Singapore: the Power of Economic Freedom

The Telegraph ran a fascinating collection of photos from different statges of development of the Asian city state of Singapore. The first photo is from 1900, the second is from the 1970s and the last photo is contemporary. The incredible transformation of Singapore from a sleepy outpost of the British Empire to a global commercial and technological hub was partly facilitated by a very high degree of economic freedom. In 1970, the first year for which data is available, Singapore had the third freest economy in the world (behind Hong Kong and Canada). Singapore maintained a high degree of economic freedom over the next 45 years and ranks as the second freest economy in the world today (behind Hong Kong). As late as 1970, per person income in Singapore was 54 percent of the global average. Today it is 321 percent of the global average.

And on the Seventh Day You Can Rest (If You Want)

For 122 years, the California Labor Code has said that employees in all industries are “entitled” to a day of rest “one day therefrom in seven.” The statute also provides that “No employer shall cause his employees to work more than six days in seven.” Mendoza, a former Nordstrom employee, is arguing to the California Supreme Court that the Labor Code should be construed as flatly prohibiting employers from allowing an employee to work on the seventh day of a workweek. To make that argument work he must also convince the Court that the Labor Code prohibits employees from voluntarily choosing to work on a day otherwise scheduled for rest. This radically paternalistic argument not only flies in the face of the plain language of the statute, but it would hurt employees who may wish work on the seventh day of a workweek for innumerable reasons. In a brief filed in support of Nordstrom, Cato, joined by the National Federation of Independent Business, the Reason Foundation, and a handful of California employees, argues that there are many legitimate reasons why an employee might want to work on the seventh day of a workweek: to meet financial goals, to accommodate personal schedules, or simply to maintain flexibility to work when he wants.

Mendoza also argues that employers must require written waiver from employees before allowing them to work on the seventh day of a workweek. But nothing in the Labor Code suggests that there is any requirement for a waiver to be in writing, or for employers to maintain records whenever an employee should elect to work on a day otherwise scheduled for rest. We argue that it would be improper to read language into the statute that would impose such burdensome requirements on employers—both because it would violate first principles of statutory construction and because it would open unwitting businesses up to lawsuits. Moreover, such a paperwork requirement would be wholly impracticable when, for example, an exempt employee might choose to check a few emails on a Sunday evening, something that could be construed to violate the day of rest law.

Finally, we argue that the plaintiff advocates a theory that would hold his employer liable for conduct that California state regulators had long permitted in official agency guidance. Just as there would be significant due process concerns with Congress passing a statute to retroactively hold businesses liable for conduct that was permissible at the time, there would be serious constitutional problems with giving a statute a retroactive interpretation that would impose ruinous penalties on individuals or businesses that acted in good faith reliance on best available guidance at the time. The California Supreme Court should not heed Mendoza’s paternalistic arguments and upset 122 years of treating California’s workers like responsible adults.

The Two Koreas Talk: Time for Thanksgiving?

Whenever North Korea heads to the negotiating table one remembers the traditional description of a second marriage: the triumph of hope over experience. We’ve been here before. Or, more accurately, the two Koreas have.

Still, as Winston Churchill famously said, better to jaw-jaw than war-war. The last Korean conflict left millions of casualties and refugees. Even a minor league war could be catastrophic.

Nevertheless, the Republic of Korea should have no illusions about the latest negotiations, scheduled for America’s Thanksgiving. Nothing much is likely to emerge from that gathering. And nothing that emerges is likely to survive very long.

Debating ObamaCare with Kathleen Sebelius

Back in October, I debated ObamaCare with former Secretary of the U.S. Department of Health and Human Services Kathleen Sebelius. Kansas City Public Television recently aired a package featuring the debate.

Complete footage of the debate is available here: Part 1Part 2Part 3Part 4Part 5, and Part 6.

One memorable moment came after I told the story of Deamonte Driver, a boy from Prince George’s County, Maryland, who died at age 12 because his mother was unable to find a dentist who would accept their Medicaid coverage. An infection that began in an abscessed tooth spread to Deamonte’s brain and ultimately killed him. A dentist could have prevented Deamonte’s death with a simple $80 extraction. But Medicaid pays dentists so little, that only one in six Maryland dentists accepts Medicaid patients. Deamonte’s mother and employees at a local non-profit called dozens of dentists to no avail.

Deamonte DriverSebelius responded that Deamonte would have died with or without Medicaid, and besides there is no alternative because “I don’t know any dentists who take uninsured people at all.” This from, as KCPT describes her, “the woman once charged with leading the nation’s health care system.”

Also on the panel were Tarren Bragdon of the Foundation for Government Accountability and Daniel Landon of the Missouri Hospital Association.

Fullerton California to Pay $4.9m for Wrongful Death of Kelly Thomas

In 2011, the Fullerton, California police violently beat Kelly Thomas, a 37-year-old mentally ill homeless man, who later died from his injuries. The arrest was recorded, and Thomas could be heard calling for his father as the officers relentlessly beat him into a coma.

Two officers were fired for the incident but ultimately acquitted of criminal charges in the case. As opening arguments were set to begin in the wrongful death suit, the City of Fullerton agreed to pay the Thomas family $4.9 million as a settlement.

Ron Thomas said at a news conference that while the city acknowledged no wrongdoing in the settlement, it was a clear indication to him of its liability and guilt in the death of his 37-year-old son Kelly Thomas. Thomas said he feels vindicated by the settlement.

It is not uncommon for municipalities to disavow any culpability in settlements like this. But lawsuits are important nonetheless because they bring some measure of closure to the families who do not find justice in the criminal courts and incentivize governments to prevent such incidents from happening in the future.

Over at, we track and catalog news stories like this one that take years to make their way through the administrative, criminal, and civil systems. It is vitally important that police officers and municipalities are held accountable for their actions.

On Tuesday, December 1, Cato will host “Policing in America,” an all-day conference dedicated to discussing the policies and impacts of law enforcement around the country. The event will be live-streamed on the Cato website. 

A version of this is cross-posted at

No Longer a Hypothetical: Russian Plane Shot Down

Earlier today, Turkey, a NATO ally, shot down a Russian jet, killing at least one pilot, and leaving the other in the hands of insurgents on the ground (and possibly also dead). The Turks claim that the Russian jet was operating in Turkish airspace, and was warned away on numerous occasions. Thus, when its F-16 fighter jet attacked the Russian SU-24 bomber, it was a legitimate act of self defense. The Turks have called for a NATO meeting later today to explain their side of the story, and, presumably, game out next steps.

Russia claims that its plane was operating over Syrian airspace. It initially reported that it was downed by ground fire, but has since changed its story. Putin is calling it “a stab in the back,” but may stop short of using it as a pretext for substantially widening a conflict he may already regret having been dragged into. There are conflicting reports about whether Russian Foreign Minister Sergey Lavrov has canceled a planned meeting in Turkey tomorrow.

This story bears watching, and I’m reluctant to spin out the historical analogies too far. Very few brush fire wars become world wars, and not all allies behave as the allied and entente powers did in July 1914. Plus, technological changes go a long way to explain why the world today is very different from 100 years ago. I have reason to doubt, for example, that a nuclear-armed Germany would have risked war with a nuclear-armed Russia over Austria-Hungary’s ultimatum to Serbia.

But I nervously tweeted this morning that we might soon appreciate the difference between fighting wars against terrorists and wars against nation-states. We’ve avoided having to think seriously about such things for many years, which may explain the apparent enthusiasm for a no-fly zone over Syria (favored by at least 8 of 11 major presidential candidates). The possibility of Russian jets being shot down, and Russian pilots killed, was dismissed as a hypothetical (Though not by everyone).

It isn’t hypothetical any longer.

Courts Should Review Executive-Agency Interpretations of the First Amendment

Among the types of speech that the First Amendment protects is commercial speech, such as advertising. But commercial speech that’s false or misleading isn’t constitutionally protected: you may be liable for defrauding someone through various communications. But what is “false” or “misleading,” and who decides?

The Federal Trade Commission brought claims against POM Wonderful—you may know them as the producer of various pomegranate beverages in distinctive curved bottles—for consumer deceptive advertising. The agency determined that some of POM’s health-supplement ads were misleading. But this decision was appealable only to the FTC itself, which becomes judge, prosecutor, and jury in an arrangement blessed by the U.S. Court of Appeals for the D.C. Circuit. That court declined to second-guess the FTC’s rulings on the ground that the agency should be given broad deference in its adjudicative factual and legal findings.

But when the standard of review for First Amendment claims varies between courts and administrative agencies, constitutional protections become vulnerable to inconsistencies. And even more concerning than inconsistencies are the conflicts of interest inherent in the FTC’s internal hearings, which lack substantial judicial review.

This situation leaves businesses subject to FTC actions with no viable means to check their accuser’s determination that its speech is misleading or fraudulent. It’s no coincidence that over the past two decades, the FTC hasn’t lost a single deceptive-advertising case it has administratively initiated.

To correct this state of affairs, Cato has joined the Alliance for Natural Health-USA on an amicus brief urging the Supreme Court to take POM’s case. The Supreme Court has repeatedly held that determining whether the Constitution protects particular speech is the quintessential function of Article III courts, not federal agencies. Yet this directive has become increasingly observed in the breach with respect to commercial speech, ever since the Supreme Court’s unsatisfying ruling in Bose Corp. v. Consumers Union (1984).

The POM predicament presents an optimal opportunity for the Court to address the question left open in Bose and wrest decisions regarding First Amendment doctrine away from the executive branch. 

The Supreme Court will decide whether to take POM Wonderful v. Federal Trade Commission early in the new year.