This Isn’t Capitalism

There’s a lot of hostility to capitalism in contemporary discourse–on this blog, among Sanders’ supporters and elsewhere. All too  often, however, the problem with that public debate is that we’re not “doing” actual capitalism.

A recent article from the New York Times reported on an “inside baseball” effort to overturn a consumer-friendly regulation promulgated by the F.C.C. It is an all-too-common story–members of Congress who portray themselves as defenders of market economics, but whose actions are those of corporatists, not capitalists.

Last month, 60 lawmakers signed a letter objecting to an F.C.C. regulation that would open the market for cable television set-top boxes. The agency proposed reforming the rules so that consumers can pick any television device to receive cable and online video, rather  than being forced to “lease” the boxes from their cable providers.

The competition would be great for consumers, but it would cut into the industry’s $19.5 billion in annual set-top-box rental fees.

So why, do you suppose, are these defenders of market economics, these critics of socialism, so upset by a regulation that actually frees up private enterprise and encourages free market transactions?

The Times article provides a clue:

Cable industry lobbyists also helped gather the 60 signatures on the set-top-box letter; nearly all of the lawmakers who signed count cable and telecom companies as top campaign donors, according to federal disclosures. The behind-the-scenes activity by cable companies and their industry groups is part of the biggest lobbying push. The trigger? A string of proposed regulations by the F.C.C. …  The target of much of the cable industry’s ire is Tom Wheeler, chairman of the F.C.C. Wheeler has also been joined by President Obama, who endorsed the set-top-box proposal in April.

It isn’t only set-top boxes. Cable industry lobbyists also object to proposals that would be more protective of consumer privacy–that would restrain the practice of selling personal information to companies engaging in targeted advertising, among other things. But the effort to overturn the set-box regulation speaks volumes (no pun intended) on the hypocrisy of our “free market” politicians.

The problem is, very few Americans who truly do have a dog in this fight will ever hear about this particular effort to protect the bottom line of cable companies, or the other obscure and technical wheeling and dealing that protects the perquisites of the powerful at the expense of the powerless.

After all, it’s just a few dollars more each month to lease that box….

Who was it who said “a few million here, a few million there–pretty soon, you’re talking real money…”?

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Government, Grants and God….

Sunday seems an appropriate day to consider–once again– the relationship between God and government.

Propublica recently reported on an effort by constitutional lawyers that highlights the increasing conflict between this nation’s commitment to government neutrality in matters of religion and the demands of religious organizations for special accommodations.

The Obama administration has roundly criticized states such as North Carolina and Mississippi for passing laws that allow discrimination in the name of religious freedom. But at the same time, the administration has left in place a 2007 memo from the Bush White House that allows religious charities with federal contracts to discriminate in hiring for federally funded programs.

Now, as Obama prepares to leave office, a group of prominent constitutional lawyers is calling on the Obama White House to revoke the legal memo, which they argue has been used by religious groups to refuse to provide services, including emergency contraception for human trafficking victims, that conflict with their beliefs. Their arguments are detailed in a legal analysis published this morning by Columbia Law School’s Public Rights/Private Conscience Project, which includes contributions of scholars from George Washington, Emory and Brigham Young universities, among others.

A good deal of my research when I first entered academia centered on Bush’s so-called “Faith Based Initiative,” and his effort to contract with religious organizations for the provision of government services to the needy. (In fact, I co-wrote a very boring book on the subject.) There were a number of faulty assumptions that prompted the Initiative, and as the Propublica article explains, such partnerships frequently created conflicts between the organization’s religious mission and the government’s obligation to refrain from funding religious discrimination.

Bush administration lawyers wrote the memo after the Christian charity World Vision, which serves the poor in nearly 100 countries, objected to a nondiscrimination clause in a $1.5 million Department of Justice grant to fund a mentoring program for at-risk children. World Vision argued that it should be allowed to hire only Christian employees for the program and that not allowing the group to do so would put a “substantial burden” on it.

The Free Exercise Clause of the Constitution protects the right of religious congregations and certain other religious organizations to hire and fire on the basis of their doctrinal beliefs–when those organizations are spending their own money. 

Discriminating with taxpayer dollars received via a government contract is a different matter.

When a government agency is requesting proposals from for-profit, nonprofit or religious organizations to partner in the provision of services, it generally requires that the successful bidder agree to obey applicable laws, including civil rights laws forbidding discrimination.

Religious congregations or organizations can choose to bid on a contract or not; if the terms of the award are inconsistent with the organization’s religious beliefs, it need not participate. As a local pastor once put it: “with the government’s shekels come the government’s shackles.”

If you aren’t willing to play by the rules, don’t join the game.

It is unfair to exempt religious bidders from compliance with rules others must obey– in essence, to give such bidders special rights not enjoyed by others.

The lawyers calling on Obama to end such preferential treatment have both the Constitution and fundamental fairness on their side.

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121 REPUBLICAN Foreign Policy Experts on Trump….

The nativist backlash against global interconnectedness and diversity is not unique to the United States. In Great Britain, that “us versus them” resentment found expression in Brexit; here, it has given us the candidacy of Donald Trump.

Both pose threats to national security, as well as the global economic order.

Before Trump secured the Republican nomination, Benjamin Wittes of the Brookings Foundation–a person who has previously avoided endorsing or denouncing political figures–was concerned enough about Trump’s negative effect on national security to write, among other things,

He is an unapologetic yahoo who quite literally has no idea what he’s talking about much of the time. He appears to have no interest in learning anything either about the complex international security environment in which the United States has to operate on a daily basis. And that is a very dangerous thing in a man who would be president.

Now that Trump has become the presumptive nominee, Wittes’ concerns have been amplified by those expressed in a letter signed by 121 Republican foreign-policy and national security leaders. No comment I could make would improve on that letter; accordingly, I paste it–in its entirety–below.

We the undersigned, members of the Republican national security community, represent a broad spectrum of opinion on America’s role in the world and what is necessary to keep us safe and prosperous. We have disagreed with one another on many issues, including the Iraq war and intervention in Syria. But we are united in our opposition to a Donald Trump presidency. Recognizing as we do, the conditions in American politics that have contributed to his popularity, we nonetheless are obligated to state our core objections clearly:

His vision of American influence and power in the world is wildly inconsistent and unmoored in principle. He swings from isolationism to military adventurism within the space of one sentence.

His advocacy for aggressively waging trade wars is a recipe for economic disaster in a globally connected world.

His embrace of the expansive use of torture is inexcusable.

His hateful, anti-Muslim rhetoric undercuts the seriousness of combating Islamic radicalism by alienating partners in the Islamic world making significant contributions to the effort. Furthermore, it endangers the safety and Constitutionally guaranteed freedoms of American Muslims.

Controlling our border and preventing illegal immigration is a serious issue, but his insistence that Mexico will fund a wall on the southern border inflames unhelpful passions, and rests on an utter misreading of, and contempt for, our southern neighbor.

Similarly, his insistence that close allies such as Japan must pay vast sums for protection is the sentiment of a racketeer, not the leader of the alliances that have served us so well since World War II.

His admiration for foreign dictators such as Vladimir Putin is unacceptable for the leader of the world’s greatest democracy.

He is fundamentally dishonest. Evidence of this includes his attempts to deny positions he has unquestionably taken in the past, including on the 2003 Iraq war and the 2011 Libyan conflict. We accept that views evolve over time, but this is simply misrepresentation.

His equation of business acumen with foreign policy experience is false. Not all lethal conflicts can be resolved as a real estate deal might, and there is no recourse to bankruptcy court in international affairs.

Mr. Trump’s own statements lead us to conclude that as president, he would use the authority of his office to act in ways that make America less safe, and which would diminish our standing in the world. Furthermore, his expansive view of how presidential power should be wielded against his detractors poses a distinct threat to civil liberty in the United States. Therefore, as committed and loyal Republicans, we are unable to support a Party ticket with Mr. Trump at its head. We commit ourselves to working energetically to prevent the election of someone so utterly unfitted to the office.

Click through for the list of signatories.

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Who Are We?

It’s bad enough that after the tragedy in Orlando, despite a Senate filibuster and a House sit-in, lawmakers remained in thrall to the NRA, refusing to pass even the most tepid gun control measures.

Less publicized was the fact that– even as they were offering their “prayers” for the victims–House Republicans once again refused to allow a vote that would have extended equal civil rights to LGBT citizens.

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Ah..Those Laboratories of Democracy…

When I introduce students to America’s constitutional architecture, I sometimes begin by asking them to define federalism. Judging from the blank stares and efforts to avoid being called on, I think it’s fair to say that our federalist system is not widely understood.

That’s too bad, because one of the policy debates we should be having–but aren’t–is how such a system should operate in a time when transportation and communication technologies have changed the way we view state lines. What sorts of rules and policies need to be national in scope, and which are best left to state and local government?

However we answer that question, one important role that states will undoubtedly continue to play is in the development of new approaches to governing.

Justice Louis Brandeis famously referred to the states as “laboratories of democracy;” the idea was that state governments would try new ideas and programs, acting as “pilot projects,” that would allow the rest of the country to evaluate the merits of those approaches before adopting them.

Inevitably, some will be cautionary tales, and pre-eminent in that category is Kansas or, as Charles Pierce calls it,

the failed state of Kansas, now in the fifth year of the Brownbackian Dark Ages, as such things are reckoned. Somehow, the fact that Kansas’ status as a supply-side lab rat has dropped the state down a political garbage chute the likes of which hasn’t been seen since they shredded the Articles of Confederation is beginning to seep under the guardhouses of the gated communities. The head of a healthcare company is fleeing to the Missouri border and he’s not shy about telling the world why.

The blistering indictment of Brownback’s Kansas by that company’s CEO is illuminating; noting that Kansas has become a test center of “trickle down” economics, he pointed out that those policies have led to a “dramatic failure of government.”

Brownback implemented unprecedented tax cuts in 2012. The largest cuts were in the highest tax brackets, and Brownback promised that they would provide a “shot of adrenaline” for the Kansas economy. They actually had the opposite effect, with Kansas lagging neighboring states in job growth and missing revenue targets in 11 of the past 12 months. In the face of ever-deeper debt and another round of degraded bond ratings, Brownback has asked his citizens to pray and fast to solve the budget crisis.

That should turn things around. Not.

It is tempting to look at the hot mess that is Kansas and feel better about Indiana. And granted, our fiscal problems–while substantial– are less severe. But our Governor has  generated his own cautionary tales.

Take, for just one example, his attack on public education and his fervent support of school vouchers. Indiana now has the largest voucher program in the country–and some of the most consistently under-resourced public schools. The public justification for expanding the voucher program is that allowing parents to choose private schools will improve education, at least as measured by test scores. (Given the percentage of families using those vouchers at religious schools, however, it is likely that the Governor’s preference for church over state– his consistent effort to bolster religious institutions and practices– is implicated.)

So how has Indiana’s “laboratory experiment” been working out? Not so well.

Recent research on statewide voucher programs in Louisiana and Indiana has found that public school students that received vouchers to attend private schools subsequently scored lower on reading and math tests compared to similar students that remained in public schools. The magnitudes of the negative impacts were large. These studies used rigorous research designs that allow for strong causal conclusions. And they showed that the results were not explained by the particular tests that were used or the possibility that students receiving vouchers transferred out of above-average public schools.

Perhaps Governor Pence can call for a day of prayer and fasting to raise the test scores of those voucher students. In the meantime, other states can be grateful for a federalist system that lets them learn from–and avoid– others’ disasters.

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