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Wednesday, November 26, 2008
Thomas Sowell :: Townhall.com Columnist
Ivan and Boris Again
by Thomas Sowell
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


In 18th century France, promoting hatred of the aristocracy was the key to Robespierre's acquiring more dictatorial power than the aristocracy had ever had, and using that power to create a bigger bloodbath than anything under the old regime.

In the 20th century, it was both the czars and the capitalists in Russia who were made the targets of public hatred by the Communists on their road to power. That power created more havoc in the lives of more people than czars and capitalists ever had combined.

As in other countries and other times, today it is not just a question of which elites win out in a tug of war in America. It is the people at large who have the most at stake.

We have just seen one of the biggest free home demonstrations of what happens in an economy when politicians tell businesses what decisions to make.

For years, using the powers of the Community Reinvestment Act and other regulatory powers, along with threats of legal action if the loan approval rates varied from the population profile, politicians have pressured banks and other lending institutions into lending to people they would not lend to otherwise.

Yet, when all this blows up in our faces and the economy turns down, what is the answer? To have more economic decisions made by politicians, because they choose to say that "deregulation" is the cause of our problems.

Regardless of how much suffocating regulation may have been responsible for an economic debacle, politicians have learned that they can get away with it if they call it "deregulation."

No matter what happens, for politicians it is "heads I win and tails you lose." If we keep listening to the politicians and their media allies, we are all going to keep losing, big time. Keeping our attention focused on CEO pay-- Boris' goat-- is all part of this game. We are all goats if we fall for it.

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About The Author
Thomas Sowell is a senior fellow at the Hoover Institute and author of The Housing Boom and Bust.
 
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©Creators Syndicate
Rights in America
PresidentDon (reply #107): Please put your paranoia away and get a good night's sleep tonight. Speaking from 15 years experience as both a local and a federal prosecutor, I can assure you that the sidewalk shakedowns you fear are not very high on the list of things you really need to worry about.

Officer Friendly does not have the right to stop you against your will, not even for an instant, without at least an objectively reasonable suspicion that you are engaged in criminal activity. (The officer will later be required to demonstate the basis for that suspicion to the satisfaction of a reviewing judge) Even then he cannot search you unless (1) you consent to a search, or (2) he has a valid search warrant issued by a judge only on a showing of probable cause to believe that the search would produce evidence of criminal activity, or (3) under very limited circumstances an officer may be able to conduct a warrantless search based on probable cause to believe that criminal activity has occurred or is occurring. (Here again, the officer must justify the search after the fact to a judge -- a judge who will review the search using the same standard that would have been used to issue a search warrant.)

More important, even if you are correct in assuming that all cops are basically Gestapo thugs who really want to shake down random citizens for no good reason, in reality they seldom have the opportunity to do so. The problem is that there is so much real crime going on that most cops are way too busy arresting real criminals to mess with good, and probably misunderstood, citizens like yourself.

Let me guess: You threw the joint away when you saw the officer coming, and he inexplicably arrested you anyway. Sorry man, that's his job.

Community Reinvestment Act
As a new-hire young bank teller back in the early eighties it seemed to me that the most important thing my bosses wanted me to know on my first day of work was WHERE was the file for the CRA to be found. Management seemed "scared" that "someone" might just walk into the branch and ask to review the CRA file. If I as an employee could not immediately identify where it was to be found, there would be a HellToupee and the Bank Manager would be wearing it. This memory has stayed with me because it was very serious to my bosses. I wondered what pressures they were under...
(During that era I was newly employed at United California Bank, Bank of America and Peoples Bank in Wa. state- all were similar in that respect.)
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