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Saturday, January 03, 2004 ::: Capitalism & Law: Banning Ephedra... But for How Long? At first glance, you might think consumers would stay away from a product the government considers dangerous enough to ban. Yet that�s not happening with ephedra: Online retailers are reporting a run on ephedra products as consumers make last-minute purchases of the dietary supplement that the federal government plans to ban.The FDA is treading on shaky legal ground in banning ephedra. Herbal supplements are not subject to prior authorization by the FDA, meaning the agency must affirmatively demonstrate ephedra is dangerous in order to ban its sale. Ephedra producers will almost certainly challenge the FDA ban in court. But the fight is worth the FDA�s time, since a victory will strengthen the agency�s ability to control and regulate other supplements. Like all bureaucracies, the FDA sees itself as a guardian of the �public interest,� and the best way to fulfill that mission is by acquiring as much power as possible. The market, however, can still undermine the FDA�s authority. Even after the ban takes effect, ephedra will still be bought and sold in unofficial markets, many of them made possible by the internet. Unlike Prohibition of the 1920s, it�s no longer necessary to organize a massive crime syndicate to undermine the government�s authority. We�ve already seen what online Canadian pharmacies have done to undercut the FDA�s ban on importing prescription drugs. The more the FDA pushes for regulation, the more the market will push back. If I were a betting man, I�d put my money on the market ultimately prevailing. ::: posted by Skip Oliva
at 2:10 PM | link
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Friday, January 02, 2004 ::: Capitalism & Law: "Board Certified" Commercial Speech The commercial speech doctrine reared its ugly ahead again in today�s Ninth Circuit opinion in American Academy of Pain Management v. Joseph. The AAPM is a 15-year old group that maintains voluntary standards for various professionals that administer pain medication, such as dentists, athletic trainers, and chiropractors. AAPM sued Ronald Joseph, the executive director of California�s Medical Board, because the state of California restricts the ability of AAPM members to advertise without the Board�s permission. The issue is whether California can exclusively define the term �board certified�. ::: posted by Skip Oliva
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Antitrust News: Pleading in the New Year If you think the Bush administration cares first and foremost about preventing terrorist attacks, consider how the Justice Department�s been spending its time lately: Micron Technology, as part of an agreement to win amnesty from prosecution by the Justice Department, may admit it conspired with competitors to manipulate computer-chip prices, people familiar with the probe said.The DRAM antitrust investigation centers around an alleged short-term price increase that happened two years ago. There is no fraud, coercion, or other criminal act at the center of this investigation, only the DOJ�s insistence that businesses not take any action to affect prices in their markets. If the DOJ was capable of putting things in context�and they are not�they would see memory chips have never been cheaper or more plentiful. Even if there were some private agreements among competitors, the market as a whole has not suffered. But the Justice Department employs hundreds of lawyers and has empanelled more than 70 grand juries just to investigate antitrust matters. They will find something even where nothing exists. To be sure, Micron didn�t help itself when one its executives pled guilty to obstruction of justice related to the antitrust investigation. The executive apparently altered notes about chip prices after they were subpoenaed by the grand jury investigating Micron. While I don�t condone this, the truth is Micron would be in trouble either way. The truth does not matter to the DOJ, only altering facts to meet their pre-determined subjective reality. And I�m not sure I can condemn Micron for seeking a deal. Really, what choice do they have? If they don�t settle, they�ll almost certainly be indicted on criminal antitrust charges. Executives will be sent to jail. I have no trust in a jury�s ability to see the inherent irrationality of antitrust. Most people will simply assume Micron is just another corrupt corporation like Enron or WorldCom, and Micron will be punished for those firms� sins. ::: posted by Skip Oliva
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Thursday, January 01, 2004 ::: Foreign Affairs: Can the Irish Save Civilization? Today Ireland assumes the rotating presidency of the European Union for six months. This is one of the few encouraging developments at the EU in recent memory. Unlike its continental counterparts, Ireland's government, under Prime Minister Bertie Ahern, has promoted lower taxation and deregulation as the foundation of its economic policy. The result has been faster growth for Ireland when compared to most of the EU. This enrages the EU bureaucracy in Brussels, which wants reduced "tax competition"--meaning higher taxes--throughout Europe. Ahern says he'll use the Irish presidency to promote deregulation in a number of areas. Here's hoping Ahern finds even some success. ::: posted by Skip Oliva
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Rights & Reason: Civil Rights vs. Common Sense Glenn Reynolds posted this selection from a story in the Washington Times: The 17-year-old junior says that stance inspired threats from which teachers have refused to protect him. Some faculty members even started a public campaign against his group. . . In a telephone interview, Tim said he's been threatened at least three times . . . . One boy said he was going to "find someone" to beat up Tim. In two of those instances, Tim said two faculty members stood by and did nothing to help him.Reynolds suggests the Justice department should look into this matter for potential violations of the student�s civil rights, because of �the apparent complicity of state employees in the suppression of speech they find disagreeable.� Based on my reading of the same story, Reynolds is wrong. First, let�s provide some context. The student, Tim Bueler, founded a Conservative Club at his public high school. The club�s stated mission is to promote �the pillars of the Bible, patriotism and conservative beliefs as balance to the mostly liberal viewpoints of teachers.� The club�s newsletter published an article by Bueler criticizing illegal immigration. The Times cites one passage from the article: �Liberals welcome every Muhammad, Jamul and Jose who wishes to leave his Third World state and come to America.� Bueler says he was threatened by other students, that one teacher refused to help him deal with the threats, and that several teachers have called him a �Nazi� and a �bigot�. The Times quotes a biology teacher, Mark Alton, as calling on students to �take a stand against the neo-conservative wing-nuts who call themselves Americans.� This was in response to the Conservative Club�s maintenance of a �liberal assault hotline� designed to report incidents of teachers that �verbally assault� conservative students. Alton said he doesn�t oppose the Conservative Club�s presence, but adds, �[w]hat bothers me is the extreme views that border on racism or homophobia, the negative tone, and the hotline that calls teachers �traitors�.� Neither side here�Bueler or the opposing teachers and students�seem to exhibit much in the way of rational or mature behavior. But based on the information provided in the Times, it doesn�t add up to a federal civil rights violation. First, Bueler appears to have gone out of his way to upset the entire school. This is not a case where a student is being singled out merely because he expressed an unpopular opinion. Second, there is no evidence in the article that speech was suppressed. Far from it: Bueler�s club remains operational and no threats have been acted upon. Furthermore, the teachers have responded by defending themselves from Bueler�s verbal attacks. I don�t think civil rights law requires teachers to stand there and not respond what they believe are false accusations, be it from a student or anyone else. Yes, the �Nazi� and �bigot� remarks are out of line, but I�m not sure what can be done about that in the setting of a government school. A private school principal could discipline or fire a teacher who treated a student that way; public school administrators generally lack that ability because of state tenure laws and union contracts. As for the threats against Bueler, assuming they�re genuine, the state and local authorities already have laws in place to deal with this behavior. I presume the entire state of California isn�t part of the conspiracy to silence Bueler�s important message. This leaves only the issue of the principal telling Bueler to stay home for a few days. I don�t necessarily agree with this move, but again, it doesn�t suggest to me a federal civil rights violation. I�d certainly like more information before even considering Glenn�s call for John Ashcroft to get involved. Once again, context is essential. If you have a student who is deliberately making himself a target by, in essence, calling on students to rebel against �liberal� teachers, you have an order and discipline issue. I�m going to assume the school would act if someone actually hurt Bueler. But given that he�s just inspired hatred, what exactly should the principal do? Should he give special protection to Bueler? If so, you�ve just invited every malcontent student to make even more inflammatory remarks. Would Glenn call for a civil rights inquiry if the school asked a student who went around insulting Jews to stay home until things calmed down? The larger problem I see in stories like this is the intellectual decay of the conservative movement. From what the Times reports, Bueler strikes me as a pretty pathetic activist. He�s probably read too much Ann Coulter and listened to too much Bill O�Reilly. Rather than advocate his ideas in a responsible manner, Bueler seems more comfortable with cheap stunts designed to annoy his enemies. You see a lot of this inflammatory confrontation in the young conservative movement. It�s become a modern form of feminism, emphasizing the victim status of conservatives at the hands of the liberal establishment. Conservatives lash out because they believe no thinking person will listen to them otherwise. The standard of success for these conservatives is not winning converts to their side, but making the other side as angry as possible. This explains, in part, the popularity of �affirmative action bake sales� on many college campuses. None of this suggests Bueler and his ilk aren�t entitled to full First Amendment protection. But let�s keep that in context as well. The First Amendment prohibits only prior restraints of speech by the government. It does not insulate speakers from all criticism and consequences of their speech. The Times report provides no evidence of any prior restraint, merely a lot of upset people. And before Glenn reiterates his call for a civil rights investigation here, he should stop and consider what a liberal Justice Department would do with such an interpretation of the civil rights law in their hands. ::: posted by Skip Oliva
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Wednesday, December 31, 2003 ::: The War: What's wrong with this picture?
::: posted by Nicholas Provenzo
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Tuesday, December 30, 2003 ::: Antitrust News: The Atlantic Divide Earlier this month the European Court of First Instance�the rough equivalent of the U.S. Court of Appeals for the D.C. Circuit�upheld a $8.4 million fine imposed in 1999 against British Airways. The European Commission found the airline guilty of antitrust violations, specifically that the company �abused its dominant position� by offering rebates to travel agents that sold the most British Airways tickets. Under European antitrust theory, such rebates are illegal because it�s just too darn hard for other airlines to compete against the dominant firm. ::: posted by Skip Oliva
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The Culture: All Children Left Behind Yesterday�s Wall Street Journal reported that the �No Child Left Behind� law has had an interesting (and for my money, predictable) consequence: States are cutting back on funds for gifted and talented programs to focus on making all students �proficient� in basic skills. NCLB doesn�t reward students for excelling, only for minimum competence. And because it�s a federal mandate, NCLB leaves little room for local variation or experimentation. Children, Dr. Graham tells us, if left to devise their own society, would most likely come up with something resembling William Golding�s The Lord of the Flies. In other words, an 11-year-old�s social milieu is �crude� stupid� [and] savage.� Given the similar authority figure-to-inmate ratio and the detachment, it also resembles prison. G. Gordon Liddy, having spent five years in federal �correctional institutions,� often says on his radio program that the prisons are actually run by the prisoners.Bullying, like much of the drug abuse problem among teenagers, can be traced directly to the existence of government schools. This is an admission no government official will ever make. Even a Republican president like George Bush has no political interest in challenging the system�s fundamental premises. Instead he focuses on isolated concretes like raising test scores, themselves a somewhat arbitrary measure. The biggest threat to the government education establishment is not any politician, but the people who�ve rejected the system�the home educators (I personally dislike the word �homeschooler,� since education and schooling are distinct concepts). Students taught at home by committed parents aren�t �left behind�; quite the contrary, they�re far ahead of their government-institutionalized peers. This is why in many states the establishment is trying to pass new laws to stunt the growth and success of home education. Again, we�re told these laws are necessary to ensure �socialization�. But as William Alford notes, both socialization and education prosper outside of the government�s watchful eye: In this writer�s not-so-humble opinion, child socialization and education are in many ways incompatible, especially for juveniles. These should therefore be separate experiences, wherein the child is individually educated according to his/her abilities. Socialization should be carefully supervised, with the parents and other concerned adults deciding which children will be interacting with each other and under what circumstances -- not a government-run institution staffed by the likes of NEA members.(Thanks to Daryl Cobranchi, a proud home educator, for pointing me to the Alford article.) ::: posted by Skip Oliva
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Monday, December 29, 2003 ::: Capitalism & Law: The Highest Court in the Land The Supreme Court�s workload has been decreasing for years under Chief Justice William Rehnquist. Steve Chapman, writing in Saturday�s Washington Times, notes that lawyers have started to complain about the Court�s lack of production: Philip Allen Lacovara, [h]as argued numerous cases before the court. Writing in the December issue of the American Lawyer, he notes that in 1976-77, a typical year for that era, the court issued decisions after hearing oral arguments in 176 cases. In its 2002-03 term, by contrast, the number was 73, which is about the norm these days.Chapman and Lacovara both argue the Court ignores too many important cases worthy of attention. Most notably, the Court �has come to disdain cases that involve economic regulation.� That�s completely true. One example that comes to my mind is the Three O Realty case, which the Court declined to review. In that case, New York State blatantly abused its eminent domain power by falsely claiming �blight� as an excuse to take private property and give it to another private owner�the New York Times, as it turns out. This case screamed for review, yet like almost all eminent domain abuse cases, the justices couldn�t be bothered. Chapman also echoes my longheld belief that the Court suffers from opinion glut: The court's shrunken caseload only proves idle hands are the devil's workshop. As the justices have fewer cases to resolve, they spend far more time on gratuitous hairsplitting. Many of them often act like pop divas in concert � less intent on harmonizing than on outdoing each other in showy solos.It�s almost like the Court has become a overpriced, underperforming NBA team�lots of star players who can�t come together as a team and win. The fact that the Court is now largely controlled by its star pragmatist, Sandra Day O�Connor, only makes things worse. ::: posted by Skip Oliva
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