Rally for Economic Survival signals widespread hostility to moratorium on Gulf drilling
On Wednesday 11,000 people gathered in Lafayette to send a resounding message to Washington. The Rally for Economic Survival’s byline was “Lift the moratorium!” and Governor Bobby Jindal summed up the sentiment in the crowd: “We don’t want more BP compensation checks; we don’t want unemployment checks; we want to get back to work.”
The U.S.-Korea Free Trade Agreement was proposed in June of 2007 and awaits congressional approval. The agreement would eliminate existing tariffs on many industrial and agricultural exports, consequently stimulating the US economy. As the Office of the United States Trade Representative reports:
“The U.S. International Trade Commission estimates that the reduction of Korean tariffs and tariff-rate quotas on goods alone would add $10 billion to $12 billion to annual U.S. Gross Domestic Product and around $10 billion to annual merchandise exports to Korea.”
The agreement would greatly increase Louisiana’s trade with Korea since the state is a large producer of agricultural and chemical products, goods that Korea needs to import. As the Foreign Agricultural Service outlines, Louisiana will benefit by exporting goods such as cotton, beef, soybeans, feed grains, poultry, and egg products. These exports would provide a substantial contribution to the state’s revenues.
It is crucial to eliminate trade barriers in order for a country’s economy to grow. As explained by the Cato Institute, tariffs and barriers distort market signals, undermine investment possibilities in new industries, and cause workers to forgo new and higher-paying opportunities.
Looking at the likely increases in US and Louisiana exports, the Congress should ratify the proposed trade agreement and expand investment opportunities in Korea.
Sen. Rob Marionneaux has filed two bills that would expand the existing Louisiana smoking ban. Currently, smoking is prohibited in restaurants, schools, hospitals, public buildings, and doctors’ offices.
As posted on the website of the Louisiana Legislature, Senate Bill 334 would ban smoking in any bars where food is served during business hours. In addition, Senate Bill 348 would revoke the exclusion of bars and gambling halls from the current smoking prohibition.
Advocates of such smoking bans argue that the government must intervene due to the high expense smoking imposes on the public health sector. They maintain that such bans are necessary to protect citizens from being unwillingly harmed from second-hand smoke.
Smoking, however, is a matter of individual choice and the extent of smoking in public spaces should be left to market forces. As Thomas Firey from the Cato Institute writes:
“Government need only pass an ordinance requiring that all places of public accommodation establish either a no-smoking or smoking-allowed policy, that those businesses post the policy clearly at entrances, and that the government establishes an enforcement mechanism to ensure that businesses comply with their espoused policies.”
In a market economy businesses aim at making a profit while competing with similar providers. This provides customers with a variety of choices that satisfy their preferences and needs. This applies to restaurants and bars. The market will provide the desired number of smoke-free environments, allowing all individuals to choose and enjoy the preferred atmosphere.
If these bills become law, Louisiana will limit individual liberty by prohibiting citizens from exercising their freedom of choice. Further, this interferes with the rights of business owners to make their own decisions about what activities to allow in their establishments. Legislators should leave these decisions to individuals and businesses and focus instead on the effective enforcement of existing non-smoking rules.
A feasibility study by Burk-Kleinpeter Inc. and HDR Engineering emphasizes the economic and social benefits of the proposed high-speed rail linking New Orleans to Baton Rouge. Currently under revision, the final report is due March 16.
With an estimated 78% probability of having a positive return on investment, the study claims that the value creation offsets the project’s costs. However, a Baton Rouge news site reports that Louisiana would bear the burden of $11 million to $14 million in annual subsidies. These costs are too high for a state already facing large deficits.
The BR-NO rail has been debated for years, but the controversy heated up when the state turned down stimulus money that would have funded its creation. While Bobby Jindal rejects the plan due to its high costs, Cato Institute scholar Randal O’Toole concentrates on the project’s hidden negative impacts.
In a Pelican Institute publication, O’Toole argues that the new high-speed rails will be “an expensive slippery slope” leading to higher costs for Louisiana taxpayers. The project would not relieve overall traffic congestion, and only few Louisiana residents will use the new trains. In other words, the possible economic benefits from new rails line will be greatly offset by high maintenance costs and low customer usage.
O’Toole believes that Louisiana should not build new rail lines; it should instead spend the federal stimulus money on safety measures by improving signaling and crossing gates on existing lines.
Louisiana is among the 41 applicants for the “Race to the Top” federal education grant. Funds available for the year 2011 total $4.35 billion. Applications to enter Phase I of the national competition were due yesterday, and winners passing to Phase II will be announced in April 2010.
Started last July, the R2T program encourages states to advance reforms that will help improve education in public schools. In order to take part in the competition, states applying for the federal grant are required to file an application with a proposed budget.
The Department of Education estimated a budget for the state of Louisiana ranging from $60 million to $175 million, this being just an indicative estimate based on government statistics. The state Board of Elementary and Secondary Education hopes for Louisiana to receive a grant of $150-300 million.
President Obama mentioned Louisiana among the leading states effectively improving education. Obama announced an increase of $1.35 billion funds in the FY 2011 budget, allowing more applicants to compete and apply for the grant. Next year’s competition will be extended to local school districts.
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