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Cato Daily Dispatch for November 26, 2003

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Schwarzenegger Calls for Spending Cap
Senate Passes Anti-Spam Bill
Ex-Administrator Acknowledges U.S. Mistakes in Iraq

Schwarzenegger Calls for Spending Cap

"Gov. Arnold Schwarzenegger asked legislators Tuesday to approve a constitutional cap on state spending that would greatly expand the governor's power over the budget and eliminate the long-standing guarantee that roughly half of all new state revenue go to public schools and community colleges," the Los Angeles Times reported.

"The cap -- which would be imposed next fiscal year if placed on the March ballot and approved by voters as a constitutional amendment -- drew sharp criticism from educators and lawmakers who fear it would gradually restrict the flow of money to school programs."

In "How to Fix California's Fiscal Problems: A Guide for Schwarzenegger," Adjunct Scholar Michael New writes: "If a spending limit is to enjoy long-term success, it has to be self-enforcing. There are two provisions that would help accomplish this. The first would be to require immediate taxpayer rebates of surplus revenues. As a result, any proposal to spend over the limit would reduce the size of each taxpayer's rebate check. This would make voters more hostile to attempts by the legislature or the judiciary to tamper with the limit.

"The second provision would be to couple the limit with a reserve fund. Now, in the short term, this would reduce the amount of tax relief issued to California taxpayers. However, during economic slowdowns, the reserve fund would increase the pool of funds available for constitutionally mandated programs. Because there would be fewer conflicts between budgetary mandates and the spending limit, judges would have less opportunity to invalidate the spending cap."

Senate Passes Anti-Spam Bill

"The Senate passed a bill to curb junk commercial e-mail by voice vote on Tuesday, bringing national regulations on spam closer to reality," The New York Times reports.

"Despite public demand for legislative relief, sponsors said the measure, which would take effect on Jan. 1, would not immediately cut off the deluge of junk e-mail messages that makes up more over half of all e-mail traffic."

In "Why Canning 'Spam' Is a Bad Idea," Director of Technology Policy Clyde Wayne Crews Jr. writes: "Spam is just one form of marketing and is arguably less invasive than door-to-door selling or telemarketing. There are clearly different levels of 'guilt' with respect to spamming practices. It is best to allow people to decide for themselves whether or not to entertain sales pitches, particularly given the range of problems legislation would create. And to the extent that unsolicited marketing is responsible for the growth of the Internet and future communications options, the hindrance of commerce could hamper access for many people, resulting in a government-created digital divide."

Ex-Administrator Acknowledges U.S. Mistakes in Iraq

"The former chief of Iraq's interim administration, retired Lt. Gen. Jay Garner, said in an interview broadcast Wednesday that the U.S.-led coalition made mistakes after it took control of Baghdad," The Associated Press reports.

"In an interview broadcast on British Broadcasting Corp. radio, Garner also said the coalition should have moved more quickly to establish a government in Iraq. He added that it probably should have put more troops in Baghdad, including more infantry."

"Garner also said the coalition should have moved more quickly to establish a government in Iraq. He added that it probably should have put more troops in Baghdad, including more infantry."

In "Leave Iraq as Soon as Possible," Charles Peña, Cato director of defense policy studies, writes: "The guerrilla-style tactics being used to pick off U.S. and British troops may only be the tip of the iceberg. The lesson should be clear: The United States must leave Iraq at the earliest possible opportunity."

"But to do so requires a willingness to renounce the unrealistic goal of building a perfect democracy in Iraq," writes Peña. "U.S. national security demands only that any new government not harbor or support terrorists who would harm the United States."

Jonathan Block, editor, jblock@cato.org

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