Day: October 28, 2024

Why does Ottawa pay groups to lobby … Ottawa?

Last Friday, anti-vaping activists took to Parliament Hill and called for the resignation of Minister of Addiction Ya’ara Saks. They said they’ve been waiting 14 months for the minister to “strengthen controls” on vaping and she has not delivered. Their main grievance is that vaping products are flavoured, and they repeated their call for all vape flavours to be banned.

This would be a huge step backward in harm reduction. According to the anti-vapers, vape products should only be tobacco-flavoured. On its face this is ridiculous. Why make a product that doesn’t contain tobacco taste like tobacco? And from the standpoint of smokers trying to quit, which many vapers are, why would the government want to limit vapers’ access to only one flavour — which tastes like the product they are trying to quit altogether?

Even stranger than these organizations’ logic, however, is the fact that they’re heavily funded by the very government whose minister they would like to see resign.

Physicians for a Smoke Free Canada, for example, is almost entirely funded by Ottawa and provincial governments. Last year, 85 per cent of its funding came directly from government. In 2020 and 2021, 97 per cent did. There is nothing necessarily wrong with organizations getting government funding, but when the money is used to aggressively lobby government for policy change, ethical questions need to be asked. Why is the government, in other words taxpayers, paying people to lobby itself? And why are certain policy viewpoints getting public support and not others?

Circular self-lobbying not only wastes taxpayer money, it also subverts democracy and erodes the concept of charity by killing charities’ independence. And it is fraudulent: it skews the public debate and political processes by masquerading circular self-lobbying as genuine civil society activism. A group of concerned doctors trying to altruistically convince Canadians to stop smoking is in reality an organization that in 2022 paid one full-time and one part-time employee a total of $104,382 in taxpayer money to lobby the government.

Government-funded NGOs and non-profits need government money because their issues don’t have widespread public support. If they did, they’d be able to fund-raise off that support. But in 2023 Physicians for a Smoke Free Canada, for instance, could only raise eight per cent of its total budget from receipted donations (with another seven per cent from “other sources,” leaving 85 per cent from government.)

Vaping isn’t risk-free. But it is much less risky than smoking — Public Health England says 95 per cent less risky. And clinical trials have shown it is a more successful quitting tool than the nicotine replacement therapies that have been on the market for decades. Research from Queen Mary University in London shows that vaping is about twice as effective as gums or patches in quitting smoking.

And flavours are a main reason vaping is a successful tool for quitting. Morethan two-thirds of vapers use vaping flavours other than tobacco-flavoured, and for good reason. They increase the likelihood of quitting smoking entirely. According to researchers at the Yale School of Public Health, vapes that aren’t tobacco-flavoured more than double the likelihood of quitting smoking.

Around 40,000 Canadians die each year from tobacco-related illnesses. Our smoking rate, though it has fallen sharply over the decades, is still about 12 per cent. You’d think an organization pushing for a “smoke-free Canada” would want to encourage more adults to access products that are exactly that, smoke-free.

Government spending money to lobby itself is perverse. The Institute For Economic Affairs in the U.K. calls the organizations that do it “sock puppets.” Should we, as taxpayers and adults, be actively funding individuals and organizations who want to police the choices we make? Absolutely not. This nefarious practice of circular lobbying needs to be ended, if not by this government then by the next.

Originally published here

Internationaler Vergleich: Berliner Hauptbahnhof stürzt im Ranking ab

Der Berliner Hauptbahnhof hat im Bahnhofs-Ranking des Consumer Choice Center (CCC) in diesem Jahr deutlich schlechter abgeschnitten als noch 2023. Stand der Bahnhof im vergangenen Jahr noch auf Platz drei im Qualitäts-Ranking der 50 größten Verkehrsknotenpunkte Europas, fiel er in diesem Jahr auf Platz 13. 

Grund dafür ist ein enormer Anstieg der Zugverspätungen – laut CCC auf 55 Prozent. Fahrgäste mussten demnach im Schnitt 14 Minuten auf ihren nächsten Zug warten. Der Berliner Hauptbahnhof erhielt einen Score von 78.1. Zum Vergleich: Spitzenreiter Zürich erreichte einen Score von 101, Leipzig auf Platz zehn einen von 85. Der höchste erreichbare Wert ist 118.

Ranking: Andere Berliner Bahnhöfe schneiden schlecht ab

Doch auch andere Berliner Bahnhöfe schneiden nicht gut im Ranking ab. Das Ostkreuz landete auf dem letzten Platz mit einem Score von 41. Nur wenig besser wurde der Zoologische Garten bewertet. Der Bahnhof erreichte mit 47 Punkten den vorletzten Platz.

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Lawfare is bleeding the economy

It’s perplexing that Australian policymakers would roll out the red carpet for those who oppose the resources sector — the very industry that drives and powers national prosperity.

Why kneecap your own champions that fund your successful industry?

The single most egregious example of this economic self-harm is so-called “lawfare”; the gaming of the legal system to stop Australian resource projects in their tracks and bleed successful Australian companies dry. We know this well in North America.

Much like Alberta in my native Canada, Australia has a resource-rich western state that is politically and demographically outnumbered, but over-performs when it comes to economic figures.

The resources sector in WA delivered $254 billion in sales in 2022-23, supporting 126,000 full-time jobs (that’s two Optus Stadiums), and generating over $12.7 billion in royalties to help pay for the schools, hospitals, and critical infrastructure West Australians rely on.

Class action lawfare — driven by cashed-up foreign litigation funders — is a clear and present danger to WA’s economy, and to many across the anglosphere.

Four of WA’s five biggest private sector employers — which have at least 70,000 West Australians on their payrolls — are currently facing class actions or class action investigations.

This includes resource giants BHP and Rio Tinto, as well as Perth-headquartered Wesfarmers, and Woolworths. Some of these may have merit, but many others are ill-intended efforts to weaponise Australia’s court system.

And as Australia’s class action industry continues to grow, there’s more pain on the horizon for the resources sector.

After arriving in Australia earlier this year, British class action firm Pogust Goodhead, backed by a billion-dollar loan from American hedge fund Gramercy, pledged to file as many as 10 class actions against Australian companies over the next 18 months.

CEO Thomas Goodhead has identified projects involving BHP, Rio Tinto, and Glencore as potential targets for lawsuits.

Already — just 12 months after the billion-dollar loan was announced — Pogust Goodhead has spent the lion’s share, going after BHP in the English High Court.

Pogust Goodhead’s aggressive pursuit of BHP in Britain over the collapse of Brazil’s Mariana Dam in 2015 — which could see the class action firm and its hedge fund backers make billions in profit — goes on, even after BHP and its partners sealed a $45 billion agreement with Brazilian authorities this week to directly compensate affected communities.

For class-action cowboys, WA, and particularly the Pilbara looms as a target-rich environment.

The same has sprung up in the United States, where opportunistic lawyers, backed by wealthy investors, target the most successful companies in economically powerful industries because they know they have the means to pay up in the form of a settlement.

Then there’s green lawfare pushed by environmental activist organisations, which also actively threatens the livelihoods of WA consumers and workers.

A recent report from the Menzies Research Centre found Australia has become the climate lawsuit capital of the world, giving the Americans a run for their money.

What’s more sinister, if one examines the cases, is that these groups hold up projects based on bureaucratic technicalities, rather than significant breaches that would be cause for concern.

They hold back the economy on ideological grounds, not on serious breaches of environmental or cultural heritage rules.

Recent examples include the Australian Conservation Foundation’s pursuit of Woodside over its Scarborough gas project, and the Environmental Defenders’ Office botched action against Santos over its Barossa gas project. Both ultimately failed but stymied the projects for years.

With that in mind, how do policymakers stop green activists gaming the system and foreign hedge funds gambling on lawsuits against Australian companies that provide value to consumers?

The short answer is it’s not easy. But bipartisan action in the US Congress shows the way, and it all starts with transparency and disclosure.

Republicans and Democrats have come together to introduce the Litigation Transparency Act, which would force disclosure of financing provided by third parties.

They’ve also put forward the Protecting our Courts from Foreign Manipulation Act which would block foreign sovereign wealth funds from funding class actions in American courts.

Policymakers in Australia should heed the same call and do right by Australian consumers, workers, and citizens.

Originally published here

Deutsche Bahn wieder mal Schlusslicht

Überraschend kommt das nicht: In einer US-Studie belegen die meisten deutschen Bahnhöfe die hinteren Plätze in Sachen Wartezeit und Aufenthaltsqualität. Mehrere Nachbarländer machen den Deutschen vor, wie es gehen könnte.

Wer nur Bahnhof versteht, versteht nichts – oder möchte nichts verstehen. Wie die Deutsche Bahn. Ihr Krisenmanagement knirscht wie eine uralte Dampflok auf dem Weg zum Abstellgleis. Viel Rauch, noch mehr Lärm, aber wenig Tempo. Nun ist schon wieder einmal höchste Eisenbahn. Das Sprichwort, es stammt passenderweise von einem Berliner aus dem Jahr 1847, demütigt die Deutsche Bahn abermals erneut vor der ganzen Welt.

Dieses Mal ist es die inakzeptable Wartezeit auf den bundesdeutschen Bahnhöfen, hierzulande schmerzlich bekannt, aber zunehmend auch im Ausland als unangenehm empfunden. Da fragt man sich: Kann man überhaupt noch Touristeneine Bahnfahrt durch Deutschland empfehlen, und das ohne Warnung oder einen Hinweis auf unerwünschte Nebenwirkungen? Wäre das nicht grob fahrlässig? Denn im Europa-Vergleich der 50 meistfrequentierten Bahnhöfe ist 2024 das Bahnhofsnetz der DB der große Verlierer.

Das jährliche Ranking der US-Verbraucherschutzorganisation Consumer Choice Center bewertet die Deutsche Bahn an sich als problematisch: „Sie steht vor großen Hürden“. Die Analysten des „European Railway Station Index 2024“ stellen bei den Wartezeiten jetzt als Negativbeispiel den Berliner Hauptbahnhof bloß, der von Platz drei binnen eines Jahres auf den 13. Platz abstürzt. Dort müssen Bahngäste nun im Durchschnitt 14,8 Minuten warten; 55 Prozent aller Züge sind verspätet.

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Harris promised to be ‘pragmatic’ — that means dropping Lina Khan at the FTC 

The Biden administration’s most activist regulator may soon need a job — unless the next president taps Federal Trade Commission Chair Lina Khan to stay on for another term.  

With the controversial FTC chair’s tenure having ended on Sept. 26, it will be up to the next president to decide whether Khan will have another four years leading the agency tasked with antitrust enforcement and consumer protection. Vice President Kamala Harris vowed in front of the Economic Club of Pittsburgh last week to be “pragmatic” if elected and not be “constrained by ideology” in how she governs. Given this noble pledge, she must show Khan the door. 

President Biden’s choice of Khan to lead the FTC was an exciting one. Khan, now 35, was and still is young, energetic, and ideologically motivated. She is representative of a critical new generation of Democrats who want to take up the mantle of trustbusting, taking aim at large tech firms. 

Since then, Khan has taken the FTC to war against Microsoft, Meta, Google and Amazon, as well as against corporate mergers between handbag companies, hotels, and grocery stores.  

The most bizarre and revealing defeat for Khan came in court against Microsoft for its effort to merge with Activision-Blizzard, the video game company behind Call of Duty. The case came about because of the FTC’s shift in focus away from obvious harm to the consumer, modeled by her revamped mission statement for the agency. Khan’s FTC removed language stating its commitment to not hindering legitimate business activity while playing its role as watchdog.  

Put more simply, even if a corporate action is known to be legal, Khan will make you fight for it in court.  

When you watch Khan’s recent “60 Minutes” feature, this theme is front and center. Khan says “We’re doing our job, enforcing the law.” She is then interrupted by Lesley Stahl, who adds, “You are. [Businesses are] afraid you’re going to tie them up in court, cost them a lot of money, and they’re saying it’s just not worth it.” Khan nods along. Stahl also asks, “If someone just says, ‘I’m not going to go forward,’ that’s a win?” to which Lina Khan replies, “That’s right.”  

The FTC under Khan has made it the position of the federal government to oppose reflexively and antagonize all mergers, treating any market consolidation with hostility. That posture amounts to a corporate tax on mergers and acquisitions.  

Candidate Harris shares Khan’s proclivity for blaming inflation and higher prices of gadgets and groceries on corporate misbehavior. But if Harris wins the presidency, she will have done so on the promise of understanding middle-class concerns. You don’t see Harris campaigning in the suburbs against one-day Amazon Prime deliveries and Prime Day deals on televisions, which is exactly what Khan is up to in her case against Amazon.

Donald Trump, if he wins in November, will certainly fire Khan, but Harris would have to contend with a tough reconfirmation battle for Khan to keep the job. Khan would struggle to maintain the same level of Republican good faith she received at the start of the Biden administration. High-profile defeats in federal court and agency resignations, including a commissioner’s public rebuke in the pages of the Wall Street Journal, would be the main event of a confirmation hearing, and seriously degrade any wavering support for Khan to continue leading the FTC.  

Before grabbing the top spot for antitrust enforcement, Khan was a fresh face with a paper trail of hot takes on how to break up Amazon. Today she’s a federal official with spurned former colleagues willing to speak out against her “disregard for the rule of law and due process” and Federal Employee Viewpoint Survey results showing a dramatic drop, from 87 percent to 49 percent, on the question of whether “senior agency officials maintain high standards of honesty and integrity” within the FTC.  

Khan has broken trust and morale within the agency while simultaneously performing on “60 Minutes” and Comedy Central’s “The Daily Show” as a media darling and anti-capitalist icon.  

There is nothing “pragmatic” about Khan. It’s why she was hired — to throw the kitchen sink at corporations and test the constraints of congressional oversight of the FTC. She did just that. Were she to retain Khan, Harris would betray her message of common-sense government responsive to policy results.  

Biden brought Khan into the fold for what you could call “bold, persistent experimentation” around antitrust, and it has been a failure. Harris can be a fresh leader by correcting that mistake.  

Originally published here

Lina Khan’s Partisan Pivot Should Be the Beginning of Her End

Democratic candidates are crisscrossing the country to garner support before November’s elections. Joining campaign events alongside the likes of Senator Bernie Sanders, Democratic Rep. Ruben Gallego, and Rep. Raja Krishnamoorthi will be an unlikely star and supposedly independent federal employee, Federal Trade Commission (FTC) Chair Lina Khan. 

Khan is due to travel to Austin, Chicago, and Arizona to stump for Democratic candidates, trumpet her antitrust record at FTC such as the effort to break up Amazon, and spin why voters should be clamoring for more. 

The head of an independent government agency publicly tying her fate to Democratic electoral prospects is not normal, and key lawmakers have taken notice of Khan’s plans. In a short tenure which expired last week, Lina Khan has gone from DC darling to political pariah. Remarkably, both political parties have found common ground in their condemnation of Khan’s regulatory actions as the head of the FTC. Her partisan tour is a mark of desperation, and Congress must check the politicization of the FTC by reconfirming Lina Khan in the event she’s asked to stay in the job. 

Khan’s overreach has stunted the economy, harmed consumers, and negatively impacted middle America. From her crackdown on so-called “junk fees” to her anti-growth merger policies hamstringing consumer companies, Khan’s agenda has rightfully faced growing bipartisan backlash.

Her unilateral actions have sent shockwaves through industry, creating a climate of uncertainty that stifles innovation and investment. Rather than focusing on safeguarding consumers and promoting fair competition, the organization has opted for overzealous regulation that a former commissioner called “disregard for the rule of law and due process.” A company that turns profits is guilty until proven innocent with Lina Khan at the FTC’s helm.

As a result, rather than investing in new technology or innovations, companies have been forced to beef up their legal departments out of fear over FTC lawfare. The metric of consumer welfare, which informed antitrust law for nearly a generation, was chucked aside for a hyper-active legal movement that sees every corporate boardroom as an opponent. 

Instead of thoroughly researching the law to drive legal change, the commission hastily pursued court action and lost three of its highest-profile merger cases that dealt with popular consumer and patient products. This series of losses includes Microsoft’s acquisition of Activision Blizzard, Meta’s acquisition of Within, and Illumina’s acquisition of Grail. 

What Khan and many of her ideological allies fail to realize is that mergers are a natural cycle of competitive free enterprise. Many mergers play a vital role in sustaining companies, preserving jobs, and supporting local economies, such as the proposed Nippon Steel takeover of US Steel, which would help sustain thousands of jobs in America’s heartland. Or the failed Frontier-Spirit merger, which now puts an entire airline’s future in jeopardy. Spirit Airlines, one of the best travel options for consumers on a budget, is now exploring Chapter 11 bankruptcy.

To counter these losses, the agency is now seeking to revise its merger-review policy, which is even facing opposition from former Obama administration officials and ex-FTC chief economists. This all stems from an ideological position that aims to cut down big players rather than sound economic or policy reasoning.

Additionally, the FTC is catching heat on its proposed final rule to ban non-compete agreements. The U.S. Chamber of Commerce was successfully able to freeze the order after a court injunction, arguing the FTC overstepped its authority in issuing the rule.

Another overzealous initiative by Lina Khan is her crackdown on so-called “junk fees”, or back-end charges commonly found in consumer services and transactions. They can include a wide range of charges – from hotel resort fees and airline baggage fees to banking overdraft charges and cable TV installation costs. Seeking to increase transparency and safeguard consumers is noble, but Khan’s assertive approach has resulted in a series of new regulations that will only end up costing consumers more.

This regulatory crackdown has left many firms scrambling to comply, resulting in a constriction of consumer options, higher overall costs, and a general sense of disorder and uncertainty. This has undoubtedly caused confusion and frustration for both companies and the consumers they serve.

Both sides of the aisle are rightly apprehensive about Lina Khan’s leadership at the FTC and the agency’s overall effectiveness. Consumers even more so. Her misguided priorities threaten the very competitiveness that fuels our nation’s economy and rewards consumers every day.

In today’s economic climate, prioritizing innovation, job creation, and growth is crucial, and the FTC’s initiatives must reflect these objectives. The FTC needs to realign its focus and avoid overstepping its boundaries. American consumers and businesses alike benefit from having an effective and focused competition watchdog, but as Lina Khan finishes her term at the FTC, it is nowhere to be found. 

Originally published here

Bloomberg’s Crusade: The Impact of Anti-Vaping Policies on India

In recent years, there’s been a paradigm shift in the global landscape of tobacco control, with the restriction of nicotine vaping products becoming a significant policy focus over and above the general reduction in smoking. Michael Bloomberg’s philanthropic efforts are in the vanguard of shaping such health policies globally, exerting financial power to influence tobacco regulations worldwide and safeguard the population from the “potential harm” of vaping.

Bloomberg’s anti-vaping crusade is well documented in the West. Vapers in America are well aware of Michael Bloomberg and his patronage for policies that ban or restrict vaping. Across the globe, his web of charities and specific groups enjoy millions of dollars in grants, as we’ve seen with recent restrictions on vaping products in Mexico and Singapore. For years, Bloomberg has donated lavish amounts of money to a network of monetarily tied universities, nonprofits, and activists and orchestrated their collective effort to instigate fear over vaping products and force governments into embracing draconian norms to promote a new form of prohibition. Bloomberg has fully funded numerous organizations that are working to promote policies in his favor globally. These include John Hopkins University, Campaign for Tobacco- Free Kids, the Bloomberg Initiative to Reduce Tobacco Use, The Union, and Southeast Asia Tobacco Control Alliance (SEATCA).

Bloomberg has displayed a whole range of devious tactics to disseminate the same false depiction of vaping as an extension of the tobacco epidemic rather than an effective harm- reduction tool. For instance, in Latin America, Bloomberg Philanthropies has backed numerous non-governmental organizations, such as the Campaign for Tobacco-Free Kids and UNION, to advocate for more stringent anti-vaping laws for the government. The influence has caused extensive bans on the commercial sale of vaping products in most Latin American countries except Colombia and Costa Rica. His influence has ignited discussion here in India, where the impact of these policies is more complicated due to their conflict with our country’s rich, diverse, and deeply rooted tobacco culture. India has become the latest battleground in Bloomberg’s campaign. Home to an estimated 253 million smokers, this whopping number of tobacco users places the nation in 2nd place worldwide and 1st among Southeast Asian countries in terms of total tobacco consumption.

Vaping has vast potential for harm reduction, yet Bloomberg’s influence has contributed to moving Indian policy in the polar opposite direction. In 2019, a nationwide ban was passed on the production, sale, and possession of e-cigarettes and vaping products. This step was endorsed by anti-tobacco activists like the Campaign for Tobacco-Free Kids. Four years later, however, the step has proven entirely flawed. Despite penalties, e-cigarettes remain broadly accessible online and in storefronts, leading to a flourishing black market where counterfeit products have jeopardized consumer’s health. Not to mention that smokers who might have quit using vaping devices are forced to fall back to traditional cigarettes. As such, the ban in India has dealt a severe blow to public health and jeopardized the lives of hundreds of millions of smokers.

Bloomberg’s harmful impact extends beyond promoting harmful policies. By associating financial aid with the adoption of specific guidelines, Bloomberg and his allies make it challenging for governments to prioritize existing health issues. The public health sector in India is severely overstrained, and this kind of foreign influence only intensifies existing challenges, rendering it harder to address other serious issues as well. Furthermore, Bloomberg’s action underscores the stark contrast between his public statements and the natural consequences of his behavior. Rather than facilitating nations to craft evidence- based remedies to smoking-related diseases, Bloomberg dictates a blanket policy that often results in more harm than good by failing to consider the actual circumstances of the policy (the way the ban was unable to take effect in India).

Instead of giving in and repeating the same mistakes in the smoking policy, governments must resist the temptation of easy money from Bloomberg-controlled channels and focus on formulating policies tailored to address India’s specific issues. This solution also includes exploring the benefits of e-cigarettes and vaping products in harm reduction rather than imposing a blanket ban. The fight against smoking should be about saving lives, not advancing a specific agenda. Bloomberg’s influence on vaping laws in India is a cautionary tale of what happens when external forces dictate public health policy. The real solution lies in respecting the rule of law, prioritizing local needs, and adopting a balanced approach to tobacco control, not in bowing to the will of outsiders trying to dictate to people what is right and wrong.

Originally published here

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