the tindog coffeehouse

A new report by the Texas Public Policy Foundation (written in part by supply-side economics guru Arthur Laffer) has concluded that instead of stimulating the economy and creating jobs, the massive increases in federal spending will actually hinder private sector job growth and could cost the state of Texas anywhere from 131,400 to 171,900 jobs.

Increasing federal spending does not stimulate the economy. Just the opposite: higher government spending crowds out the private economy, diminishing its rate of growth. The driving force of the economy is the incentive to engage in market activities. In both the long and short run, individuals and groups of individuals allocate resources according to the after-tax rate of return. If market activities are profitable, the economy will concentrate on ever-increasing market successes. When the profitability of market activities is reduced, market activity diminishes and welfare enhancing activities cease. …

The ARRA [American Recovery and Reinvestment Act] is a significant increase in federal government expenditures at a time when the private sector can least afford to pay for the higher government burden. As a result, the purported “stimulus” plan passed by Congress and signed by President Barack Obama will actually worsen the economy’s performance.

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Two Senate bills, 773 and 778, introduced by Democratic Senator Jay Rockefeller and Republican Olympia Snowe would, if passed, give the federal government virtually unrestricted control over the Internet, including private-sector Internet services, applications, and services.

The Cybersecurity Act of 2009 (PDF) gives the president the ability to “declare a cybersecurity emergency” and shut down or limit Internet traffic in any “critical” information network “in the interest of national security.” The bill does not define a critical information network or a cybersecurity emergency. That definition would be left to the president.

The bill does not only add to the power of the president. It also grants the Secretary of Commerce “access to all relevant data concerning [critical] networks without regard to any provision of law, regulation, rule, or policy restricting such access.” This means he or she can monitor or access any data on private or public networks without regard to privacy laws. …

Jennifer Granick, civil liberties director at the Electronic Frontier Foundation, says that granting such power to the Commerce secretary could actually cause networks to be less safe. When one person can access all information on a network, “it makes it more vulnerable to intruders,” Granick says. “You’ve basically established a path for the bad guys to skip down.”

The bill’s scope, she says, is “contrary to what the Constitution promises us.”

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