flinthills

EU Expands Today

The European Union (EU) expanded today to a collective (pun intended) 25 nations with 450 million or so citizens (or perhaps the czarish term souls is more appropriate). Well... I guess I've already tipped my hand -- I never was a good poker player.

The Czech Republic, Estonia, Hungary, Latvia, Poland, Lithuania, Cyprus and Malta all joined amid fanfare, with festivities to kick off in Dublin tomorrow. For anyone who fell for the "sure you can join for the economic benefits and still retain your political autonomy" trick, here's a quote from Hans-Gert Poettering, a German who leads the "conservative faction" in the EU parliament: "This is the definitive end of the hegemony of states in Europe."

How ironic all the celebrations take place on May 1st - the "May Day" across the old Soviet block where its citizens were forced to be on the streets to watch parades and listen to pro-communist speeches.

There is an editorial in today's Wall Street Journal by Bertie Ahern, Prime Minister of Ireland, fatuously serving up the celebration. (You will need to be subscribed to the online version of WSJ to follow the link I believe - here's the NY Times story).

Not everyone thinks the EU is entirely a good thing as presently designed - for Europe or for the US. John Blundell has a piece in our local Wichita Eagle today nicely summarizing his point of view on this "house of cards." John is in Wichita to share his experience and insights on the EU as it pertains to Americans this Sunday, May 2nd and Monday, May 3rd. If you haven't already, I highly encourage you to register for the Founding Fathers lecture on Monday evening at the WSU metro complex. Details are on the Flint Hills website.

The Annointed Elite are at it Again

Hey out there to all you "provincial folks" in Kansas this morning, "ill at ease with the ambiguities and complexities of modern life." These phrases come from the latest egregious eructations of our own local annointed who seem to think because you don't see the things the way they do, and they're smart, well... then you must be stupid.

Linda Warren has a piece in the Wichita Eagle this Sunday morning supporting the Harpers Magazine piece by her fellow annointed Kansan, Thomas Frank.

Clearly Frank is a man with an agenda. Nothing wrong with that per se, but it would be nice if he could articulate his thoughts a little more clearly and back them up with some facts and sound reasoning. His repetitive arguments drone along like a union labor picket line.

In Warren's piece, phrases like "greedy corporate fat cats," are thrown around without substantiation (I suppose if I were as smart as they were it would be self evident). The phrase that sinks her is, "destroying any hope we have for a decent, secure, stable economy with any modicum of economic equinimity."

This simply doesn't fit reality. I'm sure Kansas has its share of crackpots - but it certainly doesn't have a monopoly on them. Nor, it seems, does the Republican Party.

European What?

For whatever reason, there's no doubt we Americans can be a bit insular. Which is to say that we sometimes lack awareness of the histories, cultures, current events - even the geographies - outside our own states, let alone the world at large. Even those of us who think we're "in touch" can often be surprised by our ignorance when asked what would seem to be straightforward questions -- Like about the European Union... Like... What is it?

The fact is, even the unaverage American is woefully uninformed about the European Union (EU). Is it a free-trade arrangment between European countries? Or is it a political entity with an agenda and ambitions that are antithetical to the principles of free markets and invidvidual freedom? Both? Something else entirely?

One thing it is for sure is ineluctable. If you own a business that exports you need to understand this animal - where it came from, what it aspires to. Frankly, the same goes for the rest of us, because the EU has emerged as force to be reckoned with and has, for instance, made several attempts to force changes to US tax law via the World Trade Organization.

Fortunately, John Blundell will be in Wichita to educate us about the EU. You will find the details on the Flint Hills Center website -- and you will find it well worth your time to listen to his perspectives.

John Blundell is Coming to Town!

Well, for me this is better than Santa Claus. John Blundell, Director General of the Institute for Economic Affairs (IEA), will be arriving in Wichita in early May (see our website for event details) to give a talk entitled "European Union: Friend or Foe? What Americans should know about the European Union."

It's a timely topic and I expect it will be delivered with the usual wit and keen insight of which Mr. Blundell is so exceptionally capable. For an example of wit, look no further than his latest book review of Lynn Truss' Eats, Shoots and Leaves. As to his keen insight, you will find two quick examples here and here.

I'll be writing more about this upcoming event... be sure to mark May 3rd, 2004 on your calendars, tell your friends and neighbors. I'll see you at the WSU Metroplex near 29th and Oliver for what looks to be an excellent continuation of the Founding Fathers' Lecture tradition.

Tax Freedom Day - May it Come Sooner Next Year

Tax Freedom Day. That's the date each year that we Kansans stop working for government and start working for ourselves. All your federal, state and local levies are paid up and the rest of your paychecks now actually go where they're supposed to: you.

The good news is that Tax Freedom Day for Kansans was April 6th of this year -- that is the earliest it has occurred in 37 years. The national average date is April 11th, so we enjoyed it a bit earlier than most of the citizens of other states (Tax Freedom Day doesn't come to Connecticut, for example, until April 28th).

The bad news is that the average person in Kansas still had to sacrifice over a quarter of a year for the government. Add to this the fact that in comparison to the surrounding plains states, we rank the highest in taxes and among the lowest in average household income.

In general, taxes are an inhibitor of economic growth. Wealth doesn't happen on its own - it has to be produced by individuals making investments, taking risks and working hard. In a free society, those who produce wealth have a right to keep it. This incents them to keep figuring out ways to continue producing it, which benefits us all.

You wouldn't dare give government an unlimited claim on your money to use as it sees fit. Mainly because it's yours - you earned it. But most of us intuitively recognize as well that private individuals and businesses use money far more efficiently than governments do. You won't find a lot of $1,000 hammers and insolvent retirement systems in the private sector. Noone spends someone else's money as carefully as they do their own.

So by all means, sigh in relief that Tax Freedom Day has come early this year. But recognize that you've spent the last 97 days of this year working for the government rather than yourself and then ask what you have to show for it in return. An uncritical response might be "roads, schools, and other services." But check the numbers and you'll find that very little of our taxes are returned to us in the way of public services. Most are consumed by the government system perpetuating it's own existence.

Not only would lower taxes mean working fewer days for the government and more for yourself. It is the only way to impose fiscal discipline and efficiency on our government. And the resulting boom in economic growth would be a nice side effect too.

Gas Prices Too High?

Great op-ed piece in the Wall Street Journal last week (reproduced here on the Cato website) by the dynamic duo Jerry Taylor and Peter Van Doren.

Due to an agenda or mere stupidity, the media has ignored reality once again and declared that gasoline prices are at "record highs" to panic the nation. Fortunately according to Gallup, the average person in this country isn't falling for it. Normalizing for inflation, in 1955 prices were $1.66 per gallon at the pump. At the best of times (1972) we enjoyed $1.28 per gallon and the worst of times (1981) we suffered with $2.36 per gallon.

So from a historical, reality-based, perspective things aren't bad at all - especially when you consider the huge increased burden on prices today from taxes and regulation -- and the resulting lack of investment in domestic supply capabilities (there hasn't been a new refinery built in this country since the 1960's). Part of that, as Taylor and Van Doren point out, is due to the increase in real economic resources and an outpacing of real income vs. prices.

Back - Finally!

Just back from NY. Assume you've all seen that Cato has announced their 2004 Milton Friedman Prize Winner. It's Hernando de Soto, Peruvian economist and author of the acclaimed book, The Mystery of Capitalism. There's a neat article here on his background and work.

Got lots of catching up to do on reading, work, etc. -- will post more in the upcoming days. Thanks as always for the encouragement and support.

Quick Post - Travelling

My apologies for the long gap in posts - I've been travelling a lot... currently I am in San Deigo at the Gartner EXP Conference, a large gathering of CIO's from lots of different companies, industries, etc. to network and compare notes. I was lucky enough to meet up again this year with Richard Hunter, a Gartner VP and Research Director who is the author of "World Without Secrets," which is a very libertarian look at emerging technologies and trends in data, public policy, privacy, etc. It's an easy and good read - and ought to scare the pants off you. I suppose I shouldn't be, but I am always astounded at how many CIO's I meet who are libertarian / free-market...

The Adam Smith Institute's blog has a great post by Dr. Pirie titled, Capitalism and its Scandals - does a great job of explaining the difference between capitalism -- the greatest value generation engine ever known in the history of man -- and crime, which is present everywhere and is drawn to "where the money is." Great stuff.

Am in New York City next week - will try and update the blog again before I head out there!!