Grading America’s Governors

This morning, Cato released the 12th edition of the “Fiscal Policy Report Card on America’s Governors.” The report card uses statistical data to grade the governors on their tax and spending performance from a limited-government perspective. The governors who cut taxes and spending the most receive an “A,” while the governors who increase taxes and spending the most receive an “F.”

Four governors were awarded an “A” on this report card: Pat McCrory of North Carolina, Sam Brownback of Kansas, Paul LePage of Maine, and Mike Pence of Indiana.

The common theme among these Republican governors is fiscal restraint. All four proposed or signed into law large tax cut packages in their state while also holding the down the growth of state spending.

At the other end of the fiscal spectrum, eight Democrat governors were awarded an “F.” These governors substantially increased taxes and spending within their states. They were: Mark Dayton of Minnesota, John Kitzhaber of Oregon, Jack Markell of Delaware, Jay Inslee of Washington, Pat Quinn of Illinois, Deval Patrick of Massachusetts, John Hickenlooper of Colorado, and Jerry Brown of California.

Over the years, the data-driven Cato report cards have shown that Republican governors are more fiscally conservative, on average, than Democrats. However, there are some Democratic centrists who have recently made important tax reforms, including Andrew Cuomo of New York and Lincoln Chafee of Rhode Island, who both earned a “B.”

Fiscal decisions made by governors matter to state economies. Much attention is paid to the uncompetitive federal corporate income tax, which collected $274 billion in 2013. But state and local taxes cost businesses $671 billion in 2013. The largest state taxes on businesses are property taxes of $242 billion and sales taxes on business inputs of $140 billion. The good news is that some governors are working hard to reduce these job-killing burdens.

The airwaves are full with pundits making observations about the political situation of various governors. The Cato report card allows you to sidestep the noise and see what the data shows about whether a governor is growing or restraining government.

Curious how your governor scored? Check out the full rankings.

Cargill v. Syngenta: Biotechnology and Trade

On September 12, Cargill, a major commodity trading and processing firm, filed a lawsuit in a Louisiana state court against Syngenta Seeds for selling genetically engineered MIR 162 (also known as “Agrisure Viptera®”) seed corn to farmers. China has not yet approved importation of corn containing MIR 162, so U.S. exports to that country of corn and corn products have come to a halt. Demand for U.S. corn has fallen. Cargill believes its losses exceed $90 million. 

Syngenta’s view?  “Syngenta believes that the lawsuit is without merit and strongly upholds the right of growers to have access to approved new technologies …”. The company’s position is that it has been legally selling seeds containing MIR 162, a trait that provides useful insect resistance, to U.S. farmers since 2010.  Other major corn importers – including Japan, South Korea, Mexico, Colombia and the European Union – have approved importation of corn with the MIR 162 trait. Syngenta has been seeking approval in China since March 2010. MIR 162 has not raised any health or environmental safety issues. 

Cargill’s view is that Syngenta has rendered U.S. corn supplies ineligible for export to China. Corn containing MIR 162 has spread throughout the U.S. marketing system to the extent that it would be expected to be present in any ocean vessel loaded for export:

Little Evidence Supports the FDA’s Proposed Food Label Rules

In the upcoming issue of Regulation magazine, Robert Scharff, associate professor in the Department of Consumer Sciences at the Ohio State University, and Sherzod Abdukadirov, research fellow in the Regulatory Studies Program at the Mercatus Center at George Mason University, argue that the FDA’s two proposed rules on food nutrition labeling are supported by little evidence and should be scrapped.

The food labeling rule would, as Scharff and Abdukadirov explain, result in a number of changes “involving both formatting and content changes to labels, increases in recordkeeping, and new analytic requirements.” The second rule, the serving size rule, would affect packages that contain a small number of servings. 

The FDA claims that implementing both of these rules will help Americans make healthier food choices. However, as Scharff and Abdukadirov point out, the FDA does not cite any work that supports the underlying assumption that consumers will change their short-sighted behavior if changes are made to food labels. In fact, an FDA-commissioned study found that increasing the font size for calorie information on food labels had no effect on consumer behavior. In addition, the FDA has provided little evidence that inserting a separate line on labels for “added sugars” will result in health benefits.

Aside from the lack of evidence cited by the FDA, Scharff and Abdukadirov explain that the study on the effects of regulations written to comply with the Nutrition Labeling and Education Act of 1990, which is used by the FDA to make the benefits calculations of its proposed rules, is flawed. Not only is the study unpublished and yet to be peer reviewed, its sample is limited to women aged between 19 and 50 years old, which artificially inflates the effects of nutrition labels on behavior because women are more likely to view nutrition panels than men.    

If the two proposed rules are implemented they will add billions of dollars in costs for consumers. Such an expensive change in regulations should have to be justified with good empirical data. Scharff and Abdukadirov show that the FDA’s proposed rules are justified mostly by good intentions, not data.  

Obama Puts Americans at Risk: ISIL’s Neighbors Should Eliminate the “Caliphate”

President Barack Obama is channeling George W. Bush in launching a new Mideast war. Why is Washington involved? 

The Islamic State is evil, but the organization’s raison d’etre is establishing a Middle Eastern caliphate, or quasi-state, not terrorizing Americans. In fact, grabbing territory provided the United States with a target for retaliation in response to any attack, something lacking with al-Qaeda. 

The murder of two Americans captured in the region was horrid but opportunistic. Morally abominable, yes. Cause for war, no.

Washington has never had much success in fixing the Middle East. The United States has been bombing Iraq since 1991. ISIL would not exist but for America’s 2003 invasion. 

Washington has been battling al-Qaeda since 2001. While the national organization is largely kaput, the group has spawned multiple national off-shoots.

The Bush administration justifiably overthrew the Afghan Taliban as punishment for hosting al-Qaeda. But 13 years of nation-building has been far less successful.

Three years ago, the Obama administration declared that Syria’s Bashar al-Assad had to go. Since then, “moderates” have lost ground. The Islamic State’s capture of the city of Raqqa created a base for attacking Iraq.

Washington joined European states in ousting Libya’s Moammar Qaddafi in the name of the Arab Spring. Today the country is in collapse. Yemen, the subject of a lengthy and heavy drone campaign, appears headed in a similar direction.

Now Washington plans to rid the world of ISIL.

Washington Should Recognize India as an Emerging Great Power

Before becoming prime minister, India’s Narendra Modi was barred from receiving a visa to visit the United States.  A rising leader in the Hindu nationalist Bharatiya Janata Party (BJP), he was tied to deadly sectarian violence. But now he leads one of Asia’s most important powers and the Obama administration is rolling out the red carpet.

India long was ruled by the dynastic India National Congress Party, which enshrined dirigiste economics as the state’s secular religion.  Eventually, however, reality seeped into New Delhi. The Congress Party liberalized the economy. The BJP broke the Congress monopoly on power. 

New Delhi appeared ready to follow the People’s Republic of China to international superstar status. But then enthusiasm for economic reform ebbed, economic growth slowed, and conflict with Pakistan flared. 

However, on May 26, Narendra Modi became prime minister.  He is visiting the United States to speak before the United Nations and meet with President Barack Obama. The trip could yield rich benefits for both countries.

China Celebrates an Anniversary of Its Dictatorship

Today the People’s Republic of China is celebrating the 65th anniversary of its founding on October 1, 1949, which is likely to produce even bigger crowds of protesters in Hong Kong demanding democracy. China’s opposition to democracy in Hong Kong and in China itself is not just the recalcitrance of cranky old men. It’s part of the Chinese Communist state’s founding mission. 

Take the speech of Mao Zedong on July 1, 1949, as his Communist armies neared victory. The speech was titled, “On the People’s Democratic Dictatorship.” Instead of life, liberty, and the pursuit of happiness, it spoke of “the extinction of classes, state power and parties,” of “a socialist and communist society,” of the nationalization of private enterprise and the socialization of agriculture, of a “great and splendid socialist state” in Russia, and especially of “a powerful state apparatus” in the hands of a “people’s democratic dictatorship.”

Tragically, unbelievably, this vision appealed not only to many Chinese but even to Americans and Europeans, some of them prominent. But from the beginning it went terribly wrong, as really should have been predicted. Communism created desperate poverty in China. The “Great Leap Forward” led to mass starvation. The Cultural Revolution unleashed “an extended paroxysm of revolutionary madness”  in which “tens of millions of innocent victims were persecuted, professionally ruined, mentally deranged, physically maimed and even killed.” Estimates of the number of unnatural deaths during Mao’s tenure range from 15 million to 80 million. This is so monstrous that we can’t really comprehend it. What inspired many American and European leftists was that Mao really seemed to believe in the communist vision. And the attempt to actually implement communism leads to disaster and death.

New Research Erases Global Warming from Pacific Northwest

Global Science Report is a feature from the Center for the Study of Science, where we highlight one or two important new items in the scientific literature or the popular media. For broader and more technical perspectives, consult our monthly “Current Wisdom.”

Poof, it was gone.

Just like that, the human fingerprints on a century-long warming trend in Northwestern United States were erased and replaced instead by the telltale signs of natural variability. 

That is the conclusion of new research published last week by a pair of scientists from the University of Washington. James Johnstone and Nathan Mantua published their paper titled “Atmospheric controls on northeast Pacific temperature variability and change 1900-2012” in the Proceeding of the National Academy of Sciences (PNAS).

So as not to be accused of putting words in their mouth, here, in full, are the contents of a box labeled “Significance” from their paper:

Northeast Pacific coastal warming since 1900 is often ascribed to anthropogenic greenhouse forcing, whereas multidecadal temperature changes are widely interpreted in the framework of the Pacific Decadal Oscillation (PDO), which responds to regional atmospheric dynamics. This study uses several independent data sources to demonstrate that century-long warming around the northeast Pacific margins, like multidecadal variability, can be primarily attributed to changes in atmospheric circulation. It presents a significant reinterpretation of the region’s recent climate change origins, showing that atmospheric conditions have changed substantially over the last century, that these changes are not likely related to historical anthropogenic and natural radiative forcing, and that dynamical mechanisms of interannual and multidecadal temperature variability can also apply to observed century-long trends.

 

Translation: Natural variability in the atmosphere/ocean dynamics of the northern Pacific Ocean rather than human-caused global warming can largely explain the century-long rise in temperature in the Pacific Northwest.

And the authors have the figures to prove it.

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