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A Good Tragedy Not Wasted

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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Interfering With a Sweet Racket?

One way for governments and enterprises to save money is to contract out some or all of their services. Towns, cities, counties, states — even the federal government — engage in such practices all the time.

It is really just outsourcing, as business lingo dubs it.* But, like any system for shifting responsibility away from direct management, it can be corrupted.

As Seattle citizens now learn, courtesy of Seattle Times reporters Mike Carter and Steve Miletich.

It appears that Seattle City Light, the public utility providing electricity to the city, has been contracting exclusively with Seattle’s Finest Security & Traffic Control. For a half a decade. Despite there being direct competition from another firm.

The utility paid “more than $7.8 million over the past five years to provide off-duty police officers for traffic control or security work,” the Times tells us.

The whole story came to light (no pun intended) when a new outfit offering similar services, but based on “gig economy” principles, sought to enter the market. Seattle’s Finest challenged the firm’s licensing, and, allegedly, directed abuse at the firm’s chief executive officer.

A Seattle detective off-handedly described the dominance of Seattle’s Finest “in organized-crime terms — using the word ‘mafia’ — and said nobody would be allowed to interfere with it.”

The FBI has now been called in.

Usually, local government may seem rather humdrum. But a lot of money can go through powerful, privileged hands. Things can get exciting. Terms like “murky” and “intimidation” abound.

Is this a surprise?

Remember: power corrupts; local power corrupts locally.

Right there where we live.

This is Common Sense. I’m Paul Jacob.

 

* An economist, R. H. Coase, got a Nobel Prize in no small part for explaining why this sort of contract can work better than establishing a complete firm-employee wage system.


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Accountability crime and punishment general freedom local leaders moral hazard nannyism national politics & policies privacy property rights responsibility too much government U.S. Constitution

The Minimal Use of a Finger

Drivers in Washington State have a new law to . . . swerve from?

“New distracted driving law starts Sunday, July 23,” the Washington State Department of Transportation (WSDOT) tweeted last week. “The law forbids,” Washingtonians were told,  “virtually all use of handheld gadgets such as phones, tablets, laptop computers and gaming devices while driving.”

The idea is to prevent accidents. Though distracted driving’s danger has been contested, texting while driving certainly seems a kind of crazy.  

Thankfully, it’s possible to talk “hands free.”

Which, it turns out, the new law does allow. Drivers may activate and de-activate hands-free devices (and apps) with the “minimal use of a finger.”

Eating and drinking while driving are also disallowed, but those are “secondary offenses,” which police are not allowed to pull you over for.

At this point, another meaning of “minimal use of a finger” may occur to some readers. What starts out as secondary offenses have been known to be upgraded, legally and practically, to primary offense status.

Does a shiver runs down your back?

Yet another rule! More fines!

More interactions with police.

And if all this doesn’t feel “police state-y” enough for you, there is argument in Seattle about whether pedestrians should be prohibited from “distracted walking.”

Yes, some are actually considering that.

I’m reminded of an argument against socialism: government-run enterprises tend to be run “ruthlessly and with special attention to prosecution (and overburdening) of the poor.” Why would anyone want such techniques writ society-wide, in every sector?

Meanwhile, we apparently must live and drive with more rules and more fines and more harassment.

This is Common Sense. I’m Paul Jacob.


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Accountability folly free trade & free markets general freedom local leaders moral hazard nannyism national politics & policies property rights responsibility too much government

Against Flexibility?

Do politicians have any idea what they are doing?

In Oregon, Senate Bill 828 just passed the Senate and is now being favorably reviewed in the House. The law would require “large employers in specified industries to provide new employee[s] with estimated work schedule and to provide current employee with seven days’ notice of employee[’s] work schedule.”

But will the measure help employees? Really?

The notion is called the “Fair Work Week.” Pushed by Democrats, it has gained bipartisan support. The basic idea: allow time (under full force of law) for workers to manage their own schedules and personal economies.

Trouble is, in the name of making work easier to manage, it attacks flexibility.

Which is something many workers want. More than notification.

Indeed, the study commissioned by the City of Seattle for their similar regulatory scheme acknowledged that reducing flexibility is not necessarily a godsend for workers.

“A more predictable schedule,” the report noted, “is not always one that an employee would prefer. A schedule known with certainty is a cold comfort if it yields too little income to survive.”

The report went on to explain that many of the labor market’s scheduling inconveniences are themselves the result of other government regulations, such as ObamaCare.

Christian Britschgi, writing at Reason, predicts that passing the Oregon law would mean “a fairer worker week” for some, but for others, “no work week at all.”*

Meanwhile, the Seattle study noted that it was workers in small businesses who are most likely to be discomfited by last-minute scheduling changes. The Oregon law applies only to big businesses.

This is Common Sense. I’m Paul Jacob.

 

* A standard, negative consequence of most “well-intended” legislation.


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Minimum Wage Laboratory

Not every popular idea about government policy is good. Or bad. How do we tell the difference?

One way is evidence.

The modern administrative state was promoted heavily by social scientists who thought that piecemeal social engineering should be tested. A few even thought that the older experiment in limited-government federal republicanism gave Americans a near-ideal testing ground: “the laboratory of democracy.”*

Activists and politicians have been pushing big increases in the minimum wage in cities around the country. Seattle, Washington, has been one of those, establishing an $11.00/hour legal minimum in April of 2015, then raising that limit by two dollars in 2016. Now the results are in.

The City of Seattle commissioned a study of “the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance,” and it shows clear results:

  1. The first hike led to “modest reductions in unemployment” but scant change in over-all low-wage employment.
  2. The second hike led to a 9 percent reduction in hours worked at wages below $19/hour;
  3. a reduction of over $100 million per year in total payroll for low-wage jobs; and
  4. total payroll losses average about $125 per job per month.

Jonathan Meer, an economist teaching at Texas A&M University, calls this an “unmitigated disaster.” But he notices that a backlash against it was immediate.

To those who object: do you object to the method or the conclusions?

The only halfway plausible rationale for social engineering of this kind — top-down interventions into markets — has been “social science.” Rejecting evidence is to reject science, which is to reject . . . the minimum wage idea itself.

This is Common Sense. I’m Paul Jacob.

 

* The idea is to test policy tried in one location against its goals. What works should be mimicked, but only after the evidence is in and results accepted as good. And dropped in cases where not.


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Sin, Soda and Say

Government policy in Seattle, Washington, is being driven by an outright socialist on the city council. The mayor, apparently starving for attention, proposed a goofy new sin tax last year.

Now, writes Reason’s Baylen Linnekin, “Seattle lawmakers are expected to vote early next week on a citywide soda tax that would add more than $2.50 to the cost of a twelve-pack of soda.”

The tax’s proponents’ rationale is too familiar: sugary sodas are bad for us, so we must be discouraged from drinking them.

Besides, politicians want to spend our money.

The problem, of course, is that the more successful they are at the first task, discouraging the ‘sin’ itself, the less revenue for them to throw at voters to prove their ‘caring’ nature . . . and buy votes.

But it is not as if those are the only competing factors involved. “The tax would undoubtedly drive consumers,” writes Linnekin, “to buy more groceries in the city’s suburbs.” Bellevue and Kirkland are nice towns. And nearby.

Arguing for a tax like this — as a social engineering mechanism — is not only crude, but flies in the face of the very best wisdom, that of Jean-Baptiste Say:

A tax can never be favorable to the public welfare, except by the good use that is made of its proceeds.

But elitist nannyism corrupts politicians, who make it their job to steer our consumption.* And they tend to be resistant to the “best scheme of finance,” which is, as J.-B. Say put it, “to spend as little as possible; and the best tax is always the lightest.”

If the tax goes in, Seattleites, drive to out-of-town Costco or Walmart.

Then drive your greedy nannies out of office.

This is Common Sense. I’m Paul Jacob.

 

* Considering the mayor’s push to include diet sodas in the sin tax, how competent at this are they? It’s the sugary drinks that are known killers, but the diet drinks are mainly imbibed by wealthier folks. The mayor wants to appease the socialist on the council, and pointedly not favor the “privileged.”


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