Law and order can easily be over-rated in a society with the abundance of laws criminalizing all sorts of things, even orchids, as Bryan W. Walsh explains in the Washington Times.

“You don’t need to know. You can’t know.” That’s what Kathy Norris, a 60-year-old grandmother of eight, was told when she tried to ask court officials why, the day before, federal agents had subjected her home to a furious search.

The agents who spent half a day ransacking Mrs. Norris’ longtime home in Spring, Texas, answered no questions while they emptied file cabinets, pulled books off shelves, rifled through drawers and closets, and threw the contents on the floor.

The six agents, wearing SWAT gear and carrying weapons, were with – get this- the U.S. Fish and Wildlife Service.

Kathy and George Norris lived under the specter of a covert government investigation for almost six months before the government unsealed a secret indictment and revealed why the Fish and Wildlife Service had treated their family home as if it were a training base for suspected terrorists. Orchids.

That’s right. Orchids.

By March 2004, federal prosecutors were well on their way to turning 66-year-old retiree George Norris into an inmate in a federal penitentiary – based on his home-based business of cultivating, importing and selling orchids.

Mrs. Norris testified before the House Judiciary subcommittee on crime this summer. The hearing’s topic: the rapid and dangerous expansion of federal criminal law, an expansion that is often unprincipled and highly partisan.

Chairman Robert C. Scott, Virginia Democrat, and ranking member Louie Gohmert, Texas Republican, conducted a truly bipartisan hearing (a D.C. rarity this year).

These two leaders have begun giving voice to the increasing number of experts who worry about “overcriminalization.” Astronomical numbers of federal criminal laws lack specifics, can apply to almost anyone and fail to protect innocents by requiring substantial proof that an accused person acted with actual criminal intent.

Mr. Norris ended up spending almost two years in prison because he didn’t have the proper paperwork for some of the many orchids he imported. The orchids were all legal – but Mr. Norris and the overseas shippers who had packaged the flowers had failed to properly navigate the many, often irrational, paperwork requirements the U.S. imposed when it implemented an arcane international treaty’s new restrictions on trade in flowers and other flora.

The judge who sentenced Mr. Norris had some advice for him and his wife: “Life sometimes presents us with lemons.” Their job was, yes, to “turn lemons into lemonade.”

The judge apparently failed to appreciate how difficult it is to run a successful lemonade stand when you’re an elderly diabetic with coronary complications, arthritis and Parkinson’s disease serving time in a federal penitentiary. If only Mr. Norris had been a Libyan terrorist, maybe some European official at least would have weighed in on his behalf to secure a health-based mercy release.

Krister Evertson, another victim of overcriminalization, told Congress, “What I have experienced in these past years is something that should scare you and all Americans.” He’s right. Evertson, a small-time entrepreneur and inventor, faced two separate federal prosecutions stemming from his work trying to develop clean-energy fuel cells.

The feds prosecuted Mr. Evertson the first time for failing to put a federally mandated sticker on an otherwise lawful UPS package in which he shipped some of his supplies. A jury acquitted him, so the feds brought new charges. This time they claimed he technically had “abandoned” his fuel-cell materials – something he had no intention of doing – while defending himself against the first charges. Mr. Evertson, too, spent almost two years in federal prison.

As George Washington University law professor Stephen Saltzburg testified at the House hearing, cases like these “illustrate about as well as you can illustrate the overreach of federal criminal law.”

Coyote identifies precisely what’s going on with “Health Care Reform.”

The leftish political strategy for over 100 years has been

1. Regulate something

2. Blame the free market for inevitable disruptions caused by the regulation

3. Use the above to justify more regulation

4. Repeat

We have an artificial situation, created by government tax policy in the first place. Healthcare charges have been removed from market influence because the consumer has not been paying them, his insurance has. The consumer normally does not buy his own insurance. Tax policy has arranged for health insurance to be a benefit of corporate employment.

When you do get to buy your own health insurance is when you lose your job, and then, ouch! you tend to find out just how expensive being a member of a maginal, ill-serviced market can be, at the very time you can least afford it.

Reforming health care simply requires transferring the tax deduction to individuals, reducing the burden of litigation and consequent staggering malpractice insurance costs and defensive medicine, and removing state barriers to insurance competition. Democrats don’t like any of that. When Whole Foods’ John Mackey made several of these suggestions in the Wall Street Journal editorial, his company was subjected to a boycott.

Hat tip to the News Junkie.

Not just anyone should be allowed to take his mouse and ride the Information Superhighway anonymously, argues an Australian authority on crime.

Australia’s leading criminologist thinks online scams have escalated to such a point that first-time users of computers should have to earn a licence to surf the web.

Russel Smith, principal criminologist at the Australian Institute of Criminology said the concept of a “computer drivers licence” should be taken seriously as an option for combating internet-related crime.

“There’s been some discussion in Europe about the use of what’s called a computer drivers licence – where you have a standard set of skills people should learn before they start using computers,” Dr Smith told iTnews.

“At the moment we have drivers licences for cars, and cars are very dangerous machines. Computers are also quite dangerous in the way that they can make people vulnerable to fraud.

“In the future we might want to think about whether it’s necessary there be some sort of compulsory education of people before they start using computers,” he said.

The Competitive Enterprise Institute’s annual Ten Thousand Commandments report on the growth and costs of federal regulation has some startling figures.

Given 2008’s government spending of $2.98 trillion, the regulatory “hidden tax” stood at 39 percent of the level of federal spending itself. (Because of the months-old spending surge, this proportion will surely be lower next year.)

Trillion-dollar deficits and regulatory costs in the trillions are both unsettling new developments for America. Although FY 2008 regulatory costs are more than double that year’s $459 billion budget deficit, the more recent deficit spending surge will catapult the deficit above the costs of regulation for the near future.

CBO now projects 2009 federal spending to hit $4.004 trillion and the deficit to soar to $1.845 trillion. The game has changed; although these spending levels eclipse federal regulatory costs now, unchecked government spending translates, in later years, into greater regulation as well.

Regulatory costs are equivalent to 65 percent of 2006 corporate pretax profits of $1.8 trillion.

Regulatory costs rival estimated 2008 individual income taxes of $1.2 trillion.

Regulatory costs dwarf corporate income taxes of $345 billion.

Regulatory costs of $1.172 trillion absorb 8 percent of the U.S. gross domestic product (GDP), estimated at $14.3 trillion in 2008.

Combining regulatory costs with federal FY 2008 outlays of $2.978 trillion implies that the federal government’s share of the economy now reaches 29 percent.

The Weidenbaum Center at Washington University in St. Louis and the Mercatus Center at George Mason University in Virginia jointly estimate that agencies spent $49.1 billion to administer and police the 2008 regulatory enterprise. Adding the $1.172 trillion in off-budget compliance costs brings the total regulatory burden to $1.221 trillion.

The 2008 Federal Register is close to breaking the 80,000-page barrier. It contained 79,435 pages, up 10 percent from 72,090 pages in 2007—an all-time record high.

Federal Register pages devoted specifically to final rules jumped nearly 16 percent, from 22,771 to a record 26,320.

In 2008, agencies issued 3,830 final rules, a 6.5-percent increase from 3,595 rules in 2007.

The annual outflow of roughly 4,000 final rules has meant that well over 40,000 final rules were issued during the past decade.

Although regulatory agencies issued 3,830 final rules in 2008, Congress passed and the President signed into law a comparatively low 285 bills. Considerable lawmaking power is delegated to unelected bureaucrats at agencies.

According to the 2008 Unified Agenda, which lists federal regulatory actions at various stages of implementation, 61 federal departments, agencies, and commissions have 4,004 regulations in play at various stages of implementation.

Of the 4,004 regulations now in the pipeline, 180 are “economically significant” rules packing at least $100 million in economic impact. Assuming these rulemakings are primarily regulatory rather than deregulatory, that number implies roughly $18 billion yearly in future off-budget regulatory effects.

Workers raises tarps to spare spectators the sight of fallen horses at Palm Beach International Polo Club

On April 19, 21 polo ponies recently arrived at the Palm Beach International Polo Club to compete in the U.S. Open Polo Championship suddenly collapsed and died. Why the horses belonging to the Venezuelan Lechuza Caracas (Caracas Owl) died was at the time a mystery.

This ESPN 13:13 video investigates and explains the tragedy.

Polo ponies are routinely given vitamin supplements to help them recover from the stress of match play. The Venezulan team was in the habit of using Biodyl, a French dietary supplement containing Vitamin B12, Potassium, Magnesium, and Selenium. Unfortunately, Biodyl is not FDA-approved, so the Venezuelan team could not import their own vitamins into the United States.

Instead, they had a local pharmacist compound the equivalent of Biodyl, but something went wrong with the prescription, and the horses received a lethal overdose of Selenium.

I would take this incident as evidence of the unintended consequences of unnecessary regulation. Do we really need Big Brother telling us what dietary supplements we can give our horses?

Typically, the ESPN reporters conclude with calls for more intensive regulation.

The District is looking for new sources of revenue these days. Sweetness & Light tells us that the DC DPW is offering to lease homeowners back the “public space” in question.

This time it’s reenactors battling over turf.

LA Times:

[T]hree years ago, a stranger rode in and vowed to shake up what he considered a moribund tourist trap. A showdown ensued between Tombstone residents who wanted to keep the streets as calm as possible and thespians with higher aspirations.

Stephen Keith, a onetime regular at Renaissance fairs who can hold forth on the similarities between the 1993 movie “Tombstone” and Wagner’s “Ring” cycle of operas, founded the Tombstone Huckleberry Players. They were not content to simply re-create the shootout under a tented space inside the O.K. Corral. Instead, hoping to build a crowd for a new late afternoon show, the actors would walk down Allen Street, performing skits in character and leading tourists to the performance space.

Keith acknowledged there was resistance. Locals, he said, with no theater experience didn’t like seasoned actors taking their favorite roles.

“Every old guy who retires and ties his white ponytail back and puts his name on his pickup truck comes here to be Wyatt Earp,” said Keith, 49, who plays Doc Holliday. “I know how to work a crowd. I’ve been in theater for 32 years. This is what I do.”

For more than a year, this town of 1,500 allowed the Huckleberry Players to do their act. But in November, a new mayor was elected, and he appointed Talvy to enforce the letter of the law.

Mayor Dusty Escapule said complaints were coming in from merchants at one end of Allen Street whose customers were being swept up by Keith’s troupe, and from rival gunfighter groups, who said the Huckleberry actors were pulling customers away from their shows.

So the City Council invoked a 1973 law that required a permit for streetperformances, and promptly turned down Keith’s application. In January, Talvy issued his first citation. Four of the players faced misdemeanor charges that could lead to a maximum $600 fine and two years in jail. …

“You know, small-town politics,” one local woman finally said apologetically before reverting to character as a 19th century showgirl. Many cite the curse an Indian is said to have placed on the settlement more than 100 years ago — that there will never be two white men who live together here in peace. “It looks,” Escapule said, “like the curse is still in effect.”

Human Events reports that the British Labour Party had managed to identify and serve the ultimate left constituency: the invertebrates.

But all this goes beyond jokes, liberal politicians in America, too, are working hand-in-glove with Animal Rights extremists to introduce covertly in the guise of animal welfare protection a range of artful provisions subjecting pet owners to warrant-free supervision by self-appointed animal guardians and erecting a regime of expensive and impractical care requirements that would eliminate private dog breeding and the keeping of packs of hounds.

Yes, it really is now a criminal offense in Britain to abuse an ant, a worm, a slug, cockroach, a scorpion, a stick insect or whatever creature you care to name. The moment you decide to keep it as a pet you are obliged by our Animal Welfare Act to take full account of its welfare needs — or face a $30,000 fine or a twelve-month prison sentence.

And if you think cockroach rights sound crazy, wait till you hear how the law applies to the way you keep your dog or your cat. The Department for Environment, Food and Rural Affairs (DEFRA) — one of the numerous, busybody branches of our socialist New Labour administration — recently issued guidelines to pet owners clarifying the law.

You risk prosecution if:

— You fail to groom your long-haired dog or cat once a day.

— You feed your dog from the table.

— You use your hands or feet when playing with your cat (as this may encourage aggressive behavior).

— You fail to provide every cat in your household with its own litter tray (even if the cat has access to a garden).

— You try to make your cat vegetarian by denying it meat.

None of these provisions is in itself a criminal offense, a DEFRA spokesman has explained helpfully. But failure to comply with several of them “may be used in evidence to support a prosecution for animal cruelty.”

Hat tip to the News Junkie.

Daniel Hannan, blogging at the Telegraph:

Here’s an eye-popping figure: the cost of EU rules in Britain over the past decade is £106.6 billion – accounting for 72 per cent of the cost of all regulation in Britain. Despite repeated noises in Brussels about making life easier for businesses, each year is more expensive than the last. The burden falls most heavily, not on financial institutions or big corporations, but on small and medium firms.

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Financial Times:

Open Europe, a business group campaigning to turn the European Union into a looser trading area, says official figures show the cost of regulation has risen from £16.5bn ($23.7bn) a year in 2005 to £28.7bn last year.

The report, based on a study of more than 2,000 impact assessments published by Whitehall departments, found that EU legislation was responsible for almost 72 per cent of the annual cost of regulation.

It claimed that the Department for Business, Enterprise and Regulatory Reform – which is responsible for fighting red tape – imposed more regulatory costs than any other government department, describing the department as the UK’s “regulation factory”. …

The study found that the cost of EU legislation had risen every year over the past decade, imposing costs on the UK of £18.5bn in 2008, compared with £12.2bn in 2005. …

The proportion of regulatory costs coming from Brussels is more than 90 per cent for the FSA, environment department and Health & Safety agency, it found. New EU rules for food and feed hygiene more than doubled the FSA’s regulatory burden in 2006, making it impossible to hit its deregulation targets.

“The government effectively has control of less than 30 per cent of the annual cost of regulation,” the report says.

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Open Europe report .pdf

Phillip K. Howard, in an excellent essay in the Wall Street Journal, describes the impact of limitless litigation and regulation on American life and the American character.

Here we stand, facing the worst economy since the Great Depression, and Americans no longer feel free to do anything about it. We have lost the idea, at every level of social life, that people can grab hold of a problem and fix it. Defensiveness has swept across the country like a cold wave. We have become a culture of rule followers, trained to frame every solution in terms of existing law or possible legal risk. The person of responsibility is replaced by the person of caution. When in doubt, don’t.

All this law, we’re told, is just the price of making sure society is in working order. But society is not working. Disorder disrupts learning all day long in many public schools — the result in part, studies by NYU Professor Richard Arum found, of the rise of student rights. Health care is like a nervous breakdown in slow motion. Costs are out of control, yet the incentive for doctors is to order whatever tests the insurance will pay for. Taking risks is no longer the badge of courage, but reason enough to get sued. There’s an epidemic of child obesity, but kids aren’t allowed to take the normal risks of childhood. Broward County, Fla., has even banned running at recess.

The flaw, and the cure, lie in our conception of freedom. We think of freedom as political freedom. We’re certainly free to live and work where we want, and to pull the lever in the ballot box. But freedom should also include the power of personal conviction and the authority to use your common sense. Analyzing the American character, Alexis de Tocqueville, considered “freedom less necessary in great things than in little ones. . . . Subjection in minor affairs does not drive men to resistance, but it crosses them at every turn, till they are led to sacrifice their own will. Thus their spirit is gradually broken and their character enervated.”

Read the whole thing.

Business Week’s Steve Hamm says the problem is greedy investors’ short term thinking and aversion to risk, and those stingy VCs should start funding “bold new directions” while waiting for Uncle Obama to open up the federal tap.

Hamm’s article lit the fuse of Michael S. Malone at Live from Silicon Valley.

Since Steve Hamm and Business Week aren’t willing to give you anything but their own big government/big business solutions to the perceived crisis, let me give you the real story – and real solutions – from somebody who has been on the ground here in Silicon Valley for 45 years:

Yes, Silicon Valley – and by extension, the U.S. high technology industry, is in something of a crisis right now. Part of it is the fact that, as the largest manufacturing sector in the US economy, electronics is not immune to the larger financial crisis currently impacting the world.

But there a lot of other problems as well. For one thing, the venture capital industry is in real trouble – not because of a lack of courage, but because government interference – most notably, Sarbanes-Oxley – has proven almost fatal to the new company creation process. With almost no potential for a big pay-out on the back end (because companies don’t ‘go public’ any more), VC’s are having to be much tighter on the front end. That’s good business, not gutlessness.

As for the entrepreneurs themselves, to charge them with a lack of courage or character is truly insulting. Instead of hob-nobbing with senior executives, Steve should have called me. I would have taken him to the little Peet’s Coffee shop in nearby Cupertino where I get my lattes twice per day. There, I would have shown him that on any given day you can see at least two entrepreneurial teams – a half-dozen guys huddled over a single laptop editing spreadsheets – almost always different, and all dreaming of starting the Next Big Company. There are hundreds of these start-up teams all over the Valley right now – indeed, I think there is more entrepreneurial fervor going on right now than just about any other time in Valley history.

Are these folks thinking small? Are they short on courage? No, what they are is pragmatic. That’s the essence of being an entrepreneur. They know what the business landscape is out there, and they are adjusting their plans to succeed in that new reality.

No, the problem is not that entrepreneurs and investors in Silicon Valley and the rest of high tech aren’t thinking big, it’s that they aren’t being allowed to. If Business Week would just take off its ideological blinders, it would realize that if Washington really wanted to help a sick Silicon Valley, it would get out of the way, and strip away all of those worthless regulations that are inhibiting the imagination and the creativity of this town.

Michael S. Malone explains in the Wall Street Journal why the 1990s boom in the creation of new technology corporations never came back. The news is not all bad, of course. The Accounting business has been booming like never before.

From the beginning of this decade, the process of new company creation has been under assault by legislators and regulators. They treat it as if it is a natural phenomenon that can be manipulated and exploited, rather than the fragile creation of several generations of hard work, risk-taking and inventiveness. In the name of “fairness,” preventing future Enrons, and increased oversight, Congress, the SEC and the Financial Accounting Standards Board (FASB) have piled burdens onto the economy that put entrepreneurship at risk.

The new laws and regulations have neither prevented frauds nor instituted fairness. But they have managed to kill the creation of new public companies in the U.S., cripple the venture capital business, and damage entrepreneurship. According to the National Venture Capital Association, in all of 2008 there have been just six companies that have gone public. Compare that with 269 IPOs in 1999, 272 in 1996, and 365 in 1986.

Faced with crushing reporting costs if they go public, new companies are instead selling themselves to big, existing corporations. For the last four years it has seemed that every new business plan in Silicon Valley has ended with the statement “And then we sell to Google.” The venture capital industry is now underwater, paying out less than it is taking in. Small potential shareholders are denied access to future gains. Power is being ever more centralized in big, established companies.

For all of this, we can first thank Sarbanes-Oxley. Cooked up in the wake of accounting scandals earlier this decade, it has essentially killed the creation of new public companies in America, hamstrung the NYSE and Nasdaq (while making the London Stock Exchange rich), and cost U.S. industry more than $200 billion by some estimates.

Meanwhile, FASB has fiddled with the accounting rules so much that, as one of America’s most dynamic business executives, T.J. Rodgers of Cypress Semiconductor, recently blogged: “My financial statements are a mystery, even to me.” FASB’s “mark-to-market” accounting rules helped drive AIG and Bear Stearns into bankruptcy, even though they were cash-positive.

But FASB’s biggest crime against the economy and the American people came when it decided to measure the impossible: options expensing. Given that most stock options in new start-up companies are never worth anything, this would seem a fool’s errand. But FASB went ahead — thereby drying up options as an incentive for people to take the risk of joining a young company and guaranteeing that the legendary millionaire secretaries would never be seen again.

Not to be outdone, the SEC has, through the minefield of “full disclosure” requirements and other regulations, made sure that corporate directors would never again have financial privacy and would be personally culpable for malfeasance anywhere in the company. This has led to a mass exodus of talented people from boards of directors in places like Silicon Valley. Full disclosure was supposed to make boards more responsible. Instead, it has made them less competent.

Read the whole thing.