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

More-Equal-Ness

“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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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 insider corruption moral hazard national politics & policies porkbarrel politics too much government

Cronyism Pays

Daniel Mitchell, a senior fellow in fiscal policy at the Cato Institute, is a nice guy. But he’s sort of depressing, too.

Weeks ago, writing for the Foundation for Economic Education (FEE), Mitchell offered that “The Washington, DC Gilded Class Is Thriving.” He even provided a “depressing chart” graphing “median inflation-adjusted household income for the entire nation and for the District of Columbia.”

There is a graphic divide: while “the nation’s capital used to be somewhat similar to the rest of the nation . . . over the past 10 years, DC residents have become an economic elite, with a representative household ‘earning’ almost $14,000 more than the national average.”

Dan Mitchell highlights that “the entire region is prospering at the expense of the rest of the nation.” Among the nation’s counties, the top four wealthiest are in suburban Washington, D.C. The nation’s capital region boasts nine of the country’s top 20 richest counties.

Now Mitchell’s back with another FEE column exclaiming more bad news: “The ROI for Cronyism is Huge.” (ROI is “return on investment.”)

Mitchell cites a study entitled, “All the President’s Friends: Political Access and Firm Value,” conducted by University of Illinois professors Jeffrey R. Brown and Jiekun Huang. “Using novel data on White House visitors from 2009 through 2015,” they explain, “we find that corporate executives’ meetings with key policymakers are associated with positive abnormal stock returns. . . .”

The authors find a lot evidence showing that “political access is of significant value to corporations.”

None of this should surprise. Cronyism pays, and it sticks close to power, even geographically.

This is Common Sense. I’m Paul Jacob.


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Accountability free trade & free markets insider corruption media and media people national politics & policies porkbarrel politics

Crony Carrier

Sure, I’ve complained about the over-the-top anti-Trump bias of much of the mainstream media (which may actually have improved Trump’s public standing). But, today, I enthusiastically celebrate that supercilious slant.

Why? Because it means much of the media amazingly finds itself on the right side, panning the recent deal to save 1,000 jobs at the Carrier Corporation.

Saving jobs is good per se. We want jobs to stay here in America. But, at what price?

Thus far, the deal remains secret, but according to Politico, “The agreement reportedly includes $7 million in state tax breaks over ten years offered by the Indiana Economic Development Corporation, a quasi-public entity that doesn’t require legislative approval for its deals.”

“Quasi-public entities” always make me queasy.

“Can American companies now merely threaten to go to Mexico,” asks Chris Rossini in the Ron Paul Liberty Letter, “in order to get a sweetheart deal for themselves?”

This special arrangement’s costs are not merely monetary: Special deals for some companies at the expense of others undermine the whole concept of equality under the law.

File under: crony capitalism.

Even the socialists at The Nation say the agreement “epitomizes corporate socialism at the expense of American taxpayers.”

“I certainly think that, if President Obama had done something like this, conservatives would have been freaking out,” argues Reason’s Peter Suderman.

Many are. Well, maybe not exactly “freaking out” — but vocally opposing the idea of the not-quite-yet-president picking winners and losers in the marketplace.

Crony capitalism didn’t make America great. Our revolution’s justification prompts the antithesis.

This is Common Sense. I’m Paul Jacob.


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