Category: insider corruption

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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 general freedom government transparency ideological culture insider corruption moral hazard nannyism national politics & policies responsibility too much government U.S. Constitution

Invulnerable Government

cfpb, Consumer Finance Protection Bureau, director, Richard Cordray, Mick Mulvaney, deep state, administrative state, bureaucracy

As of this week, there are two heads of the Consumer Financial Protection Bureau.

Two claimants to the throne, so to speak.

The bureau’s previous director, Richard Cordray, resigned last week, and as he left he appointed a deputy director, Leandra English. Ms. English sent out a nice Thanksgiving email, billing herself as “Acting Director.”

Meanwhile, in advance of Cordray’s exit, President Trump appointed Mick Mulvaney to fill the role. Mulvaney showed up at work yesterday and took possession of the director’s office. He ordered a hiring freeze . . . and brought donuts.

It gets juicier. English has filed suit against the president and his appointee, claiming to be, herself, the directorship’s rightful heir. She cites the enabling legislation, which allowed for deputization by the director. And she cites her commitment to the agency’s mission, of which Mulvaney and Trump have none.

Republicans generally regard the agency as having gone rogue.

And the squabble over the directorship sure seems to validate that charge.

The legality? Presumably, the legislation that established the agency — which deliberately insulated the CFPB from oversight by funding it from the Federal Reserve — does not void an established law, the Vacancies Act, which does allows the president to fill vacated posts.

Sen. Elizabeth Warren has taken up English’s side in the dispute, because she believes in the agency’s mission.

Now, I get it: to make government as impregnable as a high mountain fortress is an idea that many folks flirt with, from time to time. But the results are always the same: government secure from democratic checks and constitutional balance.

Come on, Democrats! Give democracy a chance.

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment insider corruption media and media people moral hazard national politics & policies responsibility too much government

Congress Bites Taxpayers

sexual harassment, Congress, House Page, Washington, DC, hypocrisy, corruption, taxes,

Is it even humanly possible to be sleazier and more disgusting than the Harvey Weinsteins of Hollywood?

Sadly, and clearly . . . yes. There is the U.S. Congress.

In 2011, after 175 years in operation, the House page program — whereby young people came to work and learn in the capitol — was shut down. Why? For Weinsteinian reasons, because pages were being sexually propositioned and harassed.*

Now, once again, Congress leads the way . . . downward . . . not only into a culture rife with sexual coercion, but also into one with few options for victims and plenty of protections for victimizers. Members of Congress have given more effort to keep complaints quiet and protect misbehavior than to stop misbehaving.

And there’s more . . .

“Between 1997 and 2014,” the Washington Post reports, “the U.S. Treasury has paid $15.2 million in 235 awards and settlements for Capitol Hill workplace violations, according to the congressional Office of Compliance.” That’s shelling out nearly $1 million a year, though the information doesn’t detail how many complaints were for sexual misconduct.

It is despicable when individuals or companies pay hush money to silence accusers, hiding the criminal sexual behavior of powerful men. But, for goodness sake, at least we don’t have to pay for it!

Conversely, Congress’s sexual abuse slush fund comes from you and me, taxpayers.  

Regarding the swirling allegations against Alabama GOP Senate candidate Roy Moore, Sen. Cory Gardner (R-Colo.) argued that Moore “does not meet the ethical and moral requirements of the United States Senate.”

Well, then, he will fit right in.

This is Common Sense. I’m Paul Jacob.

 

* The program ended several years after the Mark Foley scandal — and there were others. The official rationale? A tight budget (stop laughing) and technology, which purportedly made the work pages were doing unnecessary. But note that the Senate continues its use of pages.

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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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Accountability crime and punishment government transparency insider corruption media and media people moral hazard national politics & policies responsibility

Stranger Counsels

special prosecutor, Special Counsel Robert Mueller, Russia, corruption, Trump, Paul Manafort, Rick Gates

The office of special counsel, like that of the special prosecutor in days (and administrations) of yore, is a strange one. Not mentioned in the Constitution, it is institutionally slippery. An executive branch position designed to investigate the executive branch — there is no way it cannot be . . . “problematic.”

Just in time for Halloween, Special Counsel Robert Mueller, tasked with looking into the Russian connections of the Trump administration — particularly electoral mischief* — landed his first fish this week, Paul Manafort and Rick Gates. The two have been charged with, and pled innocent to, twelve criminal counts related to their activities in Ukraine before their association with Trump. There are tax dodging charges, too, including something called “conspiracy to commit money laundering.”

And while the whole bizarre Russia story has now launched into a feeding frenzy, it appears that it just became . . . mundane. “Legal experts said the court filings indicate Mueller is running a serious, deliberative, and far-sighted inquiry,” says The Atlantic.

Meanwhile, the weird relations between the Clintons and Russia loom on the horizon, rather like that smoky monster from the Upside Down on Stranger Things 2.

But hey, none of this is shocking. Troll through the modern state and you will find corruption. You can land all sorts of fish.

Including suckers.

Could we be those suckers?

Since this sort of thing can always be found — and the Manafort skullduggery seems somewhat tangential to Russian electoral influence, despite the man having served a stint as Trump’s campaign manager — is this just a way to get us to look the other direction from anything really meaningful?

This is Common Sense. I’m Paul Jacob.

*And let’s not pretend this is new. Foreign influence was an issue in the campaign of 1800.

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Accountability incumbents insider corruption local leaders moral hazard national politics & policies responsibility term limits

Our Experience with Experience

exit, term limits, experience, Congress, oversight, Senators Jeff Flake (R-Ariz.) and Bob Corker

It seems exceedingly plausible that the longer one serves as a legislator, the better legislator one would become.

Yet voters back home have noticed something: the longer in office, the less representative their so-called representative tends to become.

No wonder that in those states where Americans have been permitted to vote on congressional terms limits, that vote has been a resounding, “Let’s limit ’em!”

In a Washington Post op-ed, Greg Weiner, associate professor of political science at Assumption College, praised Senators Jeff Flake (R-Ariz.) and Bob Corker (R-Tenn.) as “voices for congressional power” and “defenders of congressional prerogative.” He worries their departure weakens Congress as an institution, further eroding a critical check on the president and the executive branch.

“The problem pertains far less to opposition to this president,” Weiner points out, “than to the long-range erosion of congressional resistance to the presidency as an institution.”

This caught my attention because we desperately need Congress to function as a co-equal branch of government and because opponents of state legislative limits* often assert a similar argument: term-limited legislatures are less able to check the power of the governor and executive branch agencies.

“Congress has been in decline for generations,” Weiner acknowledges. What else has been happening over this time? Politicians have been loitering in Congress longer and longer, term after term after term. 

Hmmm. The correlation is between a weakened Congress and more experience, not less.

Let’s further note that Flake is only in his first Senate term and Corker his second.

After nearly four decades in office, is, say, doddering Sen. Thad Cochran (R-Miss.), providing better oversight?

This is Common Sense. I’m Paul Jacob.

 

* The 15 states that have them — Arizona, Arkansas, California, Colorado, Florida, Louisiana, Maine, Michigan, Missouri, Montana, Nebraska, Nevada, Ohio, Oklahoma, South Dakota — contain 37 percent of us.

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