By John Merrifield,
Professor of Economics
Director, Entrepreneurial Conservatism Institute
December 25, 2006

The lawsuits filed in accordance with U.S. Anti-Dumping Law, enacted in the name of fair trade, amount to suing Santa Claus. Recall that illegal dumping is said to exist if a foreign competitor sells in the U.S. for: 1.) less than elsewhere (gasp!!!); or 2.) below production cost. Such ‘violations’ occur sporadically, persistently, or strategically (i.e. with the intent to eliminate competitors).

Sporadic dumping is a surprise visit by Santa Claus, an unexpected bargain for a few lucky people at the right place at the right time. There are no negative effects. The impact is too small, and too brief to significantly impact any U.S. businesses.

Persistent dumping is Santa Claus on a schedule. This is the best kind of ‘dumping’ (all do more good than harm). Foreigners with a comparative advantage, or government subsidy, are easing Americans’ budget constraints. The appropriate policy response is adjustment assistance for the U.S. businesses displaced by superior or subsidized foreign businesses. These persistent bargains are most often available from ill-conceived farm price supports that generate crop surpluses.

Strategic dumping is rare because it has a very, very low probability of succeeding, even temporarily. That’s why ‘dumping’ with strategic intent is Santa Claus with delusions of grandeur. Proponents of the anti-dumping law pitch alleged selling below cost as predatory - an attempt to destroy competitors to achieve monopoly status – even though predatory intent is very rare. Since attempts to achieve international monopolies are very, very unlikely to succeed, the attempts amount to Santa Claus with delusions of grandeur. Santa Claus with delusions of grandeur is still Santa Claus. Don’t sue Santa Claus!! Anti-trust laws exist as a remedy in the unlikely event they succeed, even temporarily. Even without anti-trust laws as remedies, permanent success is highly unlikely. As soon as the predatory firm raises prices to capitalize on its monopoly status, competitors will re-surface.

I’ll conclude with a Christmas scenario. Imagine that you wake up to gift-wrapped new VW car from a friend that owns a VW assembly plant in Mexico. True believers in the U.S. Anti-Dumping law would see that gift of a new VW as unfair competition for the local VW dealership.  Such true believers would react to the gift-wrapped VW with several expletives and a dash to the phone to consult with an attorney on an anti-dumping lawsuit. If you think this is nuts, you got the point. A gift is just a really, really low priced bargain. I suspect that the vast majority would react to the VW with tears of joy, and file a thank you note rather than a lawsuit. Leadership includes ridiculing silly laws, especially harmful, silly laws like those against bargains.
 

Web Posted: 12/23/2006 07:40 PM CST

Carmina Danini

Christine "Chris" Mitchell 

Born: April 19, 1946, in Brooklyn, N.Y.

Died: Dec. 21, 2006, in Hondo

Survived by: Her husband of 24 years, Chalmers 'Jim' Mitchell of Hondo; two children, Michele Crawford of Uvalde and Christopher Lindberg of Burke, Va.; three grandchildren, Tennessen Crawford and Tate Crawford, both of Uvalde, and Caven Lindberg of Burke, Va.; her parents, retired Army Col. Philip and Ethel Boyle of Austin; two brothers, Philip Boyle Jr. of Sierra Vista, Ariz., and Mark Boyle of Kelseyville, Calif.; and a sister, Anastasia Fabing of Austin; another sister, Stephanie Boyle DeLeon, preceded her in death.

Services: A memorial Mass will be at 10 a.m. Jan. 6 at Holy Cross Catholic Church at Ranch Road 2200 off U.S. 90 West in D'Hanis; it will be preceded by a rosary at 9:45 a.m.

Christine "Chris" Mitchell, the first Republican woman to win a seat on the Medina County Commissioners Court, died of ovarian cancer at her home in Hondo on Thursday. She was 60.

In her first bid for elected office, Mitchell ousted incumbent Precinct 1 Commissioner Royce Hartmann 2,190 votes to 1,991.

Mitchell was not the first woman on the court; that was Beverly Keller, a Democrat, who succeeded her husband, Stanley "Pud" Keller Jr., when he died in 2001.

Just three months after taking office last year, Mitchell learned she had cancer.

County Judge Jim Barden, who visited Mitchell the day before her death, said she was active on the court until about four or five months ago.

A county resident since 2003, Mitchell will be remembered for her strong ideas, Barden said.

Chief among them was the unit road system, which calls for repairs to be prioritized and carried out under the direction of a county road supervisor.

"You eliminate duplication, get volume discount purchasing, and you have better scheduling and systematic road management," she said shortly after taking office.

If adopted, the system would put an end to road maintenance done precinct by precinct at the request of commissioners.

It's been the practice that departing commissioners upgrade roads near their homes, with taxpayers footing the bill.

"She began the process of changing our approaches to county government, like the unified road system," Barden said. "Some of these have not yet been adopted, but at least the opinion has shifted from 'no way' to 'at least, let's look at them.'"

Earlier this year, Mitchell told the San Antonio Business Journal her illness would not lessen her commitment to her constituents.

"I think the biggest plan that I have is to bring some more accountability to the taxpayers; that's who my boss is," she told the publication.

"I want very much to see the county as a whole become strengthened by looking to the future."

Mitchell entered politics after she and her husband sold their business, American Specialties, a promotional products company, in 2002.

She was a founding member and former president of the San Antonio chapter of the National Association of Women Business Owners.

In 2001, she was named woman business leader for Region 6 of the Small Business Administration.

--------------------------------------------------------------------------------

cdanini@express-news.net

Commentary by Joe Solis/South Texas Republicans:

Commissioner Chris Mitchell was a great friend of South Texas Republicans, P.A.C.

We lost a very innovative public servant who had a great heart. 

May God Bless Chris and her family.
 

Wednesday, December 20, 2006

WASHINGTON—U.S. Sen. John Cornyn applauded President Bush on Wednesday for signing the Tax Relief and Health Care Act of 2006, H.R. 6111, into law. The bill, recently passed by Congress, includes provisions to provide critical tax relief for Texans and increase domestic energy production. 

“I applaud President Bush for signing this important legislation to address a number of key issues that will benefit our state,” Cornyn said. “This bill will ensure that Texans are not discriminated against with an unfair tax increase, which would have occurred if the sales tax deduction was not extended. It also promotes needed efforts to increase domestic energy production and decrease our dependence on foreign energy sources. And it prevents harmful Medicare payment cuts that would have hurt doctors and affected health care services for patients. 

The bill extends the sales tax deduction for two years, renewing the option for Texas taxpayers to deduct their state and local sales tax on federal income tax returns. It is expected to save Texans more than $1 billion a year in federal taxes. Sen. Cornyn has worked with the Texas congressional delegation to help renew the sales tax deduction. 

“Extending the sales tax deduction is a victory for freedom and fairness in the tax code for Texans,” Cornyn said. “This measure will provide a direct economic boost to our state’s taxpayers and consumers, and will benefit middle income families in particular. I applaud both parties for working together to help working families and small businesses. 

The legislative package also increases domestic energy production by opening more than 8.3 million acres for oil and gas exploration in the Eastern Gulf of Mexico.

“The provision to open new areas for exploration in the Eastern Gulf of Mexico is an important step toward increasing domestic energy production and reducing our dependence on foreign energy sources, and this can be done in an environmentally sound way,” Cornyn said. “It’s also very good news that Texas will benefit from this exploration through a fair and reasonable revenue-sharing program. This is an important step forward, but in the 110th Congress, we must continue to work on additional efforts to keep low prices at the gas pump and ensure that American families are not held hostage by a dependence on foreign oil supply. 

The Tax Relief and Health Care Act of 2006 also extends and expands the Research and Development (R&D) tax credit, which helps Texas businesses innovate and create domestic jobs; freezes the scheduled five-percent cut in Medicare physicians’ payments in 2007; and improves Health Savings Accounts, making them easier to use, more accessible and more flexible.

Sen. Cornyn is a member of the following Senate Committees: Armed Services; Judiciary; Budget; Small Business and Entrepreneurship; and Joint Economic. He is also the chairman of the subcommittees on Immigration, Border Security and Citizenship and Emerging Threats and Capabilities.
 

Wednesday, December 13, 2006 

WASHINGTON—U.S. Sen. John Cornyn (R-Texas) will retain – and gain seniority – on several key committees important to Texas in the 110th Congress, according to an announcement made this evening by the incoming-Senate Republican Leader Mitch McConnell (R-Ky.). Sen. Cornyn will continue to serve on the Armed Services, Judiciary and Budget Committees and in addition, he has been appointed Vice-Chairman of the Senate Select Committee on Ethics. Last month, Sen. Cornyn was elected Vice-Chairman of the Senate Republican Conference, which is the fifth-ranking leadership position among Republican Senators. 

“These important committees will allow me to continue shaping policies that will benefit Texas and its citizens, while working to reform the way Washington works,” Sen. Cornyn said. “From providing support for our troops to addressing the growing federal deficit to strengthening congressional ethics, the American people sent a clear message last month that they want and expect a range of key issues to be addressed by the Congress. I believe that combined with my recent election to the Senate leadership, these committee assignments position me to help do just that. I appreciate my appointment to these committees and will continue working hard to bring Texas values to Washington in the coming Congress.”

--See below for information on Sen. Cornyn’s committee assignments --

ARMED SERVICES:

The Committee on Armed Services has jurisdiction over all aspects of national defense and homeland security; the Department of Defense, the Department of the Army, the Department of the Navy, and the Department of the Air Force, generally; military research and development; national security aspects of nuclear energy; pay, promotion, retirement, and other benefits and privileges of members of the Armed Forces, including overseas education of civilian and military dependents; selective service system; aeronautical and space activities peculiar to or primarily associated with the development of weapons systems or military operations; and strategic and critical materials necessary for the common defense.

JUDICIARY:

The Committee on the Judiciary is responsible for overseeing the nomination process of all federal judges for circuit and district courts as well as justices nominated to the Supreme Court. Other key areas of responsibility of the committee are immigration and naturalization, state and territorial boundary lines and civil liberties. The Committee also oversees all federal courts, including civil and criminal courts. The Judiciary Committee has one of the broadest jurisdictions in the Senate, ranging from criminal justice to antitrust and intellectual property law.

BUDGET:

The Senate Committee on the Budget is responsible for drafting Congress’ annual budget plan and monitoring action on the budget for the Federal Government. In addition, the Budget Committee has jurisdiction over the operation of the Congressional Budget Office (CBO). The budget resolution prepared by the Budget Committee sets out a broad blueprint for the Congress with respect to the total levels of revenues and spending for the government as a whole, whereas the Finance Committee and the Appropriations Committee prepare the legislation that actually enacts specific tax and spending policies.  

ETHICS:

The Select Committee on Ethics investigates allegations of misconduct by members, and recommends disciplinary action to the full Senate.

Sen. Cornyn has served in the Senate since being sworn in on December 2, 2002. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.
 

Washington, D.C. – The Senate tonight unanimously approved Congressman Lamar Smith’s (TX-21) “Telephone Records and Privacy Protection Act” (H.R. 4709), which protects citizens’ privacy by criminalizing the fraudulent sale or solicitation of confidential phone records. Smith’s bill passed the House last April by a vote of 409 to 0.

“Selling or buying a person’s phone records without permission invades their privacy,” said Congressman Smith.   

“This data fraud can adversely affect Americans’ lives,” Smith explained. “A careful study of these records may reveal details of our medical or financial life. It may even identify our occupation or physical location – a serious concern for undercover police officers and victims of stalking or domestic violence. 

The legislation creates new penalties of up to 10 years in prison and a fine of up to $500,000 for any person who sells, transfers, purchases or receives confidential phone records without the consent of the phone customer.  

The activity has been linked to identity theft and has become a moneymaking scam. Individuals who pose as phone company representatives or customers falsely obtain access to customer records. Some companies even established a presence on the Internet, advertising the ability to obtain private personal cell phone and landline calling records for as little as $100.

“Sales of fraudulently obtained phone records flourished because the possibility of criminal prosecution was remote,” concluded Smith. “The bill’s unanimous support in both houses sends a strong message to data thieves - this activity will not be tolerated.”  

The bill now heads to the President’s desk for his signature.
 

Washington, D.C. – Congressman Lamar Smith (R-TX-21) today was chosen to lead House Republicans on the Judiciary Committee.  In his new role as Ranking Member, Congressman Smith will be the first Texan to hold that position.  

“The five subcommittees that make up the House Judiciary Committee have jurisdiction over court procedures, intellectual property, crime, the Constitution, immigration, bankruptcy, antitrust, and administrative law,” explained Congressman Smith.

As Ranking Member, Congressman Smith will serve as a spokesman for the Republican Party and is responsible for forming the party’s policy on issues before the Committee.  He will oversee a staff of 25.    

Congressman Smith said, “I look forward to debating and passing legislation that is good for our nation and benefits the American people.” 

The Ranking Member is chosen by the House Republican Steering Committee, which consists of 33 Representatives from across the country, including elected House Republican leaders. The Steering Committee’s selection will be ratified by all House Republicans, a formality expected to happen on Thursday.  

Congressman Smith has been a member of the House Judiciary Committee since 1987. He has served as Chairman of three of the five subcommittees: Intellectual Property, Crime and Immigration.
 

I'm sorry Bonilla lost. He had a good conservative voting record on the social issues, which I liked. However, his pork spending and his aloofness ended up doing him in. He also had some bad counselors.

What Bonilla (and Antuna) failed to grasp is who they were directing their ads to, as well: Southside Mexicans. I am from the Southside, and I know how they think. As soon as I saw the Atuna ads, I knew he was doomed, and when Bonilla went negative on Ciro, calling him a terrorist sympathizer, I had a feeling he was going down the tube, too. It happened because Southsiders have always felt marginalized. They IDENTIFY with those who are marginalized and on the defensive.

Bonilla and Antuna (and their handlers) just didn't get it. In the future, Republicans would do well to get consultants who understand the Mexican mindset and realize that the old way of demonizing just doesn't work with them.
 

Investigation concludes that Houston chemical plants failed to prevent harmful air emissions

AUSTIN - Texas Attorney General Greg Abbott today took legal action against four Houston-area chemical plants for violating Texas environmental laws. The case is the first in Texas arising out of the U.S. Environmental Protection Agency's (EPA) initiative to cut air pollution at chemical plants across the nation.

According to documents filed in Travis County district court today, operations personnel at Lyondell Chemical Co., Equistar Chemicals, Millennium Petrochemicals Inc., and Millennium Petrochemicals GP repeatedly failed to prevent the release of harmful pollutants into the atmosphere. The Office of the Attorney General decided to seek civil penalties after its settlement negotiations with the four companies and the Texas Commission on Environmental Quality (TCEQ) reached an impasse earlier this year.

"Texas will vigorously enforce environmental laws that protect the health and safety of its citizens," said Attorney General Abbott. "Industrial growth must be balanced with environmental stewardship in order to ensure a bright future for our state. We are committed to working with industry leaders to protect the quality of our air, water, and natural resources for future generations."

The Attorney General's investigation revealed that the four facilities, located in La Porte, Channelview and Chocolate Bayou, released unauthorized harmful emissions, such as volatile organic compounds, nitrogen oxides and carbon monoxide, into the atmosphere over a long period of time. The suit alleges the companies either ignored the long-term release of such pollutants or did very little to remedy these chronic problems over time. For example, investigators found that Millennium may have allowed its pressurized rail cars to vent uncontrolled chemical emissions directly into the atmosphere.

The companies' self-reporting indicates that Equistar and Millennium failed to implement required detection and repair programs to address leaks at valves, connectors, pumps and other components. According to the companies' reports, thousands of components were ignored for many years. In some cases, entire plant units were never monitored.

Under the EPA initiative, affected states and industry leaders attempt to improve air quality and meet environmental standards by settling long-standing disputes with alleged polluters. For years, the Houston area has been designated an ozone non-attainment zone. Polluters in these areas are required to implement widespread controls and technological innovations to sharply curb emissions that lead to ozone formation in the air, commonly known as "smog."

The Lyondell, Equistar and Millennium companies manufacture basic chemicals and derivatives such as ethylene, propylene, titanium oxide, styrene, polyethylene, propylene oxide and acetyls.
 

Believe it, or not, this issue is my one-year anniversary column. Who would believe that the Republicrat is still going strong after 52 weeks? Fortunately, for me, I am still the unknown author, although my identity has come close to inadvertently being revealed on at least two occasions.

For months, all readers knew about me personally was that I was from the Southside. What were the clues? I told you I was from the Southside! Duh!  It was many months before you learned that I was actually a female. I have to say, however, there are some skeptics who still maintain that I am a man in disguise. Either that or I am a cross dresser who likes to wear pumps and a dress. We won’t go there. Apparently, Madeline Dewar thinks I am a man.

Some still believe I am a Northsider posing as a Southsider. That would be hard to do if you ask me. Ask a Democrat you know from the Southside, for his or her opinion on whether I sound like a bona fide Southsider. Most of what I have talked about for a year is about the Southside. I don’t talk about Northsiders as much because I don’t know them as well as my part of town.

Northsider Henry Bonilla tried to convince the Southside that he was really a Southsider with roots in the community. Did anybody really believe him? Certainly didn’t do him any good from the final results of votes cast in the Southside. It seems as a Southsider I can’t convince Northsiders I am from Southside.

Then of course, the three facts I haven’t really highlighted or out and out revealed, are my age, ethnicity or educational background. (Although I do provide clues in my column from time to time) If you are a Sherlock Holmes buff, or a Charlie Chan fan (a clue) however, you may have at least figured out that I am not a young person (under 40) and have some education based on my quoting old movies, poems etc. Those facts may be revealed later.

Over the past year as the Republicrat, I have made some bold statements. Let’s travel down memory lane for a few of them. 

In my first column last Christmas, I stated, “Uresti vs. Madla will prove to be a bloodbath.” I was correct about the race, which was intense and the final ending was unfortunately the premature death of Former State Senator Frank Madla, along with his mother-in-law and granddaughter.

I also wrote, “Uresti’s open seat promises to be a free-for-all brawl.” We all know how that ended with George Antuna going postal at the last minute to lose the race to Joe Farias. As a Southsider I predicted that race pretty well. Had Antuna not gone negative in the final days, that seat would now be Republican, despite his protestations to the contrary.

In the January 2nd article I stated, “Politics within the boundaries of Harlandale and South San has been refined as a fine tuned contact sport. It is the home of ‘take no prisoners.’”

In the February 13th issue I wrote, “With reports that Congressman Henry Cuellar’s political campaign contributions are nearly seven times as much as Ciro Rodriguez, the future doesn’t look too promising for Rodriguez.” That proved true in the 28th Congressional District. Fortunately, for Rodriguez it was a better ending in the 23rd.

In the March 13th edition of the Republicrat, I wrote, “Past History tells us that there will be some noticeable crossover in the general election.” The General Election proved me right on that point to include the recent runoff between Ciro Rodriguez and Henry Bonilla where scores of Republicans disgusted with Bonilla’s antics crossed over in protest.

In the April 24th issue, I was top billing in the South Texas Republican Newsletter for the first and only time. That was an article on the controversy of the Northwest Democrats refusing to recite the pledge of allegiance at the beginning of the meeting. I wrote, “It is a wonderful political world we live in. At least here on the Southside, Latinos, African-Americans and Anglo Democrats still believe in pledging allegiance and praying in public.”

In the May 1st issue, I was relegated to the end of the Newsletter where I have stayed ever since. I like to think of it as saving the best for last. It sounds good anyway.

May 15th is the issue where I first took notice of Democrat John McConnell who I labeled as a crusty old liberal dinosaur from the past. Haven’t heard much about him in awhile. I wonder if he has moved away or is no longer with us.

In the June 19th column I wrote, “Unfortunately it is unlikely that Texas Democrats will capture any statewide races. It is not due to the Republican Right Wing agenda, but to weak candidates fielded by Democrats with no message to promote.” How true that proved to be.

Would you believe in the July 10th issue I wrote, “Scuttlebutt is now emerging that a number of disenchanted Democrats are already complaining that Democratic Party Chair Carla Vela seems highly disorganized, disaffected and disinterested.” Who would have believed that as far as far back as July? Can you spell prognostication?

August 7th’s edition of the Republicrat featured this quote from me. “Apparently both sides of the political coin are anxiously holding their breath waiting to see how the re-districting fiasco is progressing.

“Democrats are praying that Bonilla will face off with the other Henry, known as Cuellar the Republican.” Obviously, that didn’t happen.

In the September 5th column I wrote, ”Running as a liberal doesn’t help in a district that is predominately conservative, even for Democrats.  But then again, some Democrats live in a fantasy world.” Of course, I was referencing the chances of John Courage in the Congressional District 21 race. Although he didn’t place third, he did not do well after they took all the Democrats from Travis County away from him.

Moving on to November 14th I wrote, “Now that the political smoke has cleared…I predict the strong possibility of a run off in the 23rd.” And, I said at that time, “if that happens, it will be Ciro Rodriguez….”

Now that we up to the present, so to speak, I have to say I have enjoyed this year predicting outcomes and engaging in insider information. It is hard to say with any certainty how much longer I will be writing this column. 

With me exposing the inside information of the local Democratic Party, in the future I feel compelled to do the same for and to the Republican Party with the help of Republican insiders. Sounds fair and equal to me, don’t you think?

After all, by definition a Republicrat is a cross between a Republican and Democrat. It reminds me of the Dr. Jekyl /Mr. Hyde syndrome. The best of both sides and the worst of both sides all rolled into one.

I do hope that my input has been positive despite some of the shots I have taken at both Republicans and Democrats. Both sides need to take a breath and both sides need to lighten up somewhat. With that happy thought, I continue to say,  

And that’s the moderate view; I AM the Republicrat.