Time to start reducing use of government force in transportation fuels.

The forced use of biofuels, euphemistically called the Renewable Fuel standard (RFS), was established in 2005.  Then as now, the RFS requires refiners and importers of transportation fuels to add minimum amounts of ethanol or bio diesel to their fuel, or be subject to fines.  The requirement has grown from 4 billion gallons in 2006 to 15 billion gallons for traditional ethanol for 2019.  Existing legislation requires a completely unrealistic total of 36 billion gallons by 2022, including at least 16 billion gallons from cellulosic biofuels.
The current “rebellion” by Iowa biofuel leaders against the waivers of the FRS requirement that are being granted to small refiners is understandable.  (The waivers allow small refiners to be exempt from adding bio-fuels to their gasoline or diesel.)  All businesses that are dependent on government protection will fight back if they feel their favored status is being threatened.  Biofuels producers and their suppliers (corn farmers), will lobby hard and loud to stop any reduction of the RFS.
Will the subsidies and use of force ever end?  After 13 years of increasing subsidies, we now need to pass laws to start reducing, and over time end, the forced use of ethanol.
Advertisements

Living has risks. Government should not prohibit things that are not proven safe.

The Des Moines Register recently published a report about Madison County Boar of Supervisors considering a requirement that wind turbines be setback 1.5 miles from the nearest home.  Ben Johnson, a cardiologist who lives in Madison County was quoted as saying, “Industrial wind turbines have never been proven to be safe, nor free of adverse health effects,”

It is difficult, if not impossible, to prove that anything is safe or free of adverse health effects.   For example, driving or riding in a car at any speed has never been proven to be safe. No amount of second-hand barbeque smoke has been proven safe.  Eating chocolate has never been proven free of adverse health effects. We live in a risky world. It would be impossible to live our lives if we were prohibited from doing anything that was not proven safe or free from adverse health effects.

We should not have policies that prohibit things until they are proven safe or free of adverse health effects. Unless something is proven to be unreasonably dangerous, it should be allowed.

Bootleggers and Baptists – strange bedfellows.

During the time of alcohol prohibition, bootleggers and baptists were both opposed to repeal of the Eighteenth Amendment.  It’s an example of how, “politics makes strange bedfellows.”  Even though the two groups seemed to have completely opposite views about drinking alcohol, they both opposed the repeal of prohibition: The baptists for moral reasons, the bootleggers for financial reasons.
I read the report in The Des Moines Register about how scared the Iowa medical marijuana dispensaries are about losing money once the legalization of recreational marijuana in Illinois begins next January 1st.  (see link below)  It makes me wonder if Iowa might face a similar situation in the future. The governor and many other politicians oppose efforts to legalize the recreational use of marijuana for moral reasons.  I wonder if Iowa’s legal medical marijuana producers and sellers will oppose efforts to legalize recreational marijuana for financial reasons?

Need to end Iowa’s excessive Drug Stamp tax.

Thanks to Lee Rood for her expose’ in The Des Moines Register about the financial devastation of an Iowa citizen that was caused by Iowa’s drug tax.  As Rood reported, Stephanie Hilgenberg was arrested in 2016 after police found about $5,000 worth of meth in her purse.  She was convicted and served time in prison.  She is now free and working to support heself and her two kids.  But she still owes the Iowa Department of Revenue about $150,000 in tax, penalty and interest!  She had failed to pay the “drug stamp tax” required in order to avoid the penalties and interest.
Iowa’s Constitution prohibits excessive fines, but this is technically a tax, not a fine.  Again as Rood reported, part of the strategy of the tax was to use as a negotiating lever to get small time dealers to give up their suppliers.  In our failed drug wars, the little guy is often sacrificed as a means to what drug warriors consider  more important ends.
Drug addiction is a terrible thing.  But we will be better served as a society by treating addiction under a medical model rather than a criminal model.  Education works better than punishment.  One step in the right direction would be to repeal the punitive stamp tax that is added to the injury caused by drug prohibition.  State legislatiors should take that up next session.

City of Des Moines needs clear policy banning racial profiling and pretextual stops by police.

It may be good for the City of Des Moines to have a policy that, “…requires all city employees to perform their duties without regard to race, ethnicity, gender or other characteristics…”, but that does not replace the need for a anti-racial-profiling policy specifically for the Des Moines Police Department.
For better or for worse, conscious and unconscious bias exist in most human beings.  It is in our nature to look for norms, patterns, averages, etc., and to apply what we think we know to our everyday situations.  But police officers are rightfully placed in a very special position: we allow them the legal use of force.  So, police officers especially need to make sure they treat each person as an individual, presumed innocent, following due process procedures.
In this case, the City of Des Moines should give the Des Moines Police Department clear policy regarding what police officers can and cannot do as it relates of acting on their “feelings” or “hunches” in any given situation.  Profiling or pretextual stops based on race should be prohibited.  Suggestions by Iowa CCI, the ACLU of Iowa, and the NAACP should be given serious consideration as part of developing the policy.
Link to related articles in The Des Moines Register:

Need to wean energy producers off of government support.

There has been a recent outpouring of letters to the editor and paid advertising in The Des Moines Register thanking President Trump for the EPA’s decision to allow E15 (gasoline with 15% ethanol) to be used year round.  Many go on complain about the hardship waivers being granted to small refineries that exempt them from being forced to add ethanol to their gasoline under the Renewal Fuel Standard (RFS).  They say the exemptions are costing corn farmers and ethanol producers billions of dollars and are undermining growth of the ethanol industry.
Since 2006, the RFS has required petroleum refiniries to add more and more ethanol to gasoline.  (For 2019 the requirement is over 19 billion gallons.)  Investment in and growth of the ethanol industry (and related corn purchases) have been greatly dependent on this use of government force.  After 13 years, the industry has billions of dollars invested in over 200 production facilities, revenues of over $16 billion per year.  Any yet, not only can it not wean itself off of government assistance, it continues to press government for more and more support.
Public Choice Theory tells us what to expect when government and special interests create an artificial market using government force.   As investment and revenues reach billions of dollars, vested interests easily justify spending millions of dollars lobbying Congress to make sure the support continues.  At the same time, each taxpayer pays such a relatively small amount that it is very difficult to raise money to lobby in opposition to these government programs.
But we must do what we can, so now is the time to urge Presidential candidates as well as elected representatives to work toward ending government subsidies and special support for all forms of energy.

Benefits of civil society should not be called “Rights”.

Thanks to The Des Moines Register for publishing the essay by Peter Funt about the misuse of the term “rights” by Democratic candidates for President.  (See link to Register essay below.)  The term “right”, without qualification, should be reserved for natural or fundamental rights that are also called “negative rights” – rights that place no burder or obligation on others.  The most notable of these negative rights are those included in the Bill of Rights of our Constitution.  They include freedom of the press and of speech (You can print or say anything but I don’t have to read or listen it or pay for it.); and freedom of association (You can associate or not associate with whomever you please, but you can’t force me to associate with you.); among others.
On the other hand, we also have “civil rights” or “government granted rights”.  These are called “positive rights” since they do impose a burden or obligation on others.  These rights are granted by governments through our legislative processes, and may be taken away in the same manner.  They are often granted based on the wealth of a society and its ability to pay the cost.  Common examples of these government created rights include basic education, medical care, and food.  In order for a person to receive these benefits, the force of government is used to make others pay the cost.
I would prefer that these government created positive rights be instead called “benefits” of a civil society.  Positive rights can be granted by government only if and when society has the ability to pay, and society’s ability to pay is not unlimited.  For example, I don’t think any reasonable person believes they have a right to unlimited health care paid for by taxpayers, So if our Democratic candidates for President want to be completely honest, they should talk about the benefits they believe should paid for by a civil society, not simply about rights that should be conferred without regard to cost or limits.