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Accountability ideological culture local leaders moral hazard nannyism national politics & policies responsibility too much government

Minimum Wage Laboratory

Not every popular idea about government policy is good. Or bad. How do we tell the difference?

One way is evidence.

The modern administrative state was promoted heavily by social scientists who thought that piecemeal social engineering should be tested. A few even thought that the older experiment in limited-​government federal republicanism gave Americans a near-​ideal testing ground: “the laboratory of democracy.”*

Activists and politicians have been pushing big increases in the minimum wage in cities around the country. Seattle, Washington, has been one of those, establishing an $11.00/hour legal minimum in April of 2015, then raising that limit by two dollars in 2016. Now the results are in. 

The City of Seattle commissioned a study of “the wage, employment, and hours effects of the first and second phase-​in of the Seattle Minimum Wage Ordinance,” and it shows clear results:

  1. The first hike led to “modest reductions in unemployment” but scant change in over-​all low-​wage employment.
  2. The second hike led to a 9 percent reduction in hours worked at wages below $19/​hour;
  3. a reduction of over $100 million per year in total payroll for low-​wage jobs; and
  4. total payroll losses average about $125 per job per month.

Jonathan Meer, an economist teaching at Texas A&M University, calls this an “unmitigated disaster.” But he notices that a backlash against it was immediate.

To those who object: do you object to the method or the conclusions?

The only halfway plausible rationale for social engineering of this kind — top-​down interventions into markets — has been “social science.” Rejecting evidence is to reject science, which is to reject … the minimum wage idea itself. 

This is Common Sense. I’m Paul Jacob.

 

* The idea is to test policy tried in one location against its goals. What works should be mimicked, but only after the evidence is in and results accepted as good. And dropped in cases where not.


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Accountability general freedom initiative, referendum, and recall local leaders national politics & policies responsibility term limits

Today’s Leaders

We have a new president. Many people put a lot of trust in him — and many more hate him and seek to bring him down. In both cases, presidential politics takes up an inordinate portion of our brain space.

Over the weekend I twice wrote about four heroic senators, standing up to the insiders in their own party. Getting a lot of deserved attention.

But remember: the real leaders are not in Washington, D.C.

Right now, a half dozen issues are undergoing revolution. Legalized gay marriage swept through state after state; meanwhile, Democratic leaders (Clinton, Obama) lent none of their prestige to the cause.*

It was local and state activists who led. And even wide swaths of “the people” were out in front.

Not politicians.

Marijuana legalization has occurred in state after state, mostly by initiative petitioning. It wasn’t the politicians who pushed this through. It was activists. 

And, again, the people.

The politicians — including, now, the new Attorney General — largely obstructed the advance of freedom on this issue.

Much the same can be said for improving police-​citizen relations with mandatory cop cams and transparency protocols. In the past, much the same pattern could be seen regarding term limits and tax limitation measures. In most cases of progress, politicians have actually represented the rear guard.

Which should give us something to think about. We face a looming sovereign debt crisis, the pension system bubble, and ongoing culture wars regarding campus (and general) free speech.

If you think something should be done, minds should be changed, don’t look for a national figure. Look locally. Look to yourself. Go online. 

Master the mechanisms of social change.

This is Common Sense. I’m Paul Jacob.

 

*That is, these politicians “became leaders” on the issue at the point the issue needed no leadership. They remained opposed to change until the last moment, when the direction was firmly set and most of the watershed marks had been made.


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free trade & free markets general freedom local leaders national politics & policies political challengers property rights responsibility too much government

The Real ObamaCare Opposition

Senate Majority Leader Mitch McConnell (R‑Ky) has introduced a bill to compromise between the House’s recent Affordable Health Care Act and the current “ObamaCare” Affordable Care Act. Though there seems to be some “what the heck, go with it” enthusiasm for it on Capitol Hill, it’s not coming from Senators Rand Paul of Kentucky, Ted Cruz of Texas, Ron Johnson of Wisconsin and Mike Lee of Utah.

‘‘Currently, for a variety of reasons, we are not ready to vote for this bill,” their joint statement from yesterday reads. 

Their objections? Well, they agree that there are “provisions in this draft that represent an improvement to our current healthcare system but…”

— and this is a big but

“it does not appear this draft as written will accomplish the most important promise that we made to Americans: to repeal Obamacare and lower their healthcare costs.’’ Their opposition, the Boston Globe tells us, puts the TrumpCare wannabe in jeopardy.

Dr. Rand Paul is the key figure in the opposition. One of Capitol Hill’s ongoing amusements has been to watch the junior Kentucky senator repeatedly pit himself against his state’s senior member — who, the Globe tells us, now threatens “to bring the bill to a vote next week even if he doesn’t have the necessary votes.”

Pressure tactics.

Which you need to put an obviously bad bill through Congress.

Too many mainstream Republican congressmen lack the courage of their constituents’ convictions. They apparently do not really believe that a freed-​up health care system and insurance market can work to the general good.

At least, not in time for the next election.

This is Common Sense. I’m Paul Jacob.


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ideological culture incumbents local leaders media and media people national politics & policies

Monied Hopes Dashed

Democrats had high hopes. Their come-​back after the 2016 defeats seemed near at hand. After all, Trump is proving increasingly erratic and incompetent, and the Republican mis-​handling of the ObamaCare repeal appears to be a disaster of ginormous proportions.

How could they not start taking seats in Congress back? 

There were four open seats requiring new votes this late Spring. “Democrats tried an inoffensive moderate message in Georgia,” CNN’s Eric Bradner informs us. “They ran a banjo-​strumming populist in Montana. They called in the cavalry in South Carolina and tried to catch their foe sleeping through a long-​shot in Kansas.”

Democrats failed, 0 – 4.

Why? Well, the congressional vacancies were made by the new president’s appointments, and he may have targeted those districts that were especially safe. Nevertheless, CNN notes, “[t]he party got closer than it has in decades to winning some of the four seats — a sign they’ve closed their gaps with Republicans in both suburban and rural areas.…”

But there is a lesson here that CNN did not draw from the debacle. The much-​lamented Georgia race, in which Jon Ossoff lost to Republican Karen Handel, was a race in which Ossoff out-​spent Handel six to one in what is called “the most expensive House race in history.” And yet, somewhat oddly and perhaps hypocritically, Ossoff, the bigger spender, went on air complaining about money in politics.

All that moolah did not push him over the top. Ossoff and the Democrats — as well as the feckless Republican majority — might look for fewer excuses and stand for something voters actually want.

This is Common Sense. I’m Paul Jacob.


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Accountability folly free trade & free markets general freedom initiative, referendum, and recall local leaders moral hazard porkbarrel politics responsibility too much government

Go Nats?

Just a few miles away from where I live sits the stadium of the Potomac Nationals. I’m a fan. I’d hate to see the team we call the P‑Nats leave. 

But … Hasta la vista.

The owner of this minor league affiliate of Major League Baseball’s Washington Nationals is demanding a new stadium. He threatens to move out of Prince William County, Virginia, if he does not get it. 

The Prince William County board of supervisors has already expressed interest in floating bonds to raise the $35 million the fancy new stadium would require — with the privately owned team paying the money back, with interest, over the next 30 years. 

Compared to other crony-​ish deals around the country, not such a terrible taxpayer swindle. Still, zillions of wrongs don’t make this right. County taxpayers would be on the hook in case of default. And if the marketplace believed the team could actually make such payments, a bank or other investors would come to the rescue.

Thankfully, a monkey wrench has been thrown into the deal. A county supervisor has proposed that voters should get a chance to decide, via a November referendum. The board of supervisors will consider the referendum tonight. 

Voters should get the final say. But if there is a referendum, as much as I love having the team here, I will vote NO. I don’t cotton to forcing others to pay for my preferred entertainment. 

Government has certain legitimate roles. Subsidizing sports is not one. 

Even if the new stadium would be closer to my home than the old one.

This is Common Sense. I’m Paul Jacob.


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Accountability general freedom initiative, referendum, and recall local leaders

Citizens Triumphant

Last week, the Ohio Constitutional Modernization Commission considered whether to recommend a constitutional change to create an obvious double standard: requiring citizen-​initiated constitutional amendments to obtain a 55 percent supermajority vote, while the very same amendments proposed by legislators would only need 50-​percent-​plus-​one for passage.

I traveled to the capitol in Columbus, joining a room full of Ohio citizens and organizations testifying in opposition. As I explained at Townhall yesterday, after hearing from the people, the Commission tabled the idea.*

For more than four years, the Constitutional Revision and Updating Committee deliberated over how to improve the constitution and came to a consensus in favor of the aforementioned double standard (sent to the full Commission). And yet, at a well-​attended public hearing, no one defended the proposal.

While bias favoring the legislature seemed obvious, commissioners bristled at the suggestion that — established and funded by the legislature — they lacked independence. “If there were one or two legislative members on our committee, that was it,” offered non-​legislator Janet Abaray. 

Actually, four of the nine members on Abaray’s committee are currently state legislators — not one or two. Plus, two more previously served in the legislature. That’s two-​thirds of the committee comprised of current or former legislators.

Moreover, the published minutes provide a peek into the thinking behind the proposed double standard. For instance, “what have emerged lately are initiated amendments to the constitution that are inconsistent with the purpose of the constitution.”

It is the people who will decide what belongs in the people’s constitution — not the legislature.

And not the legislature’s commission. 

That’s the truth that Ohioans spoke to power. 

And power listened. 

This is Common Sense. I’m Paul Jacob.

 

* The commission came to this conclusion with only one dissenting vote.


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