Public Policy and Governance – Page 239

Lessons from Kansas

Remember the book “What’s the Matter with Kansas?” If we ask that question today, the obvious answer is Sam Brownback (and in all fairness, the Kansans who elected–and inexplicably re-elected– him.)

Brownback took office in January of 2011. Like Indiana’s Mike Pence, Brownback had Republican majorities in both legislative houses, and together they were able to implement what Rolling Stone has called “the Republicans’ wet dream agenda.”

They passed huge tax cuts for the wealthy along with tax cuts on business profits, significantly reduced business regulations, and at the same time cut spending on welfare, rejected federal Medicaid money, and put the delivery of Medicaid services into private hands.

One of Brownback’s advisors was Arthur Laffer—best known for the “Laffer curve”–the theory that reducing tax rates leads to higher tax revenues. Laffer’s theory was the impetus for Reagan’s tax cuts; he has called what Kansas Republicans did “a revolution in a cornfield.” Other advisors included Steve Anderson, from the Koch brother’s Americans for Prosperity.

Whatever Kansas is these days, however, it sure isn’t prosperous.

As New York magazine recently reported in an article characterizing Kansas as a “parallel political universe,” the “revolution in the cornfield” has left the state in a world of hurt.

Marginal gains at the municipal level were dwarfed by the $688 million loss that Brownback’s budget wrought in its first year of operation. Meanwhile, Kansas’s job growth actually trailed that of its neighboring states. With that nearly $700 million deficit, the state had bought itself a 1.1 percent increase in jobs, just below Missouri’s 1.5 percent and Colorado’s 3.3.

Those numbers have hardly improved in the intervening years. In 2015, job growth in Kansas was a mere 0.1 percent, even as the nation’s economy grew 1.9 percent. Brownback pledged to bring 100,000* new jobs to the state in his second term; as of January, he has brought 700. What’s more, personal income growth slowed dramatically since the tax cuts went into effect. Between 2010 and 2012, Kansas saw income growth of 6.1 percent, good for 12th in the nation; from 2013 to 2015, that rate was 3.6 percent, good for 41st.

Meanwhile, revenue shortfalls have devastated the state’s public sector along with its most vulnerable citizens. Since Brownback’s inauguration, 1,414 Kansans with disabilities have been thrown off Medicaid. In 2015, six school districts in the state were forced to end their years early for lack of funding. Cuts to health and human services are expected to cause 65 preventable deaths this year in Sedgwick County alone. In February, tax receipts came in $53 million below estimates; Brownback immediately cut $17 million from the state’s university system. This data is not lost on the people of Kansas — as of November, Brownback’s approval rating was 26 percent, the lowest of any governor in the United States.

This is what happens when people elect stubborn ideologues unwilling to learn from reality or experience. (Here in Indiana, we’re about to see whether Hoosier voters have learned anything about returning ideologues to office.)

If Brownback had been Governor of Kansas when that storm blew her away, Dorothy probably would have stayed in Oz.

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The Dunning-Kruger Effect

What do Mike Pence and Donald Trump have in common? They both exhibit the Dunning-Kruger effect— a scientific theory establishing the truth of Mark Twain’s observation that “It ain’t what you don’t know that hurts you, it’s what you know for sure that just ain’t so.”

Or–in other formulations–it’s what you don’t know that you don’t know.

There are plenty of politicians in both parties who exhibit the Dunning-Kruger effect, but few do so with such stunning obliviousness as these two. Here in Indiana, voters have been treated to ample evidence of our Governor’s ideological rigidity in the face of inconvenient realities (it will be interesting to see how “gung-ho for vouchers” Pence responds to recent research showing that Hoosier children using those vouchers perform more poorly than children remaining in public schools).

But I must admit that even Pence’s delusions pale next to those displayed by “The Donald” he has endorsed.

Again, the key to the Dunning-Kruger Effect is not that unknowledgeable voters are uninformed; it is that they are often misinformed—their heads filled with false data, facts and theories that can lead to misguided conclusions held with tenacious confidence and extreme partisanship, perhaps some that make them nod in agreement with Trump at his rallies.

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For example, in a CNBC interview, Trump suggested that the U.S. government debt could easily be reduced by asking federal bondholders to “take a haircut,” agreeing to receive a little less than the bond’s full face value if the U.S. economy ran into trouble. In a sense, this is a sensible idea commonly applied—at least in business, where companies commonly renegotiate the terms of their debt.

But stretching it to governmental finance strains reason beyond acceptability. And in his suggestion, Trump illustrated not knowing the horror show of consequences his seemingly modest proposal would produce. For the U.S. government, his suggestion would produce no less than an unprecedented earthquake in world finance. It would represent the de facto default of the U.S. on its debt—and the U.S. government has paid its debt in full since the time of Alexander Hamilton. The certainty and safety imbued in U.S. Treasury bonds is the bedrock upon which much of world finance rests.

Even suggesting that these bonds pay back less than 100 percent would be cause for future buyers to demand higher interest rates, thus costing the U.S. government, and taxpayer, untold millions of dollars, and risking the health of the American economy.

Those of us who teach public administration–whose academic mission is to give prospective government workers the specialized knowledge and tools they will need in order to perform adequately and in the public interest–get pretty disheartened when voters who would never ask a non-dentist to extract wisdom teeth, a non-electrician to wire their homes, or an auto mechanic to draft a lease, blithely assume that anyone with “business sense” (or in Indiana, the “right” religious beliefs) can therefore manage a nation or a state.

Too many voters think of their ballots as a form of symbolic speech, rather than as the act of making a real-world choice between inevitably imperfect alternatives.

The fact that our alternatives may all be flawed is not to suggest that all flaws are created equal.

In November, Indiana voters will have a choice between pretentious piety and managerial competence.

Nationally, voters will have a choice between the unthinkable, a Democratic candidate that many find unsatisfactory, and a smattering of minor-party candidates with absolutely no chance of winning the Presidency. If the electorate doesn’t know what it doesn’t know–if voters fail to understand the difference between less than ideal and dangerously, monumentally unfit, we’ll all suffer the consequences.

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Squirrel!

In the charming animated movie UP, a recurring joke had the dog distracted from his task of the moment by the appearance of a squirrel. For a while, it became a meme–if a debate threatened to get personal, or a line of inquiry a bit too probing, someone would yell “squirrel!” to change the focus and break the tension.

“Squirrel!” became shorthand for distraction, and an inability to continue focusing on the task at hand.

Today’s “squirrel!” is fear of lurking transgender folks in the bathroom.

It isn’t only bathroom use, of course.

OKLAHOMA CITY — Some public schools are starting summer vacation several days early. Others are contemplating a four-day week to cut costs. And more than 200 teachers in Oklahoma City were handed pink slips in March.

But instead of addressing a burgeoning budget crisis that threatens public education and other critical state services, Oklahoma lawmakers have been busy debating proposals to criminalize abortion, police students’ access to public bathrooms and impeach President Obama.

It isn’t only Oklahoma, either. In fact, some of the most egregious examples of misdirection can be found in Congress, where 50+ votes to repeal the Affordable Care Act, interminable investigations of Benghazi, and attempts to impeach the head of the Internal Revenue Service, among similar distractions, have consumed the energies of lawmakers to the detriment of actually doing the nation’s business.

It’s hard to know whether the surreal political landscape we currently inhabit is simply a “phase” we are going through–sort of a national adolescence–or whether it is the beginning of a disintegration of the Republic– evidence that in an increasingly complex modern world, responsible citizenship and self-government are simply beyond our capacities.

If it is the latter, the really worrisome question is: what will replace it? If–as most of us fervently hope– we are just experiencing the dislocations of social change and “paradigm shift,” what sorts of policies should our elected officials be putting in place to safeguard a Constitutional system that has served us well, while still responding to the challenges of globalization and modernity?

But hey–let’s worry about Target’s bathroom policy.

Squirrel!

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Well, THIS Certainly Ups the Stakes….

Over the last couple of weeks, there have been reports from interviews with Donald Trump that should give any sentient being pause: in one, it became embarrassingly clear that he had never heard of the GI Bill; in another, challenged on his ability to push through a constitutional amendment to stop women from giving birth to all those “anchor babies,” he responded–wrongly– that birthright citizenship wasn’t in the constitution. (“It just takes a statute.”)

The Donald’s most recent policy pronouncement, however, is far more terrifying. As a number of media outlets are reporting, Trump says that if he is elected he will pull out of the Paris climate agreement and approve the Keystone pipeline.

Donald Trump, the presumptive Republican presidential nominee, said on Thursday that he would pull the United States out of the U.N. global climate accord and slash environmental regulations on the energy industry if elected…

“We’re going to cancel the Paris climate agreement,” Trump said at the Williston Basin Petroleum Conference in Bismark, the capital of North Dakota, the second largest U.S. oil-producing state. It was Trump’s first speech detailing the energy policies he would advance from the White House.

Trump said he would invite TransCanada to reapply to build the Keystone XL pipeline from Canada to the United States, reversing a decision by the administration of President Barack Obama to block the project over environmental concerns.

“I want it built, but I want a piece of the profits,” Trump said. “That’s how we’re going to make our country rich again.”

Trump is on record (not that being on record means anything in his case, since he changes his positions more often than most people change their underwear–but still) as repeatedly saying that climate change is a hoax. Whether he believes that or not, the policies he is promising to pursue are all based upon the increased use of fossil fuel and the rollback of regulations on energy.

As Ed Brayton wryly observed over at Dispatches from the Culture Wars, it may simply be another rather breathtaking exhibition of Trump’s hypocrisy:

Now remember, he said this literally two days after it was revealed that his company has applied to build a high sea wall at one of his golf courses in Scotland in order to protect the property from the rising seas resulting from global warming. So he knows damn well that global warming is real and has serious consequences. But he’s more than willing to screw over pretty much the entire world in order to get elected. Speaks volumes about the man, don’t you think?

At the end of the day, however, what Trump actually thinks (assuming, in the absence of evidence, that he actually does engage in that activity) is irrelevant. He is promising that on his watch, America will pursue policies having the foreseeable consequence of making the planet largely uninhabitable.

If his misogyny, racism, xenophobia, narcissism and profound ignorance about our government haven’t given Americans reason enough to insure that he never, ever gets near the Oval Office, this should do it…..

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What Teddy Roosevelt Understood That We Don’t

Back when Republicans were responsible stewards of the public good, Teddy Roosevelt waged war on monopolies. He understood that the virtues of capitalism–and they are many–required government protection. American commerce was no longer characterized by small merchants and farmers competing on a more-or-less equal playing field, and that made it imperative to constrain the powerful from dominating the marketplace and squeezing out the little guys.

In a recent column, Nobel prize winning economist Joseph Stiglitz points out that the problem of monopoly power is still with us, and still an enormous impediment to the proper working of a market economy:

In today’s economy, many sectors – telecoms, cable TV, digital branches from social media to Internet search, health insurance, pharmaceuticals, agro-business, and many more – cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the “pure” competition depicted in textbooks….

US President Barack Obama’s Council of Economic Advisers, led by Jason Furman, has attempted to tally the extent of the increase in market concentration and some of its implications. In most industries, according to the CEA, standard metrics show large – and in some cases, dramatic – increases in market concentration. The top ten banks’ share of the deposit market, for example, increased from about 20% to 50% in just 30 years, from 1980 to 2010.

Some of the increase in market power is the result of changes in technology and economic structure: consider network economies and the growth of locally provided service-sector industries. Some is because firms – Microsoft and drug companies are good examples – have learned better how to erect and maintain entry barriers, often assisted by conservative political forces that justify lax anti-trust enforcement and the failure to limit market power on the grounds that markets are “naturally” competitive. And some of it reflects the naked abuse and leveraging of market power through the political process: Large banks, for example, lobbied the US Congress to amend or repeal legislation separating commercial banking from other areas of finance.

Bottom line lesson: government should be an “umpire,” ensuring a level playing field, rather than a member of the “team” that has most effectively used its greater resources to game the system and co-opt the process.

As Stiglitz notes, unequal distribution of power in the marketplace drives inequality and undermines democratic institutions. It’s hard to disagree with his conclusion:

If markets are fundamentally efficient and fair, there is little that even the best of governments could do to improve matters. But if markets are based on exploitation, the rationale for laissez-faire disappears. Indeed, in that case, the battle against entrenched power is not only a battle for democracy; it is also a battle for efficiency and shared prosperity.

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