Category: Accountability

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Accountability folly general freedom ideological culture moral hazard nannyism national politics & policies property rights responsibility too much government

The Worst Is the Enemy of the Cure

Obamacare, healthcare, single payer, Ryancare, Trumpcare, government, Affordable Care Act

You’ve heard the adage: “the perfect is the enemy of the good.” This can be true in politics, where opposing an ameliorating reform because it is not ideal means, sometimes, getting stuck with unmitigated policy disasters.

But there’s a corollary: in politics the worst is likely to emerge … when practiced compromisers succumb to fearing the best, because unpalatable, or perhaps not in line with political interests.* Trying to avoid the “best is the enemy of the good,” we’re left with the outrageously awful.

Cures worse than the disease are not uncommon. The Democrats’ “Affordable Care Act” (ObamaCare) was a clumsy, badly drafted hodgepodge designed to fix problems by doing the opposite of what made sense.

And it immediately started having ill effects, pushing up costs for many, many health-​care and medical insurance consumers.

No wonder Republicans ran year after year promising repeal.

But now that Republicans have the chance for a real cure, they’re chickening out. The Senate just debuted their ObamaCare replacement. And Senator Rand Paul (R‑Ky) calls it “worse than ObamaCare.”

Why worse?

Because Republican politicians are better at promising than delivering. Fearing how those who directly benefited from ObamaCare might squawk, and how badly the GOP would be treated in the media because of this, moderates went with what they know: snake oil. 

Fortunately, Rand Paul’s opposition may kill the bill. If one other senator joins Dr. Paul — and Sen. Susan Collins (R‑Maine) who announced her opposition for other reasons — in not voting for the monster, it will not pass. 

Which is great, because going for a cure worse than the previous cure leaves us all with the worst possible outcome.

This is Common Sense. I’m Paul Jacob.

 

* Like many cures. Politicians these days no longer have the knack for the necessary “spoonful of sugar” to help medicine go down. They prefer distributing just sugar pills.

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Accountability crime and punishment folly free trade & free markets local leaders nannyism national politics & policies too much government

Messed Up State

Marijuana, sand, Nevada, crisis, emergency

After lamenting Illinois’s fiscal decline into America’s “most messed up” state yesterday, lo and behold, today we find the State of Nevada messed up, too.

On marijuana.*

Question 2, passed by voters last November, legalized recreational use of what we used to call “weed” by those 21 years of age and older. The measure also stipulated that — for the first 18 months only — alcohol distributers are solely permitted to carry marijuana from wholesalers to the new retail dispensaries.

Why provide a monopoly to alcohol distributors? 

“[T]he state’s powerful alcohol lobby worried that legalized weed would cut into liquor store sales,” explained the Los Angeles Times. Proponents added that provision as “a concession.”

But still not a single alcohol distributor has been approved to distribute marijuana. 

So, with pot now flying off the shelves of Nevada’s 47 marijuana dispensaries, there is no lawful way to replenish those shelves. Nevada’s DOT (which requested from the governor an official declaration of a state of emergency) warns: “this nascent industry could grind to a halt.”

That’s not just a bummer for pot smokers; it has the governor and the DOT in a state, too. “A 10% tax on sales of recreational pot — along with a 15% tax on growers — is expected to generate tens of millions of dollars a year for schools and the state’s general fund reserves,” notes the Times.

Legalize marijuana, sure. And realize that the politics of it can be more toxic than the drug itself.

This is Common Sense. I’m Paul Jacob.

 

*Is that why the slogan “A World Within, A State Apart” is now featured on the state’s website?

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Accountability folly local leaders moral hazard porkbarrel politics responsibility term limits too much government

Most Messed Up

Illinois, budget crisis, garbage, term limits, spending, responsibility, Junk Bond, Moody's

“Politicians are notorious for making promises they can’t keep,” Matt Egan reports at CNN Money. “But they really outdid themselves in Illinois — and now the state is paying for it.”

Egan dubs the state “America’s most messed-up.”*

No wonder the state has the worst outbound migration in the nation — or, as Egan puts it: “people are leaving in droves.”

On June 1, Moody’s and S&P Global Ratings downgraded the state’s credit rating to one notch above so-​called “junk bond” status. “Illinois has suffered 21 downgrades from the three major ratings agencies since 2009,” the Illinois Policy Institute informs, and now has the lowest credit rating of any state, making it more expensive to borrow. Even with passage of a budget — finally, after three years of the legislature failing to fulfill its constitutional duty — the threat of a further downgrade still looms.

“After decades of historic mismanagement, Illinois is now grappling with $15 billion of unpaid bills and an unthinkable quarter-​trillion dollars owed to public employees when they retire,” the article explains.

Decades of mismanagement? Perhaps the problem was inexperienced legislators, lacking the necessary expertise to do their crucial jobs, because of term limits. Except that Illinois doesn’t have term limits.

In fact, Illinois sports the nation’s longest-​serving Speaker of the House in modern times. Mike Madigan has been speaker for 32 of the last 34 years, since 1983. Call him “Mr. Experience.” Madigan is recognized as the most powerful man in state government. 

All that leadership experience … leading citizens to experience much pain and suffering.

This is Common Sense. I’m Paul Jacob.

 

* That’s in the headline. In the article, Egan explains the mess as “the inevitable result of spending more on pensions and services than the state could afford — then covering it up with reckless budget tricks.”

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Accountability folly free trade & free markets ideological culture media and media people national politics & policies

Next Bubble to Pop?

bubble, Paul Krugman, recession, student loans, debt, folly, David Stockman

There was a great and wondrous moment, a decade and a half ago, when economist Paul Krugman, Nobel Laureate and New York Times’s unregistered shill for the Democratic Party, suggested that what the economy really needed was another housing bubble. 

What he wrote, specifically, was this: “To fight this recession, the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”

Krugman later reinterpreted that statement in a clever (if not convincingly honest) way. After the subprime loan industry collapsed in 2008, he attributed that bust to financial market malfeasance, not the Fed-​inflated bubble we got … and that he had previously called for.

Now we are looking at several ready-​to-​burst bubbles:

  • The student loan debt problem seems scary. 
  • The sovereign debt problem is undoubtedly more dangerous and far larger, but is perhaps still able to take on more fake money — all the world’s 1s and 0s have to go somewhere! 
  • So the current bets seem to be on a huge auto loan industry bubble, about to pop.

Loan terms have increased in duration, and the average amount new car buyers are financing has jumped over 17 percent in five years. The idea has been “to continually lower monthly payments,” says David Stockman, “so people can get behind the wheels of vehicles they can’t really afford.”*

Which bubble does Krugman favor? I don’t have the stomach to check.

But, be certain, as we play pop goes the bubble, he’ll play pop goes the weasel.

This is Common Sense. I’m Paul Jacob.

 

* Stockman seems to be echoing warnings made by Eric Peters, of Eric Peters Autos.

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Accountability local leaders national politics & policies term limits

Living on Markwayne Logic

Congressman Markwayne Mullin (R-Okla.), term limits, lies, integrity, dishonesty

Just months ago, Congressman Markwayne Mullin (R‑Okla.) made headlines by arrogantly — and falsely — telling constituents at a town hall: “You say you pay for me to do this. Bullcrap. I pay for myself. I paid enough taxes before I got there and continue to through my company to pay my own salary. This is a service. No one here pays me to go.”

Even though nearly everyone there pays taxes toward the $174,000 in annual congressional salary paid to and deposited by Congressman Mullin.

Times change. Back in 2012, a more humble Mullin ran for Congress and won pledging to limit his service to three terms, the term-​limit Oklahomans had enacted by voter initiative. 

Last year, Markwayne won that third term. Before his primary victory, he informed the Associated Press that he would keep his promise. But the day after winning, the congressman conspicuously left the door open by telling a radio audience he was praying about what to do.

This week, the congressman with two first names released an 11-​minute fake news interview. In the video, Congressman Mullin and his wife chatter thoughtfully about his self-​serving decision to break his word to stay in power. Even in a staged and scripted interview, “I’ve grown a lot” was the best argument Markwayne could muster. 

“The last thing we want is to make people think we’re going back on our word,” a reality-​resistant Mullin told the Tulsa World. “At the time, we were sincere. But where we’re at today is a different situation.”

“At the time,” he had no power. Today’s “different situation”? He has power — and aims to keep it. Honesty and honor be damned.

This is Common Sense. I’m Paul Jacob.

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Accountability education and schooling folly local leaders moral hazard

Ugly Scrutiny

Prince George’s County Public Schools, grading, education, incentives,

Prince George’s County Public Schools have increased their graduation rates faster than all other schools in Maryland. Measuring from 2013 to 2016, the graduation rate jumped from 74.1 percent to 81.4 percent. 

Great! 

Well … a fly has stuck itself into the soothing salve of their success — what county principals called an “unfair, ugly scrutiny.” Said scrutiny came from the Old Line State’s Board of Education, which voted to pursue an investigation* into what the Washington Post described as “grade tampering” to “drive up graduation rates.”

Keith Maxwell, the county schools’ CEO, says he welcomes the investigation. 

Dozens of whistleblowers have reportedly come forward. Several spoke with the Post, anonymously, for fear of retaliation: 

  • “We knew that it wasn’t real,” said a teacher at a high graduation rate school. “It’s just common knowledge that they push kids through who shouldn’t be pushed through.”
  • “I’m not averse to helping a student pass,” one educator explained. “But when people are pressuring you to do it, when it happens behind your back, that’s when it’s problematic.”
  • “For a child not to come to class — maybe been in class three days in a whole quarter — and you’re going to change their grade?” questioned another teacher. “It’s not right. If they don’t come to school, and they don’t do the work, they deserve to fail.” 

She added, “It doesn’t help them.”

Which is the point: the students are being cheated. If graduation doesn’t mean anything, then … their diplomas don’t mean anything.

This is Common Sense. I’m Paul Jacob.

 

*The investigation had been requested by Governor Larry Hogan.

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