Tag: regulation

More Mixed Results from Louisiana’s Highly Regulated Voucher Program

New research on Louisiana’s voucher program revealed mixed resultsYesterday, the Education Research Alliance for New Orleans (Tulane University) and the School Choice Demonstration Project (the University of Arkansas) released four new reports examining the Louisiana Scholarship Program’s impact on participating students’ test performance and non-cognitive skills, level of racial segregation statewide, and the effect of competition on district-school students. Here are the key findings:

  • Students who use the voucher to enroll in private schools end up with much lower math achievement than they would have otherwise, losing as much as 13 percentile points on the state standardized test, after two years. Reading outcomes are also lower for voucher users, although these are not statistically different from the experimental control group in the second year.
  • There is no evidence that the Louisiana Scholarship Program has positive or negative effects on students’ non-cognitive skills, such as “grit” and political tolerance.
  • The program reduced the level of racial segregation in the state. The vast majority of the recipients are black students who left schools with student populations that were disproportionally black relative to the broader community and moved to private schools that had somewhat larger white populations.
  • The program may have modestly increased academic performance in public schools, consistent with the theory behind school vouchers that they create competition between public and private schools that “lifts all boats.” [Emphasis added.]

The positive impact on racial integration and evidence that competition improved district-school student performance are both positive signs, but the significant negative impact on the performance of participating students is troubling. (Ironically, the evidence suggests that the voucher program may have improved the performance of non-voucher students more than the voucher students.) That said, although the impact on student performance is negative, the second year results show improvement over the first year. 

How to Dissuade Congressional Action

A recent Cato policy forum on European over-regulation took an unexpected turn when my friend and colleague Richard Rahn suggested that falling prices and increasing availability of writing paper may have been responsible for increasing the number and length of our laws and regulations. (Dodd-Frank is longer than the King James’ Bible, to give just one obvious example.)

Goodness knows what will happen when new legislation stops being printed on writing paper and starts appearing only on the internet. (I never read Apple’s “terms and conditions,” do you?)

Anyhow, Richard’s hypothesis will soon be put to the test in Great Britain, where the lawmakers have just decided to stop writing the Acts of Parliament on calfskin – a tradition dating back to the Magna Carta – and use paper instead. Will the length of British laws increase, as Rahn’s hypothesis predicts? We shall see.

In the meantime, Americans remain stuck with a Niagara Falls of laws and regulations that our lawmakers generate every year. Many distinguished scholars have wondered how to slow our Capitol Hill busybodies down a little. The great Jim Buchanan had some good ideas, but the most effective, if not harshest, means of preventing over-regulation was surely developed by the Locrians in the 7th century BC.

As Edward Gibbon narrates in The History of the Decline and Fall of the Roman Empire, “A Locrian who proposed any new law, stood forth in the assembly of the people with a cord round his neck, and if the law was rejected, the innovator was instantly strangled.” (Vol. IV, chapter XLI; V pp. 783–4 in volume 2 of the Penguin edition.)

Ours is, of course, an enlightened Republic, not an iron-age Greek settlement on the southern tip of Italy. The life and limb of our elected officials must, therefore, remain safe. But, what if instead of physical destruction, a failed legislative proposal resulted in, so to speak, “political death?” What if the Congressman or Senator, whose name appeared on a bill that failed to pass through Congress, were prevented from running for reelection after their term in office came to an end? 

Just a happy thought before the weekend.

Proposed Stricter OSHA Regulations on Airborne Silica Exposure Seem Needless

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) is soon set to release new exposure limits to air-borne silica dust. The rulemaking has been in the works for about three years with a final rule scheduled to be announced this year. The silica industry is not enthused.

Silica dust is known to cause respiratory illnesses (e.g., silicosis, lung cancer, other airways diseases) that may contribute to or lead directly to death when it is breathed in high enough concentrations over long enough time periods.

OSHA explains that exposure to respirable silica “occurs in operations involving cutting, sawing, drilling and crushing of concrete, brick, block and other stone products and in operations using sand products, such as in glass manufacturing, foundries and sand blasting.”

OSHA’s proposal, generally, is to lower the existing permissible exposure limits (adopted in 1971) by about 50%, dropping them from around 0.1mg/m3  to 0.05mg/m3 (specific details here). OSHA explains:

The agency currently enforces 40-year-old permissible exposure limits (PELs) for crystalline silica in general industry, construction and shipyards that are outdated, inconsistent between industries and do not adequately protect worker health. The proposed rule brings protections into the 21st century.

And, as the government likes to claim with all of its regulations, the added restrictions will save lots of lives, and in doing so, will save lots of money:

OSHA estimates that the proposed rule will save nearly 700 lives and prevent 1,600 new cases of silicosis per year once the full effects of the rule are realized.

The proposed rule is estimated to provide average net benefits of about $2.8 to $4.7 billion annually over the next 60 years.

Interestingly, a visit to the Centers for Disease Control in search of deaths from silica inhalation produces this chart graphing silicosis mortality over time. The numbers have dropped considerably over the past 40+ years, and by 2010 had fallen to about 100 or so deaths per year (U.S. residents over the age of 15) attributed to silicosis as either the underlying or contributing cause.

Figure 1. Silicosis: Number of deaths, crude and age-adjusted death rates, U.S. residents age 15 and over, 1968–2010 (Source: CDC).

Figure 1. Silicosis: Number of deaths, crude and age-adjusted death rates, U.S. residents age 15 and over, 1968–2010 (Source: CDC).

The CDC data shows that silicosis deaths have been declining and although the decline has slowed, it continues to drop while under the current OSHA guidelines. And further, the 100 or so deaths that are occurring annually are several times less than the annual number of deaths that OSHA predicts will be saved by the new regulations. That’s a pretty neat trick—the new regs are going to save several times more lives than are actually lost!

Washington Judges Congress by the Number of Laws It Passes

Philip Bump of the Washington Post, still in thrall to the labor theory of Congress’s value, declares, “The 112th Congress, you might remember, was the least productive in modern times.” That is to say, it passed fewer bills than other recent Congresses. But all is not lost!

After the first year of this 114th Congress, more bills have been enacted than in the 112th or 113th, according to data compiled by GovTrack.us. So far, the 114th is tracking more closely with the more-productive 110th and 111th.

So good news for those of you have been worrying that you didn’t have enough new laws to discover, understand, and obey. Bump’s article is full of charts and data, all organized around the theme that a good, “productive” Congress is one that produces bills.

But as I’ve written before, journalists may well believe that passing laws is a good thing, and passing more laws is a better thing. But they would do well to mark that as an opinion. Many of us think that passing more laws – that is more mandates, bans, regulations, taxes, subsidies, boondoggles, transfer programs, and proclamations – is a bad thing. In fact, given that the American people pondered the “least productive Congress ever” twice, and twice kept the government divided between the two parties, it just might be that most Americans are fine with a Congress that passes fewer laws.

Is a judge “less productive” if he imprisons fewer people? Is a policeman less productive if he arrests fewer people? Government involves force, and I would argue that less force in human relationships is a good thing. Indeed I would argue that a society that uses less force is a more civilized society. So maybe we should call the 112th and 113th Congresses the most civilized Congresses since World War II (the period of time actually covered by the claim “least productive ever”), and the first session of the 114th Congress slightly less civilized.

As before, I wonder if congressional reporters would applaud the productivity of such Congresses as

The 31st Congress, which passed the Fugitive Slave Act in 1850

The 5th Congress, which passed the Alien and Sedition Acts in 1798

The 21st Congress, which passed the Indian Removal Act in 1830

The 77th Congress, which passed Public Law 503, codifying President Franklin D. Roosevelt’s Executive Order 9066 authorizing the internment of Japanese, German, and Italian Americans, in 1942

The 65th Congress, which passed the Eighteenth Amendment (Prohibition), the Espionage Act, and the Selective Service Act, and entered World War I, all in 1917

And hey, fans of legislation: If you’re really disconsolate over the passage of barely more than 100 new federal laws a year, take heart: According to my former colleague Ryan Young, now with the Competititive Enterprise Institute, federal regulators are on pace for the most pages in the Federal Register in a single year. They’ll need a strong final week, but Ryan thinks they can break the old record of 81,405 pages of new regulations. Will the Washington Post hail the regulators’ “productive” year? How about the Americans who have to comply with those regulations?

Transatlantic Regulatory Cooperation: Possible, But Don’t Bet the House

As the prominence of tariffs in the transatlantic relationship has receded and transnational supply chains and investment have proliferated, regulatory barriers to transatlantic trade have become more evident. Reducing duplicative regulations that increase production and compliance costs without providing any meaningful social benefits is a chief aim of the Transatlantic Trade and Investment Partnership negotiations. Indeed, most of the economic gains from the TTIP are expected to come from this exercise.

But that is easier said than done.  According to University of California-Irvine law school professor Gregory Shaffer, “regulatory barriers to trade can be more pernicious and more difficult to reduce than tariff barriers because they often reflect certain cultural values and preferences, and there are often more interests vested in the status quo.” In his Cato Online Forum essay, submitted in conjunction with last month’s TTIP conference, Shaffer describes five different approaches to regulatory coherence/harmonization (with pros and cons) that could be undertaken by U.S. and EU negotiators.

Depsite vastly different approaches to regulation on opposite sides of the Atlantic, Shaffer points to examples of successful cooperation in recent years as evidence that the TTIP’s regulatory coherence discussions could bear fruit. But he doesn’t bet the house on that outcome. Instead, he writes:

We should nonetheless be cautious in our optimism given the serious impediments to achieving regulatory coherence. Removing regulatory barriers to trade and investment while continuing to reflect local preferences and retain democratic accountability is, and always has been, a challenging undertaking.

Read Shaffer’s essay here.  Read the other Cato Online Forum essays here.

TTIP Is More Likely to Reinvigorate Than Subvert the WTO

In his Cato Online Forum essay, Georgetown University law professor Joost Pauwelyn deftly rebuts some of the central – but, as you will be convinced, outdated – objections to the Transatlantic Trade and Investment Partnership. Joost’s essay supports two main points:

First, the Transatlantic Trade and Investment Partnership (TTIP) is less of a threat to multilateral trade than were first generation free trade agreements (FTAs), which involved a proliferation of preferential tariff treatment.  And second, unlike these shallow FTAs, deep FTAs – such as TTIP – force us to re-think the operating system of the World Trade Organization (WTO).

Thoughout his presentation, Pauwelyn challenges certain long-held assumptions about the trade-diverting effects of preferential trade agreements, making a compelling case for why TTIP is a different animal.  He also exposes some of the conventional wisdom and calls into question some of the purist gospel about the need for WTO primacy, arguing that its role should be diminished and more focued.

Read Joost’s essay here.

Read the other essays published in conjuction with the Cato TTIP conference here.

Regulatory Coherence Done Right Will Make TTIP a Win, Win, Win

Trade economist Hanna C. Norberg writes:

When it comes to the value of real estate, the three most important factors are said to be location, location and location. With regards to the Transatlantic Trade and Investment Partnership, it’s regulation, regulation and regulation. 

In her Cato Online Forum essay, which was published in conjunction with this month’s Cato TTIP conference, Dr. Norberg explains how firms, workers, and consumers in the United States, in the European Union, and crucially (for those concerned about trade diversion and other adverse externalities), in third countries, can share in the benefits of reduced regulatory compliance costs.  Achieving greater economies of scale, reducing the costs of under- or over-estimating market-specific demand, reducing barriers to entry for smaller firms, and creating efficiencies in portions of global value chains that will have ripple effects on other portions are all channels through which TTIP can drive global growth.

The associated cost savings from these efficiences, Norberg argues, “get passed on in the form of lower-prices, higher wages, more research and development, new and better quality products, and more investment.”

Read Hanna’s essay here.

Find the other essays here

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