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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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general freedom ideological culture initiative, referendum, and recall local leaders national politics & policies political challengers

Not a Joke

Yesterday, the chief sponsor of a Washington State legislative bill withdrew it. He said it was “a joke.” His co-sponsor wasn’t laughing, however . . . even proclaimed an intent to introduce the bill again next year.

The legislation’s purpose? Split the state into two.

The eastern, drier half of the State is much less populated, and the wet, western half gets its way almost all the time. The bill’s sponsor mentioned his intent: to call attention to the persistent lack of effective representation.

It was not a funny* joke. What he meant, surely, was “a stunt.”

This is just one of many ongoing secessionist movements in the United States. Most represent the eternal struggle between more self-reliant, community-centered and less statist country folk and the more atomized, fearful statists of the cities. But also present is the problem of representation. There is not enough of it. Many people do not have a voice. Hence the desire for exit.

“Voice” vs. “exit” are two crucial aspects of constitutional politics, particularly relating to different kinds of “freedom.”

Many states could use splitting, California, especially.

But exit is not the only option. Representation itself could increase in sheer numbers; California, anyway, has (astoundingly!) too few politicians, er, representatives . . . per residents.

Another key constitutional change would be to set the bar higher to passing new legislation, especially regarding adding tax burdens.

But not for the people. We are best represented by our own votes, which means initiative and referendum rights extended to all states. Citizens of Washington State (still intact) lack the ability to change their constitution by initiative — an important process for future state shape shifts.

This is Common Sense. I’m Paul Jacob.

 

* Originally, the new state’s name was to be Liberty, much better than the states of Tyranny, Servitude and Denial. Now I read that the proposed name is Lincoln, awkwardly tied to our union’s most determined anti-secessionist. That is a bit funny.


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education and schooling folly nannyism national politics & policies too much government

D.C.’s Diaper-Dandy Regulation

Where is child care most expensive?

In America, it is in our shining, shimmering national swamp. Yes, in Washington, D.C., infant care averages nearly $1,900 a month, more than $22,000 a year.

So naturally, if you’re a politician, you see that as too . . . low?

It has been decreed, since last December, that workers caring for infants and toddlers must upgrade their educations to keep their licenses. The District’s brave new world-class day-care regulations, the Washington Post informs us, are designed to put the District at the forefront of a national effort to improve the quality of care and education for the youngest learners.”

Yesterday, at Townhall.com, I provided the details on

  • which day care workers or home caregivers must acquire
  • what type of college degree in early childhood education or,
  • if currently degreed in another field, how many semester credit hours in early childhood education they must have, or
  • whether a Child Development Associate (CDA) would suffice, and
  • by what date . . .

. . . just to keep their relatively low-paying jobs.

You may be shocked, but these new regs do not apply to the politicians and bureaucrats regulating the “industry.”

The costly credentials required to provide child care will certainly raise prices that D.C. parents already can ill afford. And won’t help those newly credentialed, either: “prospects are slim,” the Post admits, “that a degree will bring a significantly higher income.”

In a perfect world, every child-care worker would wield a Ph.D. in early childhood development. Be a pediatrician. As well as a psychiatrist.

And a former Navy SEAL, to fend off terrorists.

But who can fend off this regulatory attack on common sense?

I’m Paul Jacob.


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Illustration based on photo by Carolien Dekeersmaeker on Flickr

 

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Accountability folly general freedom ideological culture media and media people moral hazard national politics & policies too much government

Bring Back the Eunuchs?

“Everybody knows that ordinary Americans are a bunch of idiots,” a Health and Human Services official told Benjamin Ginsberg. “Why do you need to do a survey to find that out?”

Actually, he was not surveying Americans for their IQs and knowledge levels. He was surveying Washington insiders. Like her.

She hadn’t been listening.

Ginsberg and co-author Jennifer Bachner have a new book out, What Washington Gets Wrong (2016). “We found that public officials,” Ginsberg told C-SPAN’s Brian Lamb last month, “the people who really govern this country . . . don’t think much of ordinary Americans.”

Surprise, surprise. This has been an “open secret” for some time. Washington insiders “are wealthier,” “better educated,” and “think ordinary Americans don’t really know very much.” More alarmingly, they think that the government should “not pay too much attention to what ordinary folks think.”

According to Ginsberg and Bachner, this has been a long time coming. Progressive Era reformers transformed government in an effort to make it less partisan.

They succeeded — only to make it less accountable and less . . . American.

In ancient times, great administrative states were run by eunuchs, men gelded to curb their appetites the better to serve their sovereigns (pharaohs; emperors; kings). Not their own interests.

Is it time to bring back the practice?

Just joking. Instead, Congress can tame the bureaucratic leviathan it has created by trimming its ranks and pulling back on pay and benefits until they’re more in line with the private sector.

Let’s hope the House’s recent passage* of the REINS Act, requiring congressional approval of major regulations, is a sign that Congress’s lackadaisical attitude about the bureaucracy is changing.

This is Common Sense. I’m Paul Jacob.

 

* Let’s hope the Senate follows suit.


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Accountability government transparency moral hazard national politics & policies

Secrecy, Conspiracy, and the Sauds

The U. S. cleaves to some bizarre security standards. That is, about secrecy. Critics have been complaining for years about how “liberal” the federal government is in classifying information as secret. Or, put another way, how stingy the government is in providing us with information.

Not liberal at all.

This problem inhabits every nook and cranny of official Washington. But it’s most obvious in the case of 2002’s 9/11 report, from which 28 pages were removed. For reasons of state secrets. And that, as the BBC related this weekend, is the likely cause of much suspicion against Saudi Arabia.

Saudi Arabia? Yes. The country whose sands were walked upon by Mohammad, the Prophet, is also the country that gave birth to 15 of the 18 terrorist skyjackers, as well as spreading the Wahabist spin on jihad throughout the Islamic world.

So, by withholding portions of the report from the public, the government fed the flame of conjecture. And with it, the belief in a Saud conspiracy and a Bush and Obama cover-up.

The withholding of information does not give us a univocal perspective. We don’t know what is being kept from our eyes and ears. So when I read the BBC report, which stated that the “probable publication” of the previously classified parts “will clear Saudi Arabia of any responsibility, CIA chief John Brennan has said,” I get suspicious.

Good, if true. But the timing of this Brennan opinion, on the weekend of the Orlando massacre?

Stinks of spin and deflection by the government, against us . . . who wonder, not without reason, about “conspiracies.”

Should we trust the newly de-classified segments?

This is Common Sense. I’m Paul Jacob.


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Accountability general freedom government transparency ideological culture initiative, referendum, and recall national politics & policies porkbarrel politics responsibility too much government

Ethics First

The biggest problem facing Americans? According to a Gallup poll, for the second year in a row, it’s our government.

Maybe I should say “the government.” Few think it represents us. Which is sort of a big problem for a representative government.

Presidential candidate Donald Trump says our leaders are “stupid.” Were that the case, it’d be easier to correct. The reality is worse.

We have an ethical problem in government. Those entrusted to represent us represent, instead, themselves. And their cronies. And special interests.

Charged with creating a level playing field where we can all succeed through hard work, our elected officialdom have tilted that field. Oh, they’re doing just swell. The rest of us? Not so well.

Elected officials from Washington to state capitols have hiked up their pay, finagled perks, per diems and other bennies, and rewarded themselves with lavish pensions. Meanwhile, most Americans lack even a 401K to help save for retirement, much less a pension beyond a meager (and politician-imperiled) Social Security safety net.

Transparency? Well, it’s not just Hillary Clinton who has conducted public business privately. Even with her scandal looming in the headlines, Defense Secretary Ash Carter confidently did likewise.

Let’s end pensions for politicians, nudging them to return to our world. And let’s change the rules so they work serving the public, not for private gain.

Can we count on our elected representatives to rectify their ethical lapses? Not on your life. We need to do it ourselves, using ballot initiatives to put ethics first.

This is Common Sense. I’m Paul Jacob.


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