Category Archives: Op-Eds

Trump Goes Postal. But in a Good Way.

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On October 17,  president Donald Trump announced plans to withdraw the United States from the Universal Postal Union, a 144-year-old international agreement which coordinates postal policies between 192 member nations. Trump left open the possibility of remaining in the UPU if those policies can be successfully renegotiated. Unlike many of Trump’s initiatives relating to international trade, this one makes real sense.

The UPU’s outdated rate-setting model treats the world’s second largest economy, that of China, as if it was still the primitive pre-capitalist economy of 1874. The result: A massive subsidy from the US Postal Service to China’s 21st century international retail sector.

Companies shipping  small parcels (“ePackets”) from China to the US pay less than US companies to ship parcels of similar size and weight across much shorter distances within the US itself.

That subsidy has created a burgeoning business in jewelry, electronics, and other small items. Chinese firms already enjoy lower labor costs than their American counterparts. Throw in the ePacket subsidy, and an American who’s willing to wait a couple of weeks can get a set of guitar strings sent all the way from China for less than an American firm would pay just to ship the strings from, say, Coachella, California, let alone make them in the first place.

As of 2014, the US Postal Service took a $75 million annual loss on  the ePacket subsidy. That’s probably a tiny fraction of sales  the subsidy artificially shifts from American firms to their Chinese competitors.

My family loves the Chinese ecommerce sites and sellers. And to be honest, many of the things we buy from them aren’t things that we’d otherwise buy domestically. They’re things we probably just wouldn’t buy at all at full American prices.

But why should you pay more for domestic USPS Priority Mail or Parcel Post so that I pay less to feed my guitar and harmonica habit or add to my wife’s earring collection? I’m sure we’ll get by without those cheap geegaws if we have to.

I doubt we’ll have to. As the ePacket subsidy comes to an end, I suspect private sector shipping firms will step in with something similar. The subsidy doesn’t just hurt American manufacturers and sellers. It also undercuts companies like UPS and FedEx. They may not be able to get shipping costs down to ePacket levels, but I bet they can compete with un-subsidized USPS shipping rates.

Let’s find out.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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One Libertarian’s Free (Well, Nearly Free) College Plan

In 2015, president Barack Obama unveiled a proposal — “America’s College Promise” — to waive tuition at community colleges, allowing students to complete an associate degree (or the first half of a bachelor’s degree) at little or no cost to themselves.

Democratic presidential candidates Bernie Sanders and Hillary Clinton offered up even more ambitious plans in 2016. Sanders proposed to make all public colleges and universities tuition-free, Clinton to provide a 100% tuition subsidy to students from families making less than $125,000 per year.

So far, these plans haven’t gone anywhere. Meanwhile, college tuition continues to rise faster than inflation and student loans constitute one of the largest forms of consumer debt in America. Something’s got to give.

At the moment, what’s giving is college itself.  Work experience and industry skill certifications are beginning to replace a college degree as a job qualification (Glassdoor, an employer/employee review site, reports on 15 large companies that have formally dropped degrees from their hiring requirements).

With college as we know it becoming less valuable and online/distance learning becoming more viable, change is coming whether we like it or not. Why not seize an opportunity for “free college” as we wind down the existing system?

A great deal of government spending on higher education goes to the maintenance of increasingly unnecessary physical plant, as well as on paying professors to deliver the same live lectures over and over to students in physical classrooms (with those students paying big bucks for new editions of textbooks on subject matter which doesn’t change — college-level algebra, for example).

Record the lectures. Make them freely available on streaming video, with accompanying online textbooks. Allow anyone seeking an undergraduate degree (or just taking a class or two) to register for a small per-semester fee, with small additional fees for proctored exams, required lab work, etc. Call it $100 per semester, give or take — less than a thousand dollars for a bachelor’s degree, versus the current $90,000 (average for in-state tuition, books, room/board, etc. at a public college or university) or more.

Public universities could dramatically reduce energy/maintenance costs (and divest themselves of real estate wasted on dorms and other obsolete facilities) while serving more students. Yes, some faculty would have to find new jobs (hopefully in private sector education). Others might re-focus on research.

No, this plan wouldn’t replace every degree program. Some things require group settings and costly equipment. But a lot of the way we do college now is like holding on to buggy whips instead of adopting those newfangled horseless carriages.

Government-provided education as we know it is, thankfully, on its way out. Why not make it cheaper and more accessible as it fades into history, instead of just marking time as we await its collapse?

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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Facebook Meddles in the 2018 Midterm Elections

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On October 11, Facebook announced the removal of 559 pages and 251 accounts from its service, accusing the account holders of “spam and coordinated inauthentic behavior.”

The purged users stand accused of posting “massive amounts of content … to drive traffic to their websites” with suspicious “timing ahead of US midterm elections.”

Facebook admits to “legitimate reasons” for such behavior — “it’s the bedrock of fundraising campaigns and grassroots organizations.” Not to mention the operations of CNN, MSNBC, Fox News and a bunch of other users/pages which weren’t purged.

Facebook also admits that it has previously “enforced this policy against many Pages, Groups and accounts created to stir up political debate …”

In other words, Facebook’s administrators are meddling in politics — including the 2018 US midterm elections — in the name of preventing meddling in politics.

Who benefits from the meddling? It doesn’t seem to fall along “left/right” lines in particular. The victims come from across the political spectrum — from Reverb Press on the left, to Right Wing News on the right, to the libertarian Free Thought Project — some with millions of Facebook followers.

The primary thread connecting victims of the purge seems to be that they are critics and/or opponents of the American political “mainstream” or “establishment.”

In a sense, this is nothing new. Even before Internet “social media,” the old guard “mainstream media” tended to draw fairly narrow lines on either side of the perceived political “center” or “consensus” and avoid coloring (or publishing e.g. reader letters that colored) very far outside those lines. One might support or oppose a tax increase, or even a particular tax, but opposing taxation in general? Why, that was just crazy and not worthy of consideration — or of column inches.

The Internet and social media threatened to change that. In fact, they DID change that … for a little while, at any rate. But now Facebook, Twitter et al. are part of the establishment, and they’re starting to act like it.

How can we fight that trend?

Some would have us classify social media as “public utilities” or something of the sort and regulate them as such. But who would regulate them? The very establishment in question.

On the other hand, it’s becoming clear that these companies are already looking more and more like extensions of the state — and the establishment the state serves — than like bona fide “private sector” actors.

What is to be done? From where I sit, the only real option is to see if the next generation of “social media” — sites/services like Diaspora, Mastodon, Minds, MeWe, Gab, et al. — can supersede Facebook and Twitter in the same way that Facebook and Twitter superseded print and television news and the more centralized/static site model of the older Internet.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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