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Archive for the ‘Crime’ Category

I proposed an “IQ Test for Criminals and Liberals” back in 2012 which asked readers to imagine that they were thieves.

And I then asked them, as they were planning their crimes, how they would react if they knew that a particular homeowner was armed. Would they:

a. break into the house because you once heard a politician or journalist assert that gun ownership doesn’t deter crime?

b. decide after a bit of reflection about potential costs and benefits that it might be more prudent to find another house to rob?

My goal was to help well-meaning leftists understand that criminals respond to incentives. And even the really stupid ones will seek to maximize how much they can steal while minimizing the risk of bad outcomes.

And if you’re a criminal, one potential bad outcome is getting shot by an armed homeowner.

The same cost-benefit analysis applies to mass shooters. Regardless of whether these shooters are motivated by feelings of inadequacy or Islamofascist ideology, their goal is to kill as many people as possible before being stopped.

So it makes sense, from their warped perspective, to seek out “gun-free zones.”

And when these nutjobs start shooting in places where there’s very little likelihood that they’ll encounter immediate armed resistance, that means a higher body count.

Which is what happened at Fort Hood. And in Santa Barbara. And in Newtown, Connecticut. And at the Aurora movie theater. And at Virginia Tech.

And now in Chattanooga.

Here’s a photo from the recent shooting spree by Muhammad Youssef Abdulazeez. Notice the sign, right by all the bullet holes, stating that “Firearms Are Prohibited In This Facility.”

Needless to say, this sign didn’t stop the attack. It may have even encouraged the attack.

In any event, the rule did affect one group of people, as Sean Davis explained for The Federalist.

The gun-free zone sign didn’t prevent the shooter from firing a gun at completely innocent individuals within the zone. It did, however, prevent them from defending themselves.

And here’s the really depressing part of this tragedy. The military personnel targeted by the terrorist weren’t unarmed because Chattanooga had bad policy.

They were unarmed because of federal government policy. Writing for Fox News, John Lott explains this bizarre policy.

Army regulations are very clear stating that personnel cannot have firearms during their official duties.  Last year the Obama administration instituted interim rules that clearly prohibit privately owned weapons from all federally leased office and land, including recruiters’ offices. …With the exceptions of military police, military personnel are banned from having weapons on base, in federally leased buildings, or while they are carrying out official duties. For would-be terrorists among us there is an abundance of possible targets. …Allowing military personnel to at least defend themselves reduces the number of easy targets that terrorists/killers can attack.

Amen. Let members of the military have the ability to defend themselves.

And expand concealed-carry laws so that citizens also have greater ability to thwart crime and mass shootings.

P.S. I shared above a great cartoon from Chuck Asay. You can click here to see another. And these two posters make the same point quite effectively.

P.P.S. While folks on the left are one of the targets of my IQ test, not all liberals are misguided on the gun issue. As you can read here and here, there are a couple of them who put reason ahead of ideology.

P.P.P.S. It’s also encouraging to note that some lawmakers realize it’s a good idea to have more protection for schoolchildren.

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Let’s revisit the issue of urban unrest, with special attention to the challenges for both entrepreneurs and ordinary citizens.

While potential police misconduct may serve as a trigger for riots, the powder keg is already in place because of decades of bad government policy.

Jay Steinmetz, who runs a supply-chain management company in Baltimore, provides a real-world perspective on what it’s like to be an entrepreneur in a city run by kleptocrats. Here are some excerpts from his Wall Street Journal column.

When the building alarm goes off, the police charge us a fee. If the graffiti isn’t removed in a certain amount of time, we are fined. This penalize-first approach is of a piece with Baltimore’s legendary tax and regulatory burden.  …Maryland still lags most states in its appeal to companies, according to well-documented business-climate comparisons put out by think tanks, financial-services firms, site-selection consultants and financial media. Baltimore fares even worse than other Maryland jurisdictions, having the highest individual income and property taxes at 3.2% and $2.25 for every $100 of assessed property value, respectively.

Here’s what it means, in terms of lost revenue, to Mr. Steinmetz’s company.

The bottom line is that our modest 14,000-square-foot building is hit with $50,000 in annual property taxes. And when we refinanced our building loan in 2006, Maryland and Baltimore real-estate taxes drove up the cost of this routine financial transaction by $36,000. State and city regulations overlap in a number of areas, most notably employment and hiring practices, where litigious employees can game the system and easily find an attorney to represent them in court. Building-permit requirements, sales-tax collection procedures for our multistate clients, workers’ compensation and unemployment trust-fund hearings add to the expensive distractions that impede hiring.

So it’s no surprise to learn that the geese with the golden eggs (as well as the silver and bronze eggs) are flying away.

Our employees reduce their tax burden and receive better public services in the suburbs.  …The financial problem Baltimore does face is a declining tax base, the most pronounced in the state. According to the Internal Revenue Service, $125 million in taxable annual income in Baltimore vanished between 2009 and 2010.

I’m not sure why Mr. Steinmetz hasn’t left as well. I guess it’s both admirable and foolish for him to persevere is such a hostile environment.

Thomas Sowell, in an article published by National Review, demolishes the argument that criminal behavior can be blamed on racism or poverty.

He starts by drawing attention to the 1960s as a key turning point.

The “legacy of slavery” argument is not just an excuse for inexcusable behavior in the ghettos. …Anyone who is serious about evidence need only compare black communities as they evolved in the first 100 years after slavery with black communities as they evolved in the first 50 years after the explosive growth of the welfare state, beginning in the 1960s.

Prof. Sowell then makes the obvious point that blacks faced much harsher conditions before the 1960s, yet crime was much lower.

And the black family was much more stable before the so-called war on poverty in the 1960s.

We are told that such riots are a result of black poverty and white racism. But in fact — for those who still have some respect for facts — black poverty was far worse, and white racism was far worse, prior to 1960. But violent crime within black ghettos was far less. Murder rates among black males were going down — repeat, down — during the much-lamented 1950s, while it went up after the much celebrated 1960s, reaching levels more than double what they had been before. Most black children were raised in two-parent families prior to the 1960s. But today the great majority of black children are raised in one-parent families.

Sowell’s point is that the welfare state created incentives for dysfunctional behavior.

And he stresses that this isn’t a racial issue.

Such trends are not unique to blacks, nor even to the United States. The welfare state has led to remarkably similar trends among the white underclass in England over the same period. …You cannot take any people, of any color, and exempt them from the requirements of civilization — including work, behavioral standards, personal responsibility, and all the other basic things that the clever intelligentsia disdain — without ruinous consequences to them and to society at large. Non-judgmental subsidies of counterproductive lifestyles are treating people as if they were livestock.

I particularly appreciate his point about the importance of social capital, what he calls the requirements of civilization.

But this doesn’t mean black citizens don’t have some legitimate grievances. Radley Balko of the Washington Post explains that African-Americans are getting abused by greedy governments, just like Mr. Steinmetz.

He starts his article by sharing some good news on falling crime rates and big reductions in police deaths. But for our purposes today, the most powerful and relevant part of his story deals with one citizen’s interaction with government.

Antonio Morgan [is] a 29-year-old resident of Hazelwood, Missouri. He owns his own small business, a car repair and body shop he’d been saving up to buy since he was a teenager. He has also been arrested more than 20 times. All but two of those arrests were for misdemeanors. Morgan saved up for his business by fixing cars in his mother’s driveway. That required him to occasionally park cars on the street. That earned him parking tickets. He paid them when he could, but he occasionally missed deadlines. And that would lead to an arrest warrant. All of this also put Morgan on the radar of local police.

As you continue reading, keep in mind he was “on the radar” even though he did nothing to infringe on the life, liberty, and property of other citizens.

His unpaid parking tickets led not just to arrest warrants, but to the occasional suspension of his license. That led to more citations, although like many in the area, Morgan was sometimes pulled over and issued only a ticket for driving on a suspended license, or driving a car that wasn’t registered to him. (Morgan sometimes drove his clients’ cars to test them.) But there was no underlying traffic violation — which raises the question of why the officer pulled Morgan over in the first place, if it wasn’t to profile him. Those citations then led to more arrests.

It certainly seems as if St. Louis County in Missouri has been treating Mr. Morgan as a revenue-generating milk cow, much as Baltimore has been squeezing Mr. Steinmetz.

Different approach, but same result.

Cops would show up at his garage and cite his employees for operating without a business license. Morgan has a license; his employees didn’t need one. But to get the citations dismissed, Morgan and his employees would have to go to court, which was held once a month, at night. If they missed their court date, they too would be hit with an arrest warrant. Wealthy people can hire an attorney to go in their stead, and to negotiate their way out of a citation. But neither Morgan nor his employees were wealthy.

Some of you may be wondering about the two ostensibly more serious arrests on his record.

Radley’s column discusses both, and it certainly looks like Mr. Morgan has been mistreated by the justice system.

Here’s the first arrest. And remember it only occurred because he had to be in court to deal with ridiculous fines and petty harassment.

As Morgan walked toward the courthouse a police officer asked him the kids in the truck were his. He replied that they were. The officer asked him why he had left them alone. Morgan replied that he hadn’t, and that the woman parked next to him had agreed to watch them. ..Morgan pleaded with the police officer to flag down his friends, who he said would vouch for him. He says the officer then threatened to Taser him. Morgan put up his hands. The officer then arrested him for child endangerment. …The incident still upsets Morgan — not even the arrest so much as that his children had to see it. “I’m a good father,” he says. “I own my own business. I provide for my kids. Do you know what it’s like for your own children to see you get arrested? For a cop to say, right in front of them, that he’s arresting you because you’re a bad parent?”

I’m not someone who sees racism under every bed and behind every tree, but you can’t help but wonder whether this incident would have even happened if he was a white guy in a business suit.

The second arrest is equally dubious.

…the officer confronted Morgan because he was “trespassing” on a neighbor’s lawn. Morgan responded that he wasn’t trespassing, because the neighbors didn’t mind. Morgan says the cop moved to arrest him, and he lost his cool. He claims he never struck the police officer, but he does admit that he screamed at him. Once he did, he was hit with a Taser and arrested for assaulting a police officer. That charge was later dropped. (The neighbors back Morgan’s account of the entire incident, including his assertion that he never touched the cop.)

It’s always a smart idea to act servile and obsequious when dealing with cops, so Mr. Morgan obviously didn’t play his cards right.

But imagine if you had been endlessly harassed. Wouldn’t you be angry? Radley sure would have been.

I was stunned. But not because Morgan lost his cool with the cop. I was stunned that it had taken him so long to do so. And that even then, he’d manage to restrain himself from physical violence. I’m not sure I’d have been able to say the same.

Here’s the bottom line. Or, to be more accurate, two bottom lines.

First, we should sympathize with Mr. Morgan just as we should sympathize with Mr. Steinmetz. Actually, we should sympathize more with Morgan.

Morgan is no one’s definition of a “thug.” He’s a guy who breaks his back to keep up the business that supports his family, despite obstacles that, frankly, most white business owners don’t have to endure. For all he’s been through, he is remarkably composed. He deals with the daily harassment in a remarkably manner-of-fact way. …Morgan isn’t a drug pusher. He isn’t an absentee father. He isn’t in a gang. He’s a guy trying to do right by his family.

Second, we should recognize that one “root cause” of the problem is greedy government.

The primary source of revenue for the local towns is sales tax. But the poorer (which means blacker) towns don’t generate enough income from sales taxes. So they turn to municipal fines to keep themselves from going under. The poorer the town and its residents, the more likely the town relies on fines for a greater percentage of its annual revenue. Which means that the blacker the town, the more likely its residents are getting treated like ATMs for the local government.

None of this justifies rioting. And I have to imagine that Mr. Morgan would be one of the good guys during any unrest (much like Stretch and his friends in Ferguson).

But stories like this should make all of us appreciate how some communities may have a very sour impression of the police.

Let’s close with some economic analysis of riots (hey, I’m a policy wonk, so bear with me).

Here’s some of what Professor Edward Glaeser of Harvard wrote a few years ago for Bloomberg.

…public disturbances are a classic example of tipping-point phenomena, which occur when there is some positive feedback mechanism that makes an activity more attractive, or less costly, as more people do it. …There is a tipping point in rioting because the cost of participating — the risk of going to jail — gets lower as the number of people involved increases. …riots occur when the shear mass of rioters overwhelms law enforcement.

He then looks at the more challenging issue.

But how do these mass events get started? In some cases, …such as the 1965 Watts Riot, a peaceful crowd provides cover for initial lawlessness. Sporting events, such as Game 7 of the Stanley Cup Finals in Vancouver this year, can easily produce the crowds that allow a riot to start. Most strangely, riots can follow an event that creates a combination of anger and the shared perception that others will be rioting. The acquittal of police officers in the Rodney King case seems to have created these conditions in Los Angeles in 1992.

The left-wing excuse for rioting doesn’t seem to have much merit.

…across U.S. cities, there has never been much of a link between unrest and either inequality or poverty. In fact, the riots of the 1960s were actually slightly more common in cities that had more government spending.

But economic analysis gives us good clues, both about how to deter riots and who is most victimized when they occur.

Light penalties widely applied and serious penalties applied to a few can both deter unlawful behavior. This is a central conclusion of Gary Becker’s path-breaking economic analysis of crime and punishment. …Even when they are connected to understandable grievances, they do great harm, particularly to the poorest residents.

The moral of the story is that we should be tough on crime, but that doesn’t mean mistreating people like Antonio Morgan.

Instead, the legal system should focus on trying to deter bad behavior, which is when genuinely bad people infringe on the life, liberty, and property of others.

But how do we get politicians and bureaucrats to properly focus?

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I wrote back in 2010 that riots in Europe were a harbinger of future unrest in the United States.

Given the chaos in Baltimore, I’m tempted to claim profound wisdom and great foresight.

But I’ll reluctantly confess that my main point five years ago was to warn about the long-run consequences of poorly designed entitlement programs and unfavorable demographics (leading to the outcome illustrated by this set of cartoons).

Simply stated, Margaret Thatcher was right when she warned that the problem with big government is that “eventually you run out of other people’s money.”

The riots in Baltimore, by contrast, are a short-run phenomenon exacerbated by factors such as a loss of social capital and potential police misconduct.

But we can still learn something by looking at the dysfunctional consequences of big government in Baltimore and other big cities in America.

Here’s some of what’s been written by my colleague, Michael Tanner.

…there are lessons to be learned about the failures of government and how those failures can create a climate of anger and frustration that just awaits a spark to ignite the flames of violence and destruction. …the powder keg was put in place by decades of big-government liberalism, both in the city of Baltimore and in the state of Maryland. …Maryland has one of the most generous welfare systems in the nation. A mother with two children participating in seven common welfare programs — Temporary Assistance for Needy Families (TANF), food stamps (SNAP), Medicaid, housing assistance, Supplemental Nutrition for Women, Infants, and Children (WIC), energy assistance (LIHEAP), and free commodities — could receive benefits worth more than $35,000. Yet, nearly a quarter of the people in Baltimore still live in poverty. In 1960, Baltimore’s poverty rate was just 10 percent. …while Baltimore’s high welfare benefits haven’t reduced poverty, they may well have exacerbated other social problems. For example, some studies have long shown that high welfare benefits correlate with high out-of-wedlock birth rates. It should not come as a surprise, then, that two-thirds of births in the city are to unmarried mothers, and almost 60 percent of Baltimore households are headed by single parents.

While the politicians subsidize bad things in Maryland, they penalize good things.

…while Baltimore’s high welfare benefits haven’t reduced poverty, they may well have exacerbated other social problems. For example, some studies have long shown that high welfare benefits correlate with high out-of-wedlock birth rates. It should not come as a surprise, then, that two-thirds of births in the city are to unmarried mothers, and almost 60 percent of Baltimore households are headed by single parents. …if that were not bad enough, the city of Baltimore adds one of the highest property taxes among comparable cities…a tax rate more than twice the rate of most of the rest of the state.

Mike has lots of additional information, including revelations about bad education policies, dangerous anti-gun laws, and counterproductive drug prohibition.

But let’s now shift to a Wall Street Journal editorial on the same subject.

…what went up in flames in Baltimore Monday night was not merely a senior center, small businesses and police cars. Burning down was also the blue-city model of urban governance. …let’s not forget who has run Baltimore and Maryland for nearly all of the last 40 years. The men and women in charge have been Democrats, and their governing ideas are “progressive.” This model, with its reliance on government and public unions, has dominated urban America as once-vibrant cities such as Baltimore became shells of their former selves. …the main failures are three: high crime, low economic growth and failing public schools that serve primarily as jobs programs for teachers and administrators rather than places of learning. …of late the progressives have been making a comeback, led by Bill de Blasio in New York and the challenge to sometime reform Mayor Rahm Emanuel in Chicago. This week’s nightmare in Baltimore shows where this leads. It’s time for a new urban renewal, this time built on the ideas of private economic development, personal responsibility, “broken windows” policing, and education choice.

One would think that Detroit – and now Baltimore – show the dangers for cities of big government and dependency.

Unfortunately, the election of Mayor de Blasio in New York City suggest many voters are incapable of learning any lessons from the real world.

Last but not least, here’s some of Kevin Williamson’s column for National Review.

American cities are by and large Democratic-party monopolies, monopolies generally dominated by the so-called progressive wing of the party. The results have been catastrophic, and not only in poor black cities such as Baltimore and Detroit. …Would any sentient adult American be shocked to learn that Baltimore has a corrupt and feckless police department enabled by a corrupt and feckless city government? …While the progressives have been running the show in Baltimore, police commissioner Ed Norris was sent to prison on corruption charges (2004), two detectives were sentenced to 454 years in prison for dealing drugs (2005), an officer was dismissed after being videotaped verbally abusing a 14-year-old and then failing to file a report on his use of force against the same teenager (2011), an officer was been fired for sexually abusing a minor (2014), and the city paid a quarter-million-dollar settlement to a man police illegally arrested for the non-crime of recording them at work with his mobile phone. There’s a good deal more.

And who should be blamed for this horrible track record?

No Republican, and certainly no conservative, has left so much as a thumbprint on the public institutions of Baltimore in a generation. Baltimore’s police department is, like Detroit’s economy and Atlanta’s schools, the product of the progressive wing of the Democratic party enabled in no small part by black identity politics. This is entirely a left-wing project, and a Democratic-party project. …Community-organizer — a wretched term — Adam Jackson declared that in Baltimore “the Democrats and the Republicans have both failed.” Really? Which Republicans? Ulysses S. Grant? Unless I’m reading the charts wrong, the Baltimore city council is 100 percent Democratic. …The evidence suggests very strongly that the left-wing, Democratic claques that run a great many American cities…are incompetent, they are corrupt, and they are breathtakingly arrogant. Cleveland, Philadelphia, Detroit, Baltimore — this is what Democrats do.

My one contribution to the wise words in the three articles excerpted above is to point out that the troubles in Baltimore are somewhat similar to riots we’ve seen in Greece and the United Kingdom. There’s no racial or ethnic component to the chaos we’ve seen in most of the European riots, so the analogy is far from exact, but the events are alike in that a big part of the problem is a failure of government and a concomitant erosion of social or cultural capital.

Simply stated, too many people on both sides of the Atlantic now think they are entitled to a life based on freebies from government. This almost surely erodes any sense of self worth and breeds anger and resentment.

Putting the toothpaste of self-reliance back into the societal tube doubtlessly will not be easy. Here’s some of what Jay Nordlinger wrote today.

The young rioters have…been brought up to regard themselves as entitled and victimized, at the same time. In truth, they are among the luckiest people in the whole world: to have been born American. Millions, probably billions, would be happy to trade places with them. The rioters are free to make of life what they will. Their shackles are mental and spiritual. …These young people have been grossly mistaught — misled — by the “grievance industry” (to use shorthand). Just about the worst thing you can do to a child is tell him he’s a victim — when it’s not true. Even when it is true, it may be unwise. It is surely damnable when it’s not true.

While I’m sometimes pessimistic about certain societal trends, one part of the answer is easy.

Stop creating new entitlements (such as Obamacare) that alter the already perverse tradeoff between work and leisure. Then people might feel a greater incentive to get jobs.

And stop imposing punitive taxes, particularly on the investors and entrepreneurs that are willing to put capital at risk to create jobs and wealth for the rest of us.

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I’ve pointed out that Washington is a cesspool of legal corruption. But if you don’t believe me (and you have a strong stomach), feel free to peruse these posts, all of which highlight odious examples of government sleaze.

But occasionally elected officials cross the blurry line and get in trouble for illegal corruption.

For those of you who follow politics, you may have seen news reports suggesting that Robert Menendez, a Democratic Senator from New Jersey, will soon be indicted for the alleged quid pro quo of trying to line the pockets of a major donor.

Attorney General Eric Holder has signed off on prosecutors’ plans to charge Menendez, CNN reported on Friday. …A federal grand jury has been investigating whether Menendez improperly used his official office to advocate on Melgen’s behalf about the disputed Medicare regulations when he met with the agency’s acting administrator and with the secretary of Health and Human Services, according to a ruling by a federal appeals court that became public last week. The ruling also said the government was looking at efforts by Menendez’s office to assist a company Melgen partly owned that had a port security contract in the Dominican Republic.

I certainly have no interest in defending Senator Menendez, but I can’t help but wonder what’s the difference between his alleged misbehavior and the actions of almost every other politician in Washington.

Here’s what I assume to be the relevant part of the criminal code, which I downloaded from the Office of Government Ethics (yes, that’s a bit of an oxymoron).

Stripped of all the legalese, it basically says that if a politician does something that provides value to another person, and that person as a result also gives something of value to the politician, that quid-pro-quo swap is a criminal offense.

Now keep this language from the criminal code in mind as we look at some very disappointing behavior by Republican presidential candidates at a recent Iowa gathering.

As Wall Street Journal opined, GOPers at the Ag Summit basically competed to promise unearned benefits to the corporate-welfare crowd in exchange for political support (i.e., something of great value to politicians).

Iowa is…a bad place to start is because it’s the heartland of Republican corporate welfare. Witness this weekend’s pander fest known as the Ag Summit, in which the potential 2016 candidates competed to proclaim their devotion to the Renewable Fuel Standard and the 2.3-cent per kilowatt hour wind-production tax credit. The event was hosted by ethanol kingpin Bruce Rastetter… Two of the biggest enthusiasts were Rick Santorum and Mike Huckabee… The fuel standard “creates jobs in small town and rural America, which is where people are hurting,” said Mr. Santorum, who must have missed the boom in farm incomes of recent years.

But it’s not just social conservatives who were promising to swap subsidies for political support.

Self-styled conservative reformers may be willing to take on government unions, which is laudable, but they get timid when dealing with moochers in Iowa.

Scott Walker, who in 2006 said he opposed the renewable fuel standard, did a switcheroo and now sounds like St. Augustine. He’s for ethanol chastity, but not yet. The Wisconsin Governor said his long-term goal is to reach a point when “eventually you didn’t need to have a standard,” but for now mandating ethanol is necessary to ensure “market access.”

And establishment candidates also tiptoed around the issue, suggesting at the very least a continuation of the quid pro quo of subsidies in exchange for political support.

Jeb Bush at least called for phasing out the wind credit, which was supposed to be temporary when it became law in 1992. But he danced around the renewable standard, which became law when his brother signed the energy bill passed by the Nancy Pelosi-Harry Reid Congress.

Geesh, maybe this is why Bush won’t promise to oppose tax hikes.

And there are more weak-kneed GOPers willing to trade our money to boost their careers.

Chris Christie wouldn’t repudiate the wind tax credit, perhaps because in 2010 the New Jersey Governor signed into law $100 million in state tax credits for offshore wind production. He also endorsed the RFS as the law of the land…, but what voters want to know is what Mr. Christie thinks the law should be. Former Texas Governor Rick Perry sounded somewhat contrite for supporting the wind tax credit, which has been a boon for Texas energy companies.

The only Republican who rejected corporate welfare (among those who participated) was Senator Ted Cruz.

The only Ag Summiteer who flat-out opposed the RFS was Texas Senator Ted Cruz , who has also sponsored a bill in Congress to repeal it. In response to Mr. Rastetter’s claim that oil companies were shutting ethanol out of the market, he noted “there are remedies in the antitrust laws to deal with that if you’re having market access blocked.”

Though even Cruz deviated from free-market principles by suggesting that anti-trust bureaucrats should use the coercive power of government to force oil companies to help peddle competing products.

Sigh.

By the way, I don’t mean to single out Republicans. Trading votes for campaign cash is a bipartisan problem in Washington.

But it is rather disappointing that the politicians who claim to support free markets and small government are so quick to reverse field when trolling for votes and money.

At least politicians like Obama don’t pretend to be a friend before stealing my money.

P.S. Normally I try to add an amusing postscript after writing about a depressing topic.

I’m not sure whether this story from the U.K.-based Times is funny, but it definitely has an ironic component.

Judge Juan Augustín Maragall, sitting in Barcelona, ruled that prostitutes should be given a contract by their employers, who should also pay their social security contributions. …In giving his verdict in the civil case, brought over a breach of labour regulations, the judge went further than expected, ruling that the women’s rights had been flouted by the management and forcing the company to pay the social security payments of three prostitutes backdated to 2012. Because of the ruling all brothels will be forced with immediate effect to issue contracts to staff and pay their social security contributions.

Now here’s the ironic part.

The ruling will generate tax revenue even though it’s actually illegal to employ prostitutes!

…it is against the law to make money from pimping, which carries a four-year jail term.

I guess the Judge could have ruled that the customers were the employers, but somehow I suspect it would have been difficult to extract employment taxes from those men.

Just like it would be difficult to extract employment taxes from the women.

Though the hookers won’t mind getting unemployment benefits so long as someone else is paying the taxes.

Conxha Borrell, of the Association of Sex Professionals, welcomed the ruling.

I guess we should add this to our great-moments-in-human-rights series.

Though maybe I should start a great-moments-in-economic-ignorance series since the prostitutes will be the ones who bear the burden of the tax even if the pimps are the ones writing the checks to the government (just as workers bear the burden of the “employer share” of the Social Security payroll tax).

P.P.S. Maybe Spanish hookers should reclassify themselves as porn artists who allow audience participation? That way, they can take advantage of Spain’s preferential tax rate for smut.

P.P.P.S. The Germans at least have figured out an efficient way to tax prostitutes.

P.P.P.P.S. Though maybe prostitutes should become politicians. The business model is quite similar, and I suspect you can “earn” more income selling access to other people’s money rather than selling sex to men who have to use their own money.

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One of the most important bulwarks of a just society is equal justice under law.

That principle is even etched in stone above the entrance to the Supreme Court.

My belief in equal treatment is one of the reasons I support the flat tax. As an economist, I like the pro-growth impact of tax reform. But as someone who believes in justice, I also support the flat tax because I don’t like class-warfare policies that punish some taxpayers and corrupt loopholes that give preferential status to other taxpayers.

Indeed, my support for equality of law is so strong that I even object to policies that benefit me, such as special TSA lines in airports for frequent flyers.

But sometimes it’s not clear how a principle should be applied. So let’s revive the “you be the judge” series, which asks thorny questions about the workings of a free society, and explore the case of income-based traffic fines.

Check out these excerpts from a BBC story.

Finland’s speeding fines are linked to income, with penalties calculated on daily earnings, meaning high earners get hit with bigger penalties for breaking the law. So, when businessman Reima Kuisla was caught doing 103km/h (64mph) in an area where the speed limit is 80km/h (50mph), authorities turned to his 2013 tax return, the Iltalehti newspaper reports. He earned 6.5m euros (£4.72m) that year, so was told to hand over 54,000 euros. …Mr Kuisla might be grateful he doesn’t earn more. In 2002, an executive at Nokia was slapped with a 116,000-euro fine for speeding on his Harley Davidson motorbike. His penalty was based on a salary of 14m euros.

So is this a case of greedy government targeting people for the sin of success?

Well, I’m sure the government is greedy, but what about the morality of income-based fines?

The driver isn’t happy, but others argue that deterrence doesn’t work unless the actual impact of the fine is the same for rich and poor alike.

The scale of the fine hasn’t gone down well with Mr Kuisla. “Ten years ago I wouldn’t have believed that I would seriously consider moving abroad,” he says on his Facebook page. “Finland is impossible to live in for certain kinds of people who have high incomes and wealth.” There’s little sympathy from his fellow Finns on social media. …person says: “Small fines won’t deter the rich – fines have to ‘bite’ everyone the same way.”

At the risk of sounding like a soft-headed leftist, I’m not overly sympathetic to Mr. Kuisla’s position.

Simply stated, if the goal of traffic fines is deterrence, then the penalties should vary with income.

I remember when I was young, living on a paycheck-to-paycheck basis, a traffic fine sometimes would chew up a non-trivial part of my disposable income. That affected my behavior.

Now that I’m older and making more money (and especially since my kids are mostly done with their schooling!), a traffic fine is just a nuisance (though I still sometimes get very upset).

Though this discussion wouldn’t be complete without also considering the fact that traffic laws and enforcement oftentimes are motivated by revenue rather than safety.

The most compelling evidence comes from Ferguson, Missouri. It seems that what’s driving the mistreatment of black people is government greed.

Here’s some of what Ian Tuttle wrote on the topic for National Review.

The Department of Justice’s “Investigation of the Ferguson Police Department,” released this week…what the material in the report reveals is less a culture of racial animus than one of predatory government: “Ferguson’s law enforcement practices,” states the report, “are shaped by the City’s focus on revenue rather than by public safety needs.” …myriad municipal regulations that, rigorously enforced, nickel-and-dime the citizenry to the local government’s benefit. This is the injustice on which the Justice Department has stumbled, which helps to explain the city’s racial tensions — and which merits urgent correction.

I fully understand why many blacks in Ferguson are angry.

Imagine if you had a modest income and you were constantly being hit with $50 and $100 fines (oftentimes then made much larger thanks to the scam of “court fees”).

This can wreck a family’s budget when it doesn’t have much money. So wouldn’t you be upset?

Particularly since “predatory government” is a very good description of the Ferguson bureaucracy.

In 2010, the city’s finance director encouraged Ferguson police chief Thomas Jackson to “ramp up” ticket-writing to help mitigate an anticipated sales-tax shortfall. …One stop can yield six or eight citations, and officers have been known to compete to set single-stop records. Indeed, within Ferguson Police Department, because opportunities for promotion have been tied to “productivity” — that is, enthusiasm for ticket-writing — officers have perverse incentives to issue citations, and in concert with police and prosecutors, municipal courts regularly enforce the payment of fines in a way that compounds what a single defendant owes.

Now let’s connect Ferguson with Finland.

Our Finnish driver is upset by his giant fine, but at least he probably can relate to the poor people of Ferguson.

But the more successful people of Ferguson, to the extent that they are even targeted by the local cops, have almost nothing to worry about.

…this practice — of police and prosecutors and courts together — disproportionately affects black communities not because they are black, but because they are poor. They do not have the means to escape the justice apparatus, unlike the comparatively wealthy, who can pay a fine and be done with the matter — or hire an attorney, and inconvenience courts that prefer the ease of collecting fees to the challenge of arbitrating cases.

Here’s the bottom line.

If we want a just society, there should be few laws and they should be enforced on the basis of protecting public safety rather than enriching the bureaucracy.

In such a system, income-based fines and penalties are a reasonable way of making sure deterrence applies equally to rich and poor.

Unfortunately, we have far too many laws and they are used as back-door taxes on the citizenry.

So if we adopt income-based fines, the politicians will simply have more money to spend and even less incentive to scale back excessive and thuggish government.

Heck, just look at how asset-forfeiture laws and money-laundering laws have turned into revenue scams for Leviathan.

P.S. Since today’s post ended with a depressing conclusion, let’s share some a bit of offsetting good news.

As reported by The Hill, the spirit of civil disobedience lives even in Washington!

From sledding to snowball fights, dozens of children and their parents took to Capitol Hill Thursday afternoon to protest a controversial sledding ban. Capitol Police have refused to lift the sledding ban, but some parents organized a “sled in” on the west lawn of the Capitol to put a spotlight on the unpopular rule. …Capitol Police pointed out that more than 20,000 sledding injuries occur in the U.S. each year…, but officers on the ground also refused to enforce it. …It’s turning into a public relations nightmare for those who oppose sledding and support the ban.

You’ll doubtlessly be horrified to learn that illegal sledding is – gasp! – a gateway crime to other forms of misbehavior.

…the children were not only sledding but also climbing trees, building snowmen and throwing snowballs at one another.

Oh My God, unlicensed snowmen, unregistered tree climbing, and illegal snowballs! Freedom is obviously too dangerous.

Next thing you know, these kids will grow up to engage in other forms of civil disobedience, just like Arizona drivers and Connecticut gun owners.

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Earlier today, I gave a speech to some folks at London’s Institute of Economic Affairs about the failure of global financial regulation.

I touched on some predictable themes:

The absence of cost/benefit analysis for regulatory initiatives.

The failure of anti-money laundering laws and their harmful impact on the poor.

How one-size-fits-all Basel rules led to imprudent risk and misallocation of capital.

How anti-tax competition schemes impose high costs on the financial system (which get passed on to financial consumers).

One thing I noticed, though, is that I didn’t get overly passionate when discussing these topics. I didn’t even get that worked up when talking about the OECD’s dangerous plan to create something akin to a World Tax Organization.

But I did get rather agitated when talking about how money-laundering rules and regulations have led to disgusting and reprehensible examples of so-called civil asset forfeiture.

This happens when a government decides to steal the property of citizens simply because they think it may have been involved in illegal activity.

Politicians and bureaucrats often use the failed Drug War as their rationale, but the activity doesn’t actually have to be illegal. I specifically cited the horrific example of the government stealing $35,000 from some folks in Michigan for no other reason than money from the family grocery business was generally deposited in amounts under $10,000.

I’m sure such government actions have a negative economic impact, but this is a case where the moral argument should take precedence.

Simply stated, all decent and humane people should stand united against thuggery by government.

And in an example of serendipity, after finishing my speech, I turned on my computer and came across more evidence against civil asset forfeiture.

Here are some truly disturbing passages from a report in the Detroit Free Press that showed up in my Twitter feed.

Thomas Williams was alone that November morning in 2013 when police raided his rural St. Joseph County home, wearing black masks, camouflage and holding guns at their sides. They broke down his front door with a battering ram. “We think you’re dealing marijuana,” they told Williams, a 72-year-old, retired carpenter and cancer patient who is disabled and carries a medical marijuana card. When he protested, they handcuffed him and left him on the living room floor as they ransacked his home, emptying drawers, rummaging through closets and surveying his grow room, where he was nourishing his 12 personal marijuana plants as allowed by law.

All this sounds horrible – and it is, but it gets worse.

They did not charge Williams with a crime… Instead, they took his Dodge Journey, $11,000 in cash from his home, his television, his cell phone, his shotgun and are attempting to take his Colon Township home. And they plan to keep the proceeds, auctioning off the property and putting the cash in police coffers. More than a year later, he is still fighting to get his belongings back and to hang on to his house. “I want to ask them, ‘Why? Why me?’ I gave them no reason to do this to me,” said Williams, who says he also suffers from glaucoma, a damaged disc in his back, and COPD, a lung disorder. “I’m out here minding my own business, and just wanted to be left alone.”

Why him? Well, one local attorney has a good idea of what’s really happening.

“It’s straight up theft,” said Williams’ Kalamazoo attorney, Dan Grow. “The forfeiture penalty does not match the crime. It’s absurd. …A lot of my practice is made up of these kinds of cases — middle-aged, middle-income people who have never been in trouble before. It’s all about the money.”

Just to be clear, Mr. Grow is emphasizing the utterly perverse incentive structure that exists when cops are allowed to steal money from citizens and use it to pad their own budget.

This system needs to be reformed.

And the second bit of serendipity is that a new report from the Institute for Justice showed up in my inbox. It explains why civil asset forfeiture should be abolished. And while the report focuses on the venal actions of the IRS, this reform should apply to all government agencies at all levels of government.

Civil forfeiture is the government’s power to take property suspected of involvement in a crime. Unlike criminal forfeiture, no one needs to be convicted of—or even a charged with—a crime for the government to take the property. Lax civil forfeiture standards enable the IRS to “seize first and ask questions later,” taking money without serious investigation and forcing owners into a long and difficult legal battle to try to stop the forfeiture. Any money forfeited is then used to fund further law enforcement efforts, giving agencies like the IRS an incentive to seize.

Here’s how IJ suggests that this type of abuse can be halted.

The surest way to prevent innocent people from losing money unjustly would be to end civil forfeiture and replace it with criminal forfeiture. Short of that, removing the financial incentive to seize, raising the standard of proof to forfeit and enacting other procedural reforms would help protect people from losing their bank accounts when the government has little or no proof of criminal wrongdoing.

While the Institute for Justice does great work, I don’t think they should have opened the door to halfway reforms.

Heck, even the two people who helped start up the Justice Department’s asset forfeiture program now say it should be abolished.

P.S. The Princess of the Levant is also in London, so I’m being forced to engage in tourist activities.

We took a ride on the London Eye, which wasn’t cheap but offers very good views of Big Ben, the House of Commons, Westminster Abbey, and other historic sites.

As far as I’m concerned, though, London is too cold and dreary. The only good tourism involves a warm beach in the Caribbean.

P.P.S. To close on a humorous note, here’s some anti-gun control humor with a rather pointed message.

Definitely worth adding to my collection.

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For both moral reasons and economic reasons, we should have small government.

But even a curmudgeonly libertarian like me also thinks it’s important to have effective and efficient government.

Fortunately, there’s no contradiction between these views. Indeed, academic researchers have found that nations with smaller government also have more efficient government. With Singapore being a very powerful example.

This is why I periodically share data looking at how much governments spend compared to how much they deliver.

Though this can be a depressing exercise because – to cite one example – no government in the world spends more on education than the United States, yet we get very sub-par results.

But what if we compare cities inside the United States on this basis? Are there big differences in how much some local governments spend and the results they get?

The answer is yes, emphatically so.

Here are some excerpts from an article in The Atlantic on which local governments do reasonably well – and very poorly – in terms of education outcomes on a per-dollar-spent basis.

…education spending isn’t inherently bad—what matters is the result. Some school districts get lots in return for the amount of money they spend. …the online financial resource WalletHub has crunched the numbers on school spending at 90 of the most-populated cities across the country, revealing which ones are getting the most—and least—bang for their buck. To arrive at the findings, WalletHub divided each city’s aggregate test scores in fourth- and eighth-grade reading and math by its total per-capita education spending. The researchers then adjusted those figures for various socioeconomic factors, such as the poverty rate and percentage of households that don’t speak English as their first language.

Here are the 10 cities that purportedly do the best job on a per-dollar-spent basis.

And here are the cities that do the worst job.

I guess I’m not overly surprised that cities in California and New York generally rank at the bottom.

Though I wonder whether the results would look significantly different if education spending was measured on a per-pupil basis. That would seem a relevant distinction.

But here’s the key takeaway. Some cities spend two to three times as much per capita on education, yet they actually deliver worse outcomes!

Something all of us should remember next time some politician, whether Obama or some local hack, whines about the “need” for more money for schools.

Now let’s look at how wisely – or ineptly – local governments spend money on crime prevention.

Here’s some of WalletHub’s analysis.

With tax season approaching, WalletHub assessed how efficiently the 110 most populated U.S. cities spend taxpayer dollars on police protection. We did so by calculating each city’s ROI on police spending based on crime rates and per-capita expenditures on police forces after normalizing the data by poverty rate, unemployment rate and median household income. …note that “Adjusted ROI Rank” reflects the results of our analysis after controlling for the three economic factors, whereas “Unadjusted ROI Rank” reflects the results before normalizing the data by the same factors.

So which cities get decent bang for the buck?

And here are the 10 cities that get the least value compared to resources devoted to crime prevention.

Gee, what a surprise to see New York City (once again) at the bottom of the list. And I can only imagine how the city will rank after a few years of Bill de Blasio.

And what’s the story with Long Beach, CA?!? Why are they among the worst on both lists?

Anyhow, kudos to WalletHub for producing both these comparisons. This is good factual data that enables people to see whether their city is being competent or wasteful.

Specifically, why are taxpayers in places such as St. Louis and Orlando spending three or four times as much, on a per-capita basis, as taxpayers in cities such as Lincoln and Louisville?

P.S. Returning to the big picture, we’re more likely to have competent and effective government if it is limited in size and scope. Or, as Mark Steyn humorously observed, “our government is more expensive than any government in history – and we have nothing to show for it.”

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