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Accountability

Sinkhole States

What do citizens lack most at all levels of government? Truth in accounting. 

So Sheila Weinberg really has her work cut out. This very morning, her Chicago-based research-tank called, not coincidentally, Truth in Accounting released its annual Financial State of the States report. The new data shows that “the total debt among the 50 states decreased by $62.6 billion in FY 2018 due to a prosperous economy.”

But that’s where the good news ends. “Every state, except for Vermont, has balanced budget requirements,” notes the report, “yet even with these rules in place, states have accumulated more than $1.5 trillion in debt.”

Almost entirely from unfunded pension and employee benefit liabilities. 

“At the end of the fiscal year (FY) 2018, 40 states did not have enough money to pay all of their bills. This means that to balance the budget . . . elected officials have not included the true costs of the government in their budget calculations and have pushed costs onto future taxpayers.”

Put another way: Your government is lying to you.

One interesting feature of the analysis is its top five “Sunshine States” —

  1. Alaska
  2. North Dakota
  3. Wyoming 
  4. Utah
  5. Idaho 

— and its bottom five “Sinkhole States” — 

  1. Hawaii
  2. Massachusetts
  3. Connecticut
  4. Illinois
  5. New Jersey

Fun fact: It just so happens that all five of the top states have a statewide process of voter initiative and referendum, while none of the “sinkhole states” have this democratic check. 

The new online State Data Lab has the skinny on every state. Compare your state against the rest. 

Be brave.

This is Common Sense. I’m Paul Jacob.


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Accountability crime and punishment free trade & free markets general freedom media and media people moral hazard responsibility

Blame the App?

Who spreads “fake news”?

Gossips, politicians, publicity agents, Twitter eggs, partisan bloggers, lying news journalists?

Or . . . the medium of communication they use?

Do envelopes, stationery, telephones, email, and messaging apps have moral agency?

And who commits the crimes that news (true or false) is used to rationalize?

A New York Times story discusses “How WhatsApp Leads Mobs to Murder in India,” which is like saying that civilization, flying lessons and boarding passes “led” terrorists to 9/11.

The Times reports that fake news about children being kidnapped — dramatized by doctored video clips and forwarded via WhatsApp, a messaging app — provoked anger and fear in many Indians. Some were then willing to attack anyone who “seemed” about to kidnap children.

In recent months, dozens of people have been murdered for being in the wrong place at the wrong time.

Without social media and the mega-popular WhatsApp, the murders probably would not have happened, at least not the way they happened. That seems certain. But this doesn’t mean that without WhatsApp, nobody in India would spread false stories or assault innocent people.

Mob violence in the country antedates the Internet.

Perhaps a thousand material circumstances directly or indirectly enable any particular act of wrongdoing. But no such prerequisites “lead to” anything without individual choices.

If someone pretends it’s okay to kill innocent persons — or persons whose guilt or innocence he doesn’t care to know — he, the killer, is the guilty party. The telecommunications network or messenger app used to provide grist for excuse-making is innocent.

Apps don’t murder people. People murder people.

This is Common Sense. I’m Paul Jacob.

 


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Accountability folly free trade & free markets general freedom moral hazard national politics & policies responsibility tax policy too much government

Billionaire Theater

“I need to pay higher taxes,” Bill Gates told CNN’s Fareed Zakaria on Sunday.

He was making a case against Republican tax cuts, but his actual argument? Insignificant. It’s just another unlearned, narrow-perspective “growing inequality” farrago. But his conclusion intrigues . . . as a man-bites-dog story, because people have this goofy idea that rich people are somehow against government and for reduced taxes.

They aren’t. Not even most of the richest.

“I’ve paid more taxes, over $10 billion, than anyone else,” says the man worth $90 billion, “but the government should require the people in my position to pay significantly higher taxes.”

Why? To spend his money better than he could?

Were all the wealth of America’s billionaires confiscated whole and that sum would actually pay off the federal debt (which I doubt), what do you think Washington politicians would do? Go on the straight and narrow and never over-spend again?

No. Politicians would take the new influx of funds as a signal to go on an even bigger spending binge.

But what about his mere income tax increase notion? What then? As sure as the Blue Screen of Death it would be applied down to millionaires, too. And then rates for less-than-millionaires would likely go up. We have a history with this. And what would that do?

It would hit up-and-coming entrepreneurs the hardest. It would nip Bill Gates’s company’s competition in the bud.

But surely Gates wouldn’t be mercenary in his theatrical play for media adoration, would he? 

Not Saint Bill!

This is Common Sense. I’m Paul Jacob.


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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”

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 education and schooling folly general freedom moral hazard nannyism national politics & policies responsibility too much government

Eternally Postponing Responsibility

There is a common sense element to economics. We ignore it at our peril. So let’s take a cue from the Democratic Party’s current and de facto leader, Bernie Sanders.

Turn to Denmark for a model.

The Nordic state has what Bernie wants: higher education “free for all.” But there are . . . costs involved.

It turns out that “some Danes, especially older citizens already in the labor force,” explains Business Insider, “say the extra freedom can eliminate a crucial sense of urgency for 20-somethings to become adults. The country now deals with ‘eternity students’ — people who stick around at college for six years or more [not to mention advanced degree work] without any plans of graduating, solely because they don’t have any financial incentive to leave.”

Hardly a shock. Young Danes would not be the first to see in college life what satirist Tom Lehrer identified as the prolongation of “adolescence beyond all previous limits.”

Give young people an incentive to suck up resources year after year, and some will certainly take you up on that.

It’s hard to counter, too. The Danish “eternity student” problem remains even after taking policy steps to discourage it.

Business Insider ends its report by quoting an expert who insists that “motivation to succeed in your studies is in no way linked to whether you’re paying for your tuition or not.”

Yup, that’s what proponents of “free” education keep telling us. But there is more at play here.

Responsibility is on the line. Adulthood is about responsibility. Free tuition is about postponing responsibility.

Do we really want to go further in that direction?

This is Common Sense. I’m Paul Jacob.


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Accountability media and media people moral hazard national politics & policies responsibility

Asleep at the Constitution

Are we at war in Niger, too? Do our “representatives” in Congress know?

The answer to the first question is, obviously, yes. The answer to the second is, admittedly, no

Yesterday, Meet the Press host Chuck Todd asked hawkish Sen. Lindsey Graham (R-S.C.) what the four U.S. soldiers ambushed and killed weeks ago were doing in Niger. “I can say this to the families,” Sen. Graham offered, “they were there to defend America,” before conceding that, “[W]e don’t know exactly where we’re at in the world militarily and what we’re doing.”

Oh.

Graham acknowledged he had been unaware U.S. military forces were even in the African country. And still hasn’t “been briefed.” Later in the program, Senate Majority Leader Chuck Schumer (D-N.Y.) also confessed his profound ignorance . . . before reading in the newspaper about the deaths of four soldiers there.

Still, Sen. Graham expressed great hope that Sen. John McCain (R-Ariz.) could “create a new system” to ensure that “if somebody gets killed there, that we won’t find out about it in the paper.”

Huh?

Doesn’t Congress’s job description include something about debating and deciding on policies, providing funding, and checking executive power?

Not, surely, cuddling in ignorance and burping up pablum.

Cradled in their long-term careers, our congressional delegates neither debate, deliberate, nor oversee much of anything.

In any case, we can be sure that Congress’s role in our constitutional system is not to scoop reporters to war news.

This is Common Sense. I’m Paul Jacob.


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