Category: porkbarrel politics

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Accountability free trade & free markets local leaders porkbarrel politics tax policy too much government

Selling Us Out

Maryland legislature, pork, Amazon, tax break, Jeff Bezos, Senator Roger Manno

Last week, Maryland’s Legislature enacted an $8.5 billion package of tax breaks and infrastructure improvements to lure Amazon into building its second corporate headquarters in Montgomery County, Maryland, bordering Washington, D.C.

State Senator Roger Manno, the only legislator from the county to vote against the subsidy, dubbed it “a $5 billion tax break for the richest man in the world.…”*

Today, the Montgomery County Council will consider a further proposal to streamline its zoning process, cutting in half the time the county takes to review a proposed development.

“We are trying to make sure our processes are consistent with everybody else,” County Executive Ike Leggett explained, adding that the county now “sometimes takes 100 to 120 days, while many other jurisdictions are much less than that.”

Did Leggett say “consistent with everybody else”? Well, the new zoning rules won’t apply to every business, just those planning to hire 25,000 workers. Or more. 

“It’s neutral to the employer,” County Council President Hans Riemer slyly suggested. “It’s a proposal that would allow any really large employer to come in and build under certain terms.”

But only Amazon would be large enough.

“Really what it does is it creates predictability, reliability,” offered Riemer. But wouldn’t every other business also benefit from “predictability” and “reliability”?

“I think the Amazon proposal made the county realize … that it needed to look at some of its practices and where it has been criticized,” noted Bob Buchanan, chairman of the Montgomery County Economic Development Corporation. “We were more process versus results.”

And the county intends to remain that way … for “every” current business.

This is Common Sense. I’m Paul Jacob.

 

* He was referring, of course, to Amazon founder and owner of the Washington Post, Jeff Bezos.

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Accountability folly free trade & free markets general freedom government transparency local leaders moral hazard nannyism porkbarrel politics responsibility too much government

Bailing on Mass Transit

mass transit, metro, cars. low income, recession

Around the country, our major metropolitan transit systems have hit the skids. “Between 2016 and 2017, ridership fell in each of the seven largest transit markets,” the Washington Post informs.

You might guess that the reason for declines in ridership might have something to do with bad planning and poor service. Washington, D.C.’s Metro system, with which I am all-​too familiar, is a horror … run by people I wouldn’t trust to sweep your driveway much less mine, and certainly not to manage how I get between those (or any other) two locations.

But the Post quotes an urban planning scholar who attributes the decline (in part) “to increased car ownership, particularly among low-​income and immigrant populations, who were in a better position to afford cars following the Great Recession.” 

This puts planners in a pickle since, he explains, if “low-​income people are doing better, getting the ability to move around like everyone else, it’s hard to say that what we should do is get them to remove themselves from their cars and back on trains and buses.”

Shockingly sensible — especially coming from a planning specialist. “Transit systems should deliver quality service to low-​income people,” he insists. “But low-​income people do not owe us a transit system.”

Well, maybe that’s the problem, this notion that governments “owe” this service to “low-​income people.”

After all, web-​based services like Uber and Lyft have shown how market innovations provide the best ways to move millions.

This is Common Sense. I’m Paul Jacob.

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Accountability free trade & free markets general freedom government transparency moral hazard national politics & policies porkbarrel politics too much government

Georgia on My Dime

pig, pigliets, crony capitalism, Delta, NRA

After the recent school shooting in Parkland, Florida, followed by pressure from gun control advocates, Delta Airlines announced it would end its corporate relationship with the National Rifle Association, whereby NRA members were given discounts on travel.*

Meanwhile, Georgia legislators were in the process of passing legislation to give Delta a state sales tax break on their fuel purchases. That special legislative deal was worth a whopping $40 million to the Atlanta-​based company.

Yet, when Lt. Gov. Casey Cagle heard about Delta dissing the NRA, he tweeted, “I will kill any tax legislation that benefits @Delta unless the company changes its position and fully reinstates its relationship with @NRA.”

The Lt. Gov. added, “Corporations cannot attack conservatives and expect us not to fight back.” 

Everyone is familiar with the story. Those who favor gun rights were angry with Delta Airlines and ecstatic with the pushback from Georgia legislators. Those favoring new legislation to restrict gun ownership were thrilled by Delta’s break with the NRA and livid with those legislators.

But while cheering and jeering one side or the other, too many folks missed the 800-​lb problem in the room. A letter writer to the Washington Post illuminated it: “The government can’t punish people or businesses for their political views. They can be punished only by the free market, in the form of lost business.”

True enough in the free market.

But when crony capitalism replaces free markets, the government certainly will punish or reward people and businesses — with millions and billions of our tax dollars — on purely political grounds.

Georgia government just did it to Delta Airlines.

This is Common Sense. I’m Paul Jacob.

 

* To be precise, reports claim a grand total of 13 NRA members availed themselves to the special rates once offered by Delta.

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Accountability general freedom ideological culture media and media people national politics & policies political challengers porkbarrel politics Regulating Protest responsibility tax policy too much government

“Our Agenda Was Common Sense”

tea party, nail, coffin, spending, debt, responsibility, dead

The Republican Party doesn’t need to bury the corpse. Its victim has been assimilated, like the Borg did with alien peoples in the Star Trek universe, or maybe it was just soaked up as if the GOP were a giant fungus amongus.

So, what’s dead? The Tea Party, which was killed by partisanship, says Matt Kibbe, President and Chief Community Organizer at Free the People. He admits that the movement’s obituary has been written many times, but, he argues, “this time is different. Republicans, now controlling both the legislative and executive branches, jammed through a ‘CRomnibus’ spending bill that strips any last vestiges of spending restraint from the budget process.”

Kibbe identifies the Tea Party’s central theme simply: “Our agenda was common sense: We demanded that Washington politicians stop spending our money like it was theirs, and keep out of our health care. But in Washington, common sense is often seen as radical.”

This, he insists, was not a partisan movement. 

But only Republicans played to it. Kibbe calls Sarah Palin a “political huckster” who “helped hijack our purpose,” and fingers Mitt Romney as the man who scuttled Tea Party “political momentum” in 2012. “And then Donald Trump split the Tea Party right down the middle, and that was the end.”

Nail in the coffin? The recent budget deal.

Kibbe signs the autopsy, but assures us: “American principles of individual freedom, fiscal responsibility, and constitutionally limited government, are all still very much alive.”

I sure hope so. But it takes more than a handful of Freedom Caucus members on Capitol Hill to realize it in practice.

Like a new citizen movement. 

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 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 general freedom media and media people moral hazard nannyism national politics & policies porkbarrel politics responsibility too much government U.S. Constitution

A Good Tragedy Not Wasted

Amtrak train derailed, Seattle, I-5, infrastructure, Donald Trump

No matter how “not as bad as we feared” President Donald Trump may be appearing, as we close out the year let’s remember why some of us did not trust him in the first place: his knee-​jerk reactions are too often witlessly statist.

The speeding Amtrak train that derailed over I‑5 in Washington State on Monday was a horror show, sure. And we have come to expect the President — any President, either party, all administrations — to provide words of comfort after such events. Trump conformed to expectations.

And, admittedly, his initial Tweet was all very proper. But his verbal response was … very … Old School. After mentioning the federal government’s role in handling the tragedy — “monitoring” and “coordinating with local authorities” — he used the event as an excuse to expound upon the idea that the event provides “all the more reason why we must start immediately fixing the infrastructure of the United States.”

This is bad, old-​fashioned policy opportunism. The worst time to cook up “solutions” is right after a tragedy. That’s when emotions are highest and reason is lowest.

More importantly, the train was going through its initial run over newly upgraded infrastructure!

One could more reasonably surmise that the recent infrastructure upgrade was the cause of the derailment — though, let us be honest, it looks like the train was way above the stretch’s speed limit.

Note to Donald Trump: just because there’s a microphone in front of you doesn’t mean you are required to “make a point.” That’s not the President’s job.

Mister, we could use a man like … Calvin Coolidge again.

This is Common Sense. I’m Paul Jacob.

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

More-​Equal-​Ness

George Orwell, Kaya Henderson, Washington D.C., equal, Animal Farm, favors, corruption, crony, cronyism, politicians,

“All animals are equal,” wrote George Orwell, “but some animals are more equal than others.”

That was the regime’s final slogan in Orwell’s allegorical novella, Animal Farm . . . and it currently serves as the operating principle for local government.

Well, at least in Washington, D.C., our country’s pig trough.

Washington Post reported that the District of Columbia’s Board of Ethics and Government Accountability spelled out the details of its official reprimand of Kaya Henderson, the former chancellor of D.C. Public Schools.

Henderson, the article explained, “violated the city’s Code of Conduct by granting permission for some people — including a White House official, an employee of the mayor’s office, a district principal and a former classmate — to choose the school they wanted their children to attend even though other D.C. families had to go through a competitive lottery system.”

Using one’s position of trust to hijack a public benefit and gift it to one’s cronies at the expense of everyone else is clearly corrupt. Henderson deserves more serious repercussions than a belated reprimand, especially since she has already moved on professionally. She now works as “a distinguished scholar in residence at Georgetown University,” researching “racial justice.”

Ms. Henderson offered weighty reasons for her cronyism. Regarding her special treatment for City Administrator Rashad Young, she offered that D.C. officials “do not necessarily get paid as much as we should.”

Young’s annual salary? $295,000 a year.

Did you also notice she said “we”? As chancellor, Henderson was paid a mere $284,000 a year.

Being “more equal” is nice. It’s especially nice to be friendly with those “more equal” folks, who can bestow a little more-​equal-​ness on you.

This is Common Sense. I’m Paul Jacob.

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