Category: insider corruption

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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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