Category: insider corruption

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Accountability general freedom ideological culture insider corruption media and media people property rights Regulating Protest

Ortega’s Got to Go

Daniel Ortega, Nicaragua, rebellion, atrocity, protest, violence

Sometimes “if it bleeds, it leads” fails us. Only a few news outlets have given much attention to Nicaragua’s ongoing atrocities.

Weeks ago, mothers of some of the 76 people, mainly students, already killed protesting despot Daniel Ortega, were leading a march demanding justice . . . “when gunmen opened fire on the crowd.” The Washington Post report continued, “Witnesses have accused police and their civilian allies of initiating the violence that left as many as 18 people dead and more than 200 wounded.”

The June 2 headline summed up the last seven weeks: “At least 100 killed in Nicaragua as political violence intensifies.”

But time and tyranny march on. “Every day they’re killing more people,” an attorney with the Nicaraguan Center for Human Rights told the Post. Friday, the group updated the death toll to 137.

Then on Saturday, the English-language Today Nicaragua informed that a 60-year-old man was cut down by a government sniper in Masaya, the former Sandinista stronghold, which is “now under almost total rebel control.”

What can we do?

We can educate ourselves on what’s happening — and pester more news organizations to cover Nicaragua.

We can learn from the experiences in Cuba, in Venezuela, and now in Nicaragua, that leaders seeking awesome powers to remake society to supposedly benefit the poor are ultimately batting zero in helping the poor. Instead, they’re busy at the plate for themselves.

And we can add our voices to Amnesty International’s condemnation of what it calls “the systematic ‘shoot-to-kill’ policy of President Ortega’s government.”

When governments open fire on peaceful protesters, it is past time for those governments to go.

This is Common Sense. I’m Paul Jacob.

 

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Accountability general freedom incumbents insider corruption local leaders moral hazard political challengers Regulating Protest term limits

Missouri Shows Article V Action

Missouri, show me, Article V, term limits, legislature, congress,

There’s good news and there’s good news from the Show Me State.

First the good news. The Missouri House declined to follow the lead of the Missouri Senate during its recent legislative session in advancing a ballot measure to make a travesty, mockery and sham of state legislative term limits.

The proposed weakening of the limits would have doubled maximum legislative tenure from eight years to 16 years. Further, it would also have excluded terms already served from counting toward the new limit.

Had the measure ultimately been enacted, some incumbents would have been able to sit in a single seat for up to 24 years. This assault on term limits is dead . . . at least until next year.

Now the good news. The lawmakers deserve high praise for issuing a formal call for an amendment convention to consider the single subject of congressional term limits, making Missouri the third state to do so (after Florida and Alabama). In mid-May, the resolution for a Term Limits Convention easily passed in both chambers.

Thanks to a provision in Article V of the Constitution, if two thirds of the states (34 states) submit a similar application to convene a term limits amendment convention, the convention must be convened. The amendment that the convention produces would then be submitted to the states for ratification. Three fourths (38) are required to ratify.

We’re only in the first-steps stage here, but first steps are crucial.

Thanks for showing us how to do it, Missouri.

This is Common Sense. I’m Paul Jacob.

 

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Missouri, show me, Article V, term limits, legislature, congress,

 

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Accountability crime and punishment folly free trade & free markets insider corruption media and media people moral hazard national politics & policies porkbarrel politics property rights responsibility too much government

Déjà vu All Over Again

housing, bust, financial, meltdown, Government-Backed Mortgages, jail, punishment, cause

One of the stand-bys of the post-2008 mortgage finance bust, at least from left-of-center policy mavens, has been to ask: why has no banker gone to prison? They played a game of fraud and got rich. What a protected class — Cronyism! Plutocracy! Capitalism!

The why is much easier to understand if you read up on Round Two of the aughts’ boom-bust scenario, as in Prashant Gopal’s coverage in Bloomberg, “Getting Rich on Government-Backed Mortgages.” Gopal spotlights a non-bank mortgage broker, Angelo Christian, who is making a killing selling houses to people with horrible credit, just as happened before 2008.

“Christian can do this kind of deal because he is, in effect, making the loan on behalf of the federal government through its most important affordable housing program,” Gopal writes. “It’s a sweet deal: He gets his nearly risk-free commission. [His client] puts no money down. If things go south, the government ultimately bears the risk.”

So, should he go to jail?

Not really. He’s merely doing Congress’s bidding.

Gopal notes that it is not banks that dominate this round. They are under too much scrutiny. But non-banking loan intermediaries like Mr. Christian are swarming like flies on a cow’s behind.

There’s a problem in Gopal’s account though. “No one is saying the system is close to another collapse.”

Well, plenty of people are saying that.

The Cassandras are just not being heeded.

Of course, they don’t know when the bust will happen.

They just know it will.

This is Common Sense. I’m Paul Jacob.

 

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Photo by Images Money on Flickr.

 

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Accountability education and schooling folly government transparency insider corruption local leaders moral hazard nannyism national politics & policies responsibility too much government

Reading, Writing & Racketeering

schools, corruption, D.C., Washington, education, cheating, incentives, teachers, union

When I attended a public school — many decades ago, in a galaxy far, far away — teachers told students that cheating was unacceptable and would be punished.

Harshly.

Today, the idea has students laughing — all the way to graduation.

Last year, after DC Public Schools officials breathlessly announced massive improvements in graduation rates, several honest teachers broke ranks, and an investigation uncovered massive fraud: a whopping one of every three graduates across the city resulted from falsified records.

Many students played hooky for a third or even half the school year. Administrators also pressured teachers to improve grades to hike the graduation rate.

“The problem,” Washington Post columnist Colbert King concluded, “is systemic indeed.”*

You see, employment evaluations and cash bonuses for teachers and administrators were — and still are — tied in part to student graduation stats. It turns out that an incentive to good work can also serve as an incentive to cheat. Could it be that government employees grading their own work does not encourage honesty?

Just months after confirmation of the worst fears of public school corruption, new allegations against teachers and administrators at Roosevelt High School more than suggest fudging attendance records is ongoing.

“This growing environment of fear and mistrust,” asserts Elizabeth Davis, president of the Washington Teachers’ Union, “has never been addressed and continues to be a disservice to students and teachers.”

City officials have had plenty of time to address the issue. And of the common sense idea that the best way to avoid fear and mistrust is to follow the rules?

Crickets.

This is Common Sense. I’m Paul Jacob.

 

* Nor is the fraudulent behavior limited to dishonestly boosting graduation rates. Former DCPS Chancellor Antwan Wilson resigned back in February after it became public knowledge that his daughter jumped 600 other students on a waiting list for her school. A recent Post story about enrollment fraud, whereby non-residents grab spots at prestigious schools such as the Duke Ellington School of the Arts, without paying the non-resident fee, was entitled, “Stop enrollment fraud? D.C. school officials are often the ones committing it.” Two-thirds of pending cases involve a current or past DCPS employee.

 

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Accountability crime and punishment government transparency insider corruption local leaders media and media people Popular

Sweet Schadenfreude?

Arkansas State Senator Jon Woods, corruption, Arkansas, conspiracy, wire fraud, mail fraud, money laundering

Yesterday, jurors convicted former Arkansas State Senator Jon Woods on 15 felony counts consisting of conspiracy, wire fraud, mail fraud and money laundering.

Woods was at the center of a corrupt scheme to reward cronies at Ecclasia College and AmeriWorks with GIFs — state General Improvement Funds — in return for kickbacks. Former State Rep. Micah Neal, his co-conspirator, pleaded guilty more than a year ago. And last month, the former president of Ecclesia College, Oren Paris III, also admitted guilt.

Regular readers may remember Woods as the Senate author of Issue 3, placed on the 2014 ballot by legislators — along with a summary for voters to read that fibbed about “establishing term limits” and imposing a gift ban between lobbyists and legislators.

Enough voters were hoodwinked,* leading to the gutting of term limits (allowing a legislator to stay in the same seat for 16 years), the empowering of a legislature-appointed “Independent” Commission to bestow a 150 percent pay raise on legislators, and the enabling of legislators to eat every meal at the lobbyists’ trough.

Mr. Woods now faces as many as 20 years on each of 14 counts and ten more years on the money laundering conviction. Having experienced, in a previous life, the poor customer service in the federal prison system, I do not wish that on anyone.

But justice has been done.

More good news: the Arkansas Supreme Court has since ruled the entire corrupt GIF program unconstitutional . . . while Arkansas Term Limits closes in on completion of their petition drive to place a measure on this November’s ballot to restore the term limits stolen by Woods.

This is Common Sense. I’m Paul Jacob.

 

* The measure passed 52 to 48 percent at the ballot box.

 

Previous coverage here of Woods’ corruption:

 

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Accountability government transparency insider corruption moral hazard national politics & policies term limits too much government

Captured Congress

House Oversight Committee, lobby, lobbyist, bribes, control, congress, corruption, puppet

“Do you think party leaders exert too much control over members of Congress and over the agenda,” Full Measure host Sharyl Attkisson asked retiring Rep. Darrell Issa, “in a way that might be motivated by donations and corporate influence and special interests?”

Winner of five Emmys, as well as the 2012 Edward R. Murrow Award for Excellence in Video Investigative Reporting, Attkisson’s “exit interview” with Congressman Issa (R-Calif.) is illuminating.

“It happens every day,” he replied, “that a lobbyist calls the majority leader, the minority leader, the speaker, and some chairmen or ranking member gets a call saying, ‘hey go light on that.’”

Issa pointed out that the committee chairs “really don’t control the committees. More and more it’s controlled out of the speaker’s office and out of the minority leader’s office. You know, they pick who gets the committees and then they pick really what you get to do.”

And it’s getting worse, he said.

As chairman of the House Oversight Committee, Issa has led a number of very high-profile investigations. His investigation of Countrywide, Attkisson noted, “revealed that federal public officials and their staffers, both Democrats and Republicans, had quietly received lucrative VIP loans from Countrywide as the company sought to influence their decisions.”

“It was much more effective than political giving,” Issa offered.

He also accused Republican leaders of removing the Benghazi investigation from his committee to a select committee to “keep it from going too far.”

“I have seen the defense-related committees that take money from defense contractors go easy on defense oversight,” Attkisson explained, prompting the congressman to agree “that happens every day here.”

Between the party bosses and the special interests, our Congress has been captured.

This is Common Sense. I’m Paul Jacob.

N. B. Full Measure is broadcast every Sunday on 162 Sinclair Broadcast Group stations reaching 43 million households in 79 media markets.

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Accountability government transparency insider corruption moral hazard national politics & policies porkbarrel politics too much government

Earmark This Bad Argument

earmarks, ear marks, pork, Congress, spending, corrumption, deals

With President Trump endorsing a return to earmarks, House Republicans too are reportedly “reconsidering” their usefulness and pondering “how they might ease back into the practice.” Lawmakers fret that they have lost too much power by giving up this instrument of corruption. (Not their characterization.)

Wikipedia defines “earmark” as a budgetary provision that “directs funds to a specific recipient while circumventing the merit-based or [competitive] allocation process.” An earmark is a taxpayer-funded goodie bestowed on a congressman’s constituent, the sort of crony willing to contribute to the bestower’s next election campaign in return.

Quid pro quo, pay-for-play, bribery. Whatever you call it, there’s darn good reason why political leaders who fight corruption have fought to end earmarks.

Congressional Republicans imposed a ban on earmarks in 2011 to show that they were anti-corruption. So why relapse? Well, “the time is right,” according to GOP Representative John Culberson, for Congress to prove it can use earmarks responsibly. His bad argument is that the “excesses” of a decade ago were committed by “knuckleheads [who] went overboard.”

Somebody alert Culberson to the fact that many of the same knuckleheads are still in office. Ahem. Congress is not yet term-limited, remember?

The more basic point is that earmarks are by nature corrosive of sound government. President Trump’s only metric is apparently “getting [things] done” as opposed to obstructionism, preferring “the great friendliness” when we had earmarks. Sure, stuff got done — a lot more spending, a lot more bad stuff.

To the extent they’re gone, earmarks should stay gone. The only appropriate action is to make it even harder to bring them back.

This is Common Sense. I’m Paul Jacob.

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Accountability incumbents insider corruption local leaders moral hazard national politics & policies responsibility

Queen Sheila: Terror of the Skies

Congresswoman Sheila Jackson Lee, boarding pass, United, airlines

What’s all the fuss?

Congresswoman Sheila Jackson Lee (D-Tex.) was escorted ahead of all the other passengers onto a United Airlines flight from Houston to Washington, D.C., taking seat 1A in first class.

The congresswoman described it as “nothing exceptional or out of the ordinary.”

Meanwhile, Jean-Marie Simon possessed a boarding pass for seat 1A; she attached a photo to her Facebook post. Yet, Simon was stopped when boarding the plane and told her ticket had been cancelled.

Who cancelled it? United claimed Simon did.

Simon said that’s bunk — and it does seem strange to cancel your flight and then moments later attempt to board.*

“Since this was not any fault of mine,” Rep. Jackson Lee offered, “the way the individual continued to act appeared to be, upon reflection, because I was an African American woman . . . an easy target. . . .”

’Tis the season to cry “racism.”

And yet the congresswoman characterized herself as “kind enough” to apologize “out of the sincerity of my heart” —  and “in the spirit of this season.”

Doubt her kindness? You have reason:

  • In 2014, Rep. Jackson Lee won Washingtonian magazine’s contest for “meanest” member of Congress — garnering, incredibly, seven times as many votes as the second-place finisher.
  • Years ago, after several incidents, Continental Airlines told Jackson Lee that she had to behave or find another airline.
  • “You don’t understand,” the congresswoman once reportedly shouted at a staffer. “I am a queen, and I demand to be treated like a queen.”

Not “Queen for a Day,” mind you: Sheila Jackson Lee has been a congressional queen for the last 23 years! And today she is the ranking Democrat on the subcommittee on transportation security.

Feel more secure?

This is Common Sense. I’m Paul Jacob.

 

* And, if it was truly her own fault, United appears to be overcompensating in compensating Simon, giving her a seat in Economy Plus, a $500 voucher and numerous apologies (though not yet in writing).

 

Additional Background Information
Daily Caller: Congressional bosses from Hell: Sheila Jackson Lee (2011)
Weekly Standard: Sheila Jackson Lee, Limousine Liberal (2002)

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Accountability folly general freedom insider corruption local leaders moral hazard nannyism porkbarrel politics too much government

The Biggest Loser

Illinois, corruption, exit, vote with your feet, taxes

Government is supposed to serve everybody . . . according to good, old-fashioned republican theory. But most governments serve some more than others. We can define as “corruption” any attempt to make government serve a few at the expense of the many — or the many at the expense of the few.

Illinois is corrupt, and most of us can only watch it get worse. But what can we say about those who live under the Prairie State’s thumb? When citizens see an institution slipping out of control, they can remain passive or take charge. Illinois citizens have petitioned for term limits, redistricting reform and a more transparent legislature only to be blocked again and again by the state supreme court.

What more can conscientious citizens, folks I like to call “liberty initiators” do? Well, they can

  • express themselves in criticism as well as offer alternatives;
  • vote thoughtfully and be well informed;
  • consider running for office or work for good candidates;
  • donate money to reform projects.

Alas, these and other expressions of “voice” have not exactly forestalled disaster.

The last resort is to “exit,” leave — vote with your feet.

The population of Illinois has declined. Many have pulled up stakes and fled across the border to Indiana and elsewhere. In the most recent year for which we have data, Illinois lost nearly 34,000 people, more than any other state.*

Unfortunately, this population loss is only an indicator of how bad Illinois State Government is doing. It offers no solution.

Except, of course, for the people who leave.

This is Common Sense. I’m Paul Jacob.

 

* Idaho has experienced the biggest population increase. See Reason’s reportage.

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Accountability free trade & free markets insider corruption moral hazard national politics & policies porkbarrel politics responsibility too much government

Cry Me an Amazon

cronyism, Amazon, taxpayers, black hole

My idea of a “free market” is not our politicians’. Their idea is to give away free stuff to their new and old business buddies . . . at everyone else’s expense.

That sort of “crony capitalism” has been writ large per Amazon’s search for a location for a second headquarters (HQ2). The world’s biggest retailer — valued higher on the market than all other major retailers combined — announced it would spend $5 billion and bestow 50,000 new jobs on HQ2’s locale. Subsequently, 238 cities, states and provinces in the U.S., Canada, and Mexico offered to take from their current citizenry to give unfairly to Amazon.

Chicago’s proposal would allow Amazon to keep the income taxes their employees pay. Seriously. This “personal income-tax diversion” would add up to over a billion dollars for the company.

New Jersey state government offered a cool $7 billion in subsidies should Amazon choose to locate in Newark.

Seattle Times columnist Danny Westneat described this sorry spectacle of subsidy as not so much a corporate “takeover” as a government “surrender.”

The most egregious example, though, has to be Fresno, California, where the city “promises to funnel 85 percent of all taxes and fees generated by Amazon into a special fund. . . . overseen by a board, half made up of Amazon officers . . . supposed to spend the money on housing, roads and parks in and around Amazon.”

“Rather than the money disappearing into a civic black hole,” explained Larry Westurland, Fresno’s economic development director, “Amazon would have a say on where it would go.”

Selling out the taxpayers? Moolah in the millions. Referring to a normal city budget as a “black hole”? Priceless.

This is Common Sense. I’m Paul Jacob.

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