Showing posts with label barking cats. Show all posts
Showing posts with label barking cats. Show all posts

Wednesday, June 5, 2013

The IRS, The DOJ, The FDA, and Milton Friedman's Barking Cat

Why are people surprised that the IRS targeted groups that want a smaller IRS? 

Why do almost half of us think that Obama is lying when he says he didn't know that the IRS was targeting groups that want a smaller IRS? 

If you worked for the IRS, and had a great salary, would you want a larger IRS or a smaller IRS?  Would you use your power to intimidate people who wanted a smaller IRS?  Unless your name is Gandhi or Jesus, you would do exactly and precisely what the IRS did.  You would target your enemies. 
Almost half of Americans say President Barack Obama isn’t telling the truth when he says he didn’t know the Internal Revenue Service was giving extra scrutiny to the applications of small government groups seeking tax-exempt status.

.Forty-seven percent of Americans say they don’t believe Obama compared with 40 percent who say he is being truthful, according to a Bloomberg National Poll of 1,002 adults conducted May 31 through June 3.

More than half of political independents -- 53 percent -- say Obama’s explanation that he learned it from media reports is untrue, while 34 percent say they believe him.
Why is this even called a "scandal"?  It's.... what.... large.... powerful.... governments..... do. 

1) They protect themselves and their families. 
2) They protect their organization.
3) Then they look out for you. Maybe.  All other considerations are in a distant 3rd place. 

To expect an honest, selfless system of angelic revenue thieves is to demand what Milton Friedman called a "Barking Cat".  Friedman used the example of the FDA slowing down pharmaceutical advancement, but you can insert FBI, CIA, Tarrant Regional Water District, VA Hospital, or any other government organization that has the power to control others.
Friedman got a letter that began as follows: "In contrast to your opinion, I do not believe that the FDA should be abolished, but I do believe that its power should be" changed in (such and such a way)....

Friedman replied as follows: "What would you think of someone who said, " I would like to have a cat, provided it barked"? Yet your statement that you favor an FDA provided it behaves as you believe desirable is precisely equivalent. The biological laws that specify the characteristics of cats are no more rigid than the political laws that specify the behavior of governmental agencies once they are established. The way the FDA now behaves, and the adverse consequences are not an accident, not a result of some easily corrected human mistake, but a consequence of its constitution in precisely the same way that a meow is related to the constitution of a cat. As a natural scientist, you recognize that you cannot assign characteristics at will to chemical and biological entities, cannot demand that cats bark or water burn. Why do you suppose that the situation is different in the "social sciences?"

The error of supposing that the behavior of social organisms can be shaped at will is widespread. It is the fundamental error of most so-called reformers. It explains why they so often believe that the fault lies in the man, not the "system," that the way to solve problems is to "throw the rascals out" and put well-meaning people in charge. It explains why their reforms, when ostensibly achieved, so often go astray.

The harm done by the FDA does not result from defects in the men in charge-unless it be a defect to be human. Most are and have been able, devoted and public-spirited civil servants. What reformers so often fail to recognize is that social, political and economic pressures determine the behavior of the men supposedly in charge of a governmental agency to a far greater extent than they determine its behavior. No doubt there are exceptions, but they are exceedingly rare-about as rare as barking cats.
This is what Big Government organizations do.  They abuse their power.  They look out for themselves.  In economics, it's called "Public Choice".  I understand the theory better than I do the name. 
As James Buchanan artfully defined it, public choice is “politics without romance.” The wishful thinking it displaced presumes that participants in the political sphere aspire to promote the common good. In the conventional “public interest” view, public officials are portrayed as benevolent “public servants” who faithfully carry out the “will of the people.” In tending to the public’s business, voters, politicians, and policymakers are supposed somehow to rise above their own parochial concerns.

Public "servants" look out for themselves before they look out for you.  And cats don't bark. 
Well, Friedman acknowledged that some cats might rarely bark, but only when they think none of their co-workers are watching. 

Friday, March 1, 2013

Where will you find enough angels? - Milton Friedman

I often find myself surfing the net, reading magazines, listening to the radio, and (when drunk) watching television, and wondering about people.
Yeah, people.
I wonder about all the people who think that our government should "do something".  Take charge.  Regulate.  Otherwise, the big corporations will have their way with us.  Businessmen are only in it for the money, you know....
There are actually people, living, breathing humans, people who can feed themselves with a knife and fork, yet believe that governments should own all of the oil companies.  They believe that our government should set all wages and set price margins.  It really is astounding.

Here's a crusty old exchange between Phil Donahue and Milton Friedman.  I've probably watched the YouTube a dozen times, but this guy blessed us with a transcript.

Enjoy.  And just for grins, I followed it with Wikipedia's links to every Federal-level political scandal going all the way back to the founding of the republic.  Politicians and bureaucrats don't become economic eunuchs when they go in and out Obama's door from business to government.  They're just like you and just like me - providing for themselves and their families first, and then their supporters.  Any other considerations are waaaaaay down the line.  


Phil Donahue: When you see around the globe, the mal-distribution of wealth, a desperate plight of millions of people in underdeveloped countries. When you see so few “haves” and so many “have-nots.” When you see the greed and the concentration of power. Did you ever have a moment of doubt about capitalism and whether greed is a good idea to run on?
Milton Friedman: Well first of all tell me is there some society you know that doesn’t run on Greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? What is greed? Of course none of us are greedy, it’s only the other fellow who is greedy. The world runs on individuals pursuing their separate interests.
The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way.
In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about – the only cases in recorded history – are where they have had capitalism and largely free trade.
If you want to know where the masses are worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.
Donahue: But it seems to reward not virtue as much as ability to manipulate the system…
Friedman: And what does reward virtue? You think the Communist commissar rewarded virtue? You think a Hitler rewarded virtue? You think – excuse me – if you’ll pardon me – do you think American Presidents reward virtue ?
Do they choose their appointees on the basis of the virtue of the people appointed or on the basis of their political clout ?
Is it really true that political self-interest is nobler somehow than economic self-interest ? You know, I think you’re taking a lot of things for granted. Just tell me where in the world you find these angels who are going to organize society for us ? Well, I don’t even trust you to do that. 


  • 1 Scope and organization of political scandals
  • 2 Federal government scandals


  • Friday, February 22, 2013

    On Milton Friedman's Barking Cat

    Let's start off with some vintage Milton Friedman:
     In a recent column (Newsweek Jan 8, 1973), I pointed out that approval of drugs by the Food and Drug Administration delays and prevents the introduction of useful as well as harmful drugs. After giving reasons why the adverse effects could be expected to be far more serious than the beneficial effects, I summarized a fascinating study by Prof. Sam Peltzman, of UCLA of experience before and after 1962, when standards were stiffened. His study decisively confirmed the expectation that the bad effects would much outweigh the good.    The column evoked letters from a number of persons in pharmaceutical work offering tales of woe to confirm my allegation that the FDA was indeed "Frustrating Drug Advancement," as I titled the column. But most also said something like, "In contrast to your opinion, I do not believe that the FDA should be abolished, but I do believe that its power should be" changed in such and such a way - to quote from a typical letter.    I replied as follows: "What would you think of someone who said, " I would like to have a cat, provided it barked"? Yet your statement that you favor an FDA provided it behaves as you believe desirable is precisely equivalent. The biological laws that specify the characteristics of cats are no more rigid than the political laws that specify the behavior of governmental agencies once they are established. The way the FDA now behaves, and the adverse consequences are not an accident, not a result of some easily corrected human mistake, but a consequence of its constitution in precisely the same way that a meow is related to the constitution of a cat. As a natural scientist, you recognize that you cannot assign characteristics at will to chemical and biological entities, cannot demand that cats bark or water burn. Why do you suppose that the situation is different in the "social sciences?"

    In other words, to wish for an efficient, non-corrupt, economical government service is to wish for a "barking cat".  
    Now let's go to something more recent, from the UK's Mail Online.  Britain's dreaded National Health Service has killed something like 1,200 people through sheer godawful neglect, and the government flunkies have responded by (pick one) simply 1) firing those responsible 2) privatizing their system 3) vowing to keep government out of citizens' lives, or 4) paying whistleblowers to shut the hell up.  
    Hit the link.  Check out the comments.  A good number of the Brits are saying sensible things, but far too many are wishing for a barking cat.  And there's no such thing as a barking cat, no matter how you design it, or what was intended.  Sad.
    If these idiots spent the money on 750 nurses, they probably won't need to gag any one !


    The original principle was beyond reproach but sadly I believe it has lost it's way, been allowed to get too big, and 'governed/controlled' by self serving idiotsIf the government was serious about tackling this abuse of power, they would declare all these gagging clauses null and void. Also they would take steps to ensure that the authoritarian, bullying managers who are responsible for this state of affairs, are sacked.

    Revelation after revelation but what will be done ? NOTHING ! What will change ? NOTHING ! It never does. This would be bad enough if it was confined to the NHS but it isn't ! Every public sector departments are riddled with overpaid, 3rd rate middleweight, incompetent managers who are never held responsible for their failures as they would be in the private sector. They demand to be paid the going rate for a first class manager but none would last 5 minutes in the real world. There needs to be a complete pay and conditions restructuring from the top down in all departments not just the NHS. Without this things will only get worse !


    Being open and honest and fully accountable about problems and accepting and recognising there is a problem is the first step to resolving the problem. Preventing legitimate organisational operational concerns and problems being discussed, resolved and publicly available lead to the same problems being repeated and cause serious problems for patient's blighted by hospital blunders and mistakes. Only by learning from previous mistakes and taking real decisive action to prevent repeating mistakes with a genuine will, can the preventable suffering of future patients be avoided. It does not take a consultant to work this out do why does continue to be the case inquiry after inquiry for decades? The culture of secrecy surrounding mistakes needs to stop now and the superiority culture of the medical hierarchy that say they are always right must end.

    Sorry boys.  You can fire all the government managers, you can re-structure your government programs, and you can rant and moan and express your outrage in the comment fields of your newspapers all you want.   
    You can't make a barking cat.