Category: moral hazard

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Accountability crime and punishment First Amendment rights general freedom government transparency local leaders moral hazard Regulating Protest too much government U.S. Constitution

Lock Her Up

Deyshia Hargrav, superintendent, schoolboard, Vermilion Parish school board, free speech, government, local government, Lozman v. Riviera Beach, Florida, Supreme Court

“Who Are We?” I asked Sunday at Townhall.com.

Today’s question: What have we come to?

Under a seemingly click-bait headline in The Atlantic, “Can Government Officials Have You Arrested for Speaking to Them?” Garrett Epps examines last week’s outrageous handcuffing and arrest of a Louisiana teacher, Deyshia Hargrave, for speech displeasing to the Vermilion Parish school board at a public meeting.

The elementary school teacher complained about a $30,000 raise the board was giving the superintendent, noting that teachers had not seen an increase in nearly a decade. After asserting that the raise would be “basically taken out of the pockets of teachers,” she was ruled out of order by the school board president and then asked to leave the premises. She calmly left the meeting room . . . only to be forced to the floor, handcuffed and arrested once in the hallway.

Police claimed the arrest was for “remaining after having been forbidden” and “resisting an officer.”

The school district announced it won’t press charges. Very funny. Anyone can see from the video that her treatment was excessive.

Next month, the U.S. Supreme Court will hear oral arguments in Lozman v. Riviera Beach, Florida, where an arrest was clearly retaliatory, but the city is newly claiming another violation it could have used to arrest Mr. Lozman.

Does this after-the-fact adding on of charges provide governments with an escape clause? As Epps argues, a Lozman decision “could either rein in, or embolden, the tiny-handed tyrants who rule county buildings and city halls around the country.”

If respectfully challenging our so-called public servants in meetings designed for that can lead to being arrested, handcuffed and dragged off, we no longer live in ‘the land of the free.’

This is Common Sense. I’m Paul Jacob.

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

Babylon Goes Broke

California, pension, crisis, canary, cage, coal mine, spending, taxes

A few Babylonian, er, California cities going bankrupt — Stockton, Vallejo, and Bell — should be seen as more than dead canaries in a coalminer’s care.

Indeed, you don’t need special prophetic gifts to see the dangers posed by over-promising cushy pensions to government workers. Californians are coming around. And the state’s governor, Jerry Brown, appears to be “calling for reductions in gold-plated, unsustainable public-sector pensions,” as Nick Gillespie informs us at Reason.

But statewide reforms will not be easy. The problem is huge, presenting grave costs. “Absent the ability to alter pensions, states and localities have to devote more and more of their taxes to simply covering the costs of retired workers,” Gillespie explains. “Worse still, they often raise taxes to cover rising costs, typically at the expense of providing basic services such as police and road maintenance.”

Yes, over-promising defined-benefit pension packages effectively distributes wealth away from basic government services and into the pockets of the people with whom politicians work most closely.

Unfortunately, the courts long ago decided that politicians’ promises to employees outweigh basic government duties. That is, the courts determined that “public-sector employees at all levels of government had an inviolable right to the pension benefits that existed on the day they were hired.”

But the courts seem to be lightening up on this “California Rule,” and the governor has dared mention that, come “the next recession,” some headway might be possible.

No matter what you may think of this rather desperate hope, the writing is on the wall. And it is in red ink and numbers, not Babylonian.*

As America’s Babylon is finding out.

This is Common Sense. I’m Paul Jacob.

 

* And not “Mene, Mene, Tekel, Upharsin.”

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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 general freedom moral hazard nannyism national politics & policies privacy tax policy

Hey, It’s Your Money

tax cut, trickle down, supply side, taxes, jobs, employment

I leave it up to you how to spend your own money. You decide, based on your own circumstances and priorities.

Oh, you don’t need my permission?

Of course not.

But some people think that if you spend your own money on your own priorities in accordance with your own judgment, it is indeed a problem. At least when you get to keep more of your own money because of tax cuts.

President Trump has often suggested that recipients of new corporate tax cuts will spend the additional money mostly on increasing wages and hiring new workers. Yet some major corporations reportedly say that they will spend the additional money on paying dividends or buying back shares. Maybe others will buy more advertising, storage space or tools. Various commentators fret. But why should a firm hire new workers if other expenditures would be more productive at the moment?

Of course, in the long run, a company that is more profitable and successful can hire more people and can pay them more.

But wages are not the only expense that companies must cover in order to be successful in the long run. Managers do, and should, devote resources first to the improvements that they conclude are most urgent. That a company’s resources increase because of a tax cut doesn’t alter the necessity or reasonableness of pursuing economic goals in accordance with one’s best judgment.

An approach that, to be sure, also benefits present employees as well as future ones.

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment folly free trade & free markets general freedom moral hazard nannyism national politics & policies too much government U.S. Constitution

The Ninth and the Tenth of It

marijuana, constitution, intrastate, rights, legalization, decriminalization

When Attorney General Jeff Sessions rescinded the Obama Administration enforcement guidelines regarding the states that have legalized (in their 29 different ways) marijuana, last week, supporters of freedom expressed some worry.

But we had to admit, one excuse for Sessions’s nixing of the mostly hands-off policy seemed to make sense on purely legal grounds. If we want to liberalize drug laws, then our Cowardly Congress should do it.

Definitely not the Executive Branch.

And yet, over at the Volokh Conspiracy, Will Baude argues that “the rule of law” does not require “renewed enforcement of the Controlled Substances Act.”

If anything, he argues, it “requires the opposite.”

Baude mostly rests his case on the Constitution’s Commerce Clause, which does not authorize regulation of intra-state trade. An issue on which the AG does possess a duty to weigh in.*

This rubs against FDR-Era constitutional theory, of course, which treats all commerce as regulate-able interstate trade. But this makes no sense. The Tenth Amendment declares that states possess powers not given to the federal government. An interpretation of the Constitution cannot be justified if it effectively nullifies other parts of the Constitution. (If all trade is “inter” state, what’s left for the states? Powers to do what? And how could there be any constraints on federal power?)

And then there is the Ninth Amendment, which states that the people retain rights not listed in the Constitution.

When citizens assert rights — such as the option to cultivate, sell, buy or ingest a common and quite hardy plant — in their states (largely through ballot initiatives), the federal government should butt out.

This is Common Sense. I’m Paul Jacob.

 

* “Members of the executive branch have their own obligation to interpret the Constitution,” Baude writes, “and if a federal law is unconstitutional in part then the executive branch, no less than the courts, should say so. It is the Constitution, not the Court, that is the ultimate rule of law in our system.”

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Accountability general freedom moral hazard nannyism political challengers too much government

How to Prevent Democracy

Maine, petition, signatures, Secretary of State Matthew Dunlap, ranked choice voting

Quick — what is the very first thing government should do this year?

Maine’s Secretary of State Matthew Dunlap has urgent legislation. And just so you don’t get the wrong idea, “It’s really not a shadow effort to restrict the people’s right to petition their government,” he insists. “That is not our intent.”

Got that?

Citing voter and election official complaints — without documenting any specific person or incident — the secretary seeks to “virtually ban” signature gathering at the polls on Election Day. His special bill, L.D. 1726, would create a 50-foot buffer so that voters can get to the polls, cast their ballots, and rush back home without ever being approached by fellow citizens seeking their signatures to place an issue on the ballot.

Polling places, Dunlap thinks, should be more “civilized.”

“State lawmakers in recent years have lamented the number of citizen-initiated bills that have been approved by voters,” explained the Portland Press Herald, “including major changes to marijuana law, voting, taxation and the minimum wage in just the last two years alone.”

Legislators, apparently, do not like following laws enacted by voters.

It is interesting that the Ranked Choice Voting ballot initiative, which Mainers passed last November — and Dunlap strongly opposed — gathered tens of thousands of signatures at the polls. In a statement, that citizen committee declared, “Our constitutional right to direct democracy is under attack in Maine.”

Why would a Secretary of State so blatantly favor politicians over the people? In Maine, legislators choose the Secretary, not voters. It’s a bad system, lacking proper separation of powers.

Removed from the people.

This is Common Sense. I’m Paul Jacob.

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general freedom government transparency ideological culture moral hazard national politics & policies too much government

A Tale of Two Sectors

best of times, worst of times, 2017, 2018, optimism, pessimism

“It was the best of times, it was the worst of times,” begins Charles Dickens’ popular 1859 novel, A Tale of Two Cities. The British master was not prophesying our times. He was describing the period of the French Revolution.

But the judgment feels awfully familiar.

Over at the Foundation for Economic Education, Antony Davis and James R. Harrigan talk up the case for “the best of times,” for optimism: “Global illiteracy rates are below 14 percent. Global rates of extreme poverty are below 10 percent. Despite there being more people currently alive on the planet than ever before, there are also more calories per capita than ever before.”

Davis and Harrigan provide actual reasons for thankfulness as we meet the New Year.

Is there a case for pessimism, nevertheless? Yes. And Davis and Harrigan discuss at length a topic covered here earlier this month: the Ballou High School educational improvement scandal.

Optimism and pessimism, rationally speaking, fall into two camps: private sector progress and government-sector regress.

So, following Dickens’ checklist, ours is an age of

  • wisdom and foolishness —  check (both)
  • belief and incredulity — check (pick your subject)
  • Light and Darkness — check (just move your eyes from higher ed’s hard science departments to the humanities)

and on and on.*

But the most unsettling thing about the “best of times” is that sometimes the great feeling of ebullience can end suddenly: one feels great in free fall — unburdened! free! — right before one hits the pavement.

Splat.

Maybe the best thing we can do this coming New Year is watch our governments as if we were hawks. To avoid the splat.

This is Common Sense. I’m Paul Jacob.

 

* Dickens’ long and memorable first paragraph: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness . . .”

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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 crime and punishment folly general freedom government transparency ideological culture moral hazard Regulating Protest tax policy

Been Burned

IRS, I.R.S., corruption, taxes, budget, tears

“They’ve been burned. They’ve been hammered. They’ve been bludgeoned,” George Washington University law professor Miriam Galston explained to the Washington Post. “They’re trying to survive.”

In this heartbreaking discussion at this special time of year, the “they” are the poor, long-suffering folks . . . at the Internal Revenue Service.

According to the Post analysis, “conservatives” have schemed to “scale back the IRS and shrink the federal government.” (I guess this is supposed to tear at every American’s heartstrings.) Notably, they “capitalized on revelations in 2013 that IRS officials focused inappropriately on tea party and other conservative groups based . . . Among conservatives, the episode has come to be known as the ‘IRS targeting scandal.’”

Note that term of art: episode.

The Post saw no scandal, however — despite the IRS having admitted to harassing, blocking and delaying Tea Party and conservative groups from exercising their most fundamental First Amendment rights to freedom of association and freedom of speech, in some cases for four years.

Instead, the Post decries the response to this gross violation of citizens, a congressional check on the power — and budget — of the agency responsible: reducing the budget for the Exempt Organizations division of the IRS from $102 million in 2011 to $82 million in 2016.

Heavens, Washington is never supposed to work like that! It actually approaches . . . accountability.

The budget cuts, along with hefty settlements the IRS is now paying to victimized groups that sued, make it less likely the IRS will repeat this scandalous . . . episode.

“To many, the IRS targeting of Tea Party and conservative and even some progressive groups is not a scandal,” my Sunday Townhall.com column concluded. “To me, that’s the biggest scandal of all.”

This is Common Sense. I’m Paul Jacob.

 

N.B. The title reference is to Neil Young’s song, Burned, which begins, “Been burned, and with both feet on the ground . . .”

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IRS, I.R.S., corruption, taxes, budget, tears