Monday, May 4, 2020
2 PARAGRAPHS 4 LIBERTY #261: "GOVERNMENTS CAN'T CENTRALLY PLAN!"
Monday, March 23, 2020
2 PARAGRAPHS 4 LIBERTY: #255 "LIBERTY AND THE CORONA VIRUS"
Monday, January 27, 2020
2 PARAGRAPHS 4 LIBERTY: #247 "GROUPS LIKE TECHNOSERVE DO IT BETTER!"
Monday, August 12, 2019
2 PARAGRAPHS 4 LIBERTY: #225 "FREE TRADE ENRICHES US ALL"
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Monday, February 25, 2019
2 PARAGRAPHS 4 LIBERTY: #205 "LIBERTY IN ELECTION CONTRIBUTIONS"
Tuesday, July 20, 2010
Canada has the right idea - by Judge Jim Gray
The discouraging part dealt with our present economy and the forecasts for the immediate future. Many seemingly knowledgeable people stated forcibly that we cannot have a sustainable economic recovery with such large government spending and deficits and no gain in job creation. At the moment, our government spending is at the rate of about 39% of the gross national product. In addition, this year we are running a deficit of about $1.35 trillion, with estimates that next year it will be three to four times that number.
Simply stated, this government spending will put our economy and probably the world into a depression.
As a result, I came home and sold all of my mutual funds. At the moment they are not a good investment. Our own government underscores that fact, because it is making it increasingly difficult to move our assets out of the country. For decades we looked with disapproval at the governments of Third World countries that had adopted regulations punishing people for moving their assets abroad, but now our government is doing the very same thing. Most discouraging!
Furthermore, we heard that our government is trying to convert our nation's financial advisors and securities brokers into policemen. Under the so-called Patriot Act, which has been heartily embraced by the Obama administration, it is a crime for financial counselors to see something in our financial patterns that "even appears suspicious" without reporting it to the federal authorities. And, according to many of the counselors, this has little to do with terrorism or even drug money laundering, and instead it simply has to do with possible avoidance of taxes. This is the depth to which our government now has fallen.
So in the face of all of this reality, how could I emerge optimistic? Because it was reaffirmed, again and again, that freedom works! The free enterprise system, buttressed by private property rights, a fair and just judicial system for all, and a smaller, less intrusive, and less expensive government, can and will bring us out of these problems! These are what have made our country strong and great throughout our history, and they will do it again!
Canada is a magnificent example of this. Most of us think of Canada as being socialist, and it certainly still is in its health-care system. Furthermore Canada richly deserved that label in its entirety until the late 1990s. Between 1976 and 1995, the percentage of Canada's deficits went up from 35% to a full 78% of its GNP, government spending reached up to 53% of the nation's GNP, and welfare payments increased from 5% of the budget in 1980 to 10% in 1991. So all of this resulted in the Wall Street Journal running an article Jan. 12, 1995, that called Canada an honorary member of the Third World because of the weakness of (what the newspaper called) the Canadian Peso.
The article triggered enormous reforms in Canada. In view of the reality that one-third of every dollar paid in taxes was being spent simply on interest payments on the national deficit, concerned citizens and the media went over the heads of the politicians and sent their message directly to the people that the deficits must be strongly reduced. And the best way to accomplish this was to reduce government spending, and to stimulate the economy by reducing taxes. The people listened and responded.
As a result of pressure for these basic changes from the voters, within a few years all of the political parties in Canada were in favor of reducing the deficit — including the Liberal Party and the Socialist Party! The only debates were what spending and which taxes to reduce — and how much. Thus, since 1997 the federal workforce has been reduced by 14%, and all taxes have been reduced as well, including income, sales, capital gains and estate taxes. This combination of actions has reduced the spending of the Canadian government from 53% to about 39.7% in 2008. Our level is about 39%, but estimates are that by two years from now ours will be even higher, and theirs even lower.
Contrary to the warnings of the critics, even though government spending and taxes were materially reduced, government revenues remained the same. As a result, Canada now has one of the strongest economies in the world. The recession we have experienced in our country was appreciably milder and shorter in Canada, its job market has been strong, and its real estate has held its value. Canada's fiscal deficit for this year is projected to be about $33 billion, which, at less than 3% of its GDP, is considered manageable. On the other hand, our estimated federal deficit is $1.35 trillion, or about 9.2% of our GDP. But nevertheless there was much optimism at Freedom Fest because we know we can learn from our mistakes and from Canada's example, and we can turn things around by returning to our roots.
So basically we have two choices: We can either view these present circumstances with despair, or we can view them as a challenge. Most of the participants at the conference were not really worried about our future because throughout our history Americans have always risen to a challenge. In other words, all we need to do to regain our strength and our dreams is simply to repress our self-pitying and resentful sides, and return to being Americans. And I know that we will!
JAMES P. GRAY is a retired judge of the Orange County Superior Court, the author of "Wearing the Robe: the Art and Responsibility of Judging in Today's Courts" (Square One Publishers, 2010), Why Our Drug Laws Have Failed and What We Can Do About It, A Voter's Handbook, Effective Solutions To America's Problems and can be reached at jimpgray@sbcglobal.net or http://www.judgejimgray.com. Judge Jim Gray is also currently offering his 25 years of experience on the bench to ADR Services in Orange County for Arbitration and Mediation services.
Monday, December 1, 2008
IT’S A GRAY AREA: Dear Mr. President - by James P. Gray
IT’S A GRAY AREA: Dear Mr. President - by James P. Gray 10/26/08
If you could have a dinner conversation with our next president, what would you want to discuss? I asked myself that question and, after some reflection, decided I would share the following thoughts with him.
Mr. President, all of us are naturally concerned about our economy, but we are optimistic at heart and know that eventually “This too shall pass.” But my deeper concern is that we will overreact to this financial crisis and stray from the economic framework that made us strong. That framework is based on the principles of the Free Market and the individual accountability that is inherently contained therein, as well as appropriate anti-trust laws and some regulating forces.
But please be mindful that government interference in the marketplace originally led to the problems we are facing. For example, the Savings and Loan Scandal was caused by the government’s FSLIC insuring bad loans, which meant that big mistakes and “oversights” would not result in big losses for the offenders. Why? Because the government could always be counted on to bail them out.
The same thing occurred with this present mortgage banking mess, which was made possible by Fannie Mae and Freddie Mac and the government protections behind them. This situation shielded offenders from being forced to take responsibility for their own malfeasance. And this combined with multitudes of government “supervisors” who were lazy, sloppy and asleep at the switch to cause the problems.
So we don’t need more regulations. What we need is more diligence and accountability. So please guard against an overreaction to these recent problems and an over-correction that would take us to a more minute and all-encompassing bureaucracy, and a further suffocation of our entrepreneurial efforts.
Which, Mr. President, brings me to my next point. Please tell us that you will empower a nonpartisan agency like the General Accounting Office with sufficient investigative powers to supervise our government to detect small economic, ethical and human rights problems before they become large ones. Then mandate that organization to report its findings directly to you, and also to the news media. Being proactive instead of reactive in these areas will not only go a long way in ferreting out and blunting future problems, but also regenerate a faith and trust in government that has understandably been missing for decades.
Next, and all importantly, please tell Congress and the American people that you will veto all spending measures passed by Congress if they contain even one appropriation that you do not believe is appropriate, until such time as Congress delegates to you the power of the Line Item Veto. And then carry out that threat! This is one reform that President Reagan was unsuccessful in passing, but you can and must cause it to occur.
We now understand that, as a political reality, individual members of Congress are simply forced to show the voters back home that they are active in procuring federal funding for lots of pet projects in their districts. This was made abundantly clear when, even in the moment of dire economic crisis, members of Congress wouldn’t pass the so-called “bailout package” until they appropriated an extra $135 billion for their local projects. So let them continue to earn their “political points” back home by continuing this practice. You can be the “heavy” or the “bad guy” and veto this non-essential spending for the good of the country. Let Congress blame you - you can take it!
And then there is the difficult question of Iraq. Mr. President, I want to be clear. Before all of this happened, I took the public position that if we put ground troops in Iraq without the substantial assistance of the world community, it would be the biggest mistake of my lifetime. Nothing has happened since that time to change my mind. But we are now in Iraq, and we must address our present options and, for these purposes, put the past aside. So simply pulling out of Iraq at this point would for many reasons be another major mistake.
Instead, what we should do is two-fold. First, we should send as many private American contractors home as soon as we reasonably can. Then we should give their jobs to Iraqi contractors who should establish new contracts with and then be paid by the Iraqi government. Second, we should require the Iraqi government to pay a fairly small amount of money for each day that each American soldier remains on duty in that country.
That two-fold approach will accomplish three noteworthy benefits. First, it is a simple fact of life that people more appreciate and value the things that they pay for instead of the things that are given to them. Second, both economically and politically these small payments will encourage a reduction in our troops to the smallest levels that will still be sufficient to do the remaining tasks at hand. And third, of course, this will help in at least a small way with our balance of payments problems. Considering their resumed exportation of oil, the Iraqi government should be able to take on these financial obligations, and everyone, especially Iraq, will be better off if this occurs.
Thank you for your time, Mr. President. Regardless of the politics of this past election, all Americans wish you good health, wisdom and fortitude as you guide our fragile experiment in democracy forward for the next four years. And if you ever feel that there is anything I can do to help you in this effort, you can always count on me.
James P. Gray is a Judge of the Superior Court in California, the author of Why Our Drug Laws Have Failed and What We Can Do About It - A Judicial Indictment of the War on Drugs (Temple University Press, 2001) and Wearing The Robe - The Art And Responsibilities of Judging In Today's Courts, has a blog at http://judgejamesgray.blogspot.com/. http://www.judgejimgray.com, and can be contacted at www.judgejimgray.com.






