July 6, 2010

Regulation…Who’s Accountable????

Filed under: Uncategorized — Administrator @ 9:37 pm

There has been a lot of change lately…….

In the past six months our federal government has created, and is continuing to create, far reaching legislation and regulation which will impact both our lives and the lives of future generations of Americans. 

Much of this legislation and regulation has been forced through our “halls of government” using little known and even less understood rules that were created for totally different purposes than what they are now being “bent” to achieve. These drastic and potentially devastating new laws and regulations being forced onto our society are being developed and executed by a handful of elected people, who in the great scheme of our country’s existence have a lot of power and very little accountability as to the long term impact of their decisions.

The only way to hold our elected officials accountable for their actions is to insure that they are punished for poor governance.  This may mean “voting the bums out” but it also should potentially be far more reaching than that.  Just as there is personal accountability and liability for corporations and their leaders…perhaps we should also hold our elected officials accountable and personally liable for their poor judgment and guidance while they are involved in “managing” the corporation called the “United States of America”.

To this point, I attach the below article and thoughts from the “Downsize Dispatch” an article written and presented by

Some great food for thought!

How to think about regulation

Millions of people believe . . .

We need the government to regulate business people, otherwise they will run wild, laying waste to the environment, and selling us bad food, bad drugs, and harmful products.

It would be silly to claim that business people never do these things. After all . . .

* Not all people are good.
* Neither are people who are mostly good, consistently good.
* And sometimes goodness has nothing to do with it — sometimes people simply make mistakes, out of ignorance or carelessness.

But politicians and bureaucrats are people too, and subject to these same failings. Do we really solve the problem of human imperfection by giving one small group of imperfect people vast power over all the others?

That last sentence is so important that it bears constant repeating:

Do we really solve the problem of human imperfection by giving one small group of imperfect people vast power over all the others?

To this we might add, “Is there any form of human being more imperfect than the politician?”

To give this question its proper weight, do not think only about politicians you love (if there are any). Do not cherry-pick the evidence. Instead, think also of the politicians you hate. Should such people have great power over other people?

We think a strong case could be made that the worst politicians, and the worst bureaucrats, have done far more harm to humanity than the worst business people. In fact, this simply has to be true for the simple reason that the power scales are so vastly different . . .

* Politicians and bureaucrats have a monopoly over the use of coercion.
* They also have access to vastly greater resources than even the largest businesses.
* And they cannot be easily fired, unlike a business.

You can refuse to trade with Wal-Mart, or Microsoft, or Exxon, but you cannot refuse to submit to anything that the politicians and bureaucrats tell you to do. You can easily walk out of Wal-Mart and go to K-mart or Target, or a host of other stores, but you cannot easily fire a bureaucrat or a politician.

Given this, isn’t it reasonable to ask . . .

* Can anything other than politicians and bureaucrats regulate how business people behave, and if so . . .
* How do these non-state sources of business regulation compare to the regulations politicians and bureaucrats provide?

Consider the following points . . .

Consumers regulate businesses.

Consumers punish every business that provides a bad product or service. They also spread the word about bad companies to other consumers. Many consumers will even refuse to do business with companies that harm the environment. This form of regulation is enshrined in the proverb “The customer is always right.”

Because “the customer is always right” investors and lenders also regulate business owners.

They do this to protect their investments from potential retaliation by dissatisfied customers. Sometimes this regulation involves direct oversight, and sometimes it involves the purchase of insurance, which then leads to this . . .

Regulation by insurance companies.

Unlike the politicians and bureaucrats, insurance companies have their own money at stake. This motivates them to regulate the companies they cover. One approach to this is product-testing through organizations like Underwriter’s Laboratory. Insurance companies will only cover products that test safe.

Legal liability also regulates businesses.

This liability is determined through due process in a government court, but it differs from government regulation in a crucial way. Government regulation attempts to prejudge which products and services may be harmful, and to dictate how this danger must be mitigated, in advance.

This sounds good, but there are serious problems with it, as you will see below. By contrast, legal liability presumes that a product or service is innocent until there is evidence of harm. This is the commercial equivalent of the principle we know so well from our criminal law, innocent until proven guilty.

The above points expose a bit of commonly believed mythology, that a completely free market is also completely free of regulation. Clearly, nothing could be further from the truth. A free market actually has multiple levels of regulation. In fact . . . <>

It is inherently impossible to have a de-regulated society, for the simple reason that consumers, investors, lenders, and insurance companies will always take steps to control what businesses do, even if the state does nothing.

Taking notice of these overlooked facts allows us to think more clearly, and to refine the questions we need to answer . . .

* Does the state have a role to play, beyond providing a court system for determining legal liability when there is evidence that a product or service causes harm?
* Do we really need politicians and bureaucrats to craft regulations that prejudge whether a product or service is potentially harmful, and that dictate how this risk must be mitigated?

Answering these questions depends on how you respond to concerns that are even more fundamental . . .

* Will the politicians and bureaucrats who devise these regulations be liable for the mistakes they make, in the same way that businesses are held liable by consumers, investors, lenders, insurance companies, and courts of law?
* Can you fire politicians and bureaucrats who regulate incompetently?
* Will politicians and bureaucrats have to personally pay the cost of any harm they cause, the way businesses must?
* What do you do if politicians and bureaucrats abuse their power of regulation in order to reward friends and punish enemies?
* What recourse do you have if politicians and bureaucrats use their vast power and resources to serve their own selfish interests?

These are powerful questions. But they are really only a more detailed way of asking the question we began with:

Do we really solve the problem of human imperfection by giving one small group of imperfect people vast power over all the others?

We would humbly submit to you that the answer is no. The real problem is NOT how to better regulate businesses, but rather, how to better regulate the politicians and the bureaucrats.

* They are the monopoly.
* Their power of coercion is inherently dangerous.
* They have vastly more resources than businesses.
* They are vastly more difficult to control.


Thank you for reading this educational essay. Tomorrow we will debunk a specific and pernicious myth about state regulation, the myth of “The Jungle” by Upton Sinclair.

This message is an educational service of the Downsize DC Foundation. Please share it with others. Please tell your friends that they can receive similar material in the future by subscribing to our free email newsletter, The Downsizer-Dispatch. <>  

Remember . . .

* The Downsize DC Foundation educates
* both educates, and acts, applying constant pressure on Congress.

Perry Willis
Vice President
The Downsize DC Foundation

D o w n s i z e r – D i s p a t c h

June 21, 2010

China….Friend or Foe? Or Do They Own US?

Filed under: Uncategorized — Administrator @ 9:00 pm

I have traveled and done business in Asia since the mid- 1980’s.  My first trip to China was in early 1990.  During that first trip, I traveled on dirty dusty roads, boiled my chopsticks, used primitive plumbing, and didn’t dare drink or eat anything that wasn’t boiled or well cooked first.

Now 20 years later, when I visit I stay in brand new hotels, fly into modern state-of-the-art airports, and can eat and drink almost anything I choose as long as I am in a major city.  When I arrogantly asked a Chinese person 20 years ago how they could live without modern conveniences such as potable water….the response was simple.  He said “We are patient.”

Now 20 years later, we are literally “hanging on every word” that comes out of China regarding their economy, their currency and their next move on the world stage.  Case in point, today’s news regarding the supposed “floating” of the RMB. 

Keep in mind one thing about the Chinese….they are patient.  I attach a commentary from a close friend’s blog pertaining to this “move” on the part of the Chinese “Fed”.  Please pay close attention to some of the comments on John Hudson’s post on the Atlantic Wire blog.

June 13, 2010

Some Thoughts and Commentary on the Gulf Oil Spill

Filed under: Uncategorized — Administrator @ 11:57 am

There has been a lot of differing views and commentary made by the press, experts, the government, my friends, and relatives about the unfolding tragedy in the Gulf of Mexico. Everybody has a visceral reaction to the images that are shown daily on the various news channels and on-line.  How can this be happening???? 

There is certainly enough blame to go around.  Some have pointed to the lax regulations  and hands-off approach of the Bush administration as to the root of the cause.  Others have pointed to the aggressive risk taking philosophy of BP management.  Others are yelling for Obama to “Do something!”.

Now that the disaster is truly starting to be understood as to its magnitude and impact, we don’t need blame going on, we need a concise, well considered plan to be put into place and executed.  This means bringing any and all assets to bear to control the damage and hopefully, (See video attachment below.) fix the problem.  This also means that someone needs to be put in a position of authority and responsibility to manage and direct this massive effort on all fronts.

Whether we want to admit it or not we are now at war in the Gulf of Mexico.  We are fighting a war for the livelihood and lifestyle of the people along the Gulf Coast. We are fighting a war for the survival of the eco-system of the Gulf of Mexico and we are fighting a war to maintain the on-going supply of oil we need to have to support our fragile economy. (Whether we like it or not, we are stuck in an oil dominated energy supply chain….at least for now.  So let’s deal with this fact and move on.)

I would like to propose that we name  a “General” to build a staff and manage this “war”. Someone similar to General David Patreus, but whom has the organizational and leadership skills to manage a very disparate  group of assets and an inate understanding of how to demand the best out of these assets and at the same time hold them accountable when they cannot or do not succeed.  Give the “General” full authority and allow him/her to report directly to the President.  Give the “General” use of all available military assets as well as the ability to enlist and hire any and all support necessary from both domestic and foreign suppliers that have the capability, knowledge and know how  to “fight these battles” in the Gulf of Mexico

They are already saying this tragedy will continue to unfold for years to come.  Then lets start thinking and planning long term and put someone in charge for the long term!

June 12, 2010

What Are We Headed For….A Double Dip???

Filed under: Uncategorized — Administrator @ 1:49 pm

Good Morning Moderates for America!

It’s been a little while since my last posting, and obviously there has been alot going on. 

I want to focus this posting on an article I recently read in the editorial section of  The Wall Street Journal by a Mr. Arthur Laffer.  Mr. Laffer is the chairman of Laffer Associates and co-author of “Return to Prosperity: How America Can Regain Its Economic Superpower Status” (Threshold, 2010).

I am a “Chronic” CNBC watcher.  The talking heads on that particular venue are constantly barraging guests with the question of the “double dip”.  Mr. Laffer, I believe, both qualifies and quantifies the potential risk of this happening.  What he so vividly brings to light in this article is the potential true impact to the end of the Bush era tax breaks in 2011 combined with the on-going fragility of our economy and the heavy hand of our “spendthrift” government. 

I hope all of you following my posting will pass this along.

May 31, 2010

A Message from Thomas Jefferson

Filed under: Uncategorized — Administrator @ 4:32 pm

Happy Memorial Day!

I would like to take a moment to thank our service men and women and all veterans for their service, support, and commitment to the United States of America.

Here’s a little something to think about on this special day….

“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”
Thomas Jefferson

God Bless America

May 30, 2010

Our BIGGEST Problem

Filed under: Uncategorized — Administrator @ 7:30 pm

Our BIGGEST problem is not terrorism, not immigration…. it is our growing NATIONAL and STATE DEBT.  Without a strong fiscal policy and a government willing to stop spending “borrowed money”, our future as a nation is bleak.

Take a look at the attached site….it is a wake up call.

April 3, 2010

Let’s Keep It Constructive!

Filed under: Uncategorized — Administrator @ 10:12 pm


As we gradually learn and build this site and blog.  Please help to keep this a constructive conversation.  We want to open up the discussion to anyone that feels the desire to add or build on the vision that has been laid out on our website.  Please remember our philosophy is to get more “silent majority” American’s involved.

Get Involved…for a Better Future for These United States

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