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Regulation
The tentacles of Big Brother are reaching further into homes in the U.K.:

Thousands of the worst families in England are to be put in “sin bins” in a bid to change their bad behaviour, Ed Balls announced yesterday.

The Children’s Secretary set out £400 million plans to put 20,000 problem families under 24-hour [closed-circuit television] supervision in their own homes.

They will be monitored to ensure that children attend school, go to bed on time and eat proper meals.

It’s just the first step, and one that likely won’t be criticized, since these are problem families and someone must think of the children!

But the way incrementalism works, once this step is taken, it makes it easier for the next step to be taken.

That’s why further government involvement in healthcare is worrisome; it will lead to more extreme versions of proposals like these:

If the Nanny Staters have their way, the government will be controlling your diet in the future, maybe even installing closed-circuit cameras in your fridge to make sure you’re not midnight snacking.

Think it can’t happen? Open your eyes.

Peggy Noonan identifies one of the many reasons that I’m concerned about the government getting more control over our healthcare system:

We are living in a time in which educated people who are at the top of American life feel they have the right to make very public criticisms of . . . let’s call it the private, pleasurable but health-related choices of others. They shame smokers and the overweight. Drinking will be next. Mr. Obama’s own choice for surgeon general has come under criticism as too heavy.

Only a generation ago such criticisms would have been considered rude and unacceptable. But they are part of the ugly, chafing price of having the government in something: Suddenly it can make big and very personal demands on you. Those who live in a way that isn’t sufficiently healthy “cost us money” and “drive up premiums.” Mr. Obama himself said something like it in his press conference, when he spoke of a person who might not buy health insurance. If he gets hit by a bus, “the rest of us have to pay for it.”

Under a national health-care plan we might be hearing that a lot. You don’t exercise, you smoke, you drink, you eat too much, and “the rest of us have to pay for it.”

It is a new opportunity for new class professionals (an old phrase that should make a comeback) to shame others, which appears to be one of their hobbies. (It may even be one of their addictions. Let’s stage an intervention.) Every time I hear Kathleen Sebelius talk about “transitioning” from “treating disease” to “preventing disease,” I start thinking of how they’ll use this as an excuse to judge, shame and intrude.

So this might be an unarticulated public fear: When everyone pays for the same health-care system, the overseers will feel more and more a right to tell you how to live, which simple joys are allowed and which are not.

Another example of government regulation run amok:

A local pastor and his wife claim they were interrogated by a San Diego County official, who then threatened them with escalating fines if they continued to hold Bible studies in their home, 10News reported.

Attorney Dean Broyles of The Western Center For Law & Policy was shocked with what happened to the pastor and his wife.

Broyles said, “The county asked, ‘Do you have a regular meeting in your home?’ She said, ‘Yes.’ ‘Do you say amen?’ ‘Yes.’ ‘Do you pray?’ ‘Yes.’ ‘Do you say praise the Lord?’ ‘Yes.’”

The county employee notified the couple that the small Bible study, with an average of 15 people attending, was in violation of County regulations, according to Broyles.

Broyles said a few days later the couple received a written warning that listed “unlawful use of land” and told them to “stop religious assembly or apply for a major use permit” — a process that could cost tens of thousands of dollars.

[...]

Broyles also said this case has broader implications.

“If the county thinks they can shut down groups of 10 or 15 Christians meeting in a home, what about people who meet regularly at home for poker night? What about people who meet for Tupperware parties? What about people who are meeting to watch baseball games on a regular basis and support the Chargers?” Broyles asked.

(Hat tip: Reason.)

Slate’s Mickey Kaus looks at the the Obama Administration’s bailout of the United Auto Workers union and asks:

Why should the government tax unskilled workers making $18 an hour, who haven’t bankrupted their employers, in order to protect unskilled workers making $28 an hour, and who have bankrupted their employers, from having to take a pay cut?

The recent post on the FDA’s regulation of Cheerios as a drug generated a lot of e-mail from readers. Last week, I posted a well-reasoned disagreement with my view on the matter.

Here are a couple more responses:

Maybe the cholesterol lowering qualities are not the result of the Cheerios themselves, but the fact that the person eating Cheerios for breakfast is not eating a food that might increase one’s cholesterol level, i.e. bacon. Would the FDA be justified in stepping in then? I have to imagine if you had a side of bacon (a few slices) with your Cheerios everyday, your cholesterol would not be lower by 4% in 6 weeks. To me this is common sense. Unfortunately, there are too many people out there who have given up thinking for themselves and are reliant upon others telling them what is good and what is bad. Enter the Nanny-state.

And:

I just want to encourage you concerning your take on the FDA regulating Cheerios like a drug. It seems as though we as a nation have completely lost all common sense, and I can hardly take it anymore.

Is it really a revelation that food affects health? Before we became a nation of pill popping hypochondriacs, how do you think we consumed beneficial nutrients?

Since Cheerios might be able to make health claims, and therefore should be treated like a drug, it makes sense that the FDA should also treat milk like a drug, and investigate those potentially spurrious claims that it “does a body good”. Several years ago, there was an opinion that eggs increased cholesterol. Should the FDA have classified eggs as a harmful drug? Where does it end?

Food products are already regulated to require the disclosure of ingredient lists and nutritional information. Any nutritional scientist can consume the information already required of a food manufacturer and conclude potential health benefits and risks. If a product contains 3000mg of sodium per serving, for example, does it really take a clinical study to determine that it is not heart-healthy? You could not use the same method to evaluate Ambien or Prosac.

Of course, I am making my argument based on common sense. Since common sense is rapidly going out of style, perhaps I should just concede. Let’s treat anything healthy like a drug, just to make sure everyone is “safe”. Calling my doctor now to stock up on prescriptions for citrus - need that vitamin C.

Once again, it seems that the people who follow the rules and pay on time are going to get stuck with the bill for those who don’t:

Credit cards have long been a very good deal for people who pay their bills on time and in full. Even as card companies imposed punitive fees and penalties on those late with their payments, the best customers racked up cash-back rewards, frequent-flier miles and other perks in recent years.

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

Brain Terminal reader Blake I. Markus disagrees with my take on the Food & Drug Administration’s apparent desire to regulate Cheerios:

Evan,

I have a small complaint about your article, Kids! Just Say No... to Cheerios. I normally agree with your sentiments, but this one is hard to swallow.

I am very libertarian when it comes to limiting the control of the federal government. I do not believe the government should regulate individual and ordinary decisions of regular citizens. In the game of life, the government’s role should not be deciding where to move the pieces.

However, the government must act as Milton Bradley and set the rules that make it possible to play the game fairly. Rules such as antitrust laws, banking regulations, and criminal penalties are necessary to ensure the People don’t get screwed in one form or another by other people or businesses who take too much control, engage in fraudulent behavior, or try to otherwise gouge or mislead a consumer.

With regard to your article specifically, it appears that your argument for why the FDA’s decision is a bad one, is that the government is just trying to enforce a rule for the sake of enforcing a rule and engaging in “nanny” behavior.

While I agree that the government, especially as of late, has been engaging more and more in parental decision-making, I think the actions taken by the FDA are correct. The problem isn’t that “idiots might get confused and mistake a bowl of Cheerios for a pile of Lipitor.” The real problem is that the FDA cannot set a precedent of letting products be advertised as giving specific health benefits without meeting the rigorous FDA standards established for that type of advertising.

I’m assuming here that the FDA did not approve the so-called “clinical study” that was done by General Mills, a company who does not do “clinical studies” on a regular basis. If such a precedent were to be set, herbal supplement companies could make specific claims about their products (more specific and more often than they already do) that were not correctly tested.

This decision by the FDA is a difficult one, I must say. I don’t believe there would even be an argument if this scenario were more like an herbal supplement company stating that the ingredients in the supplement will guarantee on average a 10% weight loss and 14% muscle gain, but those studies were based only on clinical trials conducted on lab rats, and the results only counted the rats who were left living after the study was over.

But the sad truth is, even though this is a children’s cereal that is practically an institution among breakfast foods (and late night desserts, as you have pointed out), the rules are in place to prevent harm to the consumer in the face of bad studies. If Cheerios conducted an FDA approved study and it was found that the decrease in cholesterol was negligible and it actually increased the likelihood of testicular cancer in young men, you would likely be changing your tone about this “nanny” decision.

Thank you for your time, and please keep writing your wonderful blog entries. While I had to say something against this entry, I am often pleased by what you have to say.

Regards,

Blake

Thanks for the e-mail, Blake. I think you have a good point with respect to herbal supplements. However, I think the Cheerios case is different in one key respect.

Herbal supplements are intended to improve someone’s health or state of mind. That’s the only reason people buy herbal supplements: to consume them like medication. So regulating them like a drug makes sense to me.

But the original and primary function of Cheerios to fill the stomach and provide the body with energy. Cheerios is tasty, and that’s a nice side-benefit, as is the apparent cholesterol-lowering power. But such benefits are secondary.

Now, if General Mills is making claims about Cheerios that are false, that’s a much more defensible case for government regulation. But in the reporting I’ve seen, nobody disputes the health claims made by General Mills. I haven’t seen anyone question the legitimacy of the studies about Cheerios cholesterol-lowering properties.

So why, then, shouldn’t the burden of proof be on the government?

Before regulating Cheerios like a drug, why doesn’t the government first commission its own independent study and see if the claims about Cheerios are false?

That seems reasonable to me, and it would certainly constitute far less government interference in private enterprise.

That’s my take on it, although I could be wrong. The media reports on this story haven’t exactly been paragons of clarity.


Update: In another report, it seems the FDA is questioning the claims of General Mills: “We certainly don’t have any issues with the safety of Cheerios,” Stephen Sundlof, director of the FDA’s Center for Food Safety and Applied Nutrition, said in an interview today. “We just believe that the labeling on this particular product has gone beyond what the science supports.”

Cheerios. It’s a tough habit to break.

I should know. I’ve been there.

There have been many nights when my dessert consisted of a bowl of Cheerios. On certain nights, two or more.

So I understand how hard it is to extricate oneself from the clutches of such a potent addiction.

I understand why Our Benevolent Nanny, the federal government, treats Cheerios like a drug:

The FDA has sent a warning letter to General Mills, telling the company that its claims about the health benefits of eating Cheerios “would cause it to be a drug because the product is intended for use in the prevention, mitigation and treatment of disease.”

The problem: Cheerios are a food not a drug, the FDA notes in the letter, which was sent May 5 but was posted on the agency’s website today. Thus, claims that the 68-year-old whole-grain oat cereal lowers cholesterol and reduces the risk of heart disease and cancer violates federal law, the agency said.

[...]

The FDA was particularly unhappy about assertions on Cheerios boxes and its website that eating the cereal can “lower your cholesterol 4% in 6 weeks.” The FDA counters that the cereal must be approved as a drug before making such specific health claims.

General Mills spokesman Tom Forsythe said the cholesterol-lowering claim has been featured on the Cheerios box for more than two years and that the heart health claim was approved by the FDA 12 years ago. On April 20, General Mills announced results of a clinical study that showed eating two daily servings of Cheerios (1 1/2 cups each) can reduce cholesterol 10% in just a month.

“The science is not in question,” he said. “The scientific body of evidence supporting the heart health claim was the basis for FDA’s approval of the heart health claim, and the clinical study supporting Cheerios’ cholesterol-lowering benefits is very strong.”

Forsythe said the company looks forward “to discussing this with the FDA and to reaching a resolution.” General Mills faces seizure of products or an injunction against making and distributing Cheerios.

As the Los Angeles Times reports the story, it seems that the government’s complaint about the cholesterol claim isn’t that it is false. The problem, according to the FDA, is that because Cheerios is effective at lowering cholesterol, idiots might get confused and mistake a bowl of Cheerios for a pile of Lipitor.

According to government regulations, if Cheerios provides the health benefits claimed, that fact itself is all that’s needed for the government to treat it as a drug. Nevermind that it isn’t a drug. Nevermind that, for decades, schoolchildren have understood that Cheerios is food. Nevermind that. This is the government and the rules must be enforced, common sense be damned.

Anyone who looks at a box of Cheerios and sees a product “intended for use in the prevention, mitigation and treatment of disease” is the type of person whose mortgage I’ll end up paying someday. So screw him. If he can’t distinguish between cereal and medication, then let him get ripped off for that $5 a week habit, I say. Consider it stimulus by stupidity.

After all, what’s good for General Mills is good for America.

Today, we have dueling Quotes of the Day:

In this corner, we have Larry Kudlow:

What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization.

...and in this corner, John Hinderaker:

One hallmark of organized crime loan-sharking is that, once you are in debt to the mob, you are never allowed to pay off the principal. No matter how much you pay, you always owe more. The mob squeezes you for everything you have. Until a few months ago, I never expected to see an analogy between the U.S. Department of the Treasury and the Mafia. But is it unreasonable to see a parallel in the government’s refusal to allow banks that have borrowed money under TARP to repay it? Does it not appear that financial institutions that became enmeshed with the government, and are now being dictated to by the government, find it increasingly difficult to extricate themselves?

So the federal government along with the unions will have total control over not only General Motors, but Chrysler too. Meanwhile, the federal government can indefinitely extend its control of certain banks by refusing to let them repay government loans.

How is this not socialism, exactly?

Then, they came for the booze:

The cost of booze is going up. Whatever you’re used to paying for your favourite tipple, prepare to pay more. The days of cheap alcohol are numbered and, apparently, it is for our own good.

In wealthy nations all over the world, momentum is building for big hikes in the cost of alcohol. The rationale is to stop us all drinking to the point where we make other people’s lives hell by vandalising property, urinating and vomiting in the street, attacking people including members of our own family, and causing death and injury by driving under the influence. In other words, the goal is to stamp out what England’s Chief Medical Officer Liam Donaldson last week dubbed “passive drinking” - the damage done to innocent bystanders and society in general when people drink too much.

The passive drinking concept is borrowed from “passive smoking”. It is accepted almost everywhere that damage from passive smoking is real, and measures to curb it - taxing cigarettes heavily and banning smoking in public places, for example - have wide public support. Can a similar concept be applied to alcohol? And can the problem of passive drinking become as widely accepted as passive smoking, as hoped for by the World Health Organization, which last year began drafting a global plan to tackle alcohol abuse?

Tackling passive drinking will be an interesting experiment in social engineering. According to Donaldson, the way to do it is to raise the price of alcohol and limit its availability, however much resentment this may cause among the drinking classes. Donaldson proposed that the minimum price of a unit of alcohol (about as much as in half a pint of beer or a small glass of wine) should be raised to 50 pence.

Other countries are grasping the nettle too. The Scottish government is considering imposing a minimum price of 40 pence per unit of alcohol and banning cheap drink promotions such as two-for-one offers and “women drink free all night”. Last year, Australia slapped a hefty tax on alcopops in a bid to reduce heavy drinking among teenagers. And in North America there is much discussion about banning happy hours and similar promotions.

Look out, coffeeyou’re next.

New York City’s diminutive dictator of health habits extends his reach:

Suppose you wanted to test the effects of halving the amount of salt in people’s diets. If you were an academic researcher, you’d have to persuade your institutional review board that you had considered the risks and obtained informed consent from the participants.

You might, for instance, take note of a recent clinical trial in which heart patients put on a restricted-sodium diet fared worse than those on a normal diet. In light of new research suggesting that eating salt improves mood and combats depression, you might be alert for psychological effects of the new diet. You might worry that people would react to less-salty food by eating more of it, a trend you could monitor by comparing them with a control group.

But if you are the mayor of New York, no such constraints apply. You can simply announce, as Michael Bloomberg did, that the city is starting a “nationwide initiative” to pressure the food industry and restaurant chains to cut salt intake by half over the next decade. Why bother with consent forms when you can automatically enroll everyone in the experiment?

[...]

When Dr. Frieden and Mr. Bloomberg decided several years ago that trans fats were dangerous, they didn’t simply issue a warning or a set of voluntary guidelines. They insisted on outlawing trans fats in New York’s restaurants.

At the time, it seemed extraordinary for a city to be forbidding its diners to order a legal food product, particularly given the scientific uncertainties about trans fats and the possible harms resulting from the ban.

But that local restaurant policy now seems fairly modest by comparison with Mr. Bloomberg’s and Dr. Frieden’s plans for salt. Soon, wherever you live, wherever you eat, you could be part of their experiment.

In the America of today, there is no aspect of your life that falls outside the domain of government control.

According to Financial Week, Congressman Barney Frank, the Democrat who serves as the Chairman of the House Financial Services Committee, wants to limit executive pay of all companies:

Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance, House Financial Services Committee Chairman Barney Frank said.

“There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.

As reported by the Washington Post:

With fuel prices declining, government mandates that automakers build highly fuel-efficient cars will be no more effective than combating obesity by forcing clothing manufacturers to make only small sizes.

Attributed to Bob Lutz
Vice Chairman of Global Product Development
General Motors