The Virtue of Libertarian Consistency

25 Wednesday Nov 2015

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"Legitimized" Aggression, American Civil Liberties Union, Classical Liberalism, European Conservatism, Friedrich Hayek, Fusionism, Jonah Goldberg, Libertarianism vs. Conservatism, National Review, Non-Aggression, Non-Coercion, Public goods, Role of Government

Many on the Right of the political spectrum sincerely believe that they hold libertarian views. They might be close on some economic matters, but only some, and not on a host of social issues. Fewer on the Left make the same mistake, but it happens. Some uninformed lefties might imagine that the American Civil Liberties Union (ACLU) is representative of libertarianism, and occasionally the ACLU does take positions consistent with libertarian views. Many of these individuals, left and right, probably self-identify as libertarian only because they think it “sounds good”. After all, the root “liberty” might ring a compelling (if distant) bell, but perhaps I’m congratulating myself.

Jonah Goldberg, the conservative senior editor of National Review, wrote an interesting article a few weeks ago called “Fusionism, 60 Years Later“. In it, he describes the historical relationship between libertarianism and conservatism. Fusionism, Goldberg says, is the longstanding effort to find common ground between these two camps. He contends that most support for libertarian ideas comes from Conservatives:

“In other words, conservatives tend to be libertarian, but libertarians tend not to be conservative. …libertarians want to have their own identity, separate and distinct from that of conservatism. They’re a bit like the Canadians you meet abroad who go to almost obsessive lengths to show everyone that they aren’t American.“

I got a laugh out of that quote because it contains a grain of truth, but Goldberg knows all too well that there are substantive differences between Libertarians and Conservatives on the role of government. There are not-so-subtle departures on the basic role of government in regulating personal behavior. Libertarians, of course, believe that government almost never has a legitimate role in that area, with exceptions for the prevention and redress of various forms of aggression. Another difference is that Conservatives, like the political Left (not a typo), often favor government promotion of private business objectives, including protectionist anti-trade legislation, policies which Libertarians consistently oppose. And unlike Libertarians, Conservatives make a glaring exception to their avowed dedication to small government in their support for massive military outlays and foreign incursions in the name of protecting vital U.S. interests, which usually amount to safeguarding private economic interests abroad.

Nevertheless, Goldberg contends that Libertarians and Conservatives are all classical liberals, defined broadly:

“The Founding Fathers were all classical liberals, but … they were largely conservative in manners, morals, and faith. Their conservatism was not labeled as such because it suffused the culture and was simply taken for granted. …

Until the middle of the 20th century, the conservative side of the classical-liberal tradition in America was not cultivated the way the libertarian side was, in large part because no one thought it needed to be cultivated.“

That may be, but it does not diminish the differences that exist. Insofar as “conservatism” is about the preservation of certain institutions, such as private property, free speech, and other individual liberties, then there are areas of commonality between Conservatives and Libertarians, but full “fusion” is impossible if Conservatives cannot consistently recognize the appropriate limits of government. The power of government derives from its police power, or “legitimized” aggression to accomplish public objectives. That power must be restrained by adherence to the kinds of checks embodied in the U.S. Constitution.

Here is a quote from Goldberg’s piece giving just a bit too much relative credit to Conservatives on the subject of morality:

“… conservatives borrowed heavily from the libertarian tradition, but they also borrowed from the religious, patriotic, and moral arsenals of the Founders. That is why the libertarians have stood apart like Coptic Christians, who claim a lineage and authenticity that needs no sanction from the larger, more powerful, and more syncretic Catholic Church.“

The libertarian philosophy is grounded in two moral principles to which I’ve already referred: liberty and non-aggression (or non-coercion). The liberty of individuals is sacrosanct (as it was to the Founders) but does not extend to physically aggressive actions, including any form of theft. Liberty includes freedom of speech (the notion of “micro-aggression” is unlikely to carry much (if any) weight with most libertarians) and the freedom to defend oneself. Defined properly, aggression includes the imposition of external costs on others, such as unchecked pollution of the environment.

Ideally, “legitimized” aggression or coercion by the state extends only to preventing aggression by private parties or foreign aggressors, and to the revenue collection necessary to provide public goods desired by the polity. Defining strict limits on aggression by private and public parties provides a direct mapping to the broad extent of liberty. In other words, non-aggression itself implies liberty.

The libertarian philosophy provides a moral framework that exists comfortably alongside a wide range of religious beliefs as well as atheism. However, it cannot be denied that differing religious beliefs among libertarians often inform different positions when the rights of individuals stand in conflict.

There is no reason to assume that Libertarians lack patriotism, as Goldberg comes close to implying. However, patriotism should never be used to justify aggression, whether that involves limiting expression or unnecessarily entering into conflicts abroad. So Goldberg is stretching when he credits Conservatives with a better grip on moral or patriotic principles than Libertarians.

Goldberg ends his piece with misgivings about the potential for Donald Trump to hijack the conservative movement, and in this I am sympathetic. About Trump, he says:

“He makes little or no effort to celebrate conservatism as a defense of the American tradition of liberty. He never talks about the Constitution, nor plausibly about religion. He makes scant mention of freedom. Instead, he taps into deep reservoirs of resentment and a kind of nationalism that has little to do with patriotism rightly understood.“

Goldberg’s piece serves as a reminder of Friedrich Hayek’s great essay, “Why I Am Not a Conservative“. While not referencing this essay explicitly, Goldberg mentions that Hayek and other European political philosophers have known a different kind of conservatism than what we know in the U.S. In Europe, conservatives:

“... sought to conserve the absolute rule of Church and Throne. The American Founders sought to overthrow even the partial rule of Church and Throne. And therein lies all the difference. In Europe, conservatism was understood as the opposite of classical liberalism. The reverse was the case in America, as Friedrich Hayek observed: ‘What in Europe was called ‘liberalism’ was here the common tradition on which the American polity had been built: thus the defender of the American tradition was a liberal in the European sense.’“

Point well taken, and Hayek understood that difference all too well. His essay focuses on certain unflattering aspects of conservatism that ring true of the American version as well, including certain nationalistic and authoritarian tendencies, and a penchant for government involvement when it suits them:

“… neither moral nor religious ideals are proper objects of coercion, while both conservatives and socialists recognize no such limits. I sometimes feel that the most conspicuous attribute of [classical] liberalism that distinguishes it as much from conservatism as from socialism is the view that moral beliefs concerning matters of conduct which do not directly interfere with the protected sphere of other persons do not justify coercion.“

My attraction to libertarian philosophy has much to do with the simple appeal of liberty and the ugliness of aggression. However, I think my original attraction to libertarianism was strongly related to the superiority of market forces as a form of social organization. Market forces cannot operate very effectively without liberty, and the healthy maintenance of liberty is facilitated by the superior resource allocation made possible by market forces. What a beautiful symbiosis!

In Praise of Refugee Aid and Precautions

23 Monday Nov 2015

Posted by pnuetz in Immigration, Terrorism

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Davis Bier, Director of National Intelligence, Foundation for Economic Education, Glenn Reynolds, Homeland Security, Ian Tuttle, ISIS, James Comey, National Counterterrorism Center, National Security, National Sovereignty, Open Borders, Paris Attacks, Pew Research, Private Refugee Sponsorship, Refugee Vetting Process, Syrian refugees, Terrorism, Virtue Signalling

Libertarians differ from conservatives on the Syrian refugee issue and on immigration policy in general. I’m in favor of liberalized immigration because it confers powerful economic advantages. That does not imply, however, a willingness to sacrifice border security and control over the flow of immigrants. Border security is critical to the notion of U.S. sovereignty, and though I am loath to do so, I will credit Donald Trump for asking two pertinent questions: “Do we have a country? Or do we not have a country?” This is all the more important in an age when terror on the scale of a 9/11, Paris, or terrorist use of WMDs is a threat.

One of the few legitimate functions of government is national security, and the U.S. Constitution sought to assure that security would be provided without compromising the liberties of individual citizens. I’d like outsiders to feel welcome to join us and partake of those liberties, but only subject to precautions related to security. Given current threats, it is reasonable to insist on deliberation and caution in admitting new immigrants and refugees. That should include a careful vetting process and possibly post-entry safeguards such as mandatory touch-points with immigration and security officials.

Recent commentary on both sides of the Syrian refugee debate has featured conservatives waxing enthusiastic over police-state security measures and cavalier dismissal of security concerns by the Left, including a moment of apparent delusion from The Daily Kos when it weighed-in on refugees and certain principles of religious ethics, probably not that outlet’s strong suit. The Left’s usual approach to commentary on social media amounts to an exercise in “virtue signaling” (HT: Glenn Reynolds) without much critical thought, and this is no exception.

Refugees or asylum-seekers may need expedited initial handling for their own safety and protection. The tumultuous experience of fleeing a hostile regime without adequate planning, and possibly involving the loss of loved ones and possessions, suggests a need for greater assistance for refugees than for typical immigrants. The expense of a large influx of refugees is likely to be high. A solution used successfully by Canada involves private sponsorship of refugees, and there are apparently a large number of Americans willing to serve as sponsors. It is possible to vet the sponsors, of course, and might provide more reliable follow-up with the refugees themselves.

Certain classes of immigrants may be considered high-risk, though refugees have not been high-risk historically. This is one of several points made by Davis Bier at the Foundation for Economic Education in “Six Reasons To Welcome Refugees“. Bier provides a good perspective, but I don’t accept all of his assertions. He says (italicized):

The Paris attackers were not refugees: No, but at least one of them seems to have taken advantage of the European refugee process.
U.S. refugees don’t become terrorists: You can certainly vouch for this in the past tense, but it’s less certain going forward. The complete lack of documentation of many Syrian refugees complicates the vetting process.
Other migration channels are easier to exploit: Probably true, if the claimed thoroughness of the refugee vetting process is to be believed. Also, the resettlement from temporary camps can take two years or more, but that kind of delay is not required.
ISIS sees Syrian refugees as traitors: This reinforces the need to protect refugees, but it strikes me as irrelevant to the question of terrorist infiltration. A better question is whether ISIS is capable of passing-off one of their own as a refugee.
Turning away allies will make us less safe: It certainly won’t win us friends.
We should demonstrate moral courage: Helping legitimate refugees is certainly an honorable thing to do. The author points to American resistance to accepting Jewish refugees prior to World War II for fear they might be German spies. This is addressed in more detail below.

A different perspective is given in “There Are Serious, Unbigoted Reasons to Be Wary of a Flood of Syrian Refugees“, by Ian Tuttle in National Review. He asserts that the comparison of current Syrian refugees to Jewish refugees prior to WWII is inappropriate, and I largely agree. The infiltration of German spies into the Jewish refugee population was a perceived threat, but no one thought the Jews represented a risk of terror on our shores. There is nothing incompatible about feeling regret for the attitude many took toward the Jewish refugees of that era while exercising caution in the face of new risks.

Tuttle cites a recent Pew Research poll of Muslims in various countries finding that 4% to 14% of respondents approve of ISIS. Can you imagine a similar level of support for terrorism in the U.S.? This is an unfortunate social malignancy that should give us pause. Another Pew Research poll of Muslims in various countries found that the minority who believe that suicide bombing was justified ranges from 3% to 45%. It is therefore difficult to argue with Tuttle when he says:

“A non-trivial minority of refugees who support a murderous, metastatic caliphate is a reason for serious concern.“

Tuttle notes that Syrian refugees will not arrive on our shores directly from Syria. Thus, the urgency of accepting those refugees comes into question. It is curious that such wealthy middle eastern countries as Kuwait and Saudi Arabia have not accepted refugees from Syria.

Given the immediacy of terrorist threats, the lack of even basic documents for many Syrian refugees, and the Obama Administration’s record of failure in the Middle East, it is reasonable to question their assurances as to the adequacy of the refugee vetting process. Indeed, as this article warns:

“The director of the National Counterterrorism Center admitted that terrorist groups are very interested in using refugee programs to slip operatives into Europe and the United States. …

The director of Homeland Security had no answer when asked if the “vetting” process amounted to anything more than asking refugees to fill out an application, asking them a few questions in a verbal interview, and assuming they answer honestly….

FBI Director James Comey famously admitted last month that the U.S. government has no real way to conduct background checks on refugees.”

A substantial majority of American voters oppose the administration’s plan to accept Syrian refugees, at least under the current process. Last week, the U.S. House of Representatives passed a bill requiring that:

“… the heads of the FBI, Homeland Security Department and the Office of the Director of National Intelligence certify that each refugee being admitted would not pose a threat.“

It would be nice to have our security agencies accept some accountability for, well, national security. The House bill would put the ball in their court with respect to high-risk refugees.

I concur with the general position of Libertarians who support a more open U.S. immigration policy and acceptance of refugees. I also believe that private sponsorship of refugees should be legalized in the U.S. to reduce their fiscal impact. And I believe we should welcome Syrian refugees provided that they can be thoroughly vetted. In the parlance of economics, transacting with refugees may involve severely asymmetric information. It is not advisable to make risky “trades” when due diligence is impossible. Short-cuts in the vetting process do not help to assure a mutually beneficial outcome. We must therefore temper our humanitarian impulse. Under the present circumstances, including an acceptance of terrorism by a “nontrivial minority” of Muslins, it is reasonable to proceed with caution, and only with caution.

Climate Negotiators To Discuss Economic Cannibalism

18 Wednesday Nov 2015

Posted by pnuetz in Global Warming

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AGW, Anthropomorphic Global Warming, Bjorn Lomborg, Carbon Emissions, Climate Change, COP 21, Don Boudreaux, economic growth, Foundation For a Positive Planet, Global Carbon Budget, Industrial Pollution, IPCC, Kuznets Curve, Manhattan Institute, Natural Pollution, Oren Cass

There is virtually zero chance that the coming round of international talks on climate change will produce a substantive agreement. The United Nations’ 21st Conference of the Parties (COP 21) on Climate Change is scheduled will be held in Paris, France from November 30 to December 11. The failure of earlier conferences to produce a meaningful pact informs us of the low odds of success: this conference, like the others, will be unproductive in any real sense. As in the past, there are severely conflicting objectives among the parties. Oren Cass explains the reasons in a recent report from the Manhattan Institute, “Leading Nowhere: The Futility and Farce of Global Climate Negotiations“:

“… there is no plausible path to an agreement premised on collective action or compensation: developing nations that must bear the brunt of emissions reductions in any successful scenario cannot achieve those reductions while pursuing rapid economic growth; developed nations cannot sufficiently compensate developing ones for forgoing such growth. Evidence from recent negotiations, as well as preparations for the next round of talks, reinforces this conclusion. … [A] third path to an agreement—coercion—has received little attention. No group of nations appears prepared to employ the approach and risk subsequent conflict.“

Even the President of the Foundation For a Positive Planet asks, “What Purpose Does COP 21 Still Serve?”

It’s worth emphasizing that the the developing world will account for 79% of the world’s cumulative carbon emissions by 2100 under a moderate growth scenario developed by the Intergovernmental Panel on Climate Change (IPCC). Cass points out that even if the world’s developed countries ceased all carbon emissions immediately, developing countries would face an impossible task in cutting emissions sufficiently to stay within the IPCC’s estimated “safe carbon budget” for the globe. The best that can be said is that the IPCC might be trying to set the bar high for negotiators, although that would make claims of success at COP 21 difficult. Perhaps that’s fine for activists, because they’ll have an ongoing “crisis” to meet their insatiable need for doomsaying.

Relatively impoverished developing countries will not wish to sacrifice their own economic growth at the altar of climate worship without compensation. In fact, redistribution might be a better description than compensation, which just might be the real point of the conference for many developing countries. Promises of carbon reductions are not guarantees in any case. Future compensation to the developing world, if any, should be contingent on actual results. But no matter the outcome of the negotiations, the importance of cheap words will be exaggerated.

The magnitude of any negotiated reductions in carbon emissions will be inadequate to put much of a dent in actual, climate outcomes, but they will be costly. Writing in the Wall Street Journal, Bjorn Lomborg describes estimates of lost global output due to proposed carbon cutbacks of $1 – $2 trillion each year by 2030 and beyond. That’s roughly 1% – 2% of projected real GDP. of course, there is considerable uncertainty around those estimates and even more around the magnitude of the possible climate effects. Lomborg estimates a best-case outcome amounting to a reduction in global temperatures of a fraction of a degree Fahrenheit. That difference could easily be swamped by natural climate effects. Worth it?

Indeed, imposed limits on economic growth will compound the difficulty of improving carbon efficiency and would consign third-world populations to an impoverished existence in both economic and environmental terms.

President Obama has promised significant carbon reduction in the U.S. However, the COP 21 negotiations do not fall under the “fast-track” authority that Obama was granted by Congress last May over trade agreements. Instead, the hoped-for climate agreement has been characterized as an update to a 1992 treaty to avoid a Congressional ratification process. In addition, Obama has already issued executive orders to push forward the climate measures he has promised to other parties to COP 21. So much for the separation of powers. However, a number of states are not taking it lying down. In fact, 24 states and others have filed suit against the new regulations, asking the D.C. Circuit Court to stay the regulatory plan while the case moves through the courts.

Anthropomorphic global warming (AGW) has been a preoccupation of the alarmist left since the late 20th century, when surface temperatures trended upward for a few decades. Climate change (10 posts at this link), on the other hand, is and always has been a fact of life, but the satellite temperature record has been trendless since the mid 1990s, while the alarmist climate models have predicted significant warming. Beyond the predictions themselves, there is little to suggest that some warming would constitute a disaster for mankind, and perhaps it would be a boon.

Nevertheless, even if we stipulate that carbon emissions must be reduced, there is an innocuous alternative to government regulatory intrusions and taxes for achieving that end: the enhanced carbon efficiency and technological innovation that economic growth makes possible. One of my favorite bloggers, economist Don Boudreaux, explains the logic of this alternative in this excellent post: “Economic Growth and Pollution Abatement“. He takes a “broad view” of pollution, not simply carbon or other industrial pollutants, because there are many forms of “natural” pollution that inflict greater misery than carbon ever will. With that in mind, Boudreaux appeals to the following relationships between pollution and income (or production):

Here is his description of the chart:

“The red curve in the nearby graph is the standard environmental Kuznets curve. This red curve shows the relationship between per-capita income and industrial pollutants. The blue curve shows the relationship between per-capita income and what we might, as a short-hand, call “naturally occurring pollutants” (that is, filth such as bacteria, mud on indoor floors, and rodent and bird droppings from the ceiling of one’s home).“

The red curve implies that a cleaner environment is a “luxury good”. I would also point out that the ascent of the red line at relatively low income levels will be muted by the substitution of cleaner fuels for primitive forms such as dung- and wood-burning, often burned indoors. This is consistent with Boudreaux’s point, though in a way that is not directly addressed by his explanation of the chart:

“… my hypothesis – which I believe is borne out by the historical record – is that people almost immediately start to consume greater cleanliness as they become wealthier.“

The combination of the two lines in the chart shows that economic growth is not unambiguously “bad” for the environment. It has certainly proven to be a good thing in terms of human health and welfare. As a consequence, developing countries should not be so foolish as to sacrifice economic growth for immediate carbon reductions. On the other hand, they may well make “promises” in exchange for massive compensation.

Neither should the world be singularly focused on immediate carbon reductions, because economic growth will be accompanied by improvements in carbon efficiency and the development of technologies far superior to today’s wasteful renewables. The activists attending COP 21 hope to improve the world, but they would saddle humanity with unnecessary burdens. I pity the denizens of countries whose leaders force costly authoritarian energy policies upon them in an effort to set, or comply with, a radical agenda. Oh, wait, that might be us! But I am optimistic that any agreement reached in Paris, if there is any, won’t hold or won’t matter.

Rent Seeking For Social Justice At Mizzou

15 Sunday Nov 2015

Posted by pnuetz in Education

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Billy Donley, Columbia MO, Concerned Student 1950, Eugene Volokh, First Amendment, Forced Diversity, Free expression, Gary Pinkel, Jason Whitlock, Jonathan Butler, Legion of Black Collegians, Missouri Students Association, Mizzou, Mizzou Tigers Football, Obamacare, Payton Head, Planned Parenthood, R. Bowen Loftin, rent seeking, Tim Wolfe, University of Missouri

Pre-blog postscript: In the wake of the tumultuous week discussed below, tonight Mizzou’s football team, which has struggled on the field this year, defeated a very good squad from Brigham Young University. Despite my strong misgivings about the actions of team members last week, tonight I am very proud of Mizzou, white, black and gold. Go Tigers!

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There is weak justification at best for the uproar over supposed racism and social injustice at Mizzou (the University of Missouri’s main campus in Columbia, MO). A protest highlighted by a hunger strike by one graduate student, a boycott by football players, and the threat of a walkout by faculty in nine academic departments led to the resignation last week of the university system’s president and the Mizzou chancellor, who were accused of inadequate sensitivity to the grievances of African-American students. The broader context for the protest is a nationwide assault on free speech, especially on college campuses, with demands for “safe spaces” and “trigger warnings” to protect students from words and acts that they might find offensive. This sensitivity is unbounded, and there is no limit to the censorship and fascism it brings forth in its proponents. From such sentiments are book-burners made.

It is a shame to see a great university like Mizzou reduced to groveling at the feet of petulant children who, ostensibly, have come to be educated, and often with financial support from the school. Full disclosure: Mizzou is my alma mater, so I am especially saddened by these developments. At the end of this post, I provide details on incidents that occurred at Mizzou over nearly three months leading up to the protest. Several of the incidents involved unproven and even false claims by the protestors.

Like it or not, speech outside the classroom by students at public universities has broad protection under the First Amendment. According to Eugene Volokh:

“Most clearly, students generally may not be expelled, suspended, or otherwise disciplined for what they say in student newspapers, at demonstrations, in out-of-class conversations, and the like… even if it’s offensive, wrongheaded, racist, contemptuous, anti-government, or anti-administration. Of course, it’s not protected from university criticism. The university is itself free to publicly speak to condemn student statements that university officials find to be unsound or improper.“

There are exceptions to this protection in the case of “fighting words” and “incitement”, but that kind of offense must be proven before an individual can be punished. It is absurd to demand that a university engage in unconstitutional restrictions on speech. Even if that were legal, it is unreasonable to expect a university to effectively police all speech on campus.

The Mizzou administration did take action this semester in the only case in which an individual engaging in racist speech was identified. The offender was intoxicated and disrupted an organization’s private rehearsal (see below). Whether he used “fighting words” is unknown, but a “conduct process” is still underway in his case. In addition, mandatory diversity training for students and faculty was announced by the chancellor in early October. It appears that the president, responsible for four campuses, may have delegated responsibility for managing the controversies in Columbia to the chancellor, but the failure of the president to respond directly was taken as dismissive. But in fact, Mizzou already had processes in place to address diversity issues, and the chancellor was active in communicating the administration’s concerns and support to minority students via social media. Still, the protestors assert that they were ignored and that no action was taken, among other falsehoods (see below).

In addition to an apology and removal of the University System president for “inaction”, the protestors demanded that the University meet a number of other conditions. These included a “racial awareness and inclusion curriculum throughout all campus departments” to be vetted by “students, staff, and faculty of color.” The protesters also demanded: “an increase the percentage of black faculty and staff campus-wide to 10%“; a 10-year strategic plan to improve retention of “marginalized students“; increased funding “for the purpose of hiring additional mental health professionals — particularly those of color“; and increased “funding and personnel for the social justice centers on campus for the purpose of hiring additional professionals, particularly those of color…”

The demands of the student protestors (and their faculty supporters) represent an exercise in rent seeking. They are attempting to commandeer resources at the cost of academic and educational efforts not explicitly dedicated to the theme of diversity and inclusion. If all of the demands are met, damage will be sustained by nearly all fields of study at Mizzou.

One of my frequent complaints about the Left is their inability to understand that rewards in a market economy are not zero-sum. Instead, they are earned by creating new value to be used in trade and enjoyed by others. The rent-seeking process disrupts that flow of benefits by using the power of government to extract resources from others for one’s private benefit, which then yields a negative-sum outcome for society. However, the resources sought by the Mizzou protestors must come from a public educational system for which funding is scarce. Funds provided to Mizzou by the state of Missouri have fallen significantly over the years, yet state law prohibits tuition increases for undergraduate residents exceeding the growth in the CPI. While the protestors might view their demands as reparation for past and ongoing injustices, many are already subsidized by an institution of higher learning that is strapped, and one that is already at their disposal for purposes of building their human capital. They should avail themselves of that opportunity so they can use that capital later in positive sum activities.

I also think the protests at Mizzou are symptomatic of misplaced priorities on the Left. I highly recommend this excellent essay by Jason Whitlock, an African-American sports journalist who notes that the protests at Mizzou have been given rapt attention by the Left, while the far more serious problem of black-on-black violence receives proportionately little play.

Much like other demands for “social justice”, the Mizzou protestors do not recognize the counterproductive nature of their activities and the measures they advocate. Merit will always be relied upon as as a standard by which people judge others. In a market system, it is a fairly objective standard at that. To a truly neutral observer, diversity is fine, but it is beside the point, and forced diversity often leads to suspicions of unfair play and resentment.

I find the attitude of the protestors appalling on several levels: the lies and the rent-seeking behavior, the damage they will inflict on Mizzou and their fellow students, and their rejection of good-faith efforts to address their concerns. To cap it all off, please read the childish posts shown in this article, in which the Mizzou protestors selfishly complain that the terrorist attacks in Paris have taken attention away from them, going so far as to characterize as “racist” the relative balance of coverage. Simply disgusting!

Sadly, there have been threats of violence on campus in the wake of recent developments. This week, a white teen in Rolla, Missouri, 100 miles from Columbia, was arrested and is being held without bond for making posts on social media that threatened black students at Mizzou. At the same time, hostility and threats toward campus greeks led to a lock-down at fraternities and sororities. As to racism, there is no doubt that it exists, but Mizzou is not exceptional in that regard. On campus, I believe that more racial tension is borne out of agitation from protestors than by any racist sentiments held by others. When the protestors acknowledge examples of apparently neutral, non-racist behavior by others, they insist that the racism they are fighting at Mizzou is systemic. Appeasing these complainants requires a ongoing series of reparations in the form of financial support, control over hiring, quotas and mandatory indoctrination. But here’s a clue: the social justice rap will never win the rewards and respect that arise naturally from hard work.

MIZ – ZOU!

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Here are key events or claims that led up to the present brouhaha at Mizzou, along with my editorial comments:

August 14: The university announced that it would no longer offer direct subsidies to graduate assistants for the purchase of health insurance. The reason? Obamacare prohibits the kind of low-cost, “individual market” policies (per IRS interpretation) offered by many schools. Mizzou, however, promised to provide a one-time fellowship to cover the economic loss suffered by grad students in the fall semester. When students threatened a walk-out, the university reinstated the subsidies, but with the proviso that a later review would be necessary. This incident had nothing to do with racism, but it inflamed passions. An African-Americam grad student named Jonathan Butler was very upset, even though his family is quite affluent and more than capable of affording his coverage.

August – September 2015: Mizzou cancelled contracts with Planned Parenthood (PP) clinics in the wake of the release of videos showing PP officials discussing the sale of fetal “tissue”. There was pressure on the school’s administration to cut ties with PP and revoke the “refer and follow” privileges of an abortion surgeon from St. Louis. These developments were very upsetting to the campus Left, and while gender-equality activists probably thought they had a legitimate gripe, the action should not be conflated with racism. Nevertheless, Jonathan Butler listed this issue as one of his grievances, and it helped to broaden support for his cause among the student Left.

October 3: The President of the Missouri Student Association, Payton Head, claimed that several men riding in the back of a pickup truck screamed racial slurs as he walked across campus. That is awful, but unless he can identify the individuals or the truck, nothing can be done about that particular incident. It was featured in Butler’s grievance letter to the university. Presumably, the school needs to racially-sensitize anyone with access to campus.

October 6: A white student, apparently drunk, interrupts a rehearsal of the Royalty Court of the Legion of Black Collegians with racial epithets. The student was identified the next day and removed from campus by the Office of Student Conduct pending the outcome of an ongoing disciplinary procedure.

October 10: The Homecoming parade is interrupted when University System President Tim Wolfe’s car is surrounded by students from an organization called Concerned Student 1950. (1950 was the first year that black students were admitted to Mizzou.) Wolfe instructs his driver to back away from the students. With more space between the car and the protestors, the driver attempts to proceed slowly to the right around the group. In this video, Jonathan Butler can then be seen rushing toward the moving car and planting his knees into the bumper. He later accused Wolfe and his driver of running into him. As the narrator on the video states, if this were an insurance case, that sort of fraud might get Butler arrested. After a short blank segment on the video, a so-called “townie” and a few other Mizzou football fans step forward to act as a barrier between Wolfe’s car and the protesters. Ultimately, Wolfe asked police to remove the protestors from the parade route. That was characterized as evidence of neglect on Wolfe’s part. Andrew McCarthy notes the following about Jonathon Butler:

“By the way, the racism is apparently so bad at Mizzou that Mr. Butler has chosen to pursue his Master’s degree (in education) there after attending the university as an undergraduate. Now in his eighth year at Mizzou, he hopes, according to NBC News, ‘to become an advocate and ‘social entrepreneur.””

October 24, 2015: Human feces is discovered on the floor of a restroom in a university residence hall; it had been used to smear a swastika on the wall. This is now confirmed by a campus police report, though no photographs of the “poop swastika” have been produced. (Apparently, a one-year-old photo of similar graffiti was circulated by protestors). The “poopetrator” has not been identified. The act could have been inspired by anti-Semitism, white supremism, simple pranksterism (albeit viciously expressed) , or quite possibly fraudulent agitation meant to incite fears on campus. The incident really did incite fears when it was communicated on social media by Residence Halls Association President Billy Donley. The poop swastika was taken as additional evidence of a bad racial climate at Mizzou, though the affair is suspect.

November 3: Butler begins a hunger strike in an impromptu “tent city” on campus. A student boycott of classes is announced the next day. I have strong doubts about Butler’s credibility (see below) and whether the hunger strike was authentic. He did not look or act like a hungry man before he ate his first post-strike sandwich, but I could be wrong.

November 8: Black football players announce their support of Butler by refusing to practice or play until President Wolfe apologizes and resigns. The next day, Coach Gary Pinkel tweets his support for the black players, and the athletic director agrees. Many of the white players also express support for the player boycott by appearing in a group photo, but it has been reported that not all of them agreed. (I personally believe that the whole lot of the boycotters were played by Butler and his organization.) On November 13, Coach Pinkel resigns, effective December 31, but the reason is a recent diagnosis of non-Hodgkins lymphoma (non-fatal). Some things are simply more important than in-fighting at the university. Coach Pinkel’s announcement, as sad as it is, may well help to defuse the immediate tensions.

November 10: President Wolfe and Chancellor R. Bowen Loftin resign. Butler ends his hunger strike with a sandwich as his friends urge him on with the expression “Yay N—–“, an utterance that may strike some as hypocritical. The football player boycott ends the next day.

On the evening of November 10 at about 11 p.m., Payton Head, the student body president, posted the following on Facebook:

“Students please take precaution. Stay away from windows in residence halls. The KKK has been confirmed to be cited on campus. I’m working with the MUPD, the state trooper [sic], and the National Guard.“

The news spread quickly. Head deleted the post by 11:30 and later apologized and accepted blame for spreading false information. Good for his accountability. His advice at that time was to trust only the @MUalert system, which had posted: “There is no immediate threat to campus. Please do not spread rumors…” 19 minutes before Head’s KKK post.

ObumbleCare & The Adverse Selectors

11 Wednesday Nov 2015

Posted by pnuetz in Obamacare

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Tags

adverse selection, Death Spiral, Emergency room utilization, Exchange-based plans, Medicaid expansion, Mercatus Center, Michael Tanner, Non-market solutions, Obamacare, Obamacare enrollment

“… out in the real world, the bad news keeps coming, drop by drop, drip by drip, until we are seeing a virtual flood of Obamacare awfulness.“

That’s from Michael D. Tanner in “What’s Wrong With Obamacare?” Tonight, I offer you a list of some of the drippings:

Flat enrollment, expected to be less than half of the original projection for 2016;
Almost all (97%) newly insureds under Obamacare are enrolled under expanded Medicaid, unaided by the many complexities introduced by Obamacare;
12 of 23 federal health care insurance coops have failed as of Nov. 3;
High medical loss ratios are threatening the viability of insurers in 27 states, a result of adverse selection by relatively sick enrollees;
With unfavorable risk pools, premiums for all 2016 exchange-based plans are rising 20.3%, well above the 7.5% figure quoted by HHS for “Silver” plans;
Health insurance does not guarantee health care, and many of the newly insured are finding that providers are scarce, given reimbursement rates;
Emergency rooms utilization is up, as patients know they can get care there;
Rationing of care is increasingly a matter of waiting time, as it is in other countries that rely on non-market solutions to health care;
As many as 700,000 low-income enrollees are at risk of losing their coverage because they did not file tax returns;
For many, the penalty for not having coverage ($695 next year) is lower than the premium they would pay for coverage;
More than 5 million individuals lost their coverage under Obamacare, generally policies that were preferred over the new alternatives;
Poor incentives and burdensome provider requirements are pushing costs up.
Employers are attempting to minimize the cost of Obamacare. The law makes hiring more expensive and leads to substitution of part-time for full-time workers;

The “death spiral” might not be far-off for Obamacare. Here is Tanner’s assessment:

“The young and healthy simply haven’t signed up for Obamacare in the same numbers as those who are older and sicker. The only way for insurers to offset their skyrocketing [Medical Loss Ratios] is to hike premiums still further. … premiums in the worst states could have to rise by an average of 34 percent, and possibly as much as 52 percent. But premium hikes of that magnitude would almost certainly further discourage younger and healthier Americans from buying insurance.“

There is no question that Obamacare will have to be replaced or changed substantially. Unfortunately, Obamacare apologists simply can’t come to grips with the reality of the law’s failure. They would do well to start focusing on new solutions to the problems that Obamacare was intended to solve. To that end, the Mercatus Center commissioned a collection of seven essays on how best to deal with the problem of pre-existing conditions, now published on the Mercatus web site. Market-based solutions are needed to encourage competition among insurers, incentivize innovation and cost control, and reestablish the primacy of the patient-provider relationship.

Proof of Concept: School Choice vs. Failing Publics

09 Monday Nov 2015

Posted by pnuetz in Education, School Choice

≈ 1 Comment

Tags

Administrative Costs, CATO Institute, Don Boudreaux, Monopoly Schools, Monopsonist Unions, Rural Education, School Choice, Show-Me Institute, Specialization, Teachers Unions, The Netherlands

The evidence that school choice is associated with better educational outcomes has been mounting. Given the poor performance of so many public schools, it is time to reject the “sanctity” of their monopoly privilege. The link above emphasizes the promise of choice as a reform for public schools in the U.S. (as do several other links below from the Show-Me Institute and elsewhere).

It is implausible to suggest that the opportunities afforded by choice could make things worse than public-school outcomes. Poorly-served students and families have too much to gain from broadening their educational options and they know it. A recent survey of African-American parents of school children found that more than 75% of the respondents were interested “in obtaining a voucher to cover the cost of private or parochial school tuition for [their] children“. A majority agreed that:

“… I should be able to enroll my child in the school I think will give my child the best educational opportunity. If my choice is a private or parochial school then I should be allowed to use the same tax dollars allotted to every child in public school to cover the cost of their tuition.“

Choice should not be viewed as a threat to the public school system, although that is a familiar narrative issued by school-choice opponents. In fact, it will create new opportunities for public schools to excel, taking advantage of the benefits of specialization that are well-known in most walks of life. Choice and competition will either reform or weed-out the worst-performing schools and will encourage a rationalization of the administrative bloat so characteristic of public institutions. That’s all to the good, but by weakening schools’ market power, choice will change the relationships between public schools and families. Apparently that is threatening to vested interests, which underscores the importance of reform.

The Netherlands has had a system of school vouchers in place for almost 100 years, and research indicates that it has been highly successful:

“Specifically, access to private schooling has helped Dutch students. A 2013 study reveal[ed] strong positive effects for students using the voucher program to attend private schools. The effects were anywhere between 0.2 and 0.3 standard deviations, which would move a student at the mean of the standard bell curve of student performance up 10 or so percentile points (from a 50 to a 60).

Given these large effects, it shouldn’t be surprising that in a system where two thirds of the schools are private, we see strong academic performance. What’s more, according to the National Center on Education Statistics, Dutch schools spend on average $1,500 less per student per year than American schools do.“

A recent study from the CATO Institute demonstrated the long-run impacts of school choice on several types of outcomes. Little wonder that choice is described as a “Moral and Financial Imperative” (video). School choice is also an option for providing better educations to students in rural areas, despite the worn-out argument that distances make it impossible. Under today’s archaic structure, course offerings at many rural schools are necessarily limited, but new technology and choice programs can allow those schools to specialize and give their local students broader access to educational resources.

Teacher’s unions have been consistent opponents of school choice. They view choice as a threat to their members’ job security and their own ability to negotiate favorable contract terms. Perhaps, but the goal of improving educational outcomes cannot be subjugated to the goals of union monopsonists. When it comes to education, the schools should focus on serving children and their parents, and parents in failing schools want the kind of solution choice can offer.

Several months ago, a post here on Sacred Cow Chips discussed an entertaining question posed by Don Boudreaux: What if supermarkets were like public schools? To quote Boudreaux directly:

“In the face of calls for supermarket choice, supermarket-workers unions would use their significant resources for lobbying—in favor of public-supermarkets’ monopoly power and against any suggestion that market forces are appropriate for delivering something as essential as groceries.“

Parental control is a critical change needed in our schools. Schools should never be placed in a position exceeding the authority of parents over their children, even if public funds are involved. Teachers and administrators of public schools must learn to treat parents like customers. The only way to assure that kind of responsiveness is to give parents a choice.

Child Quotas: Family as a Grant of Privilege

05 Thursday Nov 2015

Posted by pnuetz in Liberty, Tyranny

≈ 1 Comment

Tags

Amartya Sen, Bret Stephens, Chinese Family Policy, Eugenics, Fertility rates, Liberalism, Limits to Growth, Nicholas Eberstadt, One Child Policy, Paul Erlich, Progressive Left, The Club of Rome, The Population Bomb, Wall Street Journal

How could any self-described liberal believe for a second that China’s “One Child Policy” was anything but repressive? By utterly failing to live up to liberalism! The policy was “reformed” last week after more than 35 years by a Beijing government trying to face up to the huge demographic and economic crisis posed by an aging population. But as Nicholas Eberstadt reports, now it is a “Two Child Policy“, which is less tyrannical only by degrees. (The link takes you to a Google search to bypass the WSJ paywall — choose the top result there.) Here are some of the awful consequences of the one-child policy noted by Eberstadt:

“First came alarming reports that female infanticide, an ancient practice, had once again erupted throughout the countryside. China’s 1982 census, released some years later, showed an unnatural imbalance in the sex ratio for birth-year 1981 on the order of hundreds of thousands of missing baby girls.

Infanticide was then replaced by mass sex-selective abortion, made possible in the late 1980s by increased rural access to ultrasound machines. China’s sex ratio climbed to nearly 120 baby boys for every 100 baby girls, where it plateaued around 2000. Although a war against baby girls is evident in other countries—India and Taiwan among them—leading Chinese demographers have suggested that half or more of China’s imbalance may directly result from the one-child policy.“

Bret Stephens discusses the support historically offered by the Left for the one-child policy. (This piece is also at wsj.com and it’s apparently a free link, but use Google if it doesn’t work.) Stephens rightly calls the policy “the ultimate assault on the human rights of women and girls.” He traces the Left’s penchant for central authority over family autonomy back to Paul Erlich’s “The Population Bomb” and the Club of Rome‘s discredited “Limits to Growth“, but it also descends from an earlier Leftist fascination with eugenics. The ideas live on today. Stephens notes the Malthusian connection to another great Lefist shibboleth, our purported climate change crisis:

“For much of the 20th century it was faith in History, especially in its Marxist interpretation. Now it’s faith in the environment. Each is a comprehensive belief system, an instruction sheet on how to live, eat and reproduce, a story of how man fell and how he might be redeemed, a tale of impending crisis that’s also a moral crucible.“

Amartya Sen asks whether the one-child policy really influenced fertility rates at all, but I question the reliability of the figures she cites. The high ratio of male to female births contributes to my suspicions. According to Eberstadt, a number of Chinese demographers have been warning against continuing the one-child policy for at least a decade. Other reports give the strong impression that it has been a binding constraint.

Economic growth provides a voluntary and effective brake on birth rates. The continuing agitation for restraints on economic growth to reduce carbon emissions short circuits this mechanism. Not only is the climate change “crisis” ill-founded, these measures hinder the development and diffusion of technologies that would be more efficient in reducing carbon discharge, instead imposing immediate remediation that is often uneconomic. The unimaginative solution offered by the progressive Left is central control over our progeny and our production of goods. Repression is always their best answer. That ain’t liberalism!

Wanna Help People? End the Drug War!

03 Tuesday Nov 2015

Posted by pnuetz in War On Drugs

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Black Markets, Colorado Legalization, Colorado Pot Legalization, Drug Abuse, Drug Cartels, Gangland Violence, Individual Liberty, Jacob Sullum, Milton Friedman, Prohibition, Prostitution, Victimless Crimes, War on Drugs

We’re taught that illegal drugs are a scourge on humanity, that their use is immoral and that legalization is out of the question. Yet far more of us, our friends, and our loved ones have been intimate with the destructive effects of alcohol and dependency on legal drugs than on illegal drugs. Pharmacologically, the “worst effects” of illegal drugs are no worse than the well-known effects of alcohol abuse. In fact, the “worst effects” have more to do with prohibition than with the illegal drugs themselves.

Rules are codified into law successfully when widespread agreement exists among the citizenry that a rule is sensible. This should trouble drug prohibitionists: a substantial proportion of the population has used illegal drugs as adults, indicating a strong lack of consensus that recreational drugs should be illegal. For this reason alone, drug prohibition is and always will be ineffectual.

The great economist Milton Friedman was a long-time critic of the drug war. Several of his articles on the topic are linked at this site. One of the links is this interview from 1992, which is lengthy but sticks primarily to the issue of the drug war. I’m not sure that all of the facts Friedman cites have held up over time, especially with respect to trends in alcohol consumption. Nevertheless, it is a great interview:

“There are [sic] an enormous number of innocent victims now. You’ve got the people whose purses are stolen, who are bashed over the head by people trying to get enough money for their next fix. You’ve got the people killed in the random drug wars. You’ve got the corruption of the legal establishment. You’ve got the innocent victims who are taxpayers who have to pay for more and more prisons, and more and more prisoners, and more and more police. You’ve got the rest of us who don’t get decent law enforcement because all the law enforcement officials are busy trying to do the impossible.“

Here is a brief list of the pernicious effects of drug prohibition:

Prices are driven upward by the legal risk inherent in black market trade;
High prices lead to more crime as heavy users seek means of payment;
Impure and more dangerous variants are traded in attempts to stretch quantities and increase potency;
Dealers advance “samples” to gain trust and cultivate dependency among users;
Addiction is stubbornly resistant to legal barriers;
Unnecessary deaths from impure and excessively potent drug varieties;
Black market trade leads to violent crime as underworld elements seek to control markets and enforce discipline in their organizations;
Unnecessary deaths from gangland violence;
Arrest, imprisonment and ruined lives for victimless crimes;
A huge burden on taxpayers;
A huge burden on the criminal justice system;
Inevitable corruption in law enforcement as officials face hefty rewards for protecting the drug trade;
Innocent people become casualties of violence instigated by gangs and sometimes by police actions.

A fascinating dynamic of the black market in drugs is the tendency toward monopolization at the top: Large cartels dominate the importation of supplies due to the risk and expense of such operations. As Friedman noted, the war on drugs contributes to the difficulty of entering into competition with established players. At the same time, the drug war guarantees huge rewards to the cartels by inflating drug prices:

“What more could a monopolist want? He’s got a government who makes it very hard for all his competitors and who keeps the price of his products high.“

The drug war creates greater danger for users. In “Prohibition Kills“, Jacob Sullum discusses four recent examples of more dangerous and even deadly drug variants that have been developed as a direct consequence of prohibition. Friedman is often quoted as saying that crack cocaine was a direct consequence of the drug war. Sullum asks whether this could be an intentional strategy by drug warriors for discouraging consumption. I’m not convinced they are quite so nefarious, but it’s something to ponder.

More dangerous varieties of drugs would not vanish overnight if drugs were legalized, though the incentive to develop them would diminish. Of course, if legalization brings prices and risks down, as we’d expect, it would encourage greater recreational use. That should not be viewed as a “bad” any more than better access to cocktails at happy hour. Abuse is unlikely to increase because problem users tend to be undeterred by prohibition. And as unsavory as an increase in recreational drug use might seem to the temperance faction, it would still represent only a small fraction of the real costs of ruined lives imposed by prohibition and the drug war.

Legalization would bring other complexities, as Colorado’s experience with marijuana shows. For example, rules with respect to driving under the influence must be updated, as well as laws prohibiting possession by minors. Colorado went so far as to regulate packaging, and tax treatment of the drug trade will stoke debate, as governments will hope for something of a tax bonanza. But the more that government attempts to regulate and tax drugs, the more that problems similar to those associated with drug prohibition will persist, albeit on a smaller scale.

Economically, legalization should eliminate a burden on taxpayers. It would free up law enforcement resources to battle real crime and should make more funds available for treatment programs. It would also help to improve lives and safety in inner cities and other areas ravaged by black market drug trade and the violence it foments. And of course, legalization would put an end to the ruin of lives caused by the arrest of individuals for victimless crimes.

Prohibition of drugs belongs to a larger class of social problems brought on by efforts to bring the police power of government to bear on private behavior. I already mentioned that alcohol prohibition had similar consequences. To lesser degrees, similar harmful consequences are associated with laws against prostitution, large soft drink containers, sugary foods, and practicing almost any commercial art without a license. The same can be said for price regulations like rent control and the minimum wage. The former has led to the destruction of vast quantities of housing; the latter harms low-skilled workers along non-wage dimensions and makes it difficult for unskilled workers to gain valuable experience in the job market. Government interference with individual liberty might well restrain certain activities deemed “undesirable” by busybodies, but it it also leads to higher prices, greater risk, black market activity, violence, unnecessary legal actions against individuals, and greater expense for society.