Archives: April, 2014

Hunger on College Campuses? Not Really

There are many problems with The Washington Post’s recent article, “More College Students Battle Hunger as Education and Living Costs Rise.” Instead of discussing each problem—such as the claim that a college education is necessary for a good career—I’ll stick to research on quality of life.

When it comes to the claim that college students are going hungry, the article appears to be misleading sensationalism. The article argues that American college students are increasingly “food insecure” (i.e., they go hungry or lack access to nutritional food). This is supposedly a problem in part because students increasingly focus on obtaining food rather than studying.

In reality, Americans have never been more food secure. Over time, agricultural productivity has risen as food prices have dropped. (See Figure 1, below.) As incomes have increase, Americans use less of their total budget to purchase food (Figure 2). Today, calorie consumption in the United States is well above the recommended amount, even as we eat healthier foods more frequently (Figure 3).

Figure 1

 Figure 1

Figure 2

 Figure 2

Figure 3

Figure 3 

Why Did Western Nations Continue to Prosper in the 20th Century even though Fiscal Burdens Increased?

In the pre-World War I era, the fiscal burden of government was very modest in North America and Western Europe. Total government spending consumed only about 10 percent of economic output, most nations were free from the plague of the income tax, and the value-added tax hadn’t even been invented.

Today, by contrast, every major nation has an onerous income tax and the VAT is ubiquitous. Those punitive tax systems exist largely because—on average—the burden of government spending now consumes more than 40 percent of GDP.

historical-size-of-govt

To be blunt, fiscal policy has moved dramatically in the wrong direction over the past 100-plus years. And thanks to demographic change and poorly designed entitlement programs, things are going to get much worse, according to Bank of International Settlements, Organization for Economic Cooperation and Development, and International Monetary Fund projections.

While those numbers, both past and future, are a bit depressing, they also present a challenge to advocates of small government. If taxes and spending are bad for growth, why did the United States (and other nations in the Western world) enjoy considerable prosperity all through the 20th century? I sometimes get asked that question after speeches or panel discussions on fiscal policy. In some cases, the person making the inquiry is genuinely curious. In other cases, it’s a leftist asking a “gotcha” question.

Long-Run GDP

I’ve generally had two responses.

Ideas Have Consequences: The Neoconservatives

The New York Times has produced a useful video about the “super-predator” scare from the 1990s.  At that time, we were already waging a drug war, so we were advised to build more prisons–and so we did.  Then regrets.

You can watch the video here.

As it happens, we are also finding more scrutiny of neoconservative ideas at the movies. A new documentary film directed by Errol Morris looks at former Secretary of Defense, Donald Rumsfeld and the Iraq war.  Here is the film trailer:

For related Cato work, go here, here, and here.

Don’t Push China and Russia Together

One of the more notable results of Russia’s invasion and annexation of Crimea is how unenthusiastic the Chinese government has been about that development. In a piece at China-U.S. Focus, I describe Beijing’s reaction as one of “nervous ambivalence.”

Moscow’s policy regarding Crimea sets extremely dangerous precedents from China’s standpoint. Amputating the province of a neighboring state through military occupation and a subsequent referendum to give the “secession” a façade of legitimacy, triggered multiple alarm bells in Beijing. Russia’s Crimea annexation violated China’s repeatedly stated position emphasizing respect for the territorial integrity of all states as a key principle of international behavior. Beijing’s emphasis on that principle is hardly surprising, given its own territorial issues involving Tibet, Xinjiang, and Taiwan. The last thing Chinese leaders want to encourage is a precedent whereby one or more of those entities might seek secession with the assistance of a hostile foreign power or combination of powers.

Unfortunately, U.S. officials are apparently oblivious to opportunities to exploit China’s nervousness. Instead, Washington seems determined to adopt measures that are likely to push Beijing and Moscow together. Obama administration officials have thrown diplomatic temper tantrums because Beijing has joined Moscow in resisting U.S.-led efforts to unseat Syrian leader Bashar al-Assad and impose increasingly harsh economic sanctions on Iran. On one occasion, Susan Rice denounced Chinese and Russian vetoes of a UN resolution on Syria, proclaiming that her country was “disgusted.” She added that those actions were “shameful” and “unforgivable.”

Sixth Circuit: You’re Drunk, EEOC, Go Home

As my colleague Ilya Shapiro noted last fall in this space, the Cato Institute joined an amicus brief before the Sixth Circuit U.S. Court of Appeals in a case called EEOC v. Kaplan Higher Education. As Ilya summed up the underlying situation: 

Following several incidents of employee theft, Kaplan University did what any reasonable employer might do in similar circumstances: it instituted heightened screening procedures for new hires. This process included credit checks to filter out potential employees at greater risk of committing theft. These checks made no mention of any applicant’s race and Kaplan didn’t collect any race information from applicants, thus making the hiring process both race-neutral and race-ignorant. Nevertheless, the Equal Employment Opportunity Commission, which itself uses credit checks in hiring decisions, sued Kaplan under Title VII of the Civil Rights Act, claiming that the use of credit checks has an unlawfully disparate impact on African American applicants.

Because Kaplan doesn’t keep racial data for applicants, the EEOC had to come up with its own data to prove its case. The agency thus created a team of “race raters,” a group of seemingly random people who sorted Kaplan’s job applicants into racial categories based only on the applicant’s name and DMV photo. (You can’t make this stuff up!) Because of the unscientific and unreliable nature of this data, the EEOC was soundly rebuffed in the federal district court in Ohio where it brought its case.

Yesterday, in a slapdown that’s already the talk of the legal community, the Sixth Circuit panel rebuffed the federal agency and roundly backed Cato’s view of the case. The ruling is short and sweet – go read it here – but here are a few prime tidbits for those in a hurry: 

In this case the EEOC sued the defendants for using the same type of background check that the EEOC itself uses. …

The district court considered every one of the Daubert factors [on expert witness admissibility] — and found that [EEOC expert Kevin] Murphy’s methodology flunked them all. …

The EEOC’s case goes downhill from there. …

We need not belabor the issue further. The EEOC brought this case on the basis of a homemade methodology, crafted by a witness with no particular expertise to craft it, administered by persons with no particular expertise to administer it, tested by no one, and accepted only by the witness himself. 

The outcome is a triumph for Seyfarth Shaw attorney Gerald L. Maatman, Jr. a dean of the employment bar, and all the more impressive because one of the three judges on the opinion is liberal lion Damon Keith, about as sympathetic a judicial ear as the EEOC could normally hope for. It’s a sharp setback for the agency’s dubious “disparate impact” campaign against employer use of credit and criminal records in hiring. And it’s also part of a pattern of rebuffs and defeats the EEOC has been dealt by judges across the country since President Obama turned the agency on a sharp leftward course with his appointments. We’ll have more to say about that pattern in future commentaries. 

Jeb Bush’s Fiscal Record

Former Florida Governor Jeb Bush is considering running for president. One good thing about presidential contenders who have been governors is that they have a measurable track record.

Part of that record is captured by Cato’s biennial “Fiscal Policy Report Card on America’s Governors.” This report issues grades of “A” to “F” to governors based on their taxing and spending policies. Here at Cato we believe in small government, so we award grades of “A” to the governors who cut taxes and spending the most.

Steve Moore and other Cato authors graded Bush four times during his eight years in office. In 2000 Bush received a “B.” In 2002 he scored an “A.” In 2004 he was down to a “B” again. In 2006 he fell to a “C.”

The basic story from the Cato reports is that Jeb Bush was a prolific tax cutter, but he let spending rise quickly toward the end of his tenure. Like George W. Bush, Jeb was good on taxes, but apparently not so good on spending.

Jeb Bush was in office from 1999 to 2007. Florida general fund spending increased from $18.0 billion to $28.2 billion during those eight years, or 57 percent. Total state spending increased from $45.6 billion to $66.1 billion, or 45 percent. (This is NASBO data from here and here). Over those eight years, Florida’s population grew 16 percent and the CPI, which measures inflation, grew 24 percent.

The chart on page 5 of this state budget document shows that total spending was restrained in Bush’s first term, but then rose quite rapidly in his second term. Similarly, the table on page 14 here shows the second-term budget expansion under Bush.

This Fall, look for Cato’s 2014 Report Card, which will include grades for Christie, Pence, Jindal, Perry, Walker, and other possible presidential candidates.

Police Misconduct — The Worst Case in March

Over at Cato’s Police Misconduct web site, we have identified the worst case for the month of March. It was the case of the soon-to-be-former Philadelphia police officer, Kevin Corcoran. Mr. Corcoran was driving the wrong way down a one-way street near a group of individuals when one of them pointed out that the officer had made an illegal turn. The officer got out and aggressively approached the individuals, who readied their cell phone cameras to capture the incident. The footage (warning: graphic language) shows Corcoran accosting one of the persons filming, an Iraq war veteran, and shouting “Don’t fucking touch me!” before slapping the vet’s phone out of his hand, throwing him up against his police vehicle, arresting him, and driving off. Another of the cameras showed the vet with his hands up in a defensive posture, retreating from the officer. When the vet asked why he had been arrested, Corcoran said it was for public intoxication. Corcoran later cooled-off and, after finding out the individual was a veteran, let him go without charges.

Civil suits over Corcoran’s abuse of authority have been settled out of court in the past, but thanks to the quick cameras of the individuals he encountered here, Corcoran faces charges of false imprisonment, obstructing the administration of law, and official oppression—along with a suspension with intent to dismiss.  This incident shows the importance of the right to film police behavior.

Readers help us to track police misconduct stories from around the country–so if you see an item in the news from your community, please take a moment and send it our way using this form.