Reality Bites….

It’s really a shame that American policymakers are so allergic to evidence, because we have recently had a couple of natural experiments testing the GOP’s most fervent economic ideologies, and we could learn a lot from both of them.

Most people who follow the news are aware of Sam Brownback’s effort to make Kansas a shining example of economic growth to be achieved by drastic reductions in state taxes. To say it didn’t go well would be an understatement. Eventually–after brutal cuts to public education, infrastructure and public services and no sign of the promised offsetting economic growth–more rational Republicans in the state legislature forced him to accept tax increases.

Fewer people are aware of an even more dramatic experiment in Colorado.

The story began with the 2008 recession; like many other municipalities, Colorado Springs was experiencing fiscal distress.

To fill a $28 million budget hole, Colorado Springs’ political leaders—who until that point might have been described by most voters as fiscal conservatives—proposed tripling property taxes. Nearly two-thirds of voters said no. In response, city officials (some would say almost petulantly) turned off one out of every three street lights. That’s when people started paying attention to a city that seemed to be conducting a real-time experiment in fiscal self-starvation. But that was just the prelude. The city wasn’t content simply to reject a tax increase. Voters wanted something genuinely different, so a little more than a year later, they elected a real estate entrepreneur as mayor who promised a radical break from politics as usual.

For a city, like the country at large, that was hurting economically, Steve Bach seemed like a man with an answer. What he promised sounded radically simple: Wasteful government is the root of the pain, and if you just run government like the best businesses, the pain will go away. Easy. Because he had never held office and because he actually had been a successful entrepreneur, people were inclined to believe he really could reinvent the way a city was governed.

Bach promised to transform city government, making it work for everyone without tax increases. (Sound familiar?) He promised to do away with the personal property tax for businesses and to reduce the time needed for developers to get permits. He promised that these and his other “businesslike” measures would promote job growth–he promised 6,000 new jobs a year. He sold himself as an outsider fighting the city’s “regulatory agency mind-set.”

“Sixty Minutes” and “This American Life” covered the election and the town’s new “business friendly” governance. We haven’t heard much from the media since then, and it turns out that a lot has changed. As Politico noted, “seven years after the experiment began, the verdict is in—and it’s not at all what its architects planned.”

It turned out that putting people who don’t understand government in charge of government isn’t a formula for success. The new mayor fired people who had institutional memory and governing expertise; deferred critical infrastructure maintenance, and quarreled with the City Council when its members had the nerve to act like a co-equal branch of government rather than as his subordinates. The promised job growth didn’t come. Chaos did.

The next election, Colorado Springs elected as mayor a man who  had spent his entire professional life in government.

It’s still a conservative town. Donald Trump beat Hillary Clinton by more than 22 points in Colorado Springs’ El Paso County. But even with that “small-government mind-set,”

[T]hree times in his first two years as mayor, Suthers has gone to voters either proposing a new tax or asking to keep extra tax revenue. By overwhelming margins, he has now persuaded the supposedly anti-tax zealots of Colorado Springs to commit $250 million to new roads, $2 million to new park trails and as much as $12 million for new stormwater projects.

What has all this “wasteful” government spending done to economic growth? Some 16,000 jobs have been created in the past 24 months, and unemployment is at 2.7%.

Amazing as it may seem, running a government requires different skills than running a business–and fiscal prudence is not a synonym for low or no taxes.

Who knew?

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Your Answers?

This is the time of year that professors both love and hate–the semester is coming to an end, and most of us are very ready for that, but it is also when lengthy research papers are due and final exams given.  Those papers and exams must be graded  (and unfortunately, those grades must often be defended to students convinced that their efforts entitled them to higher marks).

I give students in my law and policy classes a take-home final. That’s partly to make up for a pretty brutal midterm, and partly to see whether the materials and concepts we’ve covered have caused them to think critically about the enterprise of government and the elements of good policy. Has the class helped them fashion a coherent philosophy of governance? Has it given them an appreciation of the complexities involved and skills required?

Here are the questions I have given them this semester; they were to choose one and write an essay responding to that choice. How would you answer them? (I won’t grade readers’ answers…promise!)                                                       

  1. Earth has been destroyed in World War III. You and a few thousand others—representing a cross-section of Earth’s races, cultures and religions—are the only survivors. You have escaped to an earthlike planet, and are preparing to establish a new society. You want to avoid the errors of the Earth governments that preceded you. What institutional choices do you make and why? Your essay should include: The type/structure of government you would create; the powers it will have; the limits on its powers, and how those limits will be enforced; how government officials will be chosen and policies enacted; and the social and political values you intend to privilege.

2. The First Amendment protects religious liberty. Over the past few years, Americans have engaged in heated public debates about the nature and extent of that liberty. Some people argue that requiring employers to provide health insurance that includes contraception, or requiring businesses like florists or bakers to serve same-sex customers, is a violation of the religious liberty of those whose religions teach that contraception or homosexuality is a sin. Others disagree. What is the proper definition of “religious liberty”—that is, how far should the free exercise of religion extend in America’s diverse religious landscape? What religiously-motivated actions can government legitimately limit, and what are the justifications for those limits?

3. Donald Trump’s campaign slogan was “Make America Great Again.” Without addressing the personal characteristics of either candidate in the November election, and without opining whether America was or was not greater in the past, describe the characteristics, values or other attributes that you believe make a country “great.” In other words, what are the attributes of a great country? How does it behave toward its own citizens and toward other countries? What changes to current American policies or laws do you believe are needed to achieve greatness as you define it?

Go!!

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Persecuted? Puh-leese

Imagine you and three friends rent a house together. You all pay your shares of the rent, maintenance, utilities and food costs. One of your roommates is vegan, and insists that no food can be purchased or brought into the house that does not meet strict vegan requirements.

If you protest, saying that you are happy to keep your preferred foods separate, but that as an equal contributor to the household, you have a right to eat in accordance with your own dietary preferences, he whines that you are persecuting him.

Most of us would say that the roommate is being an unreasonable bully. Yet his argument is no different from that of the “Christians” who demand laws that privilege their beliefs while ignoring the rights of those whose beliefs differ.

Hemant Mehta over at The Friendly Atheist has a perfect example.

The Florida High School Athletic Association (FHSAA) has a simple rule when it comes to reciting Christian prayers over the loudspeakers before football games: Don’t do it. It’s a fair policy considering it echoes what the U.S. Supreme Court said more than 16 years ago.

Last year, two Christian schools made it to the championship game, which would be played in a government-owned arena, the Citrus Bowl. The coach of one of the teams asked to say a prayer over the arena’s loudspeaker. Because the Citrus Bowl is a public facility, the FHSAA refused, and a Christian “defense” group sued. As Mehta noted,

The state didn’t do anything wrong. They didn’t block kids from praying. They merely said a public loudspeaker in a public facility couldn’t be used to broadcast prayer during a state event. This isn’t hard to understand unless you work for a Christian legal group, and your paycheck requires you to scream “Persecution!!!” three times a day…

The Establishment Clause of the First Amendment prohibits government from endorsing or sponsoring religion. The Free Exercise Clause prohibits government from interfering with private religious expression. As Mehta quite accurately explained,

This game was overseen and managed by the state, even if Christian schools were involved, and that meant following state law. Both teams were obviously allowed to pray before the game, and after the game, and during halftime, and silently whenever the hell they want. They could pull a Tebow during the game if they wanted to. And because they were private schools, the coaches could legally join in.

The lawsuit argued that just giving the schools this expansive right to pray wasn’t enough:

By denying access to the loudspeaker,” the suit states, “the FHSAA denied the students, parents and fans in attendance the right to participate in the players’ prayer or to otherwise come together in prayer as one Christian community.”

Evidently, prayer only counts when it’s Christian, and done publicly and loudly.

A couple of quotes from representatives of Freedom From Religion are worth sharing:

Their right to their own religious prayer practice ends where the rights of non-adherents begin, especially as it involves students. To think that the government should be required to concede to this demand is arrogance of highest order. Would they sit still for Muslim or Hindu prayers over the loudspeakers should such a group field a championship football team? Would they want the government to effectively endorse those religions through such largess?

Cambridge Christian is within its rights to force prayers on students and parents over its own loudspeakers, but not at a state-sanctioned high school championship. We hope the court will see that this is not a matter of censorship, but the appropriate use of a public facility for a secular sporting event and not a religious revival.

The libertarian principle that underlies our Constitution gives each of us the right to “do our own thing,” so long as we do not thereby harm the person or property of others, and so long as we are willing to give an equal right to others.

Forbidding government from privileging certain religious beliefs over others is not censorship, and demanding respect for the “equal right” of all citizens (or roommates) is not “persecution.”

It’s time for religious bullies to get over themselves.

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The Business of Government

Americans like to believe that government should be run like a business. That belief–pernicious and naive– helped elect Donald Trump, and its persistence is evidence (as if any additional evidence is needed) of the public’s profound lack of civic literacy.

Should government be run in a businesslike fashion? Of course. Is managing a government agency “just like” managing a business? Not at all.

A former colleague recently shared an article addressing the differences between business and government. Addressing the “myth” that anyone who can run a successful business can manage government, the author noted

This is not a 21st-century — or even a 20th-century — phenomenon. In a classic 1887 article, Woodrow Wilson, then a professor at Princeton University, maintained that there was a “science of administration” — arguing, in effect, that there were principles of management that transcended the context in which they were applied. “The field of administration is a field of business,” wrote Wilson. “It is removed from the hurry and strife of politics.”

Later observers and scholars of public administration thoroughly discredited this notion. The pithiest statement on the topic came from Wallace Sayre of Columbia University, who argued in 1958 that “public and private management [were] fundamentally alike in all unimportant respects.” In 1979, Graham Allison, then dean of the Kennedy School of Government at Harvard, used Sayre’s comment as a launching point from which to examine similarities and differences. He noted that both private firms and governments must set objectives, develop plans to achieve those objectives, hire people and direct them toward the achievement of objectives, and manage external environments. But he observed that the way in which these things occur is often fundamentally different from one sector to another.

The article lists some of the important ways in which private enterprises differ from public ones.

Government is about this thing called the “public interest.” There is no such animal in the private sector. Private firms care about their stakeholders and customers; they do not generally care about people who do not invest in their businesses or buy things from them. Thus, accountability is by necessity much broader in government; it is much more difficult to ignore particular groups or people.

Private-sector performance is measured by profitability, while performance measurement in government needs to focus on the achievement of outcomes.

Compromise is fundamental to success in the public sector. No one owns a controlling share of the government…. The notion of a separation of powers can be anathema to effective private management. It is central to the design of government, at least in the United States.

Government must constantly confront competing values. The most efficient solution may disadvantage certain groups or trample on individual or constitutional rights. In the private sector, efficiency is value number one; in government, it is just one of many values.

Government has a shorter time horizon. In government, the long term may describe the period between now and the next election. Thus there is a strong incentive to show relatively immediate impact.

Government actions take place in public, with much scrutiny from the press and the public. There is no equivalent of C-SPAN showing how decisions are made in the corporate boardroom. Corporate leaders do not find it necessary to explain their every decision to reporters.

When corporate executives are elected to run cities or states, they often expect to operate as they did in their companies, where they made the decisions and others obediently carried them out. But legislative bodies–even those dominated by the political party of the chief executive–are not “minions.” They too are elected officials, and they bristle (rightly) when a mayor or governor or president presumes to issue orders. Successful relations between the legislative and executive branch require negotiation, diplomacy and compromise–and those aren’t management skills generally found among corporate CEOs.

Trump and most of his cabinet nominees lack any government experience. Most also lack any education relevant to the missions or operations of the agencies they have been tapped to lead. They don’t know what they don’t know.

And it has become quite obvious that the concept of “the public interest” will be new to all of them….

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Flavors of Freedom

There is a book review in the latest issue of the Washington Monthly of “No Freedom Without Regulation: The Hidden Lesson of the Subprime Crisis.”  It was written by a Professor Singer of Harvard Law School, and in it, he considers a type of freedom that gets short shrift from the various special interests who are constantly insisting that any and all government regulation constrains our liberties.

I found this passage illuminating:

When the state sets minimum standards of safety and transparency for the manufacture and sale of consumer products, it affords me the freedom to buy a toaster oven without first hiring a lawyer to read the fine print and an electrician to look over the specs to make sure it won’t catch on fire. Other restrictions protect us from negative externalities. Building codes may limit my neighbor’s ability to contract for the construction of a house with cheap material and bad wiring, but it protects my house from the fire likely to erupt in his.

As I have noted in previous posts, I’m grateful for the Food and Drug Administration that relieves me of the need to test that chicken I bought at Kroger for e coli. (Before the recent news from Flint, Michigan, I used to be more grateful for the EPA’s monitoring of water quality–now, I’d like to see those regulations stiffened up a bit…)

The ongoing debate about government regulatory activity displays all the deficiencies of American policy arguments generally: it oversimplifies, assumes an “either/or” answer, and focuses on the wrong questions.

Can regulation be too stifling? Can a “nanny-state” approach impose unnecessary costs on businesses and consumers? Sure.

Can the lack of appropriate regulation endanger innocent people, and impose additional costs on those same businesses and consumers? You betcha!

The questions we should be addressing are the “how” questions: is this particular regulation necessary? Is it “narrowly tailored” to accomplish its goal? Does it make sense from a cost-benefit standpoint?

We’ll still disagree, still argue about the extent and substance of regulatory activity. But at least we’d be arguing about the right things.

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