THE LIGHTHOUSE
"Enlightening Ideas for Public Policy..."
Vol. 3, Issue 51
December 24, 2001

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IN THIS WEEK'S ISSUE:
1. Defunct "Stimulus" Package Is Uncle Sam's Unintended Gift
2. Ode to John Ashcroft and Civil Liberties
3. A Christmas Reflection
4. More Year-end Giving Tips -- plus a Bonus!

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Welcome to The Lighthouse, the e-mail newsletter of The Independent 
Institute, the non-politicized, public policy research organization 
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DEFUNCT "STIMULUS" PACKAGE IS UNCLE SAM'S UNINTENDED GIFT

Uncle Sam sent taxpayers an unexpected gift last week: an economic 
"stimulus" package that never made it off Capitol Hill.

Many economists, critical of the proposed government spending 
increases, have pointed out that the economy had already started to 
show signs of recovery anyway. Other critics correctly point out that 
the "stimulus" had enough pork to keep special-interest groups 
hibernating high on the hog till next winter.

There is, however, another reason to have frowned at Washington's 
"stimulus" proposals and to rejoice at their demise. Government 
"stimulus" packages are not, as environmentalists might say, 
"sustainable." They merely crowd out or postpone increases in private 
investment -- the fuel of economic recovery. And when a government 
"stimulus" is financed by inflation, it tends to undermine the source 
of that fuel: capital formation.

This holiday season we can thank Congress for its inability to agree 
to "help" the economy. But, unfortunately, we're still haunted with 
visions of Christmas past, when bad legislation has gone back to 
conference committees only to be return as even worse legislation.

Too bad Washington, DC, doesn't have a "no returns" policy.

For more on the economic benefits of political gridlock, see "Divided 
We Stand, United We Fall," by Richard Vedder, senior research fellow 
at The Independent Institute, at 
http://www.independent.org/tii/news/9712Vedder.html.

Also see, "Is Macroeconomics Believable?" by Ben W. Bolch (THE 
INDEPENDENT REVIEW, Spring 1998), at 
http://www.independent.org/tii/content/pubs/review/TIR24_bolch.html.

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ODE TO JOHN ASHCROFT AND CIVIL LIBERTIES

So long as Americans have freedom of speech, there is hope that the 
flame of liberty will remain lit. In that spirit, we offer the 
following ditty posted on the website of The Nonviolence Web.

    "Ode to John Ashcroft and Civil Liberties"
    (Sung to the tune of "Santa Claus is Coming to Town")

    You better watch out,
    You better not pout,
    You better not cry.
    I'm telling you why.
    John ashcroft's coming to town.

    He sees you with your lawyer.
    He listens to every phone;
    He reads everyone's email,
    and he locks you all alone.

    With little tin guns
    And tiny cellphones
    Rooty hoot, hoot, he's breaking in homes,
    Big Brother is coming to town.

    He knows when you are traveling.
    He knows who you're around;
    Tried in military courtrooms,
    Not a lawyer can be found.

    He's makin' a list,
    and checking for race,
    Gonna arrest those who are dark of face.
    Big Brother's coming to town.

    You better watch out,
    You better not pout,
    You better not cry.
    I'm telling you why.
    Big Brother's coming to town.

See http://www.independent.org/tii/lighthouse/LHLink3-51-1.html.

Also see:

"Looking Who's Looking," by Ron Gurantz, (10/22/01), at
http://www.independent.org/tii/news/011022Gurantz.html.

"Watching You: Federal Surveillance of Ordinary Americans," by 
Charlotte Twight (THE INDEPENDENT REVIEW, Fall 1999)
http://independent.org/tii/content/pubs/review/TIR42Twight.html.

"Conning Congress: Privacy and the 1994 Commuications Assistance for 
Law Enforcement Act," by Charlotte Twight (THE INDEPENDENT REVIEW, 
Fall 2001)
http://www.independent.org/tii/content/pubs/review/tir62_twight.html.

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A CHRISTMAS REFLECTION

Christmas, a holiday rooted in both Christianity and pre-Christian 
celebrations of the winter solstice, is also an appropriate time to 
reflect upon the secular values that have helped Western civilization 
over the course of two tumultuous millennia. Among these values: 
freedom of conscience, peace on Earth, and goodwill toward men.

These values transcend any particular religion; they are in fact 
articulated in varying degrees by most of the world's religions. Yet 
they have found their fullest expression in the West. Why?

Because in Western culture more than in any other, the individual counts.

"This empowerment of the individual is unique to Western 
civilization," writes Paul Craig Roberts.

And it is this individualist precept -- respect for the dignity and 
worth of each human life -- that holds the key to understanding the 
unique institutions of the West.

The West's individualism, writes Roberts, "permits an individual 
person to put his or her foot down, to take a stand on principle, to 
become a reformer and take on injustice.... It has made the 
individual a citizen equal in rights to all other citizens, protected 
from tyrannical government by the rule of law and free speech."

Just as freedom in the West has unleashed in the marketplace the 
progressive forces of what one economist termed "creative 
destruction," so freedom in the West has unleashed a similar 
phenomenon in the marketplace of ideas. This perhaps is the West's 
supreme paradox (and achievement) -- its tradition of questioning 
even tradition itself.

Concludes Roberts: "Be we religious or be we not, our celebration of 
Christ's birthday celebrates a religion that made us masters of our 
souls and of our political life on Earth. Such a religion as this is 
worth holding onto even by atheists."

See "The Greatest Gift," by Paul Craig Roberts (12/19/01), at 
http://www.independent.org/tii/lighthouse/LHLink3-51-2.html

Also see, "The Drama of Western Identity," by David Gress (THE 
INDEPENDENT REVIEW, Winter 2000) at 
http://independent.org/tii/content/pubs/review/TIR43Gress.html, and 
"Freedom of Religion and Public Schooling," by James Otterson (THE 
INDEPENDENT REVIEW, Spring 2000) at 
http://www.independent.org/tii/content/pubs/review/TIR44Otteson.html.

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MORE YEAR-END GIVING TIPS -- PLUS A BONUS!

Last week's LIGHTHOUSE item regarding making a year-end contribution 
inadvertently omitted the qualifier *federal* taxes in discussing the 
tax ramifications of gifting stock.  As state and local tax codes can 
have varying provisions, be sure to check these -- and, as always, 
with your own tax adviser -- prior to making a charitable gift 
decision involving stock.

Remember, there are still seven days in which to take advantage of 
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THE LIGHTHOUSE
ISSN 1526-173X
Copyright ? 2001 The Independent Institute
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