'Government Approved'

A little noticed effect of government regulation of industry is that it acts in ways to protect already established businesses from up-start competition, doing a disfavor to consumers. Part of the way it achieves this is through licensing and "seals of approval."

A small section of a recent report on the current egg recall notes how the USDA issues such government approval:

A USDA official, though, told FoxNews.com that USDA agencies have had no involvement in food safety regulations over shell eggs. The official said USDA's chief task was to send an official to the farms, including one involved in the latest outbreak, to grade the eggs -- in other words, inspect them for thickness and cracks and other quality assurance factors in order to give them a USDA seal of approval.

"Quality" is here based on standards developed by a government bureaucracy. The story notes how such standards do not necessarily ensure safety:

That stamp, though, does not certify that an egg is salmonella-free.

America Needs to Take Social Security Lesson from Chile

In the current Social Security debate, the left often attempts to label those in favor of private accounts as loony. Typically, supporters of the Social Security status quo use scare tactics in efforts to convince the American people that private accounts would be “risky” by “gambling your Social Security on Wall Street.” President Obama pledges that he will “continue to fight to make sure we do not jeopardize the future of Social Security with risky schemes that leave our seniors vulnerable."

In America, how risky would private Social Security accounts be? For this answer, we can look at the country of Chile for some insight. Chile once had a Social Security system similar to what the United States has now. Prior to 1981, Chile’s Social Security system faced a crisis— its Social Security deficit rose to about 25 percent of the country’s economic output. Chile’s efforts to “fix” Social Security by rising the retirement age and cutting benefits proven unsuccessful. Finally, in 1981, Chile emphasized individual liberty by allowing workers the choice to invest in personal Social Security accounts.

In Chile, 93 percent of workers have voluntarily chosen personal accounts rather than government controlled accounts. On the other hand, Congress has trapped all American citizens in the compulsory government run Social Security with no other retirement savings options. Those Chileans who opt for a personal account contribute 10 percent of their wages to one of 20 pension funds of their choice. Unlike the United States, Chileans are able to pass the remaining balance in their pension funds to loved ones upon their death.

Want to see state taxes go up while state budgets explode? Then support this bill.

A new bill making its way through Congress proposes to federalize the bargaining power of many state employees, namely police, firefighters, and EMTs.  Deviously called the "Public Safety Employer-Employee Cooperation Act," it also includes increased military funding -- tasty big government treats for both left and right!

Mish Shedlock reports on the unionization plan:

Get ready for Organized Labor's biggest congressional handout yet.

It would come via a piece of legislation called the "Public Safety Employer-Employee Cooperation Act." Attached, ridiculously enough, to a spending bill that provides war funding for the troops, it will soon hit the House floor for a vote.

From the name, you'd think that the act improved public safety. Wrong. In fact, it overrides state laws to boost union membership - at taxpayer expense.

The act would require all states to allow police, firefighters and emergency medical personnel to collectively bargain with taxpayers. If they don't create their own system, the federal government will impose one on them.

The bill has passed the House, but the Senate version is still in the works -- with the support of enough Republicans to make its success likely.  (Those Republicans include MA's Scott Brown.  But then, are we really surprised about that?) The highly effective National Right to Work Committee is already taking action to stop the bill.  Click here to learn how you can help.

Real or Fake?

In the following video, the host, known as the rebel economist, asks people on the street to decide whether certain government spending projects are real or fake.  You'll be shocked and horrified when you discover how much of our tax dollars went to support Chinese hookers and turtles. I don't know whether to laugh or cry at this video.