Tag: university of chicago

Richard Epstein on Sotomayor

Cato adjunct scholar Richard Epstein of the University of Chicago and New York University, finds much to worry about in Judge Sonia Sotomayor’s nomination to the Supreme Court:

The treatment of the compensation packages of key AIG executives (which eventually led to the indecorous resignation of Edward Liddy), and the massive insinuation of the executive branch into the (current) Chrysler and (looming) General Motors bankruptcies are sure to generate many a spirited struggle over two issues that are likely to define our future Supreme Court’s jurisprudence. The level of property rights protection against government intervention on the one hand, and the permissible scope of unilateral action by the president in a system that is (or at least should be) characterized by a system of separation of powers and checks and balances on the other.

Here is one straw in the wind that does not bode well for a Sotomayor appointment. Justice Stevens of the current court came in for a fair share of criticism (all justified in my view) for his expansive reading in Kelo v. City of New London (2005) of the “public use language.” Of course, the takings clause of the Fifth Amendment is as complex as it is short: “Nor shall private property be taken for public use, without just compensation.” But he was surely done one better in the Summary Order in Didden v. Village of Port Chester issued by the Second Circuit in 2006. Judge Sotomayor was on the panel that issued the unsigned opinion–one that makes Justice Stevens look like a paradigmatic defender of strong property rights.

I have written about Didden in Forbes. The case involved about as naked an abuse of government power as could be imagined. Bart Didden came up with an idea to build a pharmacy on land he owned in a redevelopment district in Port Chester over which the town of Port Chester had given Greg Wasser control. Wasser told Didden that he would approve the project only if Didden paid him $800,000 or gave him a partnership interest. The “or else” was that the land would be promptly condemned by the village, and Wasser would put up a pharmacy himself. Just that came to pass. But the Second Circuit panel on which Sotomayor sat did not raise an eyebrow. Its entire analysis reads as follows: “We agree with the district court that [Wasser’s] voluntary attempt to resolve appellants’ demands was neither an unconstitutional exaction in the form of extortion nor an equal protection violation.”

Maybe I am missing something, but American business should shudder in its boots if Judge Sotomayor takes this attitude to the Supreme Court. 

Can Arne Duncan Fix All the Schools?

Education Secretary Arne Duncan, responding to a new study showing that District of Columbia students using vouchers to attend private schools outperformed their peers in public schools – a study that he has been accused of keeping under wraps until after Congress voted to end the D.C. voucher program – told the Washington Post of his concerns:

“Big picture, I don’t see vouchers as being the answer,” Duncan said in a recent meeting with Washington Post editors and reporters. “You can pull two kids out, you can pull three kids out, and you’re leaving 97, 98 percent behind. You need to help all those kids. The way you help them is by challenging the status quo where it’s not working and coming back with dramatically better schools and doing it systemically.”

But why would vouchers only serve two or three percent of the kids? Only because Congress limited the size of the voucher program. Thousands more families have applied for public or private vouchers than there were vouchers available. If the District of Columbia took its mammoth school budget and divided it into equal vouchers or scholarships for each child in the city, Arne Duncan could bet his bottom dollar that a lot more than two percent of the families would head for private or parochial schools. His fear is not that vouchers only serve two percent of the kids, it’s that a full-scale choice program would reveal just how much demand for alternatives there is.

But note also: Duncan says that he wants to “help all those kids … by … coming back with dramatically better schools.” But he ran the Chicago schools for seven years, and he was not able to make a single school good enough for Barack and Michelle Obama to send their own children there.

Wouldn’t the 97 or 98 percent of the kids in Chicago whose parents couldn’t afford the University of Chicago Laboratory Schools have benefited from having a choice?

Events This Week

Tuesday, March 31, 2009

POLICY FORUM - Can the Market Provide Choice and Secure Health Coverage Even for High-Cost Illnesses?

12:00 PM (Luncheon to Follow)

In a study recently published by the Cato Institute, economist John Cochrane argues that the market can solve a huge piece of the health care puzzle: providing secure, life-long health insurance and a choice of health plans to even the sickest patients. The key, Cochrane explains, is to eliminate government policies that force the healthy to subsidize the sick, such as the tax preference for employer-sponsored coverage and other attempts to impose price controls on health insurance premiums.

Featuring John H. Cochrane, Myron S. Scholes Professor of Finance, University of Chicago Booth School of Business Research Associate, National Bureau of Economic Research; Bradley Herring, Assistant Professor, Johns Hopkins Bloomberg School of Public Health; moderated by Michael F. Cannon, Director of Health Policy Studies, Cato Institute.

Please register to attend this event, or watch free online.


Friday, April 3, 2009

PglennOLICY FORUM - Drug Decriminalization in Portugal

12:00 PM (Luncheon to Follow)

In 2001, Portugal began a remarkable policy experiment, decriminalizing all drugs, including cocaine and heroin.

In a new paper for the Cato Institute, attorney and author Glenn Greenwald closely examines the Portugal experiment and concludes that the doomsayers were wrong. There is now a widespread consensus in Portugal that decriminalization has been a success. The debate in Portugal has shifted rather dramatically to minor adjustments in the existing arrangement. There is no real debate about whether drugs should once again be criminalized. Join us for a discussion about Glenn Greenwald’s field research in Portugal and what lessons his findings may hold for drug policies in other countries.

Featuring Glenn Greenwald, Attorney and Best-selling Author; with comments by Peter Reuter, Department of Criminology, University of Maryland; moderated by Tim Lynch, Director, Project on Criminal Justice, Cato Institute.

Please register to attend this event, or watch free online.

Topics:

Tuesday Podcast: “Labor Relations, Collective Choice and ‘Card Check”’

Congress introduced the “Employee Free Choice Act” last week, which would end the secret ballot system currently in place for workers who vote on whether to start a union.

The bill could have disastrous effects on companies and would throw another wrench in U.S. labor relations, says University of Chicago law Professor and Cato Adjunct Scholar Richard A. Epstein in Tuesday’s Cato Daily Podcast:

It would be a major transformation of the American labor force, all for the worse as far as I’m concerned. Because it would mean that the monopoly model of the labor statutes that were intro under the Wagner Act would now become gov policy to the extent that a card check could allow a union essentially to contain partial ownership rights over the management and prerogatives of the firm.

A worse piece of legislation I cannot imagine, with respect to this field.

Epstein offers a more detailed look at the card-check legislation in the Spring issue of Cato’s magazine Regulation, which will be released March 26.