Is Ridesharing Safe?

Since the emergence of rideshare companies such as Uber and Lyft there has been a steady stream of commentary and news concerning their safety. When it comes to driver background checks, insurance, privacy, and vehicle inspections some claim that rideshare rides pose a greater threat to passengers than taxi rides.
 
In my Policy Analysis “Is Ridesharing Safe?” I examine the safety concerns related to ridesharing. While there are legitimate safety concerns, rideshare companies offer insurance coverage that compares favorably to the coverage for many taxis and are oftentimes more strict than taxi companies in regards to driver background checks. In fact, not only do ridesharing companies implement strict background check requirements, they also use features such as two-way rating systems that encourage good behavior on the part of both the passenger and the driver.
 
From the Paper: 
 
An analysis of the safety regulations governing vehicles for hire does not suggest that ridesharing companies ought to be more strictly regulated. It does highlight, however, that in many parts of the country lawmakers and regulators have not adequately adapted to the rise of ridesharing, which fits awkwardly into existing regulatory frameworks governing taxis.
 
Read the full Policy Analysis here

Frenemy Saudi Arabia Makes the World More Dangerous

Saudi Arabia is a medieval system whose horrid human rights practices match its antiquated political system. Official Washington breathed a sigh of relief at the smooth transition after King Abdullah died last week. President Barack Obama is visiting Riyadh to pay his respects.

Secretary of State John Kerry called the departed king a “man of vision and wisdom.” President Barack Obama declared that Abdullah “was always candid and had the courage of his convictions.”

U.S. officials long have celebrated their friendship with the Saudi royals, who sit atop vast oil reserves. Even more important, the American military continues to act as the Saudi royals’ bodyguard.

President George H.W. Bush inaugurated the first Gulf War as much to safeguard Saudi Arabia as liberate Kuwait. He left a garrison in Saudi Arabia later targeted by the 1996 bombing of the Khobar Towers barracks. America’s presence on sacred Saudi soil was one of Osama bin Laden’s grievances.

While American officials are conflicted by the tension between democracy and stability, the Saudis suffer no such indecision. Essentially a totalitarian dictatorship at home, the House of Saud favors whoever and whatever reduces threats to the monarchy abroad.

Feds’ Database Enables Spying On Americans’ Cars In Real Time

Per documents released in response to FOIA requests from the American Civil Liberties Union, the federal government has built a large database using automatic license-plate readers to enable tracking of vehicles in real time (not just in the course of later investigation) and nationwide (not just near borders), a more extensive program than might have been guessed from earlier piecemeal disclosures. According to this morning’s Wall Street Journal, which breaks the story, the program “collects data about vehicle movements, including time, direction and location, from high-tech cameras placed strategically on major highways.” The resulting photographs are “sometimes” clear enough to identify drivers or passengers. “One email written in 2010 said the primary purpose of the program was asset forfeiture.” Although the program is run by the Justice Department’s Drug Enforcement Administration, its data is increasingly shared for investigations unrelated to drugs.  

Repeating News Story: Global Warming To Make Blizzards Worse

Over the next couple of days, as the Nor’easter honing in on the New England coast matures and eventually unleashes its winter storm fury, you are going to be subject to a lot of global warming hype.

After all, the climate change alarmist credo is: let no extreme weather event pass without pointing out that it is “consistent with” climate change caused by human industrial society.

The push has already begun.

But this time around, the pushback is also well-prepared.

While the “curator” of the Washington Post’s newly-minted online “Energy and Environment” section Chris Mooney tells us in his article that global warming may make blizzards worse by increasing the temperature of the western Atlantic ocean and thereby increasing the moisture feed into the developing storm, meteorologist Ryan Maue is quick to point out that just the opposite is likely the result—that the elevated sea surface temperatures actually act to make such storms tamer.

Maue goes on to add that it is “easy to make case that global warming weakened this blizzard significantly due to warmer [sea surface temperatures].”

While Ryan is probably being a bit optimistic here, the reality is that this blizzard (in fact pretty much all storm events) are the result of a very complex system of physical interactions—the precise behavior of each one of which is not completely understood, much less perfectly predictable. This makes ascertaining the influence of human-caused climate change virtually (if not entirely) impossible.

The Failed HealthCare.gov Launch

The launch of HealthCare.gov in 2013 was a disaster. A new report from the Health and Human Services Inspector General (IG) describes how the department mishandled the website’s construction. The department failed to follow federal contracting rules, and did not have a cohesive plan for the website. This led to cost overruns and project delays, and HealthCare.gov’s eventually rocky start.

The Center for Medicare and Medicaid Services (CMS) was given primary responsibility within HHS for HealthCare.gov launch. For the report, the IG reviewed 60 CMS contracts for the project. These contracts were awarded to 33 different companies.

One problem with these contracts was not designating a single company as the project lead. According to the IG, CMS “missed the opportunity” to designate a “single point-of-contact with responsibility for integrating contractors’ efforts and communicating the common project goal to all 33 companies.” A project of this complexity needs a central command to oversee project development. CMS failed to assign one.  

Another problem was that CMS only sought bids from a small group of previously-used companies. CMS claimed this was to speed along the contracting process, but it left the agency with limited options. For instance, CMS received only four bids for one of the main contracts. Three were determined to be technically insufficient leaving CMS with only one choice, CGI Federal. In other instances, CMS only solicited or received bids from one company.

Additionally, CMS did not consider the previous contractor performance for many bids even though federal contracting rules require it. CMS did not access the main performance management database in the case of CGI Federal, which had had previous missteps with the department.

Compounding the mistakes, CMS selected contract types that put the government, not the contractor, at risk in the case of cost overruns for five of the six main contracts. Taxpayers are paying dearly for CMS’ choice. One contract grew from $58 million to $207 million. The six major contracts for HealthCare.gov grew in costs from $464 million to $824 million.

The IG summarized the findings:

When awarding the Federal Marketplace [HealthCare.gov] contracts, CMS did not meet all requirements and did not leverage all available acquisition planning tools, oversight activities, or contracting approaches to identify and mitigate risks…Because CMS did not leverage all of these tools, it operated without a comprehensive roadmap when awarding the Federal Marketplace contracts.

Construction of HealthCare.gov was a complex technical project. CMS’ mismanagement made the task even more difficult and even more expensive.  

Learning in the Live Free or Die State

In 2012, New Hampshire launched a bold initiative to advance educational freedom: scholarship tax credits.

The New Hampshire Opportunity Scholarship Act grants business tax credits worth 85 percent of those businesses’ contributions to nonprofit scholarship organizations that fund low- and middle-income students to attend private or home schools. More than 100 students received scholarships in the first year and the results were remarkable.

In a survey of scholarship recipients, nearly 97 percent of families reported being satisfied with their chosen school, including 89.5 percent who were very satisfied. Just a few months into the school year, more than two-thirds reported seeing measurable improvement in their child’s academic achievement. This is especially impressive because the scholarship recipients were among the most disadvantaged in the state. More than nine out of ten scholarship recipients were from families that had a household income low enough to qualify for the federal “free and reduced-price lunch” program, about $43,568 for a family of four.

Yet despite all that, the scholarship tax credit law faced both a repeal effort in the legislature and a bitter lawsuit that went to the state’s highest court. The law survived both—much to the relief of the scholarship recipients—but not without doing great harm. During the period of uncertainty that the repeal effort and lawsuit created, donations to the Network for Educational Opportunity, the state’s sole scholarship organization, fell from about $130,000 to just over $50,000. The reduction in funds meant a significant reduction in the number of scholarship recipients, a drop from 103 to just 40.

In the second year’s scholarship recipient survey, 80 percent reported seeing measurable academic improvement in their child since participating in the scholarship program. It’s a shame that so few students had access to those scholarships. Opponents of the scholarships have vowed to bring another lawsuit and eight legislators are once again sponsoring legislation to repeal the law. The struggle for greater educational freedom continues.

Tonight at 8 p.m. EST, in celebration of National School Choice Week, the Cato Institute will present Live Free and Learn: Scholarship Tax Credits in New Hampshire, a short film detailing the struggle over New Hampshire’s scholarship law and some of the families it has touched. After the film, please join us live online and on Twitter at #CatoConnects for a discussion the politics, policy, and constitutionality of scholarship tax credit laws with former NH state senator Jim Forsythe, Institute for Justice Senior Attorney Dick Komer, and yours truly.

Families participating in New Hampshire’s pioneering scholarship tax credit program report near-universal levels of satisfaction because it enables them to choose the best educational fit for their children. Whatever parents are seeking for their children—improved academic performance, more engaged teachers, social acceptance, freedom from bullying, special needs programming, and so on—they are more likely to find it when they have more than one choice. Policymakers across the country who are seeking to expand the educational choices available in their state should look to New Hampshire as a model—then perhaps students from all states will have the opportunity to live free and learn.

Banks Are ‘Under Assault’

J.P. Morgan Chase’s CEO Jamie Dimon has it right when he asserts that banks are “under assault.

This has put a damper on the source of 80 percent of the U.S. money supply, broadly measured. The CFS Divisia M4 is growing at an anemic 2.2 percent on a year-over-year basis.

Since the course of nominal national income is determined by the money supply, it’s not surprising that U.S. growth is also anemic. Final Sales to Domestic Purchasers, the best proxy for U.S. aggregate demand, has still not reached its trend rate of growth. In the face of these facts,

I don’t anticipate that the Fed will (or should), “tighten” at its Federal Open Market Committee meetings on January 27–28. Nor do I think the Fed will tighten as soon as most people think. 

Pages