The Hidden Hand

When I hear the term “hidden hand,”  I immediately think of Adam Smith. But a couple of weeks ago, I came across a very different definition of that term–one that resonated with me.

Published by a think-tank called “Support Democracy,”the article addressed the growing problem of pre-emption, which it dubbed “the hidden hand.” In Indiana, we’ve had that problem as long as I can remember; it’s what I fulminate about when I decry local government’s lack of home rule.

Many of America’s cities, towns, and counties have less power than they did at the start of the year to protect the health and safety of their communities or to respond to the unique needs and values of their residents. That’s because between January and June 2019, state legislatures across the nation continued a troubling trend of passing more laws forbidding or “preempting” local control over a large and growing set of public health, economic, environmental, and social justice policy solutions. This legislative session, state lawmakers made it illegal for locally-elected officials to enact a plastic bag ban in Tennessee, raise revenues in Oregon, regulate e-cigarettes in Arkansas, establish minimum wages in North Dakota, protect county residents from water and air pollution produced by animal feedlots in Missouri, or protect immigrants from unjust incarceration in Florida.

Some states this session went further, with bills aimed at abolishing core powers long held by cities, including their ability to negotiate and set employment terms with their own contractors, enact and implement local land use laws, and control their own budgets and finances.

Here in Indiana, local jurisdictions have long been under the thumb of state lawmakers. The same legislators who bitch and moan about “unfunded mandates” imposed on state governments by Washington blithely operate on the assumption that they know better than the folks running city and county jurisdictions how those officials should do their jobs.

Are there issues that require federal mandates? Sure. Are there issues that ought to be handled consistently statewide? Of course. But the policy debate should center on what those issues are–and it rarely if ever does. Instead, we have the Indiana General Assembly deciding what vehicles Indianapolis can include in our locally-funded mass transit plans (no light rail for us–why, no one can explain).

It’s bad enough that a former Governor whose political savvy outstripped his devotion to rational policymaking (yes, Mitch, I’m looking at you) shoehorned a tax cap into the state constitution. That certainly made him popular. It has also destroyed the ability of local governments to provide appropriate levels of basic services. (Not to mention that provisions of this sort don’t belong in constitutions, which are by definition frameworks prescribing how issues like taxation are to be dealt with.)

State and local governments desperately need to revisit the allocation of power between them. In states like Indiana, state-level lawmakers need to allow local governments to make the decisions that are properly local.

As the report at the link explains,

Preemption is a tool, like the filibuster, that can and has been used by both political parties. In the past, preemption was used to ensure uniform state regulation or protect against conflicts between local governments. Preemption has also been used to advance well-being and equity. State civil rights laws, for example, allow cities to increase protections, but prohibit them from falling below what was required under law. Traditional preemption emphasized balance between the state and local levels of government. While state policy still had primacy, according to Columbia Law School professor Richard Briffault, it was understood that “state policies could coexist with local additions or variations.”This is not what we are seeing now.

“New Preemption” laws, according to Briffault, “clearly, intentionally, extensively, and at times punitively, bar local efforts to address a host of local problems.” Some of this is propelled by a disdain for local lawmaking and urban lawmakers seen as too liberal, intent on “oppressing” the free market and “trampling” on individual liberty…. Another primary driver of new preemption is the opportunity conservatives now have to deliver on a long-promised anti-regulatory agenda – an agenda that disproportionately and negatively affects women, people of color and low income communities. These new preemption laws are being used to prohibit local regulations without adopting new state standards in their place, effectively preventing any regulation or policy remedy at all.The efforts to consolidate power at the state level and end local authority over a wide range of issues are part of a national long-term strategy often driven by trade associations and corporate interests. Much of this effort has been orchestrated by the American Legislative Exchange Council (ALEC), an industry-funded organization made up by lobbyists and a quarter of all state lawmakers that writes and distributes model bills.

In my most recent book (which I shamefully keep hyping) I make a case for revisiting federalism, and ensuring that control of issues is lodged with the appropriate level of government.

I doubt I’ll live long enough to see that happen…..

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Minimum Wage Again

It has long been a GOP article of faith that raising the minimum wage is a recipe for disaster–that businesses will fire some workers in order to raise the pay of others, and that the increased wages will be passed along to consumers and that the higher prices will depress demand.

That last warning has been especially shrill when the effort to raise the minimum wage has focused upon food service workers. (Five cents more for a McDonald’s hamburger? No one will buy it!)

It doesn’t matter that in places that have ignored the naysayers and raised the minimum wage, these disasters have failed to materialize– ideology ignores evidence. (There’s an analogy between the hysteria over raising the minimum wage and the equally fervent belief that cutting taxes on rich people will generate job growth, despite the fact that it has never, ever happened.)

A recent article from Business Insider–not one of those “socialist” publications–confirms the hollowness of these economic chestnuts.

New York City restaurant workers saw their pay increase by 20% after a $15 minimum-wage hike, and a new report says business is booming despite warnings that the boost would devastate the city’s restaurant industry.

As New York raised the minimum wage to $15 this year from $7.25 in 2013, its restaurant industry outperformed the rest of the US in job growth and expansion, a new study found.

The study, by researchers from the New School and the New York think tank National Employment Law Project, found no negative employment effects of the city increasing its minimum wage to $15.

The article noted that numerous restaurant workers saw a pay increase of 20% to 28% as a result of the raise in the minimum wage, and that it represented the largest increase for  low-wage workers since the 1960s. New York’s decision to raise the minimum wage had been met with considerable skepticism and warnings of dire consequences.

Across the US, the restaurant industry has the most to lose from a $15 hike. The Bureau of Labor Statistics found that in 2016 the food-preparation and serving industry employed the most workers paid at or below the minimum wage, at 1.1 million. Sales, the industry with the next-highest low-wage workforce, employed 200,000 such workers.

“New York City’s restaurant industry has flourished overall,” the study said.

Excuse me while I repeat–once again–my mantra: public policies should be based on evidence. Theories are fine–they’re even necessary–but when evidence demonstrates that a theory is flawed, the evidence should prompt revision of the theory.

Apparently, however, that’s just too painful…..

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Speaking Of Foreign Policy

Yesterday, I posted about our truly frightening Secretary of State, and the infusion of fundamentalist religious doctrine into America’s foreign policy. But our international  challenges–which are mounting as quickly as our global influence is declining–are not limited to the results of Pompeo’s zealotry.

That’s because, in foreign affairs, the President has the last word. And when delicate and complex international issues are being decided by an erratic buffoon who is monumentally ignorant of world affairs and the way governments function, America’s interests can take quite a beating.

Just this week, Business Insider–a “non-lefty” publication that has been admirable in its coverage of the disaster that is the Trump Presidency–devoted considerable space to a scathing Penagon report that places the blame for the resurgence of ISIS squarely on Trump.

A report from the Pentagon inspector general found that President Donald Trump’s decision to rapidly pull troops out of Syria and divert attention from diplomacy in Iraq has inadvertently aided the Islamic State’s regrouping in Syria and Iraq.

The Department of Defense’s quarterly report to Congress on the effectiveness of the US Operation Inherent Resolve mission said that “ISIS continued its transition from a territory-holding force to an insurgency in Syria, and it intensified its insurgency in Iraq” — even though Trump said ISIS was defeated and the caliphate quashed, The Wall Street Journal reported.

Many officials and experts have repeatedly warned that a rapid US withdrawal from Syria would enable ISIS to regroup into an insurgency after their battlefield defeats by the US-led coalition.

The IG’s report also explicitly said the troop drawdown in Syria, which Trump announced at the end of last year, contributed to instability in the region. The drawdown, which prompted the resignation of Defense Secretary Jim Mattis, left the US’s Syrian partners in the lurch, without the training or support they needed to confront a resurgent ISIS. In Iraq, the Iraqi security forces lack the necessary infrastructure to fight off ISIS for sustained periods.

Trump was warned that his focus on Iran–one of his numerous efforts to reverse agreements entered into or regulations passed by Obama, no matter their reasonableness or value– would erode U.S. capacity to counter ISIS in Iraq and Syria, according to Brett McGurk, the former special presidential envoy for the Global Coalition to Counter ISIS. McGurk served under both George W. Bush and Barack Obama.

McGurk, like Mattis, resigned his post after Trump announced his drawdown. In a January op-ed, he warned that Trump’s policies in the region would give “new life” to ISIS and other US adversaries, and that the decision would “precipitate chaos and an environment for extremists to thrive,”exactly what the IG’s report said was happening on the ground.

But of course, Trump boasts that he knows more than the Generals. (This is the man who assured us that trade wars are “easy to win,” and who recently explained that we shouldn’t use windmills to generate electricity, because televisions won’t work when the wind isn’t blowing…among many, many other expressions of idiocy.)

A link to a one-page summary of the Pentagon report is here. Read it and weep….

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What Do Those Words Mean?

Given the overheated rhetoric coming from all sides in our current iteration of culture war, it’s tempting to dismiss the introductory paragraphs of a recent column originally published by Open Democracy as more of the same:

Any schoolchild in the United States knows that the US Declaration of Independence guarantees individuals’ rights to “life, liberty and the pursuit of happiness.”

Now, imagine what these principles mean for right-wingers and religious fundamentalists: where “life” refers to fetuses; “liberty” includes the prerogative to discriminate against LGBTIQ people; and “the pursuit of happiness” is reserved for straight, white patriarchs.

Dismissal, however, would be a mistake.

The concerns addressed by the column were triggered by Secretary of State Mike Pompeo’s announcement of a new government body: The Commission on Unalienable Rights.

According to its statement of intent, the Commission is needed as human rights “discourse has departed from our nation’s founding principles of natural law and natural rights”.

 In case you’re wondering how to distinguish “natural” rights, they’re the ones bestowed by God (at least according to Pompeo’s commissioners). One of them, Peter Berkowitz, argues that Christianity is the source of all human rights. Another, Shaykh Hamza Yusuf Hanson, sees marriage equality for LGBTIQ people as a sign of the “End Times”

Pompeo has raised eyebrows at the State Department and among America’s (increasingly concerned) allies by his efforts to conjoin America’s foreign policy and his religious fundamentalism.

An article in The New York Times noted Pompeo’s willingness to connect foreign policy to his religious beliefs.

No secretary of state in recent decades has been as open and fervent as Mr. Pompeo about discussing Christianityand foreign policy in the same breath. That has increasingly raised questions about the extent to which evangelical beliefs are influencing American diplomacy.

The Times listed Pompeo initiatives prompted by his religious beliefs, including the move of the U.S. Embassy to Jerusalem, and the expansion of Trump Administration anti-abortion policies–effected by terminating financial support for international organizations that support reproductive rights.

In speeches, Pompeo has expressed his belief that mankind is in a “never-ending struggle until the Rapture.” He told a reporter for The New York Times Magazine that the Bible informs everything he does.

His interpretation of Biblical mandates, needless to say, is not universally held even among Christians. But the fact that other people hold beliefs that differ from his hasn’t dissuaded him from his obvious belief that his is the Truth that must be imposed on everyone else.

As Open Democracy reports,

In an op-ed published by the Wall Street Journal, the Secretary of State attacks “politicians and bureaucrats [who have created] new rights”, and thus “blur the distinction between unalienable rights and ad hoc rights granted by governments”. He also asserts that “rights claims are often aimed more at rewarding interest groups and dividing humanity into subgroups”.

Women, non-Christians and gay people are thus categorized as “interest groups.”

The new commission’s initial assault is against abortion and the rights of LGBTQ people, but as the article points out, that’s only the opening salvo.

Unless you are part of the narrow demographic of rich, white men deemed to have rights in 1776, they’re coming for you too. In fact, their ideology threatens the vast majority of people – which is one reason it must be justified as “natural” and God-given.

I can think of few things more terrifying than people in positions of power who are convinced that their God has told them how He (and believe me, for these “Christians” God is always a “He”) wants them to interpret “life, liberty and pursuit of happiness.”

This Administration cannot leave soon enough.

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Walmarts Of War

The words used by knowledgable people to describe the size of America’s military budget  range from “bloated’ to “obscene.” The United States spends more on military hardware, troops, bases and the like than most of the rest of the world combined. Even the Pentagon recommends significant cuts, including base closures.

So why doesn’t it happen? Why does Congress routinely vote more money for the Department of Defense than the Department requests?

The answer is in that famous James Carrville motto: It’s the economy, stupid.

Manufacturers who contract with Defense are significant employers in numerous Congressional Districts. Anyone who was paying attention several years ago when there was a round of base closings can attest to the howls of anguish emanating from the local proprietors of businesses that depended upon those defense workers to buy their goods, patronize their bars and restaurants and rent or buy housing.

The reality of that dependence is daunting enough; it has prevented us from paring back a no longer necessary, too-costly war machine that is increasingly focused on fighting the last war. (The Russians are currently demonstrating that cyberwars are much less expensive…) But so long as our tax dollars were supporting a wide range of manufacturers pumping money into an equally wide number of communities, it was possible to understand–if not approve– the justifications offered.

Now, however, we’re just enriching a shrinking number of plutocrats, as Mark Thompson has reported.

The merger mania that surged as the Cold War wound down—when 51 aerospace and defense companies shrank to five—is making a comeback. The “military-industrial complex” that President (and five-star Army general) Dwight Eisenhower warned us of in 1961 has funneled down to a few “Walmarts of war,” as Daniel Wirls, a professor at the University of California, Santa Cruz, quoted defense researchers calling the surviving contractors in a June 26 Washington Post column. Less competition can drive up costs while dampening innovation. Backers counter that efficiencies, job cuts, primarily, lead to lower costs that can save the Pentagon money—rarely—or let it buy more for the same price—also rare. And the middlemen—the lawyers and financiers who nurture these deals—do just fine, thanks.

Thompson detailed the defense mergers, and reported on their consequences.

In May, the Government Accountability Office (GAO) notedthe dire effect of consolidation. Even though the Pentagon has cut four programs from its must-have list, the GAO said, its remaining 82 major programs had grown in cost by $8 billion, to a cool $1.69 trillion. “Portfolio-wide cost growth has occurred in an environment where awards are often made without full and open competition,” the Congressional watchdog agency added. “Specifically, GAO found that DOD did not compete 67 percent of 183 major contracts currently reported for its 82 major programs.” Nearly half of those contracts—47 percent—went the current Big 5: Lockheed, Boeing, General Dynamics, Northrop, and United Technologies (the numbers are even grimmer for taxpayers if supposedly “competitive” bids lead to only a single bidder)….

Worse, the Pentagon pipeline for missiles and munitions is plagued with problems, including “material obsolescence and lack of redundant capability, lack of visibility into sub-tier suppliers causing delays in the notification of issues, loss of design and production skill, production gaps and lack of surge capacity planning, and aging infrastructure to manufacture and test the products,” the report warns. “Production gaps for munitions and missiles directly reduce the U.S. capability to deliver kinetic effects against adversaries.” In October, a second report from the Trump Administration saidthe nation has an increasingly “fragile” defense-industrial base with “entire industries near domestic extinction” and growing reliance on foreign sources.

It is increasingly obvious that the United States needs to rethink virtually all aspects of our approach to national defense–to determine what is really needed to keep the nation safe from foreign attack in the 21st Century, a time when danger comes less and less from state actors and more and more from terrorist cells and internet bots.

The kind of rethinking that is needed will require the best efforts of men and women who are experts in international relations and the intricacies of warfare–not simply military hardware, but strategy and especially the changing nature of the threats we face.

This is a particularly unfortunate time to be governed by corrupt buffoons who have no understanding of government, economics, foreign affairs or science.

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