Posts Tagged ‘Liberty’

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The TSA’s wholesale violation of our civil rights, including economic liberty

January 6, 2011

Lynne Kiesling

I have been a too-silent opponent of the Patriot Act’s authorization of invasive surveillance in the name of national security. One of the consequences of that authorization has been the growth of the Department of Homeland Security and, under it, the formation and growth of the TSA. Those of us who travel frequently have known the TSA as “Thousands Standing Around” for years, and have derided the TSA policies on shoes (the “shoe carnival”) and liquids that are the security equivalent of locking the barn after the horse is stolen.

The TSA’s push to increase the intrusiveness of their physical search of passengers for specific items has pushed beyond laughable inconvenience and inefficiency into literally physically invasive search that does not qualify as a reasonable search under the administrative search carve-out of the Fourth Amendment. The Fourth Amendment, as written, protects individuals from unreasonable government search and seizure of their person and property, and the TSA operates under the administrative search carve-out from it — basically, if you put your bags on the conveyor you are presumed to have consented to the search of your person and possessions. The TSA are trying to claim that the new backscatter x-ray full-body scanners, millimeter wave full body scanners, and aggressive, frisking-style pat-downs are a sufficiently reasonable search that they should be considered legal under administrative search.

The TSA’s position is wrong, and instead is an aggressive, authoritarian push that violates not just the dignity of individuals, but also our innate (i.e. NOT government-granted) civil and human rights. Their policies and procedures operate on the presumption that every single person that presents himself or herself at the airport to engage in a commercial transportation transaction is a potential terrorist. That presumption flies in the face of every concept of freedom and individual rights that is at the foundation of a free, dynamic, vibrant society.

They do so in the name of making us safer in the face of terrorist threats, but this is a false equivalence, and one where economic logic is important. Their invasive practices require lots of resources. Did you know that each of these scanners costs $175,000? How many FBI intelligence agents and explosive-sniffing K-9 teams could we train and employ with the millions of dollars that Congress has already authorized for the purchase of these scanners? The opportunity cost of these scanners is enormous. Enormous. And it puts us at more risk than we would face if we instead focused those resources on more effective tools, such as behaviorally-targeted intelligence gathering and explosive-detecting dogs.

But here’s where the political economy comes in. The companies who manufacture these technologies are active lobbyists, and have spread their lobbying dollars liberally among the heads of security-related committees and sub-committees in the 111th Congress, and those members of Congress have delivered millions of dollars in scanner contracts to these companies. If that’s the decision-making dynamic in Congress, what hope do the relatively cheap intelligence and dog options have in the face of well-funded x-ray and MMW scanner lobbyists?

These trampling of individual civil liberties have economic implications. Remember that airlines operate on razor-thin margins, and Herb Kelleher of Southwest famously observed that the last 5 or 6 passengers on a plane make a difference between profit and loss on that flight. It doesn’t take a large reduction in demand for air transportation (an inward shift in the demand curve) for the airlines to see that profit margin evaporate. For example, I used to be both Platinum on American and Premier on United, which meant I flew at least 75,000 miles annually. For 2011, because of the TSA, I am taking 1 flight at the end of January because I made a commitment before these policies were implemented, but after that, I will not fly. I have zero flights planned, and only two tentative trips to which I’ve committed for vacation in July and December. With razor-thin margins, it doesn’t take many frequent flyers who want to maintain their dignity and respect staying off of planes to turn profits to losses, at the hands (literally!) of the TSA.

If you have made some of these arguments yourself, you have probably heard the response that flying is not a right. That is wrong. The Supreme Court has ruled in several cases that flight falls under the individual rights we have to free movement under the Constitution, and this right was reinforced formally in language in the Airline Deregulation Act of 1978. We do have the right to fly, and to fly without unreasonable search that strips us of our dignity.

Other economists have written about other more directly economic aspects of this important issue, thinking in terms of benefit-cost analysis. In November Art Carden wrote in Forbes that full frontal nudity doesn’t make us safer, and I strongly encourage you to read his analysis. In December Steve Horwitz made the substitution effect argument: if people substitute out of flying and into driving to avoid invasive TSA searches, those people are at much higher risk of accident and death:

To the degree that the new TSA procedures raise the psychic cost of flying, either by increasing the wait time at security and/or by making people very uncomfortable with see-through scanning or being fondled by a TSA agent, it will induce them to look for alternative methods of travel. For most people, that will be driving rather than flying. And the reality is that you are far more likely mile for mile to be killed in an automobile accident than in an airplane. The most dangerous part of air travel is driving to the airport. And if you consider not all of the risks of flying but only the risk of what the TSA procedures are supposed to prevent, namely the extraordinarily small chance of being killed in a terrorist attack on an airplane, it is even more likely that you will die in your car than on the plane.

Today the Electronic Privacy Information Center is hosting an event, The Stripping of Freedom: A Careful Scan of TSA Security Procedures, with several excellent panels. If you care about such rights, and I obviously think you should, I encourage you to check out EPIC’s activity in this area (including their lawsuit against the TSA to gain an injunction against the use of scanners for primary screening), contact your airlines and hotels, and contact your members of Congress. Otherwise our Fourth Amendment rights, which are essential to a dynamic, thriving society, will continue to erode, and will erode at an increasing rate.

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Pro-liberty reading to take you into 2010

December 31, 2009

Lynne Kiesling

Happy New Year’s Eve! At the turn of the year our thoughts naturally turn simultaneously toward reflection and the future. There are many dimensions of our lives in which the future looks more bleak for individual liberty and autonomy than they did a year ago, which is one reason why the Atlas Foundation’s list of the top ten pro-liberty books of the decade is so timely and will be so useful. These ten books range from economics to philosophy, from applications to theory, and include Bryan Caplan’s Myth of the Rational Voter, Deirdre McCloskey’s Bourgeois Virtues, and Bill Easterly’s The Elusive Quest for Growth. The top pro-liberty book on the list is Hernando de Soto’s The Mystery of Capital:

#1 Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else (2001) by Hernando de Soto

Hernando de Soto’s seminal The Mystery of Capital made him one of the most famous economists in the world.  The book earned him praise from New York Times Magazine, “To the leaders of poor countries, de Soto’s economic gospel is one of the most hopeful things they have heard in years.”  In Mystery, de Soto revolutionized the development debate, and had the rare privilege of testing the application of his ideas.  De Soto offers a more realistic alternative to 20th century redistribution schemes that achieved little more than inflating political power, encouraging corruption, impeding the rule of law, and perpetuating poverty.   Aware that developed countries did not start wealthy, and weren’t assisted by foreign aid, the De Soto coordinated a series of empirical investigations to identify what prevents the Third World from reaching the same level of development as the First.  He discovered that institutional costs imposed by governments all over the world are the main obstacles to reducing poverty.  Real estate is the most emblematic case.  The fact that states do not recognize the property rights of millions of people to the homes they effectively own prevents them from capitalizing on goods that sum billions of dollars.  Free exchange and initiative has made poverty more of an exception than a rule in the developed world, and it is the lack of freedom that imprisons millions of people in a condition of poverty. No book of this decade demonstrates this better than The Mystery of Capital.

If, like me, you are feeling angry and dispirited by the turn toward bureaucracy and government hegemony, these works provide ideas and examples that distill and crystallize why individual liberty is such a crucial value for individual well-being and for healthy civil society.

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Economic Freedom of the World Annual Report

September 14, 2009

Lynne Kiesling

Today the Fraser Institute has released its 2009 Economic Freedom of the World Annual Report. Written by James Gwartney and Robert Lawson, with assistance from other authors as well, this report is one of the most valuable quantitative comparative economic analyses of the form and extent of economic freedom around the world. As stated on the Economic Freedom Network’s web page,

Economic freedom has been shown in numerous peer-reviewed studies to promote prosperity and other positive outcomes. It is a necessary condition for democratic development. It liberates people from dependence on government in a planned economy, and allows them to make their own economic and political choices.

This year’s results show Hong Kong as having the highest degree of economic freedom. The report also contains extensive country-level data on the components of economic freedom incorporated in the analysis.

This year’s report also has additional chapters that analyze the effects of financial crises on economic freedom and the effects of U.S. government fiscal and monetary policy during recessions on economic freedom. The recession chapter, in particular, provides a concise summary of the unintended but, on balance, deleterious effects of our current fiscal and monetary policy on economic freedom.

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Health care policy, individual consumption portfolios, and liberty

July 8, 2009

Lynne Kiesling

Two posts I’ve read this morning about health care resonate for me in combination. The first was Russ Roberts’ discussion of his conversation with a new Walmart employee about wages and benefits, where he notes that

I didn’t get to ask her if she had health care coverage at either job. But the conversation reminds me that people prefer different mixes of cash, retirement, health care and so on.

Which is why the political pressure and the threat of coercion that lead to this kind of result [Walmart's support of an employer health care mandate -ed.] is so dangerous and harmful to human beings and other living things.

Diverse, heterogeneous individuals with their own private, subjective preferences over their consumption, saving, investment portfolio mixes.

On a related note, Doug Bandow writes at Cato @ Liberty about Uwe Reinhardt on health care. Commenting on criticisms of government-provided health care’s rationing of services, Reinhardt points out that rationing is a fundamental function of markets too. He’s technically correct, from a static neoclassical perspective — given a set of resources and unlimited wants, our budget constraints necessitate rationing, and in markets price signals interact with our subjective individual preferences to enable us to allocate our resources optimally.

But Doug makes a deeper point that often gets lost in the technocracy of health care policy:

But Reinhardt leaves liberty out of the equation.  The health care system is a mess, largely because of perverse government incentives through its big health care programs, Medicare and Medicaid, and its tax break for employer-provided insurance.   As a result, we now have a third party payment-dominated system which simultaneously encourages excessive spending and pushes insurers and providers to decide how to “ration” (i.e., limit) care.

What people need is a medical system that allows them to make the basic rationing decisions:  what kind of insurance to buy, what kind of coverage to choose, what kind of trade-offs to make between spending on medicine and spending on other goods and services.

Such decisions are complex and people with little means will need assistance.  But the specific “rationing” decisions–i.e., the inevitable trade-offs–vary dramatically by individual and family preference and circumstance.  Even today’s system allows many people some choice between plans and providers.  The rise in consumer-directed care is a positive development which is expanding the choices available to Americans.

Put another way, and from a Hayekian perspective, who is doing the rationing matters. With government mandates, bureaucrats do the rationing. With a market for health insurance and health care services, individuals do the rationing. Apply the knowledge problem here as Hayek did to the failure of central planning, and you see the analogy that I think is apt.

Just as individual planning generates superior static and dynamic outcomes relative to central planning, individual rationing generates superior static and dynamic outcomes relative to central rationing, because of the knowledge problem and heterogenous agents with diverse preferences and private knowledge of their own preferences. It also honors the precepts of individual liberty.

UPDATED to add the link to Russ’ original post, sorry about that!

UDPATE2: This excellent Ron Bailey post at Reason’s Hit & Run complements my above argument, and includes a link to Shikha Dalmia’s thorough exposure of the fallacies in the current health care policy debate.

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Transparency and representation in the Waxman-Markey vote

June 29, 2009

Lynne Kiesling

In his usual trenchant way, Jonathan Adler has hit upon the two things to which I object the most in the Waxman-Markey bill and vote. The first is the one about which I wrote in May: despite all of the tooth-gnashing and knicker-twisting about the cap-and-trade portions of the bill, the really egregious aspects of it are its old-school command-and-control characteristics.

The second is the implications of the quick, ramrod process for bringing the bill to vote before any of our so-called representatives could have physically been able to read the bill, or even to have their staff read it and analyze it for them. With so much horse trading and jockeying happening at the last minute, and without any actual physical copies of the actual final version of the bill upon which they were voting, how can the members of Congress really retain any shred of an argument that they are indeed representing their voters, and that there is any room for public involvement or discourse in debate? Sure, they are representing some of their constituents, the ones who have concentrated enough economic interests to engage in the wasteful rent-seeking that leads to things like last-minute 300-page amendments to appease ethanol producers. If you try to tell me that ethanol rent seeking is on balance value-creating, I will guffaw directly in your face. And this is not the first time this Congress has used this ramrod; the energy bill debate back in February had the same type of process, with House members voting on a bill that they clearly had not had time to read and process.

Jonathan notes:

If legislation of this sort, which establishes the first-ever regulatory controls on the most ubiquitous byproduct of modern industrial society, imposes new efficiency requirements on all-manner of appliances and consumer products, could trigger the imposition of tariffs on foreign products (likely in violation of U.S. trade commitments), furthers the federal government’s environmentally destructive love affair with corn-based ethanol, contains numerous provisions drafted or urged by various special interest groups, and (at least in one version) contained provisions designed to create a national housing code, can be adopted by a House of Congress within hours of being written (let alone becoming public), then any claim of transparency in government is a farce.

This is depressing. With this Congress, have we finally met Ben Franklin’s curse?

“Well, Doctor, what have we got—a Republic or a Monarchy?”

“A Republic, if you can keep it.”

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Fixing airport security

June 26, 2009

Lynne Kiesling

Having just returned from a 1.5-week, three-conference trip, I am having my now-usual visceral reaction to the thought of another airport experience — nausea, which I hope diminishes by the time of my next trip in early August. Thus I’m in violent (irony intended) agreement with a post on Bruce Schneier’s blog today entitled “fixing airport security“, which I recommend reading. Schneier reiterates what we all realize by now: “Airport security is more about CYA than anything else: defending against what the terrorists did last time.”

But he also delves into another aspect that is well worth our attention — the lack of transparency with respect to traveler rules, rights, and responsibilities is due to what I would call the murky legal status of airport security, and the effect of this on both traveling citizens and visitors to the US:

Let’s start with the no-fly and watch lists. Right now, everything about them is secret: You can’t find out if you’re on one, or who put you there and why, and you can’t clear your name if you’re innocent. This Kafkaesque scenario is so un-American it’s embarrassing. Obama should make the no-fly list subject to judicial review.

Then, move on to the checkpoints themselves. What are our rights? What powers do the TSA officers have? If we’re asked “friendly” questions by behavioral detection officers, are we allowed not to answer? If we object to the rough handling of ourselves or our belongings, can the TSA official retaliate against us by putting us on a watch list? Obama should make the rules clear and explicit, and allow people to bring legal action against the TSA for violating those rules; otherwise, airport checkpoints will remain a Constitution-free zone in our country. …

The Constitution provides us, both Americans and visitors to America, with strong protections against invasive police searches. Two exceptions come into play at airport security checkpoints. The first is “implied consent,” which means that you cannot refuse to be searched; your consent is implied when you purchased your ticket. And the second is “plain view,” which means that if the TSA officer happens to see something unrelated to airport security while screening you, he is allowed to act on that.

Both of these principles are well established and make sense, but it’s their combination that turns airport security checkpoints into police-state-like checkpoints.

Unfortunately, the line is blurry between security-enhancing search encompassed within “implied consent” and unreasonable search that borders on harassment and does little to enhance security and reduce terrorist threats. Injecting some transparency and creating procedures that limit the rights of the TSA and enable individuals to query and challenge the TSA would create some much-needed accountability, and would make airports less of a police state than they currently are.

I also wrote about Bruce Schneier on airport “security theater” in January 2009.

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Update: The Tea Party’s brewing …

February 20, 2009

Lynne Kiesling

[sorry for the pun-ed.]

In doing my morning reading I find posts at EconLog from both Arnold Kling and David Henderson that are in line with my thoughts on government bailouts and increasing anger and frustration. Arnold says

Starting last September, our country has gone through six months that shook the world. We have abandoned free markets. We have abandoned democracy, in the sense of having policies that reflect the popular will. The United States has become a technocratic dictatorship.

David’s post is on Rick Santelli’s CNBC video that I mentioned in my previous post. And as of this morning, there is now an official Rick Santelli’s Tea Party web site, with Tea Party plans for July 4, 2009 in Boston, Chicago, and Los Angeles.

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Mortgage bailouts and the Chicago Tea Party

February 20, 2009

Lynne Kiesling

Count me in as a taxpayer, mortgage holder, and economist who thinks that the Obama mortgage bailout program is bad policy-it’s expensive with little obvious benefit, it creates bad incentives and ex post rewards bad decisions (bad decisions that were abetted by bad government policy), and it’s morally reprehensible. Peter Klein’s remarks on the plan reflect my beliefs:

I am bewildered. But, more than that, I am angry. I can’t count how many news accounts I’ve seen about the poor, struggling homeowners who can’t make the monthly mortgage payment, are about to be foreclosed, and risk losing the family home, yard, white picket fence, and piece of the American Dream. But I haven’t heard one word about the poor, struggling renters, the ones who scrimped and saved and put money away each month towards a down payment, who kept the credit cards paid off, stayed out of trouble, and lived modestly, and thought that maybe, just maybe, the fall in housing prices meant that they, finally, could afford a house — maybe one of those foreclosed units down the street. These people are Bastiat’s unseen. For them, Obama’s housing plan is a giant slap in the face. To hell with the prudent. Party on, profligate! Now that’s what I call moral hazard.

I join Peter in being both angry and bewildered. That’s why I was heartened to see the groundswell of support for CNBC commentator Rick Santelli’s “Chicago Tea Party” mortgage revolt video from the floor of the Chicago Mercantile Exchange yesterday. Santelli, a former trader who has been a critic of the Fed’s monetary policy and its effects in the housing market, gives voice to the feelings of anger and injustice of many taxpayers and homeowners. After his show yesterday he talked with Stephen Spruiell of the National Review, and continued to be firm and eloquent:

The issue is, you can’t pick out 8 or 9 percent and give them things that weaken the 90 or 92 percent who are carrying the water. You need to come up with legislation that may help the people that need it but not hurt the people that… listen, my 401k’s a 201k, my kid’s college tuition is going up 10 percent. This is tough for everybody. Maybe a tax break, maybe everybody who has a house gets something. They need to quit picking winners and losers, and they have to quit alienating the classes. You have to figure out a way to float all boats, and I think that’s where the administration has gone wrong, and I think that’s the nerve I hit.

He sure did hit a nerve; CNBC has set up a poll page where you can vote on whether or not you would join Santelli’s Chicago Tea Party. When I voted “yes” and saw the results, it looked like this:

And now someone (calling himself “Patrick Henry”) has set up a Chicago Tea Party blog.

These invocations of the American Revolution reflect the important fact that the origins of the United States rest on the economic consequences of unjust government policy. We are a country founded on a tax revolt, and more importantly, on the ideas of individual liberty and autonomy that are crucial for us to be able to live together in civil society. To the extent that more and more people see the bank bailouts, loans to the auto industry, the “stimulus” bill, and mortgage bailouts as unjust government policy, we are going to tap into these beliefs.

And frankly, I say bring it on. I usually “keep on keepin’ on” with respect to politics; I’m non-partisan, I hate politics, and no politician has ever represented my philosophy and values, so I just take politics as a drag on productive activity and move on. But this is beginning to worry me and make me angry.

As an aside, this is one reason why I think the “liberaltarian” conversation that Will Wilkinson and others have been having will always be strained — if American progressives embraces fiscally irresponsible government policies that are seen by many people as unjust, this progressive liberal-classical liberal confluence is going to be very shaky indeed.

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