Category: moral hazard

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free trade & free markets general freedom ideological culture moral hazard nannyism national politics & policies responsibility too much government

Escape from New York

New York, Cuomo, college, tuition, Bernie Sanders,

“New York City is a walled maximum security prison,” exclaimed posters for Escape from New York (1981, R). “Breaking out is impossible.”

Now, as part of new legislation giving “free college” to New Yorkers, politicians take the same high concept from the film and extend it to the entire state.  

What, you ask, does Escape from New York have to do with free college?

First, it’s not actually free college, but only free tuition for state and city colleges.* And note that tuition costs currently run less than half the price tag of room-and-board, books and fees. Moreover, the freebie is only for students whose parents earn less than $100,000 annually, beginning in Fall 2017. In 2018, the threshold jumps to $110,000 and to $125,000 in 2018.*

Gov. Andrew Cuomo, a likely 2020 Democratic Party presidential candidate, pushed the idea of bestowing free tuition in his State of the State address months ago. He also brought in Vermont Senator Bernie Sanders, who dangled free college during the 2016 campaign and has now introduced legislation in Congress.

But the Empire State Legislature amended the bill. Knowing full well the economic climate created by their previous policies, these venerable solons feared New Yorkers might take the free tuition, earn a degree and quickly move.

To someplace with jobs, perhaps.

So, the legislation requires student recipients of the free money to remain in the state – not escape – for as many years as they received the free moolah.

How will they keep graduates from leaving? Well, the movie trailer hyped that, “The bridges are mined. The rivers are patrolled.”

And those who leave also must pay back the tuition as a loan.

If caught.

This is Common Sense. I’m Paul Jacob. 

 

* There’s also a subsidy program for those attending private institutions of higher learning, if those colleges match the $3,000 the State puts up.

** New York state ranks 16th in median household income, at $60,850 in 2014. Therefore, the cap will deny this benefit to quite a few upper middle class and wealthier families.

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Accountability crime and punishment moral hazard nannyism national politics & policies property rights too much government

What’s Being Forfeited

asset forfeiture, banks, banking, IRS,TIGTA, Bank Secrecy Act

What do you call those who prey upon the innocent, illegally snatching their money?

Thieves? Muggers? The Mob?

Government.

Last month, the Treasury Inspector General for Tax Administration (TIGTA) issued a report on the Internal Revenue Service’s use of civil asset forfeiture against Americans accused — well, not accused . . . more like suspected . . . well, not actually suspected of doing anything wrong, but willy-nilly deemed guilty without charge, judge, jury or conviction — of “structuring.” That’s depositing less than $10,000 in cash into a bank to avoid all the paperwork demanded by the United States Congress at that amount.

Congress passed the Bank Secrecy Act, making structuring illegal, supposedly to trip up drug traffickers and money-launderers. But that is obviously a ruse, as the TIGTA report makes abundantly clear. The IRS is simply snatching money — they won’t tell us how much — right out of individuals’ and businesses’ bank accounts.

Pity the cash-oriented business that doesn’t accumulate at least $10,000 to deposit.

The TIGTA report highlights that an incredible 91 percent of the time, the IRS acted “against individuals and businesses whose income was legally obtained,” and whom the IRS did not suspect of criminal activity. Also, through the IRS’s process of thievery “the rights of some individuals and businesses were compromised.”

Why is the IRS using the law to pilfer from the innocent, instead of the guilty?

As I explained Sunday at Townhall.com, it is easier and more profitable to make “quick hits” against innocent businesses rather than devious criminals.

When those responsible for protecting the innocent from criminals, instead, illegally twist the law to victimize the innocent, it’s called tyranny. And what is forfeited is much more valuable than mere money.

This is Common Sense. I’m Paul Jacob.

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Accountability government transparency initiative, referendum, and recall local leaders moral hazard term limits too much government

Regnat Tyrannis

Regnat Populus, The People Rule, Arkansas, corruption, petition, initiative, House Joint Resolution 1003, SB 689, Governor Asa Hutchinson

Arkansas’s motto is Regnat Populus — “The People Rule.” Unfortunately, the people’s so-called representatives are demanding that this motto be made more fitting: Regnat Tyrannis.

I jest. The Natural State’s legislators aren’t nearly so honest. Just devious.

A few years back, the fine people of Arkansas (where I grew up) had arguably the nation’s most accessible-to-the-people petition process. With it, they enacted issues that legislators despise: term limits, for instance.

But in 2013, legislators passed several bills upping the difficulty and cost of the citizen initiative process.

They’re back.

Yesterday, Senate Bill 698 was passed and now goes to the governor.

Today, the Senate votes on House Joint Resolution 1003, a constitutional amendment for the 2018 ballot. It increases the petition requirement and raises the vote threshold to 60 percent to pass an initiative amendment.*

SB 698 is straightforwardly sinister. When groups gather the voter signatures to place a measure on the ballot, the Secretary of State is required to publish the wording in the legal notice section of newspapers throughout the state. Despite low readership. This bill would make the petitioners pay.

According to a report in the Arkansas Democrat-Gazette, the state spent nearly $2 million publishing the language of these measures in 2016. The old requirement should be repealed, but the new one would be disastrous: Only citizens with deep, deep pockets could pursue ballot initiatives.

A veto is needed from Governor Asa Hutchinson — call him at (501) 682-2345.

As for HJR 1003, Arkansans can find their state senator here. Call early.

My adopted state’s motto is also Latin: Sic Semper Tyrannis.** The good people of Arkansas are welcome to it, until theirs is once again operative.

This is Common Sense. I’m Paul Jacob.

 

* At least, voters can defeat this measure at the ballot box.

** The precise English translation of Virginia’s motto is “Thus always with tyrants.” The common translation is “Death to all tyrants.”

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Accountability crime and punishment free trade & free markets general freedom initiative, referendum, and recall moral hazard nannyism national politics & policies property rights

Good and Bad News

Civil Asset Forfeiture, crime, drugs, marijuana, stealing, theft, police abuse

On the issue of “civil asset forfeiture” — police seizing property from folks merely on suspicion, without a criminal conviction — there is good news.

In Idaho, House Bill 202a just passed both legislative chambers overwhelmingly. “Among other changes, HB 202a would no longer allow civil forfeiture of the vehicle of a person who merely possessed a controlled substance,” explained a Spokesman Review report, “without using the vehicle in connection with trafficking offenses or obtaining it with drug-trafficking proceeds. . . .” It also puts off the table “property that’s merely in proximity to illegal drugs” and the mere possession of cash.*

Legislation is moving forward in Arizona, too. House Bill 2477 passed to the Senate Judiciary Committee last week — which unanimously cleared it despite what the Arizona Republic called “strong opposition from . . . primarily people representing law-enforcement and prosecutors’ groups that benefit from the funds.”

The bill heightens the standard of proof required for making seizures stick from “preponderance of the evidence” to “clear and convincing evidence.” HB 2477 also increases reporting requirements, and creates a process police must follow to spend seized funds.

Unfortunately, there is also bad news.

Even with the new Idaho law and the enaction of the Arizona legislation, police in both states will continue to take people’s stuff without a criminal conviction. The level of abuse would be diminished, but not ended.

Citizens in both states can and should use the ballot initiative process to end this injustice. In total.

We must restore the bedrock principle of innocent-until-proven-guilty.

This is Common Sense. I’m Paul Jacob.

 

* Other provisions include a court determination on “whether a property seizure is proportionate to the crime alleged,” absolving “innocent owners from having to pay the state’s costs associated with an attempted seizure,” and some required record-keeping.

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Accountability government transparency ideological culture moral hazard nannyism national politics & policies political challengers porkbarrel politics responsibility too much government

Legislating in the Real World

Steve Bannon, Trump, Freedom Caucus, big government, Ryancare, Trumpcare, Obamacare

Rolling back Big Government is not easy, especially when you are not that into it.

Robert Draper, profiling Steve Bannon in the New York Times, gives us a view into the mind of Trump’s right-hand man, who appears to think GOP insiders are obsessed with principles. “[I]t’s all this theoretical Cato Institute, Austrian economics, limited government — which just doesn’t have any depth to it. They’re not living in the real world.”

At best, this only fits the Freedom Caucus members, who killed RyanCare. But who is avoiding reality, here?

“Bannon clearly is not as familiar with the mindset of congressional Republicans as he imagines,” counters Jeff Deist, head of the “Austrian” Mises Institute. “They are primarily concerned with how the whole ‘repeal and replace’ debacle plays back home.”

Like Deist, I see the spectacular fizzle of RyanCare as evidence of the increasing irrelevance of Republican compromising. “The GOP is the party of trillion dollar military budgets,” Deist insists, noting that it “won’t even kill an openly cronyist program like the Export-Import Bank.”

If keeping Big Government secure is all Republicans can do, what use are they?

“All around us are the almost unimaginable benefits of markets, cooperation, and technology,” Deist explains, “yet somehow we’re naïve if we don’t want to funnel human activity through government cattle chutes.”

Bannon will not secure solid GOP support if he keeps pushing the usual establishment compromises while pretending they are either realistic or revolutionary. Freedom Caucus Republicans seem bent on doing something Republicans usually avoid: change “the real world” for the better by practically limiting government.

Not just in theory.

Bannon seems to have other goals.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets moral hazard nannyism national politics & policies property rights responsibility subsidy too much government

TrumpCare Trumped

Trumpcare, Ryancare, healthcare, Obamacare, Freedom Caucus, socialism

It took awhile for the Obama Administration to accept the term “ObamaCare.” Nancy Pelosi was the initial driver of the massive scheme to permanently alter American medicine and insurance, and “PelosiCare” would have been a fit moniker for the wildly mis-named “Affordable Care Act.” But the administration put the whole of the new president’s political capital behind it, and the ACA went into law popularly known as “ObamaCare.”

The Republicans pledged to repeal it, from Day One. And repeatedly passed repeal bills, certain to be vetoed by the president named Obama. They needed a Republican in the White House.

Donald Trump ran, in part, on the promise of getting rid of ObamaCare. But upon taking the reins, two things became obvious: Republicans in Congress lacked the guts to repeal the ACA, and even lacked a coherent scheme to alter it.

The new president could hardly be expected to possess the plan they lacked, though on the campaign trail he suggested* the best approach: repeal, then open up insurance markets across state lines. The GOP Congress, on the other hand, was all promise and no clue.

So Speaker of the House Paul Ryan hastily cooked up what was to be the new TrumpCare — a ridiculous reform package with nothing much to say for it.

He failed to gain support from Democrats (of course) and Freedom Caucus representatives.

TrumpCare, trumped, became RyanCare. A failure.

The Freedom Caucus representatives? They breathe freely.

Sure, they “betrayed” the new president, “robbing” him of glory. But they also saved the country from a “reform” in many ways worse than ObamaCare.

This is Common Sense. I’m Paul Jacob.

 

* It’s worth keeping in mind that Trump had been for socialized medicine before running for office. This is why there was no reason to expect policy leadership on his part.

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

Public Record

body camera, police, abuse, civil rights, obstruction, brutality

Police departments nationwide have begun to outfit their on-duty officers with body cameras. These small recording devices make great sense, so we can better judge police encounters.

And it turns out that not only do police behave better when wearing body cameras, so do the citizens with whom they interact.*

Yet, cameras aren’t magic. They do not work when turned off. And video recorded by police offers little value when tampered with or deleted.

On Monday, the Washington Post ran an in-depth feature about the 2014 fatal shooting of 19-year-old Mary Hawkes by Albuquerque, New Mexico, police, who pursued her for allegedly stealing a truck.

The Post explained that her case “has become a cautionary tale about the potential of new technology to obscure rather than illuminate, especially in situations when police control what is recorded and shown to the public,” raising concern “about whether a nationwide rollout of body cameras is fulfilling promises of greater accountability.”

Six police officers huddled in close proximity to the deadly incident — all wearing body cameras. The officer who shot Ms. Hawkes, however, had his turned off. Footage from three others “showed signs of alterations and a deletion.”

A federal investigation is underway.**

It is now obvious that cameras alone won’t suffice. Rules must require that the cameras be turned on — with consequences for non-compliance. The public needs access to the footage, too.

The Police Cameras for Ferguson initiative*** on the ballot April 4th does exactly that. We need similar legislation in Albuquerque and everywhere else.

This is Common Sense. I’m Paul Jacob.

 

* See Barak Ariel, William A. Farrar, Alex Sutherland, “The Effect of Police Body-Worn Cameras on Use of Force and Citizens’ Complaints Against the Police: A Randomized Controlled Trial,” Journal of Quantitative Criminology (September 2015, Volume 31, Issue 3), pp 509–535; reportage on this study can be found here.

** The probe has already revealed that a former Albuquerque police employee has declared, in an affidavit, “it was routine for officials to delete, alter or refuse to release footage because of ‘political calculations.’”

*** Your support is still desperately needed to educate voters in Ferguson, Missouri, about the Police Camera ballot measure. Please help today.

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Accountability free trade & free markets moral hazard national politics & policies political challengers porkbarrel politics responsibility subsidy too much government

Trump Proposes a Budget

Trump, budget, spending, big government, entitlements, welfare, cuts, pig

Will Donald Trump, infamously successful businessman, actually do something about the federal government’s out-of-control deficits and mounting debt?

Economist Pierre Lemieux, writing in the Financial Post, finds some reason for hope in President Trump’s “America First: A Budget Blueprint to Make America Great Again”:

The proposal to eliminate funding for agencies like the Corporation for Public Broadcasting, the National Endowment for the Arts, and the National Endowment for the Humanities is welcome. Artists should be able to stand on their own two feet with the support of private sponsors and organizations, of which there are many in America. Lovers of concerts should finance their own passion.

Though Lemieux gives good reason to want to cut “official arts and humanities” subsidies even sans their budgetary implications, imagine the backlash from Democrats, the media and the whole collegiate sector!

Actually, the backlash has already begun.

Can united government under the GOP cut even these most obviously least necessary aspects of government subsidy?

I’m not holding any pockets of air in my two lungs.

“Many monstrous bureaucracies would be reined in,” Lemieux goes on, listing proposed cuts to the Environmental Protection Agency (-31 percent), Department of Labor (-21 percent), and other departments of the so-called “discretionary” budget. But this is all small potatoes. “Really cutting federal expenditures would require reducing the welfare state — which Trump has no intention of doing.”

And the fortunes Trump wishes to throw at the military? No knack for parsimony there.

Though we can expect a little exceptional hack-and-slashery from Trump, Lemieux remains skeptical of any overall major effect.

Get used to ballooning debt.

Like you haven’t already.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets general freedom media and media people moral hazard nannyism property rights too much government

Of Salt and Socialism

Venezuela, socialism, free markets, capitalism, poverty, celebrities, freedom, repression, starvation

Nearly 75 percent of Venezuelans have lost 19 pounds or more in 2016. “People have become so desperate,” the Miami Herald reported recently, “that they are butchering and eating flamingos.”

While acknowledging the problem, TeleSUR, a television network based in Venezuela and funded by governments including Cuba, Ecuador, Nicaragua, and Venezuela, called the Herald’s story “kooky” and suggested taking reports “like alleged flamingo eating with a grain of salt.”

If, in socialist Venezuela, one could find a grain of salt.

In America, salt is necessary, too, when listening to our socialist Hollywood celebs blather about their kooky diets, for which some are blaming President Trump.*

Socialism kills. The deprivations in Venezuela are no joke, for along with economic chaos, Venezuelans are experiencing political repression on a grand scale. A new report from Luis Almagro, secretary general of the Organization of American States (OAS), documents the thousands arrested for protesting or “having posted something against the national government or a public official on Twitter.” The report details the “curtailment of civil, political and electoral freedoms” and “torture” and “censorship.”

Almagro calls for the suspension of Venezuela’s membership in the OAS, which is long overdue. The Human Rights Foundation demanded that nine years ago.

The Obama administration opposed such a move, as the Washington Post editorialized, in order to pursue “a legacy-making détente” with “the Castro regime in Cuba.”

At Townhall,** I urged Trump to support the effort to boot Venezuela out of the OAS, which might provide some assistance toward political change there . . . and Venezuelans eating more.

And perhaps to socialists in Hollywood and elsewhere eating crow . . . but not flamingo.

This is Common Sense. I’m Paul Jacob.

 

* I covered this last week, when I compared their Trump Diet nonsense to the “Maduro Diet,” named for Venezuelan President Nicolás Maduro, the socialist dictator presiding over the complete economic collapse of what, prior to socialism, had been South America’s richest country.

** From which this Common Sense is adapted.

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folly general freedom ideological culture media and media people moral hazard nannyism political challengers responsibility too much government

Dutch Election Oddities

Netherlands, Dutch, election, Geert Wilders, counting coup, party, parties, political, Freedom Party

There were many strange forces at play in the Netherlands’ elections on Wednesday. In my report, I concentrated on the biggest story, the possibility that Geert Wilders’s Freedom Party might take a huge number of parliamentary seats — though I quoted The Atlantic’s coverage predicting a narrow loss to Mark Rutte’s Liberal Party.

What I did not mention were some of the . . . oddities.

Did you know that Geert Wilders is the only official member of the Freedom Party?

Did you know that there is a 50+ Party in Holland — to represent folks . . . in my age bracket?

Irksome. A party organized just for an age group bugs me almost as much as the most extreme elements of Wilders’s anti-Islamism. But then, all parties bug me a bit, for the same reason the founding fathers desperately feared “factions” . . . that is, political parties. Factionalism turns government into tribal warfare, with legislation counting as . . . counting coup.

But no one in the Netherlands is asking how “bugged” I may or may not be.

The outcome of the March 15 elections? Labour lost the most, and the Freedom Party did not do as well as predicted . . . or feared. Instead of over 20 seats, it won 16, according to Bloomberg (quoting i & o research).

Here’s a not-so-odd oddity: I had to wade through quite a few reports on the election before I found any actual numerical results. The papers all seemed too busy gloating that the Freedom Party failed. I guess that counts as enough reporting. For them.

More evidence that we live in a post-fact society?

This is Common Sense. I’m Paul Jacob.

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Pictured: Ledger drawing of a mounted Cheyenne warrior counting coup with lance on a dismounted Crow warrior, 1880s.