That Quaint Thing Called “Ethics”…

A recent article in New America Weekly argues that we Americans need to clean up our understanding of corruption. We tend to think of corruption as the sorts of outright bribery encountered in many other countries, where “doing business” has often required greasing the hands of public servants. If no money has changed hands, Americans tend not to see an ethical problem.

The author of the article—a social anthropologist— argues that we need to expand our definition of corruption to include “rigged systems.”

According to Gallup, the notion that corruption is widespread has gained enormous traction in recent years. With results like this, it’s not hard to see why Donald Trump and Bernie Sanders have so much appeal. When so many people see the system as rigged and corruption as endemic, citizens are naturally attracted to outsiders, because they themselves feel like outsiders in a game they were set up to lose.

This state of affairs—with so many people self-defining as outsiders in a democratic society—makes it all the more urgent that we redefine corruption. Because unlike communist and many post-communist countries, where few believe(d) in either the system’s version of itself or its ability to deliver on it, the United States has traditionally been a country of believers—where people largely bought into the promise of their system. That is how it should be in democratic society.

The article lists several examples of systemic corruption—from the banking practices that cratered the economy, to the conflicts of interest of military figures who sit on corporate boards while advising the Pentagon on procurement—and the failure of mechanisms to insure accountability.

We need to understand how corruption manifests itself in America in 2015. We need to ground accountability in the ethics of the broader society. Democratic societies run on trust. A civic society can flourish only when the public believes the system is accountable in a real, not performative, way. Without that trust, perception of corruption will only worsen and the ranks of outsiders will swell.

As I have repeatedly noted, a major contributor to this lack of accountability is the current absence of genuine journalism, especially what we used to call “investigative journalism,” and particularly at the local level.

When local media report only on the “what” (new parking meters, new development projects, new public purchases) and ignore the “who” and “how” (dealmaking, cronyism, procedural shortcuts)—when columnists and reporters dismiss legitimate concerns about the “how” as partisan bickering unworthy of investigation—we fail to hold our elected officials accountable, and we feed the growing distrust that acts like sand in government’s gears.

Rigged systems are complicated, and a lot more difficult to combat than bribery and other, more blatant forms of self-dealing. It’s easy to shrug and conclude that “this is just how things get done.” But the integrity of the democratic system is ultimately far more important —and its absence far more consequential—than individual acts of dishonesty.

Quaint as it may sound, ethics matter. And ethical public behavior requires a culture of ethical accountability. “Trust me” doesn’t cut it.

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The State of Our State

Welcome to a new year, fellow Hoosiers.

Given that 2016 will be an election year, Hoosiers will hear lots of rhetoric about Indiana’s economic performance, both from the incumbent administration and those seeking to replace it; a credible analysis of that performance is thus essential if we are to separate the wheat from the chaff.

Morton Marcus is an economist who spent nearly 40 years at IU’s Kelley School of Business,  where he presided over a center that generated data about Indiana’s business climate. He is now retired (but by no means retiring), and he still writes a column carried by a number of newspapers around the state.

A recent Marcus column measured Indiana’s economic performance.

Let’s start with Real Gross Domestic Product (GDP), which Marcus defines as  “the value (adjusted for inflation) of all the goods and services produced in a nation or a state, over the course of a year or a quarter of the year.”  “

And how has the Hoosier state done by this measure?

The United States’ Real GDP has grown by about 13 percent in the last decade, while Indiana has added only 7 percent….If you look at the nation’s Real GDP each spring (the second quarter of the year), the progress made by Indiana every year since 2012 lags the growth of the nation. Indiana ranked 32nd with 2.8 percent compared with 5.8 percent for the U.S.

Then there is the question of jobs and wages.

The total of wages and salaries takes into account both how many people are working and what they make for their labors. Nationally, from the third quarter of 2005 to 2015 and after adjusting for price changes, wages and salaries grew by 13.2 percent. Here, in the Hoosier Holyland, the growth was 5.5 percent.

The news isn’t unremittingly negative: as Marcus tells us, “Non-durable goods were a winner; Indiana up one percent while nationally that sector was off by seven percent.”

But in durable goods, like autos, RVs and steel, the news was less cheery: “Indiana was down eight percent at the same time the country slipped six percent.”

All in all,

Over the past decade, the nation’s output and wages both grew by about 13 percent. In Indiana, however, they both trailed the U.S.; Hoosier output (Real GDP) grew by only 7.1 percent and wages by a mere 5.5 percent. Why aren’t Hoosier businesses and workers keeping pace?

As we head into 2016 and the inevitable political spin, it may be worth revisiting this analysis of actual economic performance—and considering whether we’d be better served by replacing our current Governor with someone less fixated on protecting retailers who want to refuse service to same-sex couples, and more committed to conventional economic development.

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Bosma: The Grownup in the Room

Well, the usual suspects are all ganging up on Brian Bosma, the Speaker of the Indiana House, who has had the temerity to suggest that, if we want roads we can drive on, we probably need to pay for them.

As the Indianapolis Star reported

Hoosiers could pay more for gas and cigarettes under a road funding proposal being crafted by Indiana House Republican leaders.

The proposal also would provide for a study about turning I-65 and I-70 into toll roads.

House Speaker Brian Bosma provided some details about the proposal during a legislative conference Downtown on Wednesday. The funding plan would index the state’s fuel tax to inflation and gradually shift all of the 7 percent sales tax on gasoline to the motor vehicle highway fund, which is used for state and local road projects.

Bosma said the plan would create a sustainable, long-term solution for maintaining Indiana’s roads and bridges, but he acknowledged that some would consider it a tax increase.

Now, it’s perfectly reasonable to argue for alternative ways to raise the necessary revenues, or to ask for assurances that funds raised will be prudently spent– but those aren’t the arguments being mounted by Bosma’s opponents. They are opposed to anything that looks remotely like a tax. No matter what.

Senate Appropriations Chairman Luke Kenley, R-Noblesville, said the proposed tax adjustments would be a tough sell in the legislature, where many Republicans have pledged never to increase taxes.

This impasse is a stark reminder that there are two kinds of Republican in Indiana (as elsewhere): those interested in actually governing, and those (like our embarrassing Governor) interested only in pulling down a public paycheck for posturing and pontificating. And there are more of the latter than the former.

News flash, ideologues: there is no free lunch. There is no way to provide necessary public services, no way to maintain critical public infrastructure, without adequate funds. Taxes are “user fees”–they are the price we pay for civilization, our social “membership dues.”

Grownups understand that.

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My Students Continue to Teach Me…

I’ve posted previously about teaching an undergraduate class in Media and Public Policy. I have also posted–frequently–about the loss of real journalism in our current media environment.

Abbreviated version: we are positively marinating in information, but losing the “journalism of verification” required by a democratic society.

When we came to the point in the semester when students share their research with the class, one presentation compared our local newspaper’s coverage of the just-concluded municipal election with that same paper’s coverage of the municipal elections held in 1991. In both years, the only offices on the ballot were the local ones; In Indiana, we elect Mayors and Councilors in “off” years, when neither statewide nor federal candidates are on the ballot. Also in both years, there was no incumbent running.

The numbers are telling.

In 1991, the  Indianapolis Star ran 63 articles focused upon general election coverage. This year, it ran 11. In 1991, there were 36 articles devoted to the issues involved in the mayoral and council races; this year, there were 16. In 1991, there were 26 articles explaining the electoral process; this year, 11. Stories devoted solely to the City-County Council races declined from 14 to 5.

Even coverage of election results declined; in 1991, there were 15 articles, this year, 6.

The one category in which there was an increase in coverage? Elections unrelated to Indiana. That category went from 56 stories in 1991 to 101 this year.

The editorial staff layoffs that have characterized newspaper operations in the intervening years have clearly played a part in the decline of local coverage: there were 32 different reporters with bylines covering the 1991 election; this year, there were 14.

Local newspapers aren’t just neglecting to cover City Hall. They aren’t even reporting on the (far easier and accessible) “horse race.”

Which leaves us with some questions: where are citizens supposed to get the credible, verified information we need? How are we supposed to keep local government accountable?

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The Issues We Face in Indianapolis

Here–as promised–is the panel discussion held at Central Library last Tuesday night. This was the second of the three-part series “Electing Our Future.”

If you weren’t able to attend in person, watch six of the most knowledgable people in our community talk about the challenges that we will expect our next set of elected officials to tackle!