Archive for the ‘Race’ Category

I’ve written before about the tremendous success of Hong Kong. The jurisdiction routinely is ranked as being the world’s freest economy, and its fiscal policy is a role model for spending restraint.

One reason Hong Kong has prospered is that it has enjoyed a policy of benign neglect, particularly when it was a British colony prior to 1997. More specifically, the United Kingdom by happenstance appointed John Cowperthwaite to help govern the colony. And his view of governing was to leave things alone.

…while the mother country lurched in a socialist direction at home under Clement Attlee, Cowperthwaite became an advocate of what he called “positive non-interventionism” in HK.

Cowperthwaite was especially wise in realizing that collecting statistics was risky because advocates of big government would want to justify and implement intervention on the basis of data.

To Cowperthwaite, the planner’s quest for statistics was anathema. So he refused to compile them. When Friedman asked him in 1963 about the “paucity of statistics,” Cowperthwaite answered, “If I let them compute those statistics, they’ll want to use them for planning.”

This may seem to be an arcane point, but imagine how much freer we would be if Washington didn’t have access to our private information.

Consider these examples.

  1. The burdensome modern income tax would be impossible if government didn’t have information on our income and assets.
  2. Disgusting examples of asset forfeiture would no long occur if the government didn’t have data on our bank accounts.
  3. Failed interventions such as No Child Left Behind and Common Core would be impractical if Washington didn’t have education statistics.
  4. Our medical system wouldn’t be messed up by Obamacare, Medicaid, and Medicare if politicians didn’t have data about healthcare.

The list is almost endless.

And now we have another disturbing example. As the New York Post reports, the Obama Administration is engaging in an intrusive and Orwellian data-collection exercise as a precursor for central planning of the economy and manipulation of private behavior.

Unbeknown to most Americans, Obama’s racial bean counters are furiously mining data on their health, home loans, credit cards, places of work, neighborhoods, even how their kids are disciplined in school — all to document “inequalities” between minorities and whites. This Orwellian-style stockpile of statistics includes a vast and permanent network of discrimination databases.

Why are they doing all this snooping? To justify more intervention, of course.

The bureaucrats are guided by the theory of disparate impact, which is based on the absurd notion that any difference in racial statistics somehow is a sign of malignant racism.

So it doesn’t matter if there isn’t any evidence of racism. It doesn’t matter if there’s any suggestion of actual discrimination.

What matters if that a bunch of bureaucrats want power to micro-manage the economy and control our lives.

Here’s what’s happening, for instance, in housing.

…the Affirmatively Furthering Fair Housing database, which the Department of Housing and Urban Development rolled out earlier this month to racially balance the nation, ZIP code by ZIP code. It will map every US neighborhood by four racial groups — white, Asian, black or African-American, and Hispanic/Latino — and publish “geospatial data” pinpointing racial imbalances. The agency proposes using nonwhite populations of 50% or higher as the threshold for classifying segregated areas. Federally funded cities deemed overly segregated will be pressured to change their zoning laws to allow construction of more subsidized housing in affluent areas in the suburbs, and relocate inner-city minorities to those predominantly white areas.

By the way, if you think this is just hyperbole, the federal government has been using Westchester County in New York as a guinea pig based on residential housing data. With terrible results, as you can imagine.

And the Department of Housing and Urban development also has been using subsidized housing as a tool for central planning of society.

Needless to say, this is the wrong approach. Instead of letting bureaucrats in Washington act as some sort of national zoning commission, we should shut down HUD and get the federal government completely out of the housing sector.

And, more broadly, we should heed the wise words of John Cowperthwaite, who helped Hong Kong become rich by denying bureaucrats access to data.

Read Full Post »

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?

Read Full Post »

It’s probably not a fun time to be a police officer. The deaths of Michael Brown in Missouri and Eric Garner in New York have led some – including the Mayor of New York City – to explicitly or implicitly accuse cops of systemic racism.

And then you have folks like me, who grouse about cops for reprehensible abuse of citizens as part of the drug war, as well as disgusting examples of theft using civil asset forfeiture.

Heck, any decent person should get upset about some of the ways law enforcement officials abuse their powers. Consider these excerpts from a nightmarish story out of Houston.

Chad Chadwick has something many citizens can only covet – a spotless record. …But on the night of September 27th, 2011 Chadwick’s commitment to living within the law did him no good at all. It started when a friend concerned for Chadwick’s emotional well-being called Missouri City police to Chad’s Sienna apartment where he’d been distraught, drinking and unknown to anyone, had gone to sleep in the bathtub. A SWAT team was summoned.

I’m not sure why a SWAT team was needed in this case, but that’s not the horrific part of the story.

Here’s what then happened.

“They told a judge I had hostages. They lied to a judge and told him I had hostages in my apartment and they needed to enter,” said Chadwick. …Chadwick’s firearm possession apparently prompted SWAT to kick in his door, launch a stun grenade into the bathroom and storm in, according to Chadwick, without announcing their identity. “While I had my hands up naked in the shower they shot me with a 40 millimeter non-lethal round,” said Chadwick. A second stun grenade soon followed. “I turned away, the explosion went off, I opened my eyes the lights are out and here comes a shield with four or five guys behind it. They pinned me against the wall and proceeded to beat the crap out of me,” said Chadwick. That’s when officers shot the unarmed Chadwick in the back of the head with a Taser at point blank range. …And it wasn’t over. “They grabbed me by my the one hand that was out of the shower and grabbed me by my testicles slammed me on my face on the floor and proceeded to beat me more,” said Chadwick. Chadwick, who hadn’t broken a single law when SWAT burst through his door, was taken to the Ft. Bend County Jail with a fractured nose, bruised ribs and what’s proven to be permanent hearing loss. He was held in an isolation cell for two full days.

Did Mr. Chadwick then get a profuse apology when it was determined that he hadn’t broken any laws?

Not exactly.

Ft. Bend County District Attorney John Healy sought to indict Chadwick on two felony counts of assaulting a police officer, but a Grand Jury said no law was broken. …but Healy’s prosecutors tried misdemeanor charges of resisting arrest, calling more than a dozen officers to testify. Those charges were dropped as well.

The government eventually did figure out a way to get Mr. Chadwick into court, but it didn’t turn out so well.

A month ago, three years after the SWAT raid, a jury found Chad Chadwick not guilty of interfering with police. With tears in their eyes members of the jury offered the exonerated defendant comforting hugs. “They tried to make me a convict. It broke me financially, bankrupted me. I used my life savings, not to mention, I lost my kids,” said Chadwick.

This is one of these cases where I hope Mr. Chadwick sues and gets generously compensated (and I would want any damages to be financed out of the budgets of the officials who misbehaved).

Defenders of the police will argue, quite correctly, that we shouldn’t smear entire police forces or the overall justice system simply because there are some bad cops and unethical prosecutors.

That’s certainly the right attitude, though it’s worth noting that sometimes the “culture” of a police force can get so poisonous that wholesale dismissal is the only way to get better performance.

Here are some passages from a New York Times report about a city in New Jersey that got far better results by firing its entire police force.

It has been 16 months since Camden took the unusual step of eliminating its police force and replacing it with a new one run by the county. …the old force had all but given up responding to some types of crimes. Dispensing with expensive work rules, the new force hired more officers within the same budget — 411, up from about 250. It hired civilians to use crime-fighting technology it had never had the staff for. …Average response time is now 4.4 minutes, down from more than 60 minutes, and about half the average in many other cities. …In June and July, the city went 40 days without a homicide — unheard-of in a Camden summer. …And while the unrest in Ferguson, Mo., has drawn attention to long-simmering hostilities between police departments and minority communities, Camden is becoming an example of the opposite. “We’re not going to do this by militarizing streets,” Chief Thomson said. Instead, he sent officers to knock on doors and ask residents their concerns. He lets community leaders monitor surveillance cameras from their home computers to help watch for developing crime.

 An even more dramatic example comes from Georgia, a country of 5 million people wedged between Russia and Turkey.

As part of a series of reforms to create free markets and honest government, all 15,000 cops from the State Traffic Inspection Office were fired.

Georgian authorities chose a radical method of reforming the police structures which were not working. …The State Traffic Inspection was one of the most corrupt units in the Georgian government. It was almost totally self-financed, fleecing both local and foreign drivers as they traveled Georgian roadways. According to estimates, 80 percent of the money extorted from drivers was distributed along the chain of command all the way up to the minister. …In early summer of 2004, Merabishvili eliminated the State Traffic Inspection, firing all fifteen thousand employees in a single day! Two months later, in August 2004, the force was replaced by competitive hiring of employees for the newly formed US-style highway patrol. During the two-month transition period there was no policing of the roads, and yet the number of car accidents did not increase. There were no riots.

The part about nothing bad happening when there were no cops is especially revealing.

Sort of like how nothing bad happened during the sequester, even though President Obama warned of terrible consequences (humorously captured by these cartoons).

Or when we got welfare reform in the 1990s and poverty went down instead of increasing as the left predicted.

But now let’s defend cops, who actually help fulfill one of the few legitimate functions of government. And there are two reasons they deserve defending.

First, the vast majority of them almost certainly are good and decent people who simply want to help others by fighting and deterring crime. That’s a real value.

Second, almost all of the bad stories about cops exist because politicians have enacted bad laws. I’ve made this point about the drug war. I’ve made this point about asset forfeiture. And I’ve made this point in the case of Eric Garner.

If politicians didn’t criminalize victimless behavior, most horror stories would disappear.

And if politicians didn’t treat police departments as backdoor vehicles for taking money from citizens, there would be no need for some of the unfortunate interactions that now occur between cops and citizens.

Now let’s defend the police from a very incendiary charge. Are cops racists, as some protesters (and government officials) would like us to believe?

Well, I’m sure there are some racist cops (of all colors), just as there are racist accountants, truck drivers, bureaucrats, and even economists. But the real issue is whether racism is a pervasive problem.

And when looking at one of today’s hot-button issues, the answer seems to be no. Kevin Hassett of the American Enterprise Institute has some compelling evidence that the police do not disproportionately kill blacks.

…understanding the relationship between African-American communities and law enforcement requires a deeper analysis than a single headline… One simple way to check for bias is to see whether the number of violent crimes needed to explain one police-related death is different depending on one’s race. …We divide the number of violent crimes by the arrest-related deaths for each race. The quotient tells us, on average, how many violent crimes it takes, by race, to produce one arrest-related death. If police are unambiguously racist, then it should take fewer violent crimes to induce one death in the African-American community. As the chart shows, according to our data, African Americans and white Americans have roughly the same proportion of violent crimes to police-related deaths. …These numbers are strikingly similar. The difference between them is small, and not statistically significant. …police appear to be treating the races the same.

But that hasn’t stopped the Obama Administration from subsidizing a group that produced a video that seemingly condones cop killing.

The Obama administration’s Justice Department funneled at least $1.5 million in grants to a New York legal-aid group featured in a new rap video that depicts two young black men aiming handguns at a white police officer. …The video for  “Hands Up,” which also shows a white police officer gunning down a black motorist wearing a hoodie, contains lyrics suggesting revenge for much-publicized deaths of black men in confrontations with police. …The organization, which was founded in 1997 and boasts some high-powered corporate lawyers on its board, has enjoyed a steady flow of taxpayer dollars since President Obama took office in 2009.

This is disgusting.

Accusing cops of systemic racism without evidence is bad enough, but to subsidize a group that glorifies cop killing is downright evil.

But the bottom of line of this post is that our main problem is too many laws that are either designed to collect revenue or to dictate private behavior.

That’s where reforms should focus, not on vilifying the average cop.

P.S. I can’t resist sharing an amusing anecdote about cops. Several years ago, I spoke at the Liberty Forum in New Hampshire, a conference connected with the Free State Project. Many of the participants were avid practitioners of “open carry,” which meant they had handguns strapped to their sides. At one point, I was riding with several of these folks down the elevator at the conference hotel and a family got in. A young boy noticed all their weapons and asked “Are you guys cops?” One of them cheerfully responded, “No, we’re the good guys.”

P.P.S. On the other hand, I also have a less-than-amusing anecdote.

Read Full Post »

In the postscript of a previous column, I shared some of Ben Watson’s wise and prudent counsel about the racial unrest in Ferguson.

Today, I want to share a feel-good story to come out of that town’s troubles.

Rather than looting, some citizens served as protectors of property.

Since looting first erupted following the August police shooting of black teenager Michael Brown, nearly all the businesses in a two-square-mile area of this St. Louis suburb have had to board up. All except one — a Conoco gas station and convenience store. …On Tuesday night, as police and soldiers took up positions in the parking lots of virtually every strip mall and big box store around it, the forecourt of the brightly lit gas station was busy with customers. One, a 6-foot-8-inches man named Derrick Jordan — “Stretch,” as friends call him — whisked an AR-15 assault rifle out from a pickup truck parked near the entrance. Jordan, 37, was one of four black Ferguson residents who spent Tuesday night planted in front of the store, pistols tucked into their waistbands, waiting to ward off looters or catch shoplifters. Jordan and the others guarding the gas station are all black.

If this was simply a story about armed citizens protecting property, it would be a feel-good story. But it’s even better than that.

The station’s owner is white. …“We would have been burned to the ground many times over if it weren’t for them,” said gas station owner Doug Merello, whose father first bought it in 1984.

Yes, you read correctly.

Black men protected a gas station/convenience store owned by a white man.

At times, Jordan and his friends were joined on Tuesday night by other men from the neighborhood, also armed. None of the men was getting paid to be there. They said they felt they owed it to Merello, who has employed many of them over the years and treats them with respect. “He’s a nice dude, he’s helped us a lot,” said a 29-year-old who identified himself as R.J. He said he, like the other volunteers, had lived a short distance away from the store for most of his life. He carried a Taurus 9mm pistol in his sweatpants and drew it out to show another customer, an older man at a pump who was brandishing a MAC-10 machine pistol. Missouri allows the open carrying of firearms.

There are two heart-warming features of this story.

First, it’s nice to see that there are people who judge by character and not by race. And I’m not just talking about the black guys who showed up to guard the store. It also seems self-evident that Mr. Merello must be a stand-up guy who treated black customers with decency and respect. Our society would be better if more and more people copied the behavior of Mr. Jordan and Mr. Merello.

Second (and this is the part that must distress former Mayor Bloomberg), isn’t it great that citizens have the right to own guns (particularly blacks, given the racist origin of many gun control laws) and that Missouri even allows open carry! The statists said such laws would result in more crime, but instead openly armed citizens are protecting honest people from criminals.

P.S. Even though the Show Me State has open carry, Missouri is not very friendly to gun rights with regard to concealed carry and stand your ground laws.

P.P.S. If you like heartwarming stories about guns, here’s one that will send a tingle up your leg.

P.P.P.S. Unsurprisingly, there have been previous instances of armed citizens protecting life and property from rioters.

P.P.P.P.S. On a separate topic, I’ve written before that economists are lousy forecasters with untrustworthy models, but it also appears we may be jerks according to research showing that the profession has a “subjective sense of authority and entitlement.”

No wonder people make jokes about us.

Read Full Post »

Although I play basketball (poorly), I’m not a fan of the NBA. As such, I don’t pretend to have much interest in the Donald Sterling controversy.

Some people have wondered whether his rights to free speech are being infringed, but I disagree. He obviously has the right to say whatever he wants, even if he makes himself look like an idiot.

But the National Basketball Association is an organization that has certain rules, and it presumably has the right – by virtue of the contract among team owners – to impose disciplinary measures.

In other words, Sterling has free speech, but that doesn’t mean he is free from consequences if he says something dumb. Just as I have free speech at the Cato Institute, but also would suffer consequences if I said something offensive about a particular group (or, for that matter, if I started supporting tax hikes, bigger government, and statism).

And that’s a good thing. As a libertarian, I don’t want the government policing speech, but there’s nothing wrong with private sector penalties on racists.

And that’s the topic of today’s column. The free market is a powerful and under-appreciated tool for punishing racism and rewarding color-blind behavior.

Here’s some of what Walter Williams wrote on the topic for the Washington Examiner. wew2010He starts by pointing out that Sterling certainly wasn’t racist when making decisions about what basketball players to employ.

Though Sterling might be a racist, there’s an important “so what?” Does he act in ways commonly attributed to racists? Let’s look at his employment policy. This season, Sterling paid his top three players salaries totaling over $46 million. His 20-person roster payroll totaled over $73 million. Here are a couple of questions for you: What race are the players whom racist Sterling paid the highest salaries? What race dominated the 20-man roster? The fact of business is that Sterling’s highest-paid players are black, and 85 percent of Clippers players are black.

Walter draws the obvious conclusions, and he cites the path-breaking research of the late Gary Becker on the economics of discrimination.

How does one explain this? …Let’s use a bit of simple economics… First, professional basketball is featured by considerable market competition. …There’s open competition in joining both high-school and college teams. You just sign up for tryouts in high school and get noticed by college scouts. Then there’s considerable competition among the NBA teams in the acquisition of the best college players. Minorities and less preferred people always do better when there are open markets instead of regulated markets. Recently deceased Nobel Prize-winning economist Gary Becker pointed this phenomenon out some years ago in his path-breaking study “The Economics of Discrimination.” Many people think that it takes government to eliminate racial discrimination, but economic theory predicts the opposite. Market competition imposes inescapable profit penalties on for-profit enterprises when they make employment decisions on any basis other than worker productivity.

In other words, the free market pushes people to make decisions on the basis of ability rather than race.

The takeaway from the Sterling affair is that we should mount not a moral crusade but an economic liberty crusade. In other words, eliminate union restrictions, wage controls, occupational and business licensure, and other anti-free market restrictions. Make opportunity depend on one’s productivity.

And as you can imagine, Walter speaks with authority on these issues. And he’s right that the free market is a weapon against racism.

By contrast, when government gets involved with race issues, you often get nonsensical results, such as EEOC penalties against companies trying to weed out criminals, or legal harassment of financial institutions for trying to make sensible loans.

Read Full Post »

America desperately needs genuine entitlement reform to avoid a Greek-style fiscal future.

The biggest problems are the health entitlements such as Medicare, Medicaid, and Obamacare, but Social Security also has a huge long-run fiscal shortfall.

That’s why I’m a big fan of the very successful reforms in places such as Chile and Australia, where personal accounts are producing big benefits for workers. These systems also boost national economies since they generate higher savings rather than added unfunded liabilities.

And I’m very happy that we now have more than 30 nations with personal accounts, even tiny little jurisdictions such as the Faroe Islands.

But many statists object to reform, presumably because they don’t want workers to become capitalists. They apparently prefer to make people dependent on government.

Not all leftists take that narrow and cramped approach, however. Some academics at Boston College, for instance, produced some research showing some big benefits from Australia’s private Social Security system.

And new we have some remarkable admissions about how minorities are net losers from Social Security in a study from the left-leaning Urban Institute.

We use historical and projected data from 1970 to 2040 to measure the ratio of old age, survivors, and disability insurance (OASDI) benefits received to taxes paid by members of each race or ethnicity each year. This measure captures the transfers that occur in a given year from current workers to current beneficiaries of each group. We then examine benefit-tax ratios for each race or ethnicity into the future to determine how these redistributions will play out in the coming years. Our conclusion: When considered across many decades—historically, currently, and in the near future—Social Security redistributes from Hispanics, blacks, and other people of color to whites.

Why does the program have this perverse form of redistribution?

On average, blacks are more likely to be low income and short lived and are less likely to marry than whites. …Given this, one would expect forced annuitization and auxiliary benefits related to marriage and divorce to redistribute from blacks to whites.

And that’s exactly what the research found.

…whites have clearly received a disproportionate share of benefits relative to the taxes that they pay in at a point in time. Their benefit-to-tax ratio has been higher than that of blacks, Hispanics, and other ethnic groups for as long as the system has existed, while projections continue that trend at least for decades to come.

Here’s a chart from the study showing how different races have fared in terms of taxes paid and benefits received.

Social Security by Race - Urban Institute

In other words, if folks on the left really cared about minorities, they would be among the biggest advocates of genuine reform.

By the way, it’s also worth noting that Social Security is a bad deal for everyone. The Urban Institute study simply investigates who loses the most.

And the system is getting worse for every new generation.

Recent studies have also documented how different generations are treated within Social Security, with succeeding generations achieving successively lower “returns” on their contributions.

This helps explain why the evidence shows personal retirement accounts are superior – even for folks who would have retired at the peak of the recent financial crisis.

Here’s my video on why we should replace the bankrupt tax-and-transfer Social Security system with personal retirement accounts.

P.S. You can enjoy some Social Security cartoons herehere, and here. And we also have a Social Security joke, though it’s not overly funny when you realize it’s a depiction of reality.

P.P.S. Thanks to Social Security, I made a $16 trillion mistake in a TV debate. Fortunately, it didn’t really change the outcome since I was understating the fiscal shortfall of the current system.

Read Full Post »

As part of my question-of-the-week series, a reader sent me a story and asked if I could identify why putting the Puerto Rican flag on a beer can – as part of a celebration of New York City’s Puerto Rican Day – was politically incorrect.

I may not be the best judge of such matters, largely because I’m often oblivious to popular culture. It was only about five years ago, for instance, that I learned “oriental” was now inappropriate. And even though I’m not sure why that term is supposed to be bad, I switched to “Asian.”

But even with my self-confessed naiveté on such matters, I have no idea how to react to the following story.

As you can see from this Foxnews.com excerpt, a beer company is being attacked, but I don’t understand what it’s done wrong.

Coors PC

I have no clue why the Puerto Rican flag is offensive

Public officials and Puerto Rican groups had expressed outrage after the company used an image of the island’s flag on a specially-made Coors Light beer can made on occasion of New York City’s Puerto Rican Day Parade. MillerCoors is the main sponsor of the parade, which is on Sunday. …MillerCoors sent a letter to “Boricuas for a Positive Image,” a group that planned protests against the company over the beer can, and said it was pulling the product from distribution. “We apologize if the graphics on our promotional packaging inadvertently offended you or any other members of the Puerto Rican community,” wrote Nehl Horton, chief public affairs and communications director for MillerCoors, to one of the group’s organizers. “MillerCoors has a strong history of supporting the U.S. Latino community…” …The National Institute for Latino Policy said the beer company wasn’t the only one at fault. The group also said blame must be placed on the parade’s board of directors. New York City Councilwoman Melissa Mark-Viverito told the New York Daily News that the company’s decision to pull the product was a “victory.” But the Puerto Rican politician said she wasn’t entirely satisfied.  “I feel strongly at this time that the Board of Directors should resign and make room for new leadership for future parades,” Viverito said in a statement.

So why is this a victory for the Latino community? Is the Puerto Rican flag somehow offensive? And, if so, shouldn’t Puerto Rican politicians change it?

Or is it only offensive if an “Anglo” company uses it on merchandise? But the beer company was sponsoring (i.e., financing) the event, so their intentions obviously were completely benign. Surely that’s not a cause for protests?!?

Or is it that the Puerto Rican community doesn’t want to be identified with beer? That seems implausible. I can see why Mormons, Muslims, or Southern Baptists wouldn’t want their imagery on a beer can, but  Latinos? Or Catholics? I’ve already admitted my lack of knowledge about popular culture, but I assume even I would know if Puerto Ricans were anti-beer.

I realize that a Google search could probably help me determine why some people are upset about the flag, but the fact that such a step would be necessary suggests that political correctness may have gone too far. As a general rule, I think it’s good manners and common courtesy to respect the preferences of other groups, but if you can’t figure out why they’re upset without doing a bunch of research, it seems that we’ve reached the point where people should chill out.

P.S. For examples of the wrong kind of political correctness, click here.

Read Full Post »

Older Posts »


Get every new post delivered to your Inbox.

Join 2,897 other followers

%d bloggers like this: