small businesses, well, Wichita isn’t exactly at the top of the list, according to a new ranking from The Business Journals.

    Cronyism is welfare for rich and powerful, writes Charles G. Koch
    “The central belief and fatal conceit of the current administration is that you are incapable of running your own life, but those in power are capable of running it for you. This is the essence of big government and collectivism,” writes Charles G. Koch in the Wall Street Journal.

    Rich States, Poor States for 2014 released
    In the 2014 edition of Rich States, Poor States, Utah continues its streak at the top of Economic Outlook Ranking, meaning that the state is poised for growth and prosperity. Kansas continues with middle-of-the-pack performance rankings, and fell in the forward-looking forecast.

    Wichita develops plans to make up for past planning mistakes
    On several issues, including street maintenance, water supply, and economic development, Wichita government and civic leaders have let our city fall behind. Now they ask for your support for future plans to correct these mistakes in past plans.

    May

    Poll: Wichitans don’t want sales tax increase
    According to a newly released poll from Kansas Policy Institute, Wichitans may want more jobs and a secure water source but they certainly don’t support a sales tax increase as the means to get either. Reporting on this poll is available in these articles: In Wichita, opinion of city spending consistent across party and ideology, Few Wichitans support taxation for economic development subsidies, Wichitans willing to fund basics, and To fund government, Wichitans prefer alternatives to raising taxes.

    Contrary to officials, Wichita has many incentive programs
    Wichita government leaders complain that Wichita can’t compete in economic development with other cities and states because the budget for incentives is too small. But when making this argument, these officials don’t include all incentives that are available.

    In Wichita, the streetside seating is illuminated very well
    Wichita city leaders tell us that the budget and spending have been cut to the bone. Except for the waste, that is.

    Wichita seeks to form entertainment district
    A proposed entertainment district in Old Town Wichita benefits a concentrated area but spreads costs across everyone while creating potential for abuse.

    In Wichita, capitalism doesn’t work, until it works
    Attitudes of Wichita government leaders towards capitalism reveal a lack of understanding. Is only a government-owned hotel able to make capital improvements?

    Wichita, again, fails at government transparency
    At a time when Wichita city hall needs to cultivate the trust of citizens, another incident illustrates the entrenched attitude of the city towards its citizens. Despite the proclamations of the mayor and manager, the city needs a change of attitude towards government transparency and citizens’ right to know.

    Wichita per capita income not moving in a good direction
    Despite its problematic nature, per capita income in Wichita is used as a benchmark for the economy. It’s not moving in the right direction. As Wichita plans its future, leaders need to recognize and understand its recent history.

    Uber, not for Wichita
    A novel transportation service worked well for me on a recent trip to Washington, but Wichita doesn’t seem ready to embrace such innovation.

    For Kansas’ Roberts, an election year conversion?
    A group of like-minded Republican senators has apparently lost a member. Is the conservative voting streak by Pat Roberts an election year conversion, or just a passing fad?

    June

    Wichita property taxes compared
    An ongoing study reveals that generally, property taxes on commercial and industrial property in Wichita are high. In particular, taxes on commercial property in Wichita are among the highest in the nation.

    Government employee costs in the states
    The states vary widely in levels of state government and local government employees and payroll costs, calculated on a per-person basis. Kansas ranks high in these costs, nationally and among nearby states.

    With new tax exemptions, what is the message Wichita sends to existing landlords?
    As the City of Wichita prepares to grant special tax status to another new industrial building, existing landlords must be wondering why they struggle to stay in business when city hall sets up subsidized competitors with new buildings and a large cost advantage.

    Wichita city council schools citizens on civic involvement
    Proceedings of a recent Wichita City Council meeting are instructive of the factors citizens should consider if they want to interact with the council and city government at a public hearing.

    Forget the vampires. Let’s tackle the real monsters.
    Public service announcements on Facebook and Wichita City Channel 7 urge Wichitans to take steps to stop “vampire” power waste. But before hectoring people to introduce inconvenience to their lives in order to save small amounts of electricity, the city should tackle the real monsters of its own creation.

    July

    Wichita property taxes rise again
    The City of Wichita is fond of saying that it hasn’t raised its mill levy in many years. But the mill levy has risen in recent years.

    For Wichita leaders, novel alternatives on water not welcome
    A forum on water issues featured a presentation by Wichita city officials and was attended by other city officials, but the city missed a learning opportunity.

    For Wichita’s new water supply, debt is suddenly bad
    Wichita city leaders are telling us we need to spend a lot of money for a new water source. For some reason, debt has now become a dirty word.

    Pat Roberts, senator for corporate welfare
    Two years ago United States Senator Pat Roberts voted in committee with liberals like John Kerry, Chuck Schumer, and Debbie Stabenow to pass a bill loaded with wasteful corporate welfare.

    August

    Charles Koch: How to really turn the economy around
    Writing in USA Today, Charles Koch offers insight into why our economy is sluggish, and how to make a positive change.

    Wichita airport statistics updated
    As the Wichita City Council prepares to authorize funding for Southwest Airlines, it’s worth taking a look at updated statistics regarding the airport.

    Wichita sales tax hike would hit low income families hardest
    Analysis of household expenditure data shows that a proposed sales tax in Wichita affects low income families in greatest proportion, confirming the regressive nature of sales taxes.

    Welcome back, Gidget
    Gidget stepped away for a few months, but happily she is back writing about Kansas politics at Kansas GOP Insider (wannabe).

    September

    Wichita planning results in delay, waste
    Wichita plans an ambitious road project that turns out to be too expensive, resulting in continued delays for Wichita drivers and purchases of land that may not be needed.

    ‘Transforming Wichita’ a reminder of the value of government promises
    When Wichita voters weigh the plausibility of the city’s plans for spending proposed new sales tax revenue, they should remember this is not the first time the city has promised results and accountability.

    Fact-checking Yes Wichita: NetApp incentives
    In making the case that economic development incentives are necessary and successful in creating jobs, a Wichita campaign overlooks the really big picture.

    Arrival of Uber a pivotal moment for Wichita
    Now that Uber has started service in Wichita, the city faces a decision. Will Wichita move into the future by embracing Uber, or remain stuck in the past?

    Fact-checking Yes Wichita: Boeing incentives
    The claim that the “city never gave Boeing incentives” will come as news to the Wichita city officials who dished out over $600 million in subsidies and incentives to the company.

    Beechcraft incentives a teachable moment for Wichita
    The case of Beechcraft and economic development incentives holds several lessons as Wichita considers a new tax with a portion devoted to incentives.

    For Kansas budget, balance is attainable
    A policy brief from a Kansas think tank illustrates that balancing the Kansas budget while maintaining services and lower tax rates is not only possible, but realistic.

    To Wichita, a promise to wisely invest if sales tax passes
    Claims of a reformed economic development process if Wichita voters approve a sales tax must be evaluated in light of past practice and the sameness of the people in charge. If these leaders are truly interested in reforming Wichita’s economic development machinery and processes, they could have started years ago using the generous incentives we already have.

    For Wichita Chamber’s expert, no negatives to economic development incentives
    An expert in economic development sponsored by the Wichita Metro Chamber of Commerce tells Wichita there are no studies showing that incentives don’t work.

    Water, economic development discussed in Wichita
    Dr. Art Hall, Executive Director of the Center for Applied Economics at the University of Kansas School of Business, presented his “Thoughts on Water and Economic Development” at the Wichita Pachyderm Club Friday, September 19, 2014

    Stuck in the box in Wichita, part one
    To pay for a new water supply, Wichita gives voters two choices and portrays one as bad. But the purportedly bad choice is the same choice the city made over the last decade to pay for the last big water project. We need out-of-the-box thinking here.

    October

    Kansas economy has been underperforming
    Those who call for a return to the economic policies of past Kansas gubernatorial administrations may not be aware of the performance of the Kansas economy during those times.

    Union Station TIF provides lessons for Wichita voters
    A proposed downtown Wichita development deserves more scrutiny than it has received, as it provides a window into the city’s economic development practice that voters should peek through as they consider voting for the Wichita sales tax.

    A simple step towards government transparency in Wichita
    Kansas law requires publication of certain notices in newspapers, but cities like Wichita could also make them available in other ways that are easier to use.

    While Wichita asks for new taxes, it continues to spend and borrow
    The City of Wichita says it doesn’t have enough revenue for things like street maintenance and transit, but continues to borrow for spending on new projects.

    Wichita debt levels seen to rise
    As part of the campaign for a proposed Wichita sales tax, the city says that debt is bad. But actions the city has taken have caused debt levels to rise, and projections are for further increases.

    For Wichita, another economic development plan
    The Wichita City Council will consider a proposal from a consultant to “facilitate a community conversation for the creation of a new economic development diversification plan for the greater Wichita region.” Haven’t we been down this road before?

    In Wichita, pro-sales tax campaign group uses sales tax-exempt building as headquarters
    While “Yes Wichita” campaigns for higher sales taxes, it operates from a building that received a special exemption from paying sales tax.

    For Wichita Chamber of Commerce chair, it’s sales tax for you, but not for me
    A Wichita company CEO applied for a sales tax exemption. Now as chair of the Wichita Metro Chamber of Commerce, he wants you to pay more sales tax, even on the food you buy in grocery stores.

    Should Wichita expand a water system that is still in commissioning stage?
    Should we be concerned about rushing a decision to expand a water production system that has not yet proven itself?

    Wichita sends educational mailer to non-Wichitans, using Wichita taxes
    Why is the City of Wichita spending taxpayer money mailing to voters who don’t live in the city and can’t vote on the issue?

    Wichita to consider tax exemptions
    A Wichita company asks for property and sales tax exemptions on the same day Wichita voters decide whether to increase the sales tax, including the tax on groceries.

    November

    In election coverage, The Wichita Eagle has fallen short
    Citizens want to trust their hometown newspaper as a reliable source of information. The Wichita Eagle has not only fallen short of this goal, it seems to have abandoned it.

    Kansas school spending visualization updated
    There’s new data available from Kansas State Department of Education on school spending. I’ve gathered the data, adjusted it for the consumer price index, and now present it in this interactive visualization.

    In Kansas, school employment rises again
    For the fourth consecutive year, the number of teachers in Kansas public schools has risen faster than enrollment, leading to declining pupil-teacher ratios.

    Richard Ranzau, slayer of cronyism
    In Sedgwick County, an unlikely hero emerges in the battle for capitalism over cronyism.

    Kansans still uninformed on school spending
    As in the past, a survey finds Kansans are uninformed or misinformed on the level of school spending, and also on the direction of its change.

    In Kansas, voters want government to concentrate on efficiency and core services before asking for taxes
    A survey of Kansas voters finds that Kansas believe government is not operating efficiently. They also believe government should pursue efficiency savings, focus on core functions, and spend unnecessary cash reserves before cutting services or raising taxes.

    Kansas cities should not unilaterally grant tax breaks
    When Kansas cities grant economic development incentives, they may also unilaterally take action that affects overlapping jurisdictions such as counties, school districts, and the state itself. The legislature should end this.

    City of Wichita State Legislative Agenda: Cultural Arts Districts
    Wichita government spending on economic development leads to imagined problems that require government intervention and more taxpayer contribution to resolve. The cycle of organic rebirth of cities is then replaced with bureaucratic management.

    December

    City of Wichita State Legislative Agenda: Airfares
    The City of Wichita’s legislative agenda regarding the Affordable Airfares subsidy program seems to be based on data not supported by facts.

    Options for funding Wichita’s future water supply
    Now that the proposed Wichita sales tax has failed, how should Wichita pay for a future water supply?

    KU records request seen as political attack
    A request for correspondence belonging to a Kansas University faculty member is a blatant attempt to squelch academic freedom and free speech.

    Why is this man smiling?
    In Wichita, the chair of the Wichita Metro Chamber of Commerce crafts a sweetheart deal for his company to the detriment of Wichita taxpayers.

    Wichita Metro Chamber of Commerce: What is the attitude towards taxes?
    Does the Wichita Metro Chamber of Commerce support free markets, capitalism, and economic freedom, or something else?

    Will the next Wichita mayor advocate enforcing our ethics laws?
    Wichita has laws that seem clear. But the city attorney said they don’t mean what they seem to say. Will our next mayor stand up for ethics?

    Campaign contribution stacking in Wichita
    Those seeking favors from Wichita City Hall use campaign contribution stacking to bypass contribution limits. This has paid off handsomely for them, and has harmed everyone else.

    Economic development in Wichita: Looking beyond the immediate
    Decisions on economic development initiatives in Wichita are made based on “stage one” thinking, failing to look beyond what is immediate and obvious.

    Economic development in Sedgwick County
    The issue of awarding an economic development incentive reveals much as to why the Wichita-area economy has not grown.

  • Myth: Markets promote greed and selfishness

    When thinking about the difference between government action and action taken by free people trading freely in markets, many myths abound.

    Tom G. Palmer has written an important paper that confronts these myths about markets. The second myth — Markets Promote Greed and Selfishness — and Palmer’s refutation is below. The complete series of myths and responses is at Twenty Myths about Markets.

    Palmer is editor of the recent books for Students for Liberty: The Morality of Capitalism, After the Welfare State, Why Liberty, and Peace, Love & Liberty.

    Myth: Markets promote greed and selfishness

    Myth: People in markets are just trying to find the lowest prices or make the highest profits. As such, they’re motivated only by greed and selfishness, not by concern for others.

    Tom G. Palmer: Markets neither promote nor dampen selfishness or greed. They make it possible for the most altruistic, as well as the most selfish, to advance their purposes in peace. Those who dedicate their lives to helping others use markets to advance their purposes, no less than those whose goal is to increase their store of wealth. Some of the latter even accumulate wealth for the purpose of increasing their ability to help others. George Soros and Bill Gates are examples of the latter; they earn huge amounts of money, at least partly in order to increase their ability to help others through their vast charitable activities.

    A Mother Teresa wants to use the wealth available to her to feed, clothe, and comfort the greatest number of people. Markets allow her to find the lowest prices for blankets, for food, and for medicines to care for those who need her assistance. Markets allow the creation of wealth that can be used to help the unfortunate and facilitate the charitable to maximize their ability to help others. Markets make possible the charity of the charitable.

    A common mistake is to identify the purposes of people with their “self-interest,” which is then in turn confused with “selfishness.” The purposes of people in the market are indeed purposes of selves, but as selves with purposes we are also concerned about the interests and well being of others — our family members, our friends, our neighbors, and even total strangers whom we will never meet. And as noted above, markets help to condition people to consider the needs of others, including total strangers.

    As has often been pointed out, the deepest foundation of human society is not love or even friendship. Love and friendship are the fruits of mutual benefit through cooperation, whether in small or in large groups. Without such mutual benefit, society would simply be impossible. Without the possibility of mutual benefit, Tom’s good would be June’s bad, and vice versa, and they could never be cooperators, never be colleagues, never be friends. Cooperation is tremendously enhanced by markets, which allow cooperation even among those who are not personally known to each other, who don’t share the same religion or language, and who may never meet. The existence of potential gains from trade and the facilitation of trade by well-defined and legally secure property rights make possible charity among strangers, and love and friendship across borders.

  • Wichita Metro Chamber of Commerce: What is the attitude towards taxes?

    Wichita Metro Chamber of Commerce: What is the attitude towards taxes?

    Does the Wichita Metro Chamber of Commerce support free markets, capitalism, and economic freedom, or something else?

    Your chamber of commerce radio buttonsVery often, local chambers of commerce support crony capitalism instead of pro-growth policies that allow free enterprise and genuine capitalism to flourish.

    We saw this in Wichita this year, where the Wichita Metro Chamber of Commerce campaigned for a sales tax increase. The Chamber recommended that Wichitans vote in favor of a sales tax of one cent per dollar, with some of the proceeds to be dedicated for a jobs fund. (Other uses were to be for a new water supply, expanded bus transit, and accelerated neighborhood street repair.) Chamber leaders told the Wichita city council that if the jobs fund was not included in the package presented to voters, the Chamber would not support the sales tax.

    Not long ago the Wichita Chamber was opposed to higher sales taxes. In March 2010, as chair of the Wichita Chamber, Sam Williams submitted a letter to the Wichita Eagle in which he wrote “Tax increases and government spending will not create employment or revive the state’s economic engine. Increasing the costs of goods and services will only lead to fewer purchases, more business closures, higher unemployment and less taxes being paid.”

    In April of same year, he wrote again to the Eagle, advising Wichitans this: “Simply put, raising taxes hurts business, costs jobs and ultimately leads to fewer taxpayers and fewer taxes being paid to fund state and local government.”

    Having espoused these anti-tax sentiments just four years ago, it’s curious that the Wichita Chamber would support and campaign for a sales tax for Wichita this year. This spills over to mayoral politics. As far as I saw, Sam Williams, — the Chamber’s chair in 2010 — did not take a public position on the sales tax this year. Except for this: Williams is chair of the Wichita Downtown Development Corporation, and that organization endorsed the sales tax.

    Regarding mayoral politics: Did you know that Sam Williams is running for mayor? And that it appears he has the support of the Wichita Chamber?

    I have a request. If you see Sam Williams, would you ask him about his position on raising sales taxes?

    Your chamber of commerce

    Most people probably think that local chambers of commerce — since their membership is mostly business firms — support pro-growth policies that embrace limited government and free markets. But that’s usually not the case. Here, in an excerpt from his article “Tax Chambers” economist Stephen Moore explains:

    The Chamber of Commerce, long a supporter of limited government and low taxes, was part of the coalition backing the Reagan revolution in the 1980s. On the national level, the organization still follows a pro-growth agenda — but thanks to an astonishing political transformation, many chambers of commerce on the state and local level have been abandoning these goals. They’re becoming, in effect, lobbyists for big government.

    …

    In as many as half the states, state taxpayer organizations, free market think tanks and small business leaders now complain bitterly that, on a wide range of issues, chambers of commerce deploy their financial resources and lobbying clout to expand the taxing, spending and regulatory authorities of government. This behavior, they note, erodes the very pro-growth climate necessary for businesses — at least those not connected at the hip with government — to prosper. Journalist Tim Carney agrees: All too often, he notes in his recent book, “Rip-Off,” “state and local chambers have become corrupted by the lure of big dollar corporate welfare schemes.”

    …

    In the states, chambers have come to believe their primary function is to secure tax financing for sports stadiums, convention centers, high-tech research institutes and transit boondoggles. Some local chambers have reportedly asked local utilities, school administrators and even politicians to join; others have opened membership to arts councils, museums, civic associations and other “tax eater” entities.

    …

    “I used to think that public employee unions like the NEA were the main enemy in the struggle for limited government, competition and private sector solutions,” says Mr. Caldera of the Independence Institute. “I was wrong. Our biggest adversary is the special interest business cartel that labels itself ‘the business community’ and its political machine run by chambers and other industry associations.”

    From Stephen Moore in the article “Tax Chambers” published in The Wall Street Journal February 10, 2007. The full article can be found here.

  • KU records request seen as political attack

    KU records request seen as political attack

    A request for correspondence belonging to a Kansas University faculty member is a blatant attempt to squelch academic freedom and free speech.

    When conservative groups seek records of correspondence of liberal university professors, the American Association of University Professors defends its withholding based on academic freedom. That is, until the subject of a records request is a Kansas University professor who believes in free markets and receives funding from the Left’s favorite target, Charles and David Koch. Then, the local chapter of AAUP flips its position. It will even contribute money against the ideal of academic freedom.

    In 2011 Republicans in Wisconsin requested the correspondence of a professor who was critical of American Legislative Exchange Council, a free market advocacy group. AAUP argued against releasing the records, writing:

    We believe that disclosure of Professor Cronon’s e-mail correspondence will inevitably produce a chilling effect not only on Professor Cronon’s academic freedom but also on the academic freedom of his faculty colleagues and of faculty members throughout the University of Wisconsin system, with potentially deleterious effects on the quality of research and teaching. We urge you to do what you can to resist complying with this outrageous request. (source here)

    In defense of a professor at the University of Virginia whose correspondence was sought by a conservative group, AAUP also defended academic freedom:

    The AAUP and the Union of Concerned Scientists (UCS) filed a joint amicus brief in support of UVA and Professor Mann, urging that “in evaluating disclosure under FOIA, the public’s right to know must be balanced against the significant risk of chilling academic freedom that FOIA requests may pose.” ATI’s request, the brief stated, “strikes at the heart of academic freedom and debate.” … The AAUPUCS brief argued, however, that “in the FOIA context, the public’s right to information is not absolute and courts can and do employ a balancing test to weigh the interest of the public’s right to know against the equally important interests of academic freedom.” (source here)

    When a student group requested correspondence of a Kansas University professor, the local chapter of AAUP flipped its stance regarding academic freedom. It even contributed money towards the costs of the records request.

    The political motivation of AAUP and the student group that filed the request cannot be overlooked. The primary subject of the request for correspondence is Dr. Arthur P. Hall. He is a lecturer in the KU School of Business and Director of its Center for Applied Economics. He believes in free markets and economic freedom. He won an award for his teaching of MBA students this year. He testifies to the Kansas Legislature against rent-seeking and crony capitalism. Hall and the Center also receive funding from the Fred and Mary Koch Foundation.

    It’s the latter that probably stirs up suspicion and opposition. It doesn’t matter that around the world we’ve found that free markets and economic freedom create better living conditions for everyone. It doesn’t matter that disclosure of e-mail correspondence “will inevitably produce a chilling effect” on academic freedom. As long as a political attack on Koch Industries can be advanced, anything is fair game. Principles no longer apply.

    A political attack

    The request for Hall’s correspondence was made by Schuyler Kraus, who is president of the student group Students for a Sustainable Future. Members of SSF have ties to groups like Greenpeace, the Sierra Club, and PowerShift. SSF advertises that members will have networking opportunities with these groups and “Forecast the Future, Kansas Interfaith Power & Light, etc.” These groups have mounted political attacks on Charles and David Koch for years.

    SFF also listed as an advisor Manny Abarca, who is Recycling Operations Coordinator for KU as well as Community Affairs Liaison for Emanuel Cleaver, the Democratic Congressman from Kansas City, Missouri. Prior to that he worked for U.S. Senator Claire McCaskill.

    On August 3, the Kansas chapter of AAUP contributed $1,000 to SFF.
    On August 3, the Kansas chapter of AAUP contributed $1,000 to SFF. Click for larger version.
    When KU said the request for Hall’s records would cost $1,800, SFF was able to raise that amount quickly, aided by $1,000 from the Kansas chapter of AAUP. That’s the local chapter of the national group that opposes release of the correspondence of liberal professors. (For a student group, SSF seems to have access to funds, offering to pay students $12.50 per hour for political work.)

    Students for a Sustainable Future Facebook post. Click for larger version.
    Students for a Sustainable Future Facebook post. Click for larger version.
    Why would the Kansas chapter of AAUP attack academic freedom in the case of Hall’s correspondence, while at the national level AAUP defends academic freedom? As Hall wrote in an op-ed, “With the odd exception of the Kansas chapter (which reportedly provided funding to the student group seeking my private documents), the AAUP has consistently stood by professors and researchers in shielding their private correspondence from over-reaching records requests, acknowledging the threat that this kind of activity poses to academic freedom.”

    This episode shows that the Left views “academic freedom” much like it does “free speech.” The Left will defend free speech and academic freedom at any cost — as long as they agree with what is being said and taught. The Left can’t tolerate the marketplace of ideas that Charles and David Koch support, even when it’s just one faculty member of a large university school.

    That, quite simply, is the reason for the requests made to KU for Hall’s correspondence. By harassing certain faculty and the university, the Left thinks it can shut down speech. While promoting free speech and open scientific and economic inquiry, the Left mounts attacks like this on those who don’t conform to the liberal orthodoxy present at most universities.

    In a message to fellow School of Business faculty, Hall explained that he has nothing to hide regarding his correspondence. He expressed concern, however, that political opponents might “cherry-pick language from hundreds of emails to weave a story.” That sword cuts both ways. The university should not acquiesce quietly to this attempt to silence one of its faculty. It should not set a precedent that conservatives might justifiably cite when requesting correspondence of liberal faculty members.

  • Foundations of a Free Society

    Described as “An introduction to the core principles that define a free society,” I highly recommend this short book. It’s written by Eamonn Butler of the Adam Smith Institute and published by Institute of Economic Affairs, a British think tank whose mission is to “improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.” (Being written in British English, a few words are spelled wrongly now and then.)

    Eamonn Butler
    Eamonn Butler
    The book may be purchased or downloaded at no charge at Foundations of a Free Society. Here is the summary of the book, as provided by the author:

    • Freedom creates prosperity. It unleashes human talent, invention and innovation, creating wealth where none existed before. Societies that have embraced freedom have made themselves rich. Those that have not have remained poor.
    • People in a free society do not become rich by exploiting others, as the elites of less-free countries do. They cannot become rich by making others poorer. They become rich only by providing others with what they want and making other people’s lives better.
    • The chief beneficiaries of the economic dynamism of free societies are the poor. Free societies are economically more equal than non-free societies. The poor in the most-free societies enjoy luxuries that were undreamed of just a few years ago, luxuries available only to the ruling elites of non- free countries.
    • International trade gives entrepreneurs new market opportunities and has helped lift more than a billion people out of abject poverty in the last twenty years. Freedom is truly one of the most benign and productive forces in human history.
    • Attempts by governments to equalise wealth or income are counter-productive. They destroy the incentives for hard work and enterprise and discourage people from building up the capital that boosts the productivity of the whole society.
    • A free society is a spontaneous society. It builds up from the actions of individuals, following the rules that promote peaceful cooperation. It is not imposed from above by political authorities.
    • Government has a very limited role in a free society. It exists to prevent harm being done to its citizens by maintaining and enforcing justice. It does not try to impose material equality and it does not prohibit activities just because some people consider them disagreeable or offensive. Leaders cannot plunder citizens for their own benefit, grant favours to their friends, or use their power against their enemies.
    • The government of a free society is constrained by the rule of law. Its laws apply to everyone equally. There must be?due process of law in all cases, with fair trials and no lengthy detention without trial. People accused of offences must be treated as innocent until proved guilty, and individuals must not be harassed by being prosecuted several times for the same offence.
    • Tolerating other people’s ideas and lifestyles benefits society. Truth is not always obvious; it emerges in the battle of ideas. We cannot trust censors to suppress only wrong ideas. They may mistakenly suppress ideas and ways of acting that would greatly benefit society in the future.
    • Communications technology is making it more difficult for authoritarian governments to hide their actions from the rest of the world. As a result, more and more countries are opening up to trade and tourism, and new ideas are spreading. More people see the benefits of economic and social freedom, and are demanding them.

  • Thumbs up for Americans for Prosperity

    On the television news program Journal Editorial Report, Potomac Watch columnist for The Wall Street Journal editorial page Kimberley A. Strassel gave a thumbs up to Americans for Prosperity for its work in the recent election.

  • Richard Ranzau, slayer of cronyism

    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.

  • Wichita sales tax hike harms low income families most severely

    Wichita sales tax hike harms low income families most severely

    Analysis of household expenditure data shows that a proposed sales tax in Wichita affects low income families in greatest proportion, confirming the regressive nature of sales taxes.

    One of the criticisms of a sales tax is that it is regressive. That is, it affects low-income families in greatest proportion. This is an important consideration to explore, because in November Wichita voters will decide whether to create a new city sales tax of one cent per dollar. If enacted, the sales tax in Wichita would rise from 7.15 percent to 8.15 percent.

    It’s an important issue because to hear some people talk, it seems as though they are saying the proposed tax is “one penny.” Anyone can afford that, they say. But the tax is an extra penny on each dollar spent, meaning that the cost of, say, fifty dollars of food at the grocery store increases by fifty cents, not one penny.

    Further, we hear the sales tax spoken of as being a one percent increase. That’s true, if we mean a one percent increase in the cost of most things we buy. And one percent, after all, is just one percent. Not a big deal, people say. But considering the sales tax we pay, a relevant calculation is this: (8.15 – 7.15) / 7.15 = 14 percent. Which is to say, the amount of sales tax we pay will rise by 14 percent.

    To explore the effect of the proposed sales tax on families of different incomes, I gathered data from the U.S. Census Bureau, specifically table 1101, which is “Quintiles of income before taxes: Annual expenditure means, shares, standard errors, and coefficient of variation, Consumer Expenditure Survey, 2012, (Selected Values).” This table divides families into five quintiles. It gives annual expenditures for each quintile in various categories. For each category, I judged whether it is subject to sales tax. For example, for housing, I indicated it is not subject to sales tax. This is not totally accurate, as some of the spending in this category may be for taxable items like maintenance and repair supplies. Food is subject to sales tax in Kansas, although low-income families may apply for a rebate of the tax. Despite these shortcomings, I feel this data gives us an approximation of the effect of the sales tax. (Click on the table to view a larger version, or see below for how to obtain the data.)

    As you might imagine, as income rises, so does total taxable expenditures. Of interest, the percent of expenditures that are taxable is relatively constant across income levels.

    Click for larger.
    An important finding is the bottom line of the table, which shows the increase in cost due to the proposed sales tax as percent of income after taxes. This calculates the relative impact of the proposed sales tax increase as a percent of income. It is here that we expect to see the regressive nature of a sales tax appear. For all consumers, the increase in cost is 0.35 percent. For the lowest class of income, the increase in cost is 0.97 percent of income. It falls to 0.26 percent for the highest income class.

    This means that the lowest income class of families experience an increase nearly four times the magnitude as do the highest income families, as a percentage of after-tax income. This is the regressive nature of sales taxes illustrated in numbers, and is something that Wichita policy makers and voters should consider.

    I’ve made the data available as a Google Docs spreadsheet. Click here for access.

  • WichitaLiberty.TV: Author and philosopher Andrew Bernstein

    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.