Category: insider corruption

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Accountability government transparency insider corruption local leaders moral hazard national politics & policies political challengers responsibility

Omission of Character

Democratic Party, gubernatorial nominee, governor, Frank Northam, Lt. Governor, Justin Fairfax, racism, politicians

One downside to jumping to the wrong conclusion is that the failure to even look for the correct, accurate conclusion inevitably follows. 

This sleepy odd-year campaign for governor of Virginia has recently been riled by charges of racism. Democratic Party gubernatorial nominee Frank Northam made the “mistake” of “omitting” the party’s candidate for Lt. Governor, Justin Fairfax, from a small printing of literature for union members about the Democrats’ statewide slate. 

Northam is white and Fairfax is black. 

“[A] slap in the face to Justin and to black voters,” is what Quentin James, who runs a PAC working to elect black candidates, called the removal of Fairfax from the literature. He added that it “reeks of subtle racism” and “sends a signal across the state, that we, as black voters, are expendable.”

Noting that black voters make up 20 percent of the state’s electorate, Think Progress dubbed Fairfax’s deletion: “mindboggling.”  

Was this a “dis” and did it really have anything to do with Fairfax being black?

Well, Fairfax labeled it a “mistake,” but his exclusion from the flyer was certainly not inadvertent. It was by clear-eyed design.

The Laborers’ International Union of North America (LiUNA), a $600,000 donor to the coordinated state Democratic campaign, requested that Fairfax be removed from literature their members will distribute. The union is at odds with Fairfax over his opposition to two state pipeline projects the union favors.

So, Northam didn’t throw Fairfax under the bus because Fairfax is black. No sirree. Northam threw Fairfax under the bus to placate a powerful, well-heeled special interest group.

Northam isn’t a racist. He’s just a self-interested, disloyal politician.

This is Common Sense. I’m Paul Jacob.

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Accountability folly ideological culture insider corruption media and media people moral hazard national politics & policies responsibility too much government

Choice Corruption

Harvey Weinstein, donor, democrats, corruption, sex scandal, boycott,

What is corruption? said no jesting Pilate ever.

But please, stay for an answer.

A week ago, Jimmie Moore pleaded guilty to filing a false campaign finance report in order to conceal a $90,000 payment to drop out of a congressional race. Moore is a former Philadelphia judge (heavens). The nearly one-hundred-grand came from the incumbent he was challenging: Congressman Bob Brady (D-Pa.).

Moore, who implicated Rep. Brady in the scheme, now faces as many as five years in prison. Brady, for his part, has yet to be charged.

A pro-life politician’s 15-year tenure in Congress has ended. Tim Murphy (R-Pa.) has resigned following revelations that he had urged the woman with whom he was having an extramarital affair to have an abortion. Additional bad behavior — “a culture of abuse and a culture of corruption” in his congressional office — was detailed in an in-depth Politico exposé.

But for the biggest scandal story, go Hollywood. Movie mogul Harvey Weinstein has been ousted from The Weinstein Company upon allegations that he had committed criminal sexual assaults for decades. As a huge donor to the Democratic Party, questions abound. Which Democrats had knowledge of Weinstein’s behavior and yet remained silent?

That ‘look the other way’ rot has already spread to a media/entertainment institution: Saturday Night Live. Last Saturday night, observers were surprised that SNL did not feature even one joke at liberal Weinstein’s expense.

“It’s a New York thing,” quipped Producer Lorne Michaels when questioned about the omission.*

I’m not big on launching boycotts at every turn. But how could anyone who values evenhandedness turn on SNL next Saturday — or the following — as if nothing had happened?

Who needs these jesters covering for corruption?

This is Common Sense. I’m Paul Jacob. 

 

* Audience members at a rehearsal said there had been a Weinstein joke, which garnered a big laugh, but it was apparently pulled from the live broadcast.

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Accountability crime and punishment government transparency insider corruption local leaders moral hazard porkbarrel politics

Interfering With a Sweet Racket?

Seattle, City Light, corruption, security, police, scandal, cronyism

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 ballot access general freedom government transparency ideological culture initiative, referendum, and recall insider corruption local leaders national politics & policies property rights Regulating Protest responsibility too much government U.S. Constitution

The Great Faction

great fiction, government, citizen, initiative, term limits, Paul Jacob

Politics isn’t a pretty business.

Frédéric Bastiat called the beast it serves “that great fiction” not because it doesn’t exist — intrusive state power sure persists — but rather because what it promises cannot really happen: “everyone living at the expense of everyone else.”

What can we do? How do we counteract a game that is rigged to increase the insanity, not reduce it?

Last week I indicated one thing a minor party with that goal in mind could do: use its power of spoiling elections to change major party behavior, and thus give citizens a fighting chance to restrain governmental metastasis.

Cancer.

I also suggested “blackmailing” the major parties into setting up a system of voting that . . . ends the power to blackmail! I believe that system — ranked choice voting — holds many positives, not the least of which is ending strategic voting, wherein voters are tempted to “falsify” their own preferences and support candidates they might dislike. This is as corrupting to the citizenry as the Great Fiction itself.

Let’s hope a savvy minor party leverages the major parties, gaining reforms to improve the system. Regardless, we can all — independently — push two other limits on political power:

  1. term limits at all levels, and
  2. initiative and referendum rights in all the states, not just the 26 that have it now.

Initiative and referendum rights would give ordinary citizens the leverage to possibly restrain the mad rush to live at each others’ expense. With the initiative, citizens can gain term limits, which produce more competitive legislative elections and lead to fewer legislators captured by the interests loitering in the capitol.

This is Common Sense. I’m Paul Jacob.

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Accountability incumbents insider corruption moral hazard national politics & policies term limits too much government

Most Hated

John Tyler, Trump, hated, leverage, elites, Ted Cruz, Paul Jacob, despised, term limits, unpopular

I was once “the most hated man in Washington.”* Why? For my work on term limits.

I wore the appellation as a badge of honor.

Last year I noted that Ted Cruz had taken up the mantle, but now, certainly, it’s President Donald Trump’s.

Has ever a president been as hated?

Thomas Jefferson was characterized as the Antichrist. Andrew Jackson made many enemies in overthrowing the Second National Bank. But John Tyler is the most interesting case.

President Tyler was a Jeffersonian democrat who took up the office from William Henry Harrison, who died several weeks after being sworn in. Tyler was never accepted as legitimate by — get this — the Whig Party that nominated him. He was dubbed “His Accidency.” After opposing a revival of the national bank notion, there were riots, and his party expelled him. He received hundreds of death threats in the mail. Later he was almost impeached.

Admittedly, Republicans haven’t abandoned Trump — yet. But the Democrats have opposed him from the beginning. And the Entertainment Industrial Complex never ceases to wage a culture war against him. What should the most hated man do?

Make the most of it.

One of his promises was to put congressional term limits into the Constitution. Congress is reluctant. But Trump can do what I couldn’t: use all the powers of the presidency — from the bully pulpit to the veto pen — to leverage those in Congress into proposing a constitutional amendment.

It won’t make President Trump any less hated in Washington, but will win support everywhere else.

This is Common Sense. I’m Paul Jacob.

 

* That was in days of yore, the 1990s, and it was Bob Novak who gave me the appellation. Politicians, lobbyists and other government insiders hate term limits.

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

Cronyism Pays

CATO, FEE, crony, cronyism, Washington, corruption, elites, lobbyist, politicians, privilege, power

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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