Chris Edwards

Regulatory Madness

In researching my new bulletin, Milk Madness, the weirdest document I came across was this 2003 note from then New York Attorney General, Eliot Spitzer.

Spitzer was going after retailers of milk for “price gouging,” or charging prices that were “excessive.”

Talk about regulatory chutzpah. The federal government runs a milk cartel system, called “marketing orders,” which has the direct goal of raising prices. A federal price support program and import barriers are designed to raise milk prices. It has been federal policy for 70 years to screw milk consumers for the benefit of milk producers.

And the government of New York is going after retailers for overcharging?

Earmarks

As annual spending bills wind their way through Congress this year, there are ongoing battles over earmarked funding for members’ pet projects.

To get a sense of what the battle is about, check out this newly released list of earmarks in the House Interior appropriations bill.

People scour such lists looking for embarrassing bridges to nowhere in Alaska and indoor rainforests in Iowa.

Farm Subsidies: All You Need to Know

As Congress considers a new farm bill in coming weeks, Cato has launched a web resource, Downsizing the U.S. Department of Agriculture, which offers a menu of cuts to shrink the department’s $89 billion budget by 90 percent.

A nice complement to the Cato pages is an updated farm subsidy database from the Environmental Working Group.

Squelching Dissent

The New York Times has compiled a mammoth list of federal subsidies (or “earmarks”) to thousands of religious organizations.

Public discussions of such giveaways usually revolve around the First Amendment and also the possible damage that subsidies do to the strength, diversity, and integrity of  religious institutions themselves.

Breasts vs. Government Subsidies

I was catching up on my reading in the International Breastfeeding Journal, and came across a great article by George Kent, a professor at the University of Hawaii.

As a scholarly article, it had no photos. Instead, what made it interesting were the contradictions it revealed in the federal women, infants, children (WIC) subsidy program. This is a $5 billion per year program that subsidizes families with babies, mainly by providing free infant formula.

Kent found that:

K for Korruption

The Washington Post has been running a series on its website (Citizen K Street) on the life of Gerald Cassidy, the preeminent entrepreneur of federal budget earmarking since the 1970s. Here are a few thoughts:

- Cassidy is a liberal Democrat, but a much more important aspect of his character seems to be his insatiable quest for money, money, money.

Government Hall of Shame

The Washington Post reported the other day that there are more delays and cost overruns at the new Capitol Hill Visitor Center.

Edwards’s 2-to-1 Budget Law

How should government officials decide on whether to fund big projects such as fighter aircraft, highways, bridges, and other types of infrastructure?

First, they should check the Constitution to see whether they are legally allowed to spend on the object in consideration.

Second, they should assume that the item will cost at least twice as much as initial estimates indicate. There should be a 2-to-1 hurdle when the price tag of a project is being considered.

Soaring Cost Overruns

Last week, we found out that new combat ships for the Navy will cost taxpayers at least 59% more than promised.

Today, the Washingon Post reports that upgraded Air Force cargo planes will cost taxpayers at least 35% more than originally promised.

Cost Overruns, Again

The Washington Post reported yesterday that the cost of new combat ships from Lockheed Martin and General Dynamics will likely be at least $350 million each, instead of the originally budgeted $220 million.

That 59 percent cost increase is routine for big federal procurements. The table below summarizes official government estimates of costs for various defense, energy, and transportation projects.

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