I am thrilled to start off the Weekly Update with some exciting news, Martin Cullip joined the Taxpayers Protection Alliance (TPA) team as an International Fellow for the Consumer Center this week. Based in the UK, Martin brings more than a decade of experience on free market and consumer issues, as well as a global perspective and passion for tobacco harm reduction. Martin will be working with Lindsey Stroud, Director of TPA’s Consumer Center, and will build on TPA’s global footprint. I echo Lindsey’s sentiment when she said, “With the addition of Martin to our team, TPA is beyond excited to expand our work on harm reduction globally. Martin’s vast experience in the UK and EU will provide valuable insight and help further our meaningful research to better educate policymakers on harm reduction innovations.” Under the leadership of Lindsey in TPA’s Consumer Center, TPA truly has the dynamic duo in harm reduction and consumer issues.
Profile in Courage – Steve Horowitz
I hate when we do a Profile in Courage for somebody who has passed away. That usually means that we didn’t do enough to acknowledge their greatness while they were alive. Steve Horowitz is that guy. Like it or not, economics plays a central role in everybody’s life. Knowing a thing or two about the “dismal science” is key to everything from household budgeting to understanding the impact of tax reform. Yet, this all-important discipline is understood by few and maligned by many. Fortunately, a handful of bold economics educators and public intellectuals such as recently deceased scholar Dr. Steven Horwitz have dedicated their lives to keeping the public in the know about the field. Dr. Horwitz made it his life’s work to take economics away from the tedious mathematical models that have held the discipline back for so long and alienated the public and make it “accessible” for people. And for advancing the public’s understanding about such a critical subject with his trademark empathy and patience, Dr. Steven Horwitz is truly a Profile in Courage.
Needless to say, there are plenty of academics out there doing commendable work on virtually every subject under the sun. But, Dr. Horwitz was cut from a different cloth than many other PhD-minted scholars (especially within the field of economics). The ever-pleasant researcher regarded his life’s work as teaching and making his material as accessible as possible to people who might not come from a background in statistics or econometrics. His discipline wasn’t about charts and graphs, but rather about the implications of different theories and policies for the human condition. As America was recovering from the Great Recession and policymakers debated various “stimulus” policies, Dr. Horwitz eloquently explained how creating jobs via government programs was fundamentally different than creating wealth in society. Emphasizing this distinction was critical at a time when government officials were more interested in touting job creation numbers than generating long-term prosperity. Dr. Horwitz also offered plenty of useful insight on disaster recovery efforts, which market-oriented thinkers often have a difficult time discussing.
The late, great economist examined the disastrous response to Hurricane Katrina and concluded that private response efforts are far-and-away superior to bureaucratic and centralized recovery efforts. Despite claims that more federal money or “attention” might have led to a more effective hurricane response, Dr. Horwitz found that, “failures were endemic to the institutional environment of the political process, which cannot provide the knowledge and the incentives required for effective resource allocation in the way that private organizations can.” He surmised that the Wal-Mart’s of the world are simply far better equipped to deal with these issues than bureaucrats and taxpayer-funded response teams. Unfortunately, Dr. Horwitz was taken far too soon from us. He passed away on June 27, 2021, after nearly four years of battling an aggressive cancer. Even after his diagnosis, Dr. Horwitz maintained an optimistic perspective not only on his own condition but also on the wider state of the world. He discussed on the “Free Thoughts” podcast how the world keeps getting better even if it may not feel that way sometimes. Dr. Horwitz may be gone, but that sweet, reassuring mindset will stay in our hearts forever. Rest in Peace, Dr. Steven Horwitz.
Closing the Digital Divide Without Taxpayer Dollars
An infrastructure bill has started to move its way through Congress with $65 billion allocated for broadband. Is this taxpayer money necessary? No. A recent survey shows that access to fifth generation wireless networks (5G) has increased rapidly over the last year. This trend promises to deliver better connectivity across the country and expanded access to data and messaging. The key to bolstering networks was the significant impact of private investment, not taxpayer dollars. Many networks faced more than their fair share of usage during the COVID-19 pandemic. The role of private investment cannot be understated in keeping Americans connected when it was needed the most. Collectively, the efforts by private entities — fueled by roughly $112 billion of wireless capital investment since 2017 — helped expand 5G coverage to more than 300 million people in the U.S. These are not the only factors contributing to the increased volume of service available to consumers. The repurposing and auction of spectrum has also played an important role in this effort. According to the survey, “The wireless industry invested ~$85 billion in two auctions the FCC launched in 2020.” This enabled providers to deliver faster speeds and higher capacity. These were integral to networks being able to handle the increased demand during the early days of COVID lockdowns.
As FCC Commissioner Brendan Carr stated in 2018, “We [the FCC] needed to update our approach, which we did in our recent order. That’s going to make a big difference in terms of helping us get 5G across the finish line.” The survey shows these efforts — coupled with private sector investment, infrastructure deployment, and repurposed spectrum — have made a significant difference. They have combined to increase Americans’ access to broadband while also protecting taxpayer dollars. Lawmakers need to pay attention to these results. Many are foolishly waxing poetic about government command and control over broadband. The market clearly responds better to a hands-off approach that is driven by the private sector. There is no need to meddle with a system that is currently working just about as soundly as it ever has. As lawmakers consider changes to broadband — whether as part of a broader infrastructure bill or not — they should closely analyze this data. If they read it properly, they will realize their job is exceedingly easy. All they have to do is remove themselves from the path of progress and American innovators will do what they do best. This should come as a relief to Americans in and out of government.
The goal is to close the digital divide. Ultimately, it will be the private sector that accomplishes that task, not taxpayer money.
BLOGS:
MEDIA:
July 20, 2021: iwi.com ran TPA’s op-ed, “Consumers Will Bear the Brunt of Superfund Taxes on Chemicals.”
July 22, 2021 WKRC Local 12 (Cincinnati, Ohio) quoted TPA in its story, “Nearly $13 billion in unemployment 'overpayments' sent to Americans.”
July 22, 2021: WHP CBS 21 (Harrisburg, Pa.) quoted TPA “Nearly $13 billion in unemployment 'overpayments' sent to Americans.”
July 22, 2021: WCIV ABC4 (Mount Pleasant, SC) quoted TPA “Nearly $13 billion in unemployment 'overpayments' sent to Americans.”
July 22, 2021: WBFF Fox45 (Baltimore, Md.) quoted TPA in it’s story, “From trash to high water bills, new DPW director faces piles of problems in Baltimore.”
July 23, 2021: The New York Times mentioned TPA in theme story, “For Republicans, Deep Wounds Fuel Resistance to Bolstering the I.R.S.”
July 23, 2021: Townhall.com ran TPA’s op-ed, “June CBO Report Should Be a Wake-Up Call for Congress.”
July 26, 2021: WBFF Fox45 (Baltimore, Md.) interviewed me aboutunemployment fraud,
July 27, 2021: WBFF Fox45 (Baltimore, Md.) quoted TPA in it’s story, “Vacant Baltimore government jobs may block businesses from coming to the city.”
July 28, 2021: WBFF Fox45 (Baltimore, Md.) quoted TPA in it’s story, “Tax expert calls $262K City payout to IT employees a misuse of tax dollars.”
July 29, 2021: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about the infrastructure deal and earmarks.
July 29, 2021: WBFF Fox45 (Baltimore, Md.) interviewed me about education spending in Maryland and Baltimore.
Have a great weekend!
