News Item: The transaction costs of life are soaring
(Category: Wendy)
Posted by Wendy McElroy
Monday 13 October 2008 - 15:26:40
One of the myriad benefits of knowing the late Great Murray Rothbard is being able to view political developments in economic terms. Thus, one of the first phrases that came to mind when a friend recently vented to me over the phone was "transaction cost." He is/was used to crossing the Canadian-US border with ease and frequency in order to visit friends and family up here. However, in January new procedures came into force by which US police and court records on American citizens are being shared with Canadian customs agents, and vice versa. My friends problem: a DUI for which he was denied entry. It didn't matter how old the DUI was nor that it was a one-time offense. A DUI is now one of the minor infractions which can cause a de facto iron curtain to fall across the Canadian-US border; other infractions include possession of marijuana (perhaps in the '70s), possession of a medical marijuana card, shoplifting, an arrest for attending a peace rally or even an ill-conceived prank. The San Francisco Chronicle [reports, Canadian attorney David Lesperance, an expert on customs and immigration, says he had a client who was involved in a fraternity prank 20 years ago. He was on a scavenger hunt, and the assignment was to steal something from a Piggly Wiggly supermarket. He got caught, paid a small fine and was ordered to sweep the police station parking lot. He thought it was all forgotten. And it was, until he tried to cross the border.
Correction to the preceding paragraph: I said "A DUI is now one of the minor infractions..." Actually, it has been a barrier to border crossing for about 20 years but only now do border agents possess the technology and information to enforce the restriction. Their new tool is called The Smart Border Action Plan by which Canadian intelligence and Homeland Security information are comingled and available to both governments. Although the Plan was signed a few years ago, it has only recently 'bitten' the average traveller driving across the border because of difficulties in implementing the technology. And that's just the beginning. The US intends to share similar information with other nations -- e.g. England and other EU nations -- so that travellers may well be denied entry on a global level because of a youthful indiscretion or an arrest for unlawful assembly (e.g. an anti-war rally).
What recourse does my friend have? Will he simply be cut off from his family -- some of whom are too elderly to travel to him? According to the Canadian Embassy, Those who have been convicted of an offence OUTSIDE CANADA, and have had 5 years elapse since the termination of the custodial portion (if any) of the sentence imposed (not the sentence served), may apply for a Minister's APPROVAL OF REHABILITATION. The Minister's Approval will permanently remove the inadmissibility caused by conviction."
My friend is actually one of the lucky ones; he qualifies for a Streamlined Rehabilitation Application due to the fact that only one violation of law exists. So what does this lucky man have to do to gain entry? He must submit a deemed rehabilitation or streamlined rehabilitation application at one of the few designated centers in the States or at a Canadian port of entry. (Of course, a submission does not guarantee approval.) The submission must include:
A United States passport or birth certificate (with photo identification);
A copy of court documents for each conviction, and proof that all sentences were completed;
A recent FBI identification record;
Recent police certificates from the state where the conviction(s) occurred, and from any state where a person has lived for six (6) months or longer in the last 10 years; and
A fee is involved for the streamlined rehabilitation process, equivalent to $200.00 Canadian.
Attorneys are advising clients of possible "processing problems", which include "inadequate or incomplete documentation. Although court documents may be difficult to obtain, Canada typically requires them for review. Proof of sentences being completed is critical, which could be anything from a letter received stating that a person’s civil rights have been restored or a letter from a probation officer stating that all sentences were completed successfully, to proof of the final payment of a fine showing a zero balance. If court documents and/or proof of completed sentences have been destroyed by the court, Canada requires a letter from the court which clearly indicates that files are no longer available. Canada also needs to see original FBI certificates and state police certificates issued within the year, and requests all required materials be submitted in one package. While the minimum processing time for these applications is six (6) months, many cases take longer to process."
As I previously stated, a phrase that came to my mind was 'transaction cost.' A fairly standard definition is: "a transaction cost is a cost incurred in making an economic exchange. For example, most people, when buying or selling a stock, must pay a commission to their broker; that commission is a transaction cost of doing the stock deal. Or consider buying a banana from a store; to purchase the banana, your costs will be not only the price of the banana itself, but also the energy and effort it requires to find out which of the various banana products you prefer, where to get them and at what price, the cost of travelling from your house to the store and back, the time waiting in line, and the effort of the paying itself; the costs above and beyond the cost of the banana are the transaction costs. When rationally evaluating a potential transaction, it is important to consider transaction costs that might prove significant."
For a few years, I have been complaining to my husband that the transaction cost of being alive was soaring...and almost always because of increased governmental requirements and ensuing governmental inefficiency. One example: it took me 8 months to get a replacement birth certificate that I needed for no other reason than to meet the requirements of another government form that was necessary to engage in an activity that was previously handled by the production of a driver's license. I have never been arrested; the most legal attention I have ever gleaned is a parking ticket. As an anarchist, I have no excuse. But a clean slate does put me in the enviable position of probably never being denied entry into the world's ports. What I am denied is freedom of travel and that denial comes in the form of transaction costs.
I have no doubt my friend will seek and receive a Certificate of Rehabilation -- what a Orwellian name! When he weighs the transaction cost, friends and family will win out. Or, rather, the true winners will be government fee-mongers, tight-assed bureaucrats and those who cherish total social control.
This news item is from WendyMcElroy.com
( http://www.wendymcelroy.com/news.php?extend.761 )
(Category: Wendy)
Posted by Wendy McElroy
Monday 13 October 2008 - 15:26:40
One of the myriad benefits of knowing the late Great Murray Rothbard is being able to view political developments in economic terms. Thus, one of the first phrases that came to mind when a friend recently vented to me over the phone was "transaction cost." He is/was used to crossing the Canadian-US border with ease and frequency in order to visit friends and family up here. However, in January new procedures came into force by which US police and court records on American citizens are being shared with Canadian customs agents, and vice versa. My friends problem: a DUI for which he was denied entry. It didn't matter how old the DUI was nor that it was a one-time offense. A DUI is now one of the minor infractions which can cause a de facto iron curtain to fall across the Canadian-US border; other infractions include possession of marijuana (perhaps in the '70s), possession of a medical marijuana card, shoplifting, an arrest for attending a peace rally or even an ill-conceived prank. The San Francisco Chronicle [reports, Canadian attorney David Lesperance, an expert on customs and immigration, says he had a client who was involved in a fraternity prank 20 years ago. He was on a scavenger hunt, and the assignment was to steal something from a Piggly Wiggly supermarket. He got caught, paid a small fine and was ordered to sweep the police station parking lot. He thought it was all forgotten. And it was, until he tried to cross the border.
Correction to the preceding paragraph: I said "A DUI is now one of the minor infractions..." Actually, it has been a barrier to border crossing for about 20 years but only now do border agents possess the technology and information to enforce the restriction. Their new tool is called The Smart Border Action Plan by which Canadian intelligence and Homeland Security information are comingled and available to both governments. Although the Plan was signed a few years ago, it has only recently 'bitten' the average traveller driving across the border because of difficulties in implementing the technology. And that's just the beginning. The US intends to share similar information with other nations -- e.g. England and other EU nations -- so that travellers may well be denied entry on a global level because of a youthful indiscretion or an arrest for unlawful assembly (e.g. an anti-war rally).
What recourse does my friend have? Will he simply be cut off from his family -- some of whom are too elderly to travel to him? According to the Canadian Embassy, Those who have been convicted of an offence OUTSIDE CANADA, and have had 5 years elapse since the termination of the custodial portion (if any) of the sentence imposed (not the sentence served), may apply for a Minister's APPROVAL OF REHABILITATION. The Minister's Approval will permanently remove the inadmissibility caused by conviction."
My friend is actually one of the lucky ones; he qualifies for a Streamlined Rehabilitation Application due to the fact that only one violation of law exists. So what does this lucky man have to do to gain entry? He must submit a deemed rehabilitation or streamlined rehabilitation application at one of the few designated centers in the States or at a Canadian port of entry. (Of course, a submission does not guarantee approval.) The submission must include:
A United States passport or birth certificate (with photo identification);
A copy of court documents for each conviction, and proof that all sentences were completed;
A recent FBI identification record;
Recent police certificates from the state where the conviction(s) occurred, and from any state where a person has lived for six (6) months or longer in the last 10 years; and
A fee is involved for the streamlined rehabilitation process, equivalent to $200.00 Canadian.
Attorneys are advising clients of possible "processing problems", which include "inadequate or incomplete documentation. Although court documents may be difficult to obtain, Canada typically requires them for review. Proof of sentences being completed is critical, which could be anything from a letter received stating that a person’s civil rights have been restored or a letter from a probation officer stating that all sentences were completed successfully, to proof of the final payment of a fine showing a zero balance. If court documents and/or proof of completed sentences have been destroyed by the court, Canada requires a letter from the court which clearly indicates that files are no longer available. Canada also needs to see original FBI certificates and state police certificates issued within the year, and requests all required materials be submitted in one package. While the minimum processing time for these applications is six (6) months, many cases take longer to process."
As I previously stated, a phrase that came to my mind was 'transaction cost.' A fairly standard definition is: "a transaction cost is a cost incurred in making an economic exchange. For example, most people, when buying or selling a stock, must pay a commission to their broker; that commission is a transaction cost of doing the stock deal. Or consider buying a banana from a store; to purchase the banana, your costs will be not only the price of the banana itself, but also the energy and effort it requires to find out which of the various banana products you prefer, where to get them and at what price, the cost of travelling from your house to the store and back, the time waiting in line, and the effort of the paying itself; the costs above and beyond the cost of the banana are the transaction costs. When rationally evaluating a potential transaction, it is important to consider transaction costs that might prove significant."
For a few years, I have been complaining to my husband that the transaction cost of being alive was soaring...and almost always because of increased governmental requirements and ensuing governmental inefficiency. One example: it took me 8 months to get a replacement birth certificate that I needed for no other reason than to meet the requirements of another government form that was necessary to engage in an activity that was previously handled by the production of a driver's license. I have never been arrested; the most legal attention I have ever gleaned is a parking ticket. As an anarchist, I have no excuse. But a clean slate does put me in the enviable position of probably never being denied entry into the world's ports. What I am denied is freedom of travel and that denial comes in the form of transaction costs.
I have no doubt my friend will seek and receive a Certificate of Rehabilation -- what a Orwellian name! When he weighs the transaction cost, friends and family will win out. Or, rather, the true winners will be government fee-mongers, tight-assed bureaucrats and those who cherish total social control.
This news item is from WendyMcElroy.com
( http://www.wendymcelroy.com/news.php?extend.761 )