Repeal, Not Reform, Is Necessary for the Bloated Welfare State

The United States is effectively bankrupt. Economist Laurence Kotlikoff figures the United States faces unfunded liabilities in excess of $200 trillion. Only transforming or eliminating such programs would save the republic.

The Left likes to paint conservatives as radical destroyers of the welfare state. Instead, some on the Right have made peace with expansive government.

Particularly notable is the movement of “reform conservatism,” or the so-called “reformicons” who, noted Reason’s Shikha Dalmia, “have ended up with a mix of old and new liberal ideas that thoroughly scale back the right’s long-running commitment to free markets and limited government.”

The point is not that attempts to improve the functioning of bloated, inefficient programs are bad. But they are inadequate. Yes, government costs too much. Government also does too much.

Montana Reins in Civil Asset Forfeiture

It’s been a nice few weeks for civil liberties in Montana.  On the heels of the nation’s most comprehensive restrictions on police militarization, Montana Governor Steve Bullock (D) has signed a bill reforming civil asset forfeiture in the state.

HB463 requires a criminal conviction before seized property can be forfeited, requires that seized property be shown by “clear and convincing evidence” to be connected to the criminal activity, and bolsters the defenses for innocent owners by shifting the burden of proof to the government.

The effort was spearheaded by State Representative Kelly McCarthy (D), who credited the work of the Institute for Justice and other civil liberties organizations for bringing the abuses of civil asset forfeiture to light.

McCarthy told the Daily Caller News Foundation:

“After looking into Montana laws and working with the Institute for Justice, we found that our laws provided no greater property rights protections than those states who were identified with rampant abuse, (Texas, Kentucky, Pennsylvania, Virginia, etc.).

From that time I began meeting with stakeholders and working on the bill.”

Montana is now the second state in less than a month to heavily restrict state-level civil asset forfeiture, following New Mexico. It must be noted that the Montana reforms are less robust than those that passed in New Mexico last month. 

Unlike the New Mexico law, the Montana law does not restrict law enforcement agencies’ exploitation of federal forfeiture laws that maintain the lower burdens of proof and the civil proceedings that Montana now restricts at the state level. The bill also allows Montana law enforcement to keep the proceeds of their seizures, whereas the New Mexico law requires that such proceeds be deposited into the general fund, thus depriving police of any profit motive for initiating seizures.

That said, the Montana law represents substantial progress for a state that the Institute for Justice labeled “terrible” on civil asset forfeiture, and all those who worked for its passage should be commended for striking a blow in favor of due process and property rights.

That a traditionally red state like Montana with a Democratic governor and a traditionally blue state like New Mexico with a Republican governor have both passed substantial civil asset forfeiture reforms this year is a testament to the bipartisan consensus building around restricting this inherently abusive practice.

 

When Overcrowding Happens in Vegas

What happens when the population of K-12 students grows faster than the government is able to build school buildings? Las Vegas is finding out the hard way:

Las Vegas is back, baby. After getting slammed by the Great Recession, the city today is seeing rising home sales, solid job growth and a record number of visitors in 2014.

But the economic rebound has exacerbated the city’s severe school overcrowding and left school administrators, lawmakers and parents scrambling.

This elementary school was built to serve a maximum of 780 students. Today it serves 1,230 — and enrollment is growing.

Forbuss Elementary is hardly alone. The crowding is so bad here in the Clark County School District that 24 schools will soon run on year-round schedules.

Forbuss already is. One of five sections is always on break to make room. Scores of other schools are on staggered schedules. More than 21,000 Clark County students are taking some online classes, in large part because of space strains. Nearly 700 kids in the district take all of their classes online.

“It’s pretty rough some days. I’m in a small portable with 33 students,” says Sarah Sunnasy. She teaches fifth grade at Bertha Ronzone Elementary School, a high-poverty school that is nearly 90 percent over capacity. “We tend to run into each other a lot. Trying to meet individual needs when you have that many kids with such a wide range of ability levels is hard. We do the best we can with what we have,” she says.

At Forbuss Elementary there are 16 trailer classrooms — the school prefers the term “portables” — parked in the outdoor recess area, eating away at playground space.

There’s also a “portable” bathroom and portable lunchroom. “It’s warmer in the big school,” a little girl tells me. “These get cold in winter.”

“You have to make do,” says Principal Shawn Paquette. “You get creative.”

“Our school is so overcrowded, that, you know, everybody’s gotta pitch in,” says school support staffer Ruby Crabtree. “We don’t have enough people.”

The Nevada legislature recently approved funding to build new schools and renovate old ones, but as NPR notes, the “handful of new schools won’t be finished for at least two years.” In that time, the Las Vegas school district is expected to experience 1 percent enrollment growth, or about 3,000 to 4,000 students, so the district will need “at least two more elementary schools every year.”

Maine Teacher Wins Million Dollar Prize. Why Not Let Teachers Make Big $ “The Old-Fashioned Way?”

The BBC reports that Nancie Atwell of Maine has just won the million dollar “Global Teacher Prize.” Congratulations Ms. Atwell! On the rare occasions such prizes are doled out, the reaction is universally celebratory. But is there really only one teacher in the world worth $1,000,000–and even then only once in a lifetime?

Here’s a radical thought: What if we organized education such that the top teachers could routinely make large sums of money “the old-fashioned way” (i.e., by earning it in a free and open marketplace)? In other fields, the people and institutions that best meet our needs attract more customers and thereby earn greater profits. Why have we structured our economy such that the best cell phone innovators can become rich, but not the best teachers? This seems not only deeply unfair but unwise as well.

Kim Ki-hoon, photographed by SeongJoon Cho for The WSJPerhaps some people don’t believe it would be possible for educators to become wealthy in an open marketplace. Their negativity is contradicted by reality. In one of the few places where instruction is organized as a marketplace activity, Korea’s tutoring sector, one of the top tutors (Kim Ki-Hoon) has earned millions of dollars per year over the last decade. His secret: offering recorded lessons over the Internet at a reasonable price, and attracting over a hundred thousand students each year. His employment contract with his tutoring firm ensures that he receives a portion of the revenue he brings in–so even though his fees are reasonable, his earnings are large due to the vast number of students he reaches. And his success depends on his performance. In an interview with Amanda Ripley he observed: “The harder I work, the more I make…. I like that.” Is there any reason we shouldn’t like that, too?

As Ripley reports, this tutoring marketplace receives favorable reviews from students:

In a 2010 survey of 6,600 students at 116 high schools conducted by the Korean Educational Development Institute, Korean teenagers gave their hagwon [i.e., private tutoring] teachers higher scores across the board than their regular schoolteachers: Hagwon teachers were better prepared, more devoted to teaching and more respectful of students’ opinions, the teenagers said. Interestingly, the hagwon teachers rated best of all when it came to treating all students fairly, regardless of the students’ academic performance.

That is not to say that the Korean education system is without flaw. Indeed, the government-mandated college entrance testing system creates enormous pressure on students and skews families’ demands toward doing well on “the test,” rather than on fulfilling broader educational goals. This, of course, is not caused by the marketplace, but rather by the government mandate. The marketplace simply responds to families’ demands, whatever they happen to be. While many hagwons prepare students for the mandated college-entrance exam, there are also those teaching such things as swimming or calligraphy.

If we liberate educators, educational entrepreneurship will thrive. There are policies already in place in some states that could ensure universal access to such an educational marketplace.

Hayek-Style Cybercurrency

In his groundbreaking work, Denationalisation of Money: the Argument Refined, F.A. Hayek proposed that open competition among private suppliers of irredeemable monies would favor the survival of those monies that earned a reputation for possessing a relatively stable purchasing power.

One of the main problems with Bitcoin has been its tremendous price instability: its volatility is about an order of magnitude greater than that of traditional financial assets, and this price instability is a serious deterrent to Bitcoin’s more widespread adoption as currency. So is there anything that can be done about this problem?

How to Recognize a Free-Speech Hero

Free speech has been in the news a lot recently. And lately it seems that we’ve had an unusually vigorous crop of utility monsters - the sort of professional complainers whose feelings are all too easily bruised, and who therefore demand that the rights of others be curtailed. 

In a climate like this, it’s important to distinguish the true heroes of free speech from the false ones. The latter are all too common. The key question to ask of public figures is simple: If you had all the power, how would you treat your opponents?

Meet Dutch politician Geert Wilders. He was a guest of honor at the recent Garland, Texas exhibition of cartoons of Mohammed, where two would-be terrorists armed with assault weapons were gunned down by a single heroic security guard armed only with a pistol. (Nice shooting, by the way.)

Wilders is now being hailed as a free-speech hero, at least in some circles. Unfortunately, he’s nothing of the kind. Besides criticizing Islam, Wilders has also repeatedly called for banning the Koran. The former is compatible with the principle of free speech. The latter is not.

A key move here is to distinguish the exercise of free speech from the principled defense of free speech. The two are not the same, as my colleague Adam Bates has ably pointed out.

Exercises of free speech can be completely one-sided. As an example, here’s me exercising my free speech: I happen to think Islam is a false religion. I have no belief whatsoever that Mohammed’s prophecies are true. They’re not even all that interesting. I mean, if you think the Bible is dull…well…have I got a book for you. I speak only for myself here, but I disagree with Islam. (And probably with your religion, too, because I’m a skeptic about all of them.) My saying so is an exercise of free speech. 

Defenses of free speech are different. Properly speaking, they must not be one-sided. A principled defense of free speech means giving your opponents in any particular issue the exact same rights that you would claim for yourself: If you would offend them with words, then they must be allowed to offend you with words, too. Say what you like about them, and they must be allowed to say what they like about you. 

No, we’re not all going to agree. And that’s actually the point: Given that agreement on so many issues is simply impossible in our modern, interconnected world, how shall we proceed? With violence and repression? Or with toleration, even for views that we find reprehensible? 

If you had all the power, how would you treat your opponents?

Retaliation and Intimidation within the VA

Mismanagement within the Department of Veterans Affairs (VA) is chronic. The agency mismanages its projects and its patients. Last year’s scandal at the Phoenix VA centered on allegations that veterans waited months for treatment while never being added to the official waiting lists. The VA Secretary resigned and the agency focused on changing course. New reports suggest that agency reforms still have a long way to go.

A congresswoman at a recent congressional hearing described the VA as having a “culture of retaliation and intimidation.” Employees who raise concerns about agency missteps are punished. The U.S. Office of Special Counsel (OSC), which manages federal employee whistleblower complaints, reported that it receives twice as complaints from VA employees than from Pentagon employees, even though the Pentagon has double the staff. Forty percent of OSC claims in 2015 have come from VA employees, compared to 20 percent in 2009, 2010, and 2011.

During the hearing, a VA surgeon testified about the retaliation he faced following his attempts to highlight a coworker’s timecard fraud. From July 2014 until March 2015, his supervisors revoked his operating privileges, criticized him in front of other employees, and relocated his office to a dirty closet before demoting him from Chief of Staff.

Another physician was suspended from his job shortly after alerting supervisors to mishandled lab specimens. A week’s worth of samples were lost. Several months later, he reported another instance of specimen mishandling and his office was searched. He became a target of immense criticism.

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