Month: May 2022
Kentuckians Left Without Abortion Access After Lawmakers Override Governor’s Veto
“Kentucky is currently without abortion access, as the state’s only two abortion providers have suspended operations while they challenge a new law that they say makes it impossible for them to provide abortions legally.
The law—House Bill 3, passed in March—made abortion illegal after 15 weeks of pregnancy. It also instituted several new restrictions on abortion provision before this cutoff, including a ban on abortion pills being shipped in the mail or otherwise provided outside a physician’s office.
“Instead, the patient must visit a physician in person to receive the first dose and it requires her to be counseled that the procedure may be reversed after the first pill, an assertion which medical organizations say is not based on any evidence,” notes the Louisville Courier Journal.
The 15-week ban got the most attention, but it’s the other provisions that currently make it impossible for Kentucky’s abortion clinics to continue operating at all, say the providers. These provisions include requiring the state’s Cabinet for Health and Family Services to create an elaborate certification process for anyone making, shipping, or dispensing abortion pills.
“We cannot comply with the many, many, many, many burdens within the bill,” Tamarra Wieder, Kentucky state director for Planned Parenthood, told the Associated Press.
That’s in part because the regulations took effect immediately—before the processes for complying with them were even in place.
“The law requires that providers are, for instance, registered with the state, certified with the state as providers who can dispense medication abortions. That program doesn’t exist yet, so there’s no way for providers to be certified at the moment,” Heather Gatnarek, an attorney with the American Civil Liberties Union (ACLU) in Kentucky, told NPR.”
Biden’s Baby Formula Airlift Stunt Should Never Have Been Necessary
“America’s current shortage of baby formula is a crisis created, in significant part, by the failures of government policy aimed at protecting domestic companies from foreign competition.
But rather than sweep aside the rules and regulations that have contributed to this mess, the Biden administration and Congress are gearing up to address a problem created by industrial policy with…more industrial policy. We’re now weeks into the crisis, but the best response that our political leaders have been able to muster is an attempt to use public resources to duplicate the market response that would have solved (or at least eased) the mess if it had merely been allowed to operate. The entire saga is a sad and infuriating commentary about the entirely predictable failures of central planning.
Take the White House’s latest idea for addressing the shortage as a perfect example. On Wednesday, President Joe Biden announced plans to send military aircraft to Europe—”Operation Fly Formula,” as the White House is calling it—to bring back formula for American parents.”
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“The baby formula shortage isn’t the result of there not being enough planes to transport baby formula from Europe to the U.S.; it’s the result of the federal government making it nearly impossible to transport baby formula from Europe to the U.S.
As Reason’s Elizabeth Nolan Brown explained earlier this week, the Food and Drug Administration’s (FDA) rules that prohibit many baby formulas made in Europe from being imported to the U.S. have nothing to do with health or nutritional safety issues. Often, those brands are banned because they fail to meet the FDA’s labeling requirements.
In addition, the U.S. imposes huge tariffs—technically tariff-rate quotas, which are designed to make it completely unprofitable to import more than a small amount of a certain product—on imported formula. Those tariffs exist for no reason other than to protect domestic formula manufacturers and the American dairy industry that supplies them. As a result, about 98 percent of the formula sold in the United States is produced here as well.”
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“Rather than moving to ease those regulations, however, the House of Representatives approved a bill on Wednesday that throws $28 million at the FDA to “boost the part of the workforce focused on formula, as well as FDA inspection staff,” according to CBS News. As if the FDA deserves to be rewarded for its incompetence and over-regulation of baby formula. This crisis demands less from the FDA, not more.”
Republicans Defend Texas Social Media Law—and Compelled Speech
“A blatantly unconstitutional Texas social media law can start being enforced unless the Supreme Court steps in. The law was blocked by a U.S. district court last year after internet advocacy and trade groups challenged it. But a new order from the U.S. Court of Appeals for the 5th Circuit means Texas can begin enforcement of its social media law—and wreak havoc on the internet as we know it in the process.
NetChoice and the Computer and Communications Industry Association (CCIA)—the groups that filed the lawsuit against the Texas social media law—have now submitted an emergency petition to the Supreme Court asking it to intervene. Meanwhile, Texas and a slew of other states with Republican leaders are advocating for the law, which would treat large social media platforms like common carriers (such as railroads and telephone companies) that have a legal obligation to serve everyone.
How we got here: The Texas social media law (H.B. 20) bans large platforms from engaging in many forms of content moderation—including rejecting unwanted content outright, limiting its reach, or attaching disclaimers to it—based on the viewpoint said content conveys. It’s similar to legislation passed (and blocked, for now) in Florida.
Borrowing a page from George Orwell, supporters like Texas Gov. Greg Abbott say the law is designed to protect free speech. But in addition to protecting people and private entities from censorship, the First Amendment also protects against them being compelled by the government to speak or host certain messages—which is exactly what H.B. 20 does.
Accordingly, Judge Robert Pitman of the U.S. District Court for the Western District of Texas held last December that H.B. 20 violated the First Amendment and issued a preliminary injunction against enforcing it.
But Texas appealed, and last week the U.S. Court of Appeals for the 5th Circuit issued a stay on the lower court’s decision—meaning Texas can start immediately enforcing the social media law.
The 5th Circuit did not offer an opinion explaining its reasoning, so it’s hard to say what’s going on there. In any event, NetChoice and the CCIA are now asking the U.S. Supreme Court to step in.”
Don’t Panic Over Monkeypox
“in the past 10 days, cases have been reported in the United States, as well as in Australia, Belgium, Canada, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden, and the U.K. Typically, monkeypox is rare outside West and Central Africa.
In total, there were 92 confirmed cases and 28 suspected cases as of yesterday, the World Health Organization (WHO) reports.
On the upside, there’s little reason to think monkeypox will wreak the kind of havoc that COVID-19 did. It does not spread as easily or cause severe symptoms in most people. And it’s not novel—we already know what monkeypox is and how to fight against it.”
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“In addition, we already have a vaccine that provides some protection against monkeypox: the smallpox vaccine. And the U.S. has “enough to deal with the likelihood of a problem,” said President Joe Biden in Tokyo this week.
“I just don’t think it rises to the level of the kind of concern that existed with COVID-19,” said Biden. He says he does not expect quarantine requirements even for people infected.”
DeSantis Calls for End of Walt Disney World’s Self-Rule
“By calling for the revocation of the Reedy Creek Improvement District while making note of the special exemption that the Republicans themselves gave Disney in the first place, DeSantis leans into using his office in an overt attempt to punish political opponents in the private sphere.
It may be good for culture war politicking, but one does have to consider whether Orange and Osceola counties are even interested in taking responsibility for providing mandatory public services to the massive Disney resort empire. Disney is the biggest employer within the two counties and most certainly their largest source of tangential and indirect tax revenue through tourism. Right now Disney—through Reedy Creek—actually contracts with the Orange County Sheriff’s Office for millions each year ($15.8 million to outside law enforcement agencies in FY 2017) for protection. That’s a benefit to the counties that could end up becoming an expense.
It’s a bit simplistic to think that giving Walt Disney World Resort the power of self-rule is some sort of gift or privilege. That the park, given self-governance, has managed to maintain itself as a generally safe and stable environment that people flock to from across the world is a pretty good indication that the company knows what it’s doing.
Any contention that DeSantis is eliminating some sort of “special treatment” for Disney comes with it the perhaps mistaken assumption that the two counties suddenly in charge of all of this infrastructure will somehow make the park better and not worse. In reality, putting Disney parks at the mercy of two different counties with different laws will be a huge mess for everybody involved, and that’s the point. It’s not about what’s fair or what’s best for the citizens in the area. It’s about punishing political foes and centralizing government power (a very nonconservative approach) to do so.”
Biden’s Protectionist Regulations Undermine His Own Infrastructure Plans
“The $1.2 trillion infrastructure law signed by President Joe Biden in November expanded requirements that federally funded infrastructure projects purchase American-made goods and materials. Now, new rules from the administration will make it harder to get waivers from those cost-increasing mandates.
For decades, Buy America laws required that grantees receiving federal funds to build roads, bridges, and rail lines purchase domestically produced steel, iron, and manufactured goods—including rolling stock like buses and trains. The Infrastructure Investment and Jobs Act (IIJA) expanded those Buy America requirements to cover copper wiring, plastics, polymers, drywall, and lumber.
These requirements are known to raise costs and can even make some projects totally infeasible. For that reason, grantees have been allowed to request waivers from Buy America laws when they prove unworkable or raise costs too much.
But on Monday, the White House’s Office of Management and Budget (OMB) issued guidance intended to narrow the use of those waivers for the Buy America provisions of the IIJA.
Typically, requests for those waivers are approved or denied by the federal agencies that provide a project’s funding. Monday’s guidance, in keeping with an earlier White House executive order, requires these agencies to consult with OMB’s Made in America Office when considering waivers for grant awards made with IIJA funds. It also gives OMB’s Made in America Office final say over whether these waivers are approved.
The explicit purpose of sending these waivers through OMB is to limit the number and extent of waivers granted.”
The Case for Uber Surge Pricing After a Mass Shooting
“Those who desperately need rides can pay extra for them. Those with spare time can take a bus, walk, call a friend, etc., or just wait for prices to drop.
Higher prices also mean higher pay for drivers, which encourages part-time drivers to drop what they are doing and start offering rides.”
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“Uber and Lyft are great innovations. They forced taxi monopolies to treat customers better and let ordinary people use their cars to drive for money.
But businesses get clobbered in the media whenever there’s an aberration. On that day, social media exploded with comments like, “Fare surge after a mass shooting….Shame on you @Uber.”
The companies quickly went into damage control mode. “Our hearts go out to the victims,” tweeted Uber Support. “We disabled surge pricing in the area.”
Disabling surge pricing may be good PR, but it’s a terrible practice. At the beginning of the pandemic, when toilet paper and hand sanitizer were scarce, politicians told people, “Report merchants who raise prices!” They called that “illegal price gouging.”
But “gouging” was a good thing even then. It disincentivized hoarding and got suppliers to make more of the products we need most.”
Alcohol Delivery Doesn’t Lead To Underage Drinking
“Since the beginning of the pandemic, America has seen a drastic overhaul of alcohol laws. To-go cocktails are legal in most states, ordering a six-pack with your weekly grocery delivery order is now commonplace, and some locales have even started revisiting their open container laws to allow more outside drinking.
While most Americans have cheered these reforms, there has also been pushback. A common concern about alcohol delivery is that it could somehow provide a backdoor route for more underage kids to access alcohol. Although this may sound scary, America has experimented with alcohol delivery before, and new research shows alcohol delivery historically has not led to more underage drinking.
It may be tempting to conjure up scary images of children ordering booze via Mom and Dad’s Instacart account. But any sale of an alcoholic beverage, whether it occurs through a delivery app or at a brick-and-mortar store, provides a point-of-access in which an underage individual could obtain alcohol.”
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“Decades of experience with direct-to-consumer wine shipments provide policy makers with a ready historical dataset from which they can analyze the potential impacts of alcohol delivery on underage drinking. Specifically, underage drinking has been tracked for decades by the Centers for Disease Control and Prevention’s (CDC) Youth Risk Behavior Surveillance System survey. The CDC survey asks, among other things, if high school students have had at least one alcoholic beverage in the past 30 days.
From the outset, it’s clear that underage drinking has been in a near free-fall over the past few decades. In 1991, over 50 percent of high schoolers drank alcohol, whereas only 29 percent do so today.
But even more interesting for the purpose of alcohol delivery, the data reveals that states that have continuously allowed direct-to-consumer wine delivery over the past few decades have actually seen a larger decline in underage alcohol consumption than states that prohibited wine shipments. Namely, states that allowed direct wine shipments from 2003 to 2019 saw a 44.3 percent decline in underage drinking compared to a 43 percent decline in states that forbid it during that entire timespan.
Furthermore, states that engaged in the most robust forms of direct-to-consumer wine delivery reforms between 2003 to 2019—by going from no direct wine delivery at all to full-fledged wine delivery—saw a larger decline in underage drinking than states that engaged in more modest reforms.
In other words, the more permissible states were with direct-to-consumer wine shipments, the more their underage drinking rates fell. This does not prove that direct wine shipments actually cause less underage drinking, but it does demonstrate that alcohol delivery is not correlated with more underage drinking.”
Who’s Really To Blame for Inflation?
“Inflation is a general rise in the cost of goods and services. It can occur for two reasons: an increase in the supply of money relative to the supply of goods or an increase in demand for goods relative to supply. While not all price increases are evidence of inflation—prices also fluctuate based on supply and demand—a sustained increase in prices across the board is evidence that one of these phenomena is at play.”
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“Biden’s big spending bills weren’t enacted immediately. The ARP wasn’t signed until March 2021, and much of its spending occurred over several months. Likewise, the Infrastructure Investment and Jobs Act—another commonly cited source of inflationary pressure—didn’t pass until last November, and its spending won’t peak until 2026. Plus, a study by the Chicago Federal Reserve found that the ARP alone can only partly explain recent inflation.
Those findings shouldn’t be a surprise, because significant spending was underway before Biden ever made it to the Oval Office. Even before the Coronavirus Aid, Relief, and Economic Security (CARES) Act—the most expensive bill signed by Donald Trump—the federal government was spending unprecedented amounts due to COVID-19. This act included cash payments to most Americans, housing assistance, boosted unemployment checks, and a pause on student loan repayments, which was recently extended by Biden. These actions may have been necessary at the time, but such policies began under Trump and are contributing to inflationary pressures now.
Putting the pandemic aside, Trump spent extravagantly, spending more in four years than President Barack Obama did in eight. While Biden may be fanning the flames of inflation, Trump collected the kindling and lit the match.
Not that Democratic policies would have been better. They pushed for more generous “enhanced unemployment,” flooding states with cash, and near-permanent stimulus payments to parents. While only some of their ideas were enacted, the cash distributed didn’t disappear, and neither did additional spending by many blue-state governors.
And while the 2020 election happened alongside increasing prices, an expansion of the money supply occurred long beforehand. This is important because one cannot understand inflation without considering the Federal Reserve. No president controls interest rates or dollars in circulation: Jerome Powell and the Federal Open Market Committee do. And Powell admitted last year that they got inflation completely wrong.
The Federal Reserve isn’t the only central bank at fault. Just as worldwide governments spent generously on pandemic relief, the threat of recession made central banks across the world hesitant to raise interest rates in response to rising prices. The European Central Bank has kept rates consistent since early 2016. Meanwhile, the United Kingdom raised rates to where they were pre-pandemic, but like the Federal Reserve, the Brits lowered interest rates during the last two years.
Cheap credit might be appropriate when economies face unexpected shocks, but it becomes a problem once demand roars back. But even if central bankers and other policymakers weren’t following each other’s lead, there’s further reason to expect inflation to be spiking now.
Inflation in the Eurozone sits at 7.5 percent, and price levels in the United Kingdom look similar. To an extent, these phenomena occur independent of the U.S.—it’s ridiculous to suggest Biden’s inauguration sparked inflation nearly 3,600 miles away. But just as Russia’s war can impact the price of gas and wheat, the United States, too, can export inflation across the globe in an interconnected economy.
Breakeven inflation is now the highest it’s been in the 21st century, but blaming any one person or policy only captures part of the economic picture. In reality, many actions—some recent and some dating back five years—primed the pump and escalated a worldwide run-up in prices.
Just as no one person caused our current predicament, it’s unlikely any one person can solve it. Inflation will only abate when the pandemic ends, central banks roll back easy money policies, the private sector increases production, the supply chain stabilizes, and, yes, governments finally undertake more responsible levels of spending.”