Thursday, September 8, 2011

Jobs, Jobs, Jobs and the Persecution of Gibson Guitar

Here is another example of truly bizarre behavior by the Obama administration as well as the incredible incompetence and over-reach of the federal government in general.

The Lacey Act of 1900 prohibits trade in wildlife, fish, and plants that have been illegally taken, transported or sold.  In 1900, illegal commercial hunting threatened many game species in the United States so the original Act was directed at the preservation of game and wild birds by making it a federal crime to poach game in one state with the purpose of selling the bounty in another.

Today the law is primarily used to prevent the importation or spread of potentially dangerous non-native species but also to protect endangered plants and animals in foreign countries.  In 2008, Congress expanded its protection to a broader range of plants and plant products including wood.  The law’s expanded protections include especially vaguely written references to obeying murky foreign laws.  [Imagine writing an American law requiring compliance with foreign laws you have not read and others that have not yet have been written.  Only lawyers and do-gooders would venture here.]

In case you didn’t know, all guitars have finger boards made from small pieces of rare woods.

This brings us to the persecution of the Gibson Guitar Corporation which enjoys the enthusiastic appreciation of the tree-hugger community, even Greenpeace, for its "great work" in preserving forests.

In two separate raids of Gibson – 2009 and now – the feds have confiscated $millions in materials and instruments.  The alleged offenses are these:

·         In 2009, U.S. officials said Madagascar officials were "defrauded" by a local exporter about the nature of the product.  In the government’s alternative reality, this makes Gibson guilty under the Lacey Act as revised in 2008.

·         As for last week's raid, it’s the same story, same wood but different country – India.  The government said it had evidence that Indian ebony was "fraudulently" labeled in an attempt to evade an Indian ban on exports of unfinished wood.

·         In both cases, the issue is not the illegal harvesting of rare or endangered trees;  the issue is the American government trying to respect foreign laws banning “exports of unfinished wood”. 

Guitar makers get local nationals to cut trees into strips of specific size and quality which are then shipped to America and made into finger boards for guitars. 

American officials are imposing their view on both the intent of the foreign laws and on whether foreigners are complying with those foreign laws.

In a time of huge unemployment, the government is sowing extra anxiety and uncertainty.  Gibson employs 2,000 people and ships its guitars worldwide.  The feds seem to be encouraging the movement of those jobs offshore.  The raids threaten a vast range of American manufacturers and even musicians themselves – one law professor and a blues guitarist, says he no longer goes “out of the country with a wooden guitar."

What are they thinking?

Fox News points out that Henry Juszkiewicz, chief executive officer of the closely held, nonunion company, is a major Republican contributor in an industry that is unsurprisingly mostly Democratic and unionized.  Juszkiewicz feels the same.  How despicable would it be if politicians start using the government to punish their opposition?  That’s Chavez territory.

And another thing, what better argument might there be regarding government over-reach?  Should the feds really be trying to enforce foreign laws?  Even if the answer is yes, shouldn’t we expect our legislators to write laws with clear language, intent and consequences?  Shouldn’t we expect basic competence?

September 1, 2011
Gibson Guitar Wails on Federal Raid over Wood
By James R. Hagerty and Kris Maher
Wall Street Journal

August 26, 2011
Guitar Frets: Environmental Enforcement Leaves Musicians in Fear
By Eric Felten
Wall Street Journal

Aug 31, 2011
By Michael Billy
CEO of Gibson Guitar says Fed raid cost company up to $3 million
Digital Journal

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