John Stossel
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  • October 28, 2009 08:00 AM EDT by John Stossel

    Ostrom II

    Congressman Barney Frank said on MSNBC this week that he and fellow Democrats “are trying in every front to increase the role of government in the regulatory area” [Video here.] I don’t believe that its just a grab for more power.  Frank and his fell Democrats really believe that if they “increase the role of government in the regulatory area” then consumers will benefit.

    Frank would do well to look at the work of one of the winners of the Economics Nobel Prize this year. Elinor Ostrom’s work shows that free people, given the chance, solve what many “experts” think are problems that require state intervention. That’s the subject of my op-ed today.

    Ostrom made her mark studying the “Tragedy of the Commons” – the problem in which public resources are overused or under- maintained. But she points out that there is also an “opportunity of the commons.” While most politicians conclude that, depending on the resource, efficient management requires either privatization or government ownership, Ostrom finds examples of a third way: “self-organizing forms of collective action,” as she put it in an interview a few years ago. Her message is to be wary of government promises.

    She has studied, for example, self-governing irrigation systems in Nepal and found successes never anticipated in the textbooks. “Irrigation systems built and governed by the famers themselves are on average in better repair deliver more water, and have higher agricultural productivity than those provided and managed by a government agency.... [F]armers craft their own rules, which frequently offset the perverse incentives they face in their particular physical and cultural settings. These rules may be almost invisible to outsiders...”

    In Governing the Commons she writes about self-governed commons in Switzerland, Japan, the Philippines, and elsewhere that date back hundreds of years. For example, in the alpine village of Töbel, Switzerland, herdsmen “tend village cattle on communally owned alpine meadows” under rules of an association created in 1483. The rules govern who has access to the grazing lands and how many cows a herdsman can place there, preventing overgrazing. The cattle owners themselves run the association and handle the monitoring. Sanctions are imposed for violation of the rules but compliance is high.

    Barney Frank – as well as the global warming doomsayers telling us to reduce our carbon footprint by eating our dogs – ignore the simple solutions that individuals find on their own.

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PJPONY

Why doesn't FOX take some of the no-brainer shows off and place shows like yours, Glenn Beck's and other informative shows on regular network television? There is nothing out there for people that can't get cable and without FOX, the other network channels offer nothing but Obama loving drivel. This is the time for important issues to be covered where everyone has the opportunity to see the coverage. Otherwise, we don't stand a chance in this country.

October 30, 2009 at 4:52 am

PJPONY

My question is, what type of "non-bank" financial institutions are on his attack list? Does this include businesses like Ameritrade, etc? This move by Barney Frank doesn't instill much confidence in my family to place our money in any financial institution... it just makes me look more and more toward moving everything we own into in-my-hand gold. I've watched you for years and you are a great investigative journalist. Wanna be the next Woodward/Burnstein, please!?!

October 30, 2009 at 3:43 am

joel

Mr. Stossel I was walking out the door this morning and heard "the cash for clunkers cost each tax payer 24,000 per vehicle". I nearly choked on my coffee and My first reaction was anger but I began to think that I just barley caught the 5 second news story and would have never known if I had not been at the right place at the right time. I think that it is time to bring back the lost art of the Follow up story. No one seems to revisit news stories 3, 6, 9 months later. Please Help Sir!

October 29, 2009 at 10:33 am

Steve Turner

I might be impressed with Ostram's Nobel prize, except for the fact that they gave one to Obama for no good reason, except for pulling off the scam of the century by getting elected POTUS. This makes me wonder if Ostram's work is as worthless as the prize. While we waste our time worrying about how a farmers collective in 1483 Switzerland relates to Barney Frank, we will get scammed again with someone even worse than Obama. Anyway, thanks John and keep up the good work.

October 29, 2009 at 8:39 am
(1 Reply)

smitty

what options left? Google...youtube:muslim demagraphics

October 29, 2009 at 2:59 am

glennj

How would Barney Frank explain the higher than expected demand for 2-year Treasuries on Monday by U.S. banks and finacial institutions? How would he explain the big banks investing their capital in the U.S. Treasuries rather than lending the capital to small businesses in this Country? Could it be that those investing in the Treasuries have more faith in being paid back by the Government? What would Barney say?

October 28, 2009 at 6:25 pm

Steve Westerlund

John, On the subject of increasing gov't....why does no one want to cover the "insourcing" of 40,000 from DOD contracts back to civil service....as the ultimate fraud of creating gov't jobs? I am a successful gov't contractor and will be out of business in 5 months, when they convert my last of 98 employees to civil service.

October 28, 2009 at 5:15 pm
(1 Reply)

Carolyn Mahlen

I love John Stossel and am so glad he is now with Fox. I have seen him on Glenn Beck and O' Reilly but I can not find when (time) John,s program is on. Please advertise the time.I want to watch it. Thanks

October 28, 2009 at 5:05 pm
(1 Reply)

Les Kish

John, I am really excited for you moving over to Fox. I have read all your latest books and I am in 100% agreement with you on limited or no role of government in overseeing or regulating normal business actifities. All should be left to open market, supply and demand and free competition. Coming from the former eastern block I know exactly what nationalized companies are able to produce. Thank you for representing the majority of Americans. Les Kish, Fort Mill, SC

October 28, 2009 at 4:44 pm

Blind Squirrel

Nice work John...if the Federal Government continues it's blind crusade they'll soon discover how the people will handle them!

October 28, 2009 at 3:51 pm

cyber_rigger

Regulations often end up helping the big corporations and cause headaches for small companies.

October 28, 2009 at 3:21 pm

tim mcnally

If the politicians continue to impose more regulations on the financial industry it will drive more regional investment banks out of business. Small businesses rely on regional banks and investment banks. Goldman Sachs doesn't loan money to small business and the SBA is a swamp that swallows up applications. The next time a politician tells you that small businesses are the key to job creation ask him how much stimulus money was given to small companies in your city.

October 28, 2009 at 2:37 pm

richard j maury

Mr Stossel is correct in his explanation however, Mr Franks is only interested in larger government. His statments makes that obvious. What is evident is how pervasive these groups of politicians; Democrats, are invading into our freedoms.

October 28, 2009 at 2:11 pm

Aarcher

John like your independent thinking hope you like the move you made to Fox, Great insight.

October 28, 2009 at 1:32 pm

Lee Russ

Check out this related and updated video of Ronald Reagan's classic speech A Time for Choosing (celebrating its 45th anniversary this year) which splices in the Barney Frank clip at the appropriate moment: http://optoons.blogspot.com/2009/10/1964-ronald-reagan-time-for-choosing.html

October 28, 2009 at 10:00 am
(1 Reply)

Jathen Garrett DDS

Hey John Stosssel....Glad to see you at FOX News...please keep up the good work....I like your independent thinking and investigative approach to the issues....Great Job....Please don't let Glen Beck give you to hard of a time....Ha Ha

October 28, 2009 at 9:09 am

ProudProfiteer

Consumers only benefit when gov't fulfills it's role to prevent coercion and then gets the hell out of the market's way to let the market do what it does best, service needs. The market allocates resources to address needs and in seeking maximum profits addresses the most needs with the smallest means. This is why costs are lower when the market is allowed to function without government. Gov't intervention can have one effect which is to increase costs and diverting resources.

October 28, 2009 at 9:06 am
(1 Reply)

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  • John Stossel joined FOX Business and FOX News in October 2009. His show, Stossel, airs on the Fox Business Network on Thursdays at 8 p.m. ET

    He is the New York Times best-selling author of Give Me A Break and Myths, Lies and Downright Stupidity. His "Give Me a Break" commentaries take a skeptical look at a wide array of issues, such as education, the economy, parenting, and more.

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