The FDA Food Safety Modernization Act and Orrin Hatch

The FDA Food Safety Modernization Act and Senator Hatch [ 53:37 ] Play Now | Play in Popup | Download

US Senate Bill S.510 entitled the “FDA Food Safety Modernization Act” has been making it’s rounds through senate committees since March 2009. During it’s time under the scrutiny of the committee Utah’s Sr. Senator Orrin Hatch added his name to the short list of Co-Sponsors of the bill. Early this morning the bill was brought up for a vote on the floor of the Senate and passed.

With a good number of the current sitting members of the House of Representatives sitting in a “Lame Duck” position, they have indicated that this bill will most likely find a paved road through the House and quickly make it’s way to the Presidents desk for final approval or Veto.

This bill stands the chance of turning your life upside down, because it will directly affect both the way you will acquire food for yourself and your family, as well as the price that you pay for it.

Large corporate food producers will probably adjust to the new regulations fairly easily, but your smaller local and regional food producers will suffer the biggest blow from the new regulations, and lacking sufficient money/man power to fulfill on the new web of restraint, may endup out of business.

This bill also has the potential of making it difficult for you to even grow your own food through additional regulation of seed production, or get you thrown into jail if you sell a cucumber to your neighbor without first getting your “food production facilities” AKA, Garden approved by Federal Bureaucrats.

Listen in as we discuss the principles that surround this issue, and look at the role and position of our illustrious Senator Hatch in this fiasco.

Chaffetz and Spice

Chaffetz and Spice [ 52:56 ] Play Now | Play in Popup | Download

Jason Chaffetz says he will be using his new subcommittee position to perform an investigation into the many different areas, including the Bush Administration. And Spice is the new “not illegal” marijuana impersonator that is garnering a lot of scrutiny by Utahans who are concerned about it’s use in their communities. What does that mean for Utah? Listen in to find out.

The Little Red Hen (Modern Version)

I saw this today and thought that our readers might find this entertaining.

Once upon a time, there was a little red hen who scratched about the barnyard until she uncovered some grains of wheat.

She called her neighbors and said, “If we plant this wheat, we shall have bread to eat. Who will help me plant it?”

“Not I,” said the cow.
“Not I,” said the duck.
“Not I,” said the pig.
“Not I,” said the goose.

“Then I will,” said the little red hen, and she did.

The wheat grew tall and ripened into golden grain. “Who will help me reap my wheat?” asked the little red hen.

“Not I,” said the duck.
“Out of my classification,” said the pig.
“I’d lose my seniority,” said the cow.
“I’d lose my unemployment compensation,” said the goose.

“Then I will,” said the little red hen, and she did.

At last it came time to bake the bread. “Who will help me bake the bread?” asked the little red hen.

“That would be overtime for me,” said the cow.
“I’d lose my welfare benefits,” said the duck.
“I’m a dropout and never learned how,” said the pig.
“If I’m to be the only helper, that’s discrimination,” said the goose.

“Then I will,” said the little red hen.

She baked five loaves and held them up for her neighbors to see. They wanted some and, in fact, demanded a share.

But the little red hen said, “No, I can eat the five loaves.”

“Excess profits!” cried the cow.
“Capitalist leech!” screamed the duck.
“I demand equal rights!” yelled the goose.
And the pig just grunted.

And they painted “unfair” picket signs and marched around and around the little red hen, shouting obscenities.

When the government agent came, he said to the little red hen, “You must not be greedy.”

“But I earned the bread,” said the little red hen.

“Exactly,” said the agent. “That is the wonderful free enterprise system. Anyone in the barnyard can earn as much as he wants. But under our modern government regulations, the productive workers must divide their product with the idle.”

And they lived happily ever after, including the little red hen, who smiled and clucked, “I am grateful. I am grateful.”

But her neighbors wondered why she never again baked any more bread.

Time for Regulation

How much time passed between the writing of the Constitution and the regulation of railroads – 72 years, 90 years, or 100 years? [Read more]

Cap and Trade, Time to put a cork in it. – 8-10-2009

Call for Freedom on Cap and Trade [ 51:56 ] Play Now | Play in Popup | Download

There has recently been quite a bit of buzz in Washington D.C. and in the media about the recent passage of a bill titled the “American Clean Energy and Security Act of 2009″ (H.R. 2454).

HR 2454 has at its core the purported ability of helping us save the planet through reducing the amount of carbon that is being released into the atmosphere, thus stemming the tide of Global Climate Change through the reduction of Green House Gasses. The methodology employed to create this reduction begins with either giving or auctioning off “Carbon Credits” to companies who currently pollute. The companies that are more “Green” than others will have an excess of credits, while those that are the greatest polluters will find that the credits allocated will leave them with a lack of sufficient credits to continue operation.

The number of credits that is slated be issued will be “capped” at 2005 carbon levels.

This bill will then “Create” a market that will allow for the exchange or “Trading” of credits so that those who are “Green” can profit from their greenishness by selling their excess of credits to those companies who are not so green.

Thus the nickname of the bill “Cap and Trade”, becomes the methodology for greening our countries industry. It is touted as being an excellent “Free Market” alternative for saving our planet, by allowing those who green-up first to profit from the sale of their carbon credits.

Now this wonderful resolution does not come without a cost (Does any bill?). The Congressional Budget Office(cbo) reports that during the 2010-2019 period federal revenues will increase by $846 billion and direct spending increases will be $821 billion giving an net budgetary surplus of $24 billion over that period. Also the average household will see a $175 dollar increase in their yearly energy expenses over that time period as well.

Some other independent estimates show that increase as being much higher, possibly $2000+ per year per household. It is only natural to assume that in the end all consumers will find that their energy costs and most other costs (food, appliances, apparel, etc) will have increased, since the companies that produce those items will have to increase their prices to cover the additional overhead that the bill will create for them.

Along with the increased charges, many households and business will be able to offset this additional burden by applying for Federal Tax Credits based on their “Green” Activities. Subsidies range from “Refundable Low-Income Energy Tax Credit” (which in the current economy will probably be utilized much more than they estimate), “Green Energy Production Tax Credit”, “Fuel-Efficient Vehicle Vouchers”, etc… providing many new ways to increase your income through the help of the federal government.

They have even accounted for a “Climate Change Worker Adjustment Assistance” program which will help individuals that are displaced as a result of the bill to receive 70% of their average weekly wage, job training, employment search assistance and an 80% subsidy for their cost of health insurance. Those individuals will be eligible to receive this assistance for up to 3 years from their termination.

Along with the “Cap and Trade” system, additionally there is stipulated the creation of a “Smart Power Grid” (or overhaul of the current power grid) allowing your future appliances to communicate to regulatory authorities on your usage habits and the devices overall efficiency.

There are so many facets to this bill that it is nearly impossible to attempt to sum them up and do any credit to covering them without writing a doctoral thesis on the subject…..Let’s continue with a little analysis.

Many have painted this as a Green, or Clean Energy Bill, a necessary step for the saving of our planet from the wiles of climate change. While others call this a bill that needlessly removes freedoms and arbitrarily increases taxes and regulation at the benefit of corporations and government. Still others feel that even though this bill has a noble cause, it is to little regulation to late, and will do nothing to stem the tide in the fight against Global Climate Change.

Some paint this bill as a job killer that will just force jobs out of the United States to other countries where a relocated company has few to no restrictions on their pollution and a much cheaper labor force, thus draining our country of its already dwindling manufacturing jobs.

One aspect that I have not heard anyone talk about is the potential for a carbon monopoly. Few understand how a monopoly can come about, in my mind there are only two types, the first is a monopoly in the market of a controlled good that is created because the company services its customers so well that there is no market incentive for a competing company to get a foot hold. Or in other words a monopoly through customer loyalty. There is nothing wrong with this kind of monopoly as it will only exist as long as the customers are receiving what they want, as soon as the company stops performing as desired, opportunities will be created naturally in the market for competitors to spring up and take over the disgruntled customer base.

The second is a monopoly that is maintained by the force of government. When the Government creates regulations that increase the barrier to entry for new companies. This regulation then enthrones the players that currently exist in the market and can make it near impossible for new players to enter the marketplace and compete.

Take the railroad industry for example. In it’s early history there were many new start-up railroads that fought for control of different cities and regions. As the industry grew they became more and more important to the country. The government started off regulating a little her and then there. Now the regulations have made it so difficult to run a railroad that those companies that exist are living off government subsidies to stay alive, and have made it unattractive for anyone to try to enter and innovate in that market.

With cap and trade the opportunity may exist for the current contenders to buy up as many credits as they can, eventually cornering this new “Carbon Market” and making an impossible barrier to entry for new, innovative, cleaner, greener, companies to actually enter the market. If this is the case, rather than helping the market to decrease the amount of carbon emissions, those that own the credits will continue to pollute and the new or existing companies that cannot obtain sufficient credits will be forced to startup or relocate to countries that do not have the same regulations on pollution and market entry.

Many commentators and individuals say that as long as a carbon based energy market can create inexpensive energy, that the green/clean energy sources will never be able to enter the market and compete. The fact that they are right, I think, says less about the need for a restrictive structure that forces the market to choose the result YOU want, and more about the fact that central planning has never and will never WORK. True free market principles always work, whether you believe them or not.

When faced with a choice between Freedom or Force, Choose Freedom, or the next one to lose their Freedoms might just be you.

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References:

HR 2454 full text and summary

Voting Record for HR 2454

Wikipedia Entry on Emissions Trading

Cap and Trade will raise energy prices – US News and World Report

House Passes Carbon Cap and Trade Bill – Businessweek.com