Topic: Cato Publications

Who Shall Live? Who Shall Die?

DETROIT–Over at Cafe Hayek, Russell Roberts looks at the ethics of distributing flu vaccines amid an artificial shortage and does a good job of cutting to the core question: why the hell is there a shortage? Roberts lays the blame at the feet of politicians — particularly state attorneys general — who have interfered with the market’s ability to make vaccines (like shoes, oranges, etc.) plentiful.

The ethical problems created by the artificial shortage of vaccines are like those created by the artificial shortage of transplantable organs (also a creature of government interference).  Once the shortage exists, and the state controls distribution, there’s really no good way — no “most ethical” way — to decide who should receive them. In other words, there’s no good way to decide who shall live and who shall die. If it’s ethics you’re interested in, try this: Don’t interfere with the market’s ability to supply vaccines and transplantable organs.

But as long as we’ve got these artificial shortages, my two cents is this: the politicians should be last in line.

Harvard Lawyers Soon to Know Even Less

I’m fond of my law school (which wasn’t Harvard) and proud of having gotten a legal education, but I am keenly aware of what they didn’t tell me in school. My training was noticably light on constitutional doctrines like separation of powers and federalism — protections of liberty as important as the Bill of Rights. (I had to go and learn them myself. Got a little help from an outfit called the Cato Institute and papers like this one.)

Indeed, I recall a college pre-law class where I was taught the “swirl cake” theory of federalism. ”Sure, there are layers of government, but they mix and overlap in mysterious ways.” Utter claptrap. ”Swirl cake” federalism obscures the workings of government from the people, allows politicians to avoid accountability, and fertilizes the growth of over-large government at every level.

Now comes news (via the Volokh Conspiracy) that Harvard is going to “overhaul” the education first-year law students get. Rather than basics like contracts, torts, property, civil procedure, and criminal law, they’ll learn such things as policy and international law.

In other words, Harvard-trained lawyers will know more about politics and less about law. A step backward for the legal profession and probably for many Harvard lawyers themselves. 

As a law review editor-in-chief, I was aware that many top journals had wandered away from doctrinal work that actually advances law. Maybe the whole legal academy is following suit.

Crisis of Abundance in the New York Times

A number of reports purport to show that the U.S. health care sector lags behind those of other nations. I’d be the last to argue that our health care sector should be a model for the rest of the world. But those supposedly objective reports are often based on subjective value judgments about which people will differ. They also tend to overlook objective strengths of the U.S. health care sector.

For example, New York Times columnist Tyler Cowen writes today about how the United States leads the world in medical innovation. We spend far more on medical research than other nations, which increases our level of health expenditures. But the benefits of all that spending are not confined to our borders; they help keep the “ferriners” alive longer, too.

Cowen also draws a lesson from Arnold Kling’s book Crisis of Abundance:

The American system also produces benefits that are hard to find in the numbers. The economist Arnold Kling in his “Crisis of Abundance: Rethinking How We Pay for Health Care” (Cato Institute, 2006) argues that the expected life span need increase by only about half a year for the extra American health care spending to be cost-effective over a 20-year period. Given that many Americans walk less and eat less healthy food than most Europeans, the longevity boost from health care in the United States may be real but swamped by the results of poor lifestyle choices. In the meantime, the extra money Americans spend to treat allergy symptoms, pain, depression and discomfort contributes to personal happiness.

Those interested can purchase Crisis of Abundance here, or click here to watch the Cato book forum featuring the author, Sebastian Mallaby of The Washington Post, and Jason Furman of NYU.

The Weaknesses of Watch-Listing

“Watch-listing” — the practice of putting bad people’s names on a list and treating them differently at places like airports — is fraught with difficulty. 

As to sophisticated threats, it’s a Maginot line. Easy to evade, it provides no protection against people who haven’t yet done anything wrong, who haven’t come to the attention of security officials, or who have adopted an alias. Terrorist planners are nothing more than inconvenienced by having to use people with “clean” records.

Paying to inconvenience any such terrorists are (taxpayers, of course, and) all the people wrongly treated as suspects because they have the same or similar names as listed people. 

On its website, CBS News is previewing its upcoming 60 Minutes story on watch-listing, and they’ve assembled a large group of Robert Johnsons to attest to their experience with watch-listing. They share the same name as a Robert Johnson that someone deemed appropriate to put on a list.

Watch-listing has a deeper flaw, though.  It does not fit with our system of law enforcement.

In the U.S., people who have done something wrong are supposed to be arrested, taken to court and charged, then permitted to contest the accusation. If they are found guilty, they pay money or serve time in jail. 

Watch-listing follows no similarly familiar pattern. Law enforcement or national security personnel place a person on a list and then, wherever that list is used, treat the person (and other people with the same name) differently, stopping them, interrogating them, searching them, or whatever the case may be. This unilateral process is alien to our legal system.

Rather than watch-listing, people who are genuinely suspected of being criminals or terrorists should be sought, captured, charged, tried, and, if convicted, sentenced.  Watch-listing allows law enforcement to be very active and intrusive without actually doing what it takes to protect against crime and terrorist acts.  In Identity Crisis, I wrote that ”watch listing and identification checking [are] like posting a most-wanted list at a post office and then waiting for criminals to come to the post office.”

At the national border, watch-listing must be used — deftly — because we cannot reach wrongdoers worldwide. Those watch-lists allow us to be vigilant against bad people who may arrive on our shores. Domestically, though — in our free country — the practice should end.

Health Care Innovation

Tyler Cowen does two nice things in today’s economic scene column on health care spending.  First, he makes the case that the U.S. system is the leader in innovation:

[T]he American health care system may be performing better than it seems at first glance. When it comes to medical innovation, the United States is the world leader. In the last 10 years, for instance, 12 Nobel Prizes in medicine have gone to American-born scientists working in the United States, 3 have gone to foreign-born scientists working in the United States, and just 7 have gone to researchers outside the country.

The other nice thing is that he cites Crisis of Abundance:

The economist Arnold Kling in his “Crisis of Abundance: Rethinking How We Pay for Health Care” (Cato Institute, 2006) argues that the expected life span need increase by only about half a year for the extra American health care spending to be cost-effective over a 20-year period. Given that many Americans walk less and eat less healthy food than most Europeans, the longevity boost from health care in the United States may be real but swamped by the results of poor lifestyle choices. In the meantime, the extra money Americans spend to treat allergy symptoms, pain, depression and discomfort contributes to personal happiness.

Bureaucracy and Lost Privacy

In my book Identity Crisis: How Identification is Overused and Misunderstood, I argue that identification is required of us too often by both corporations and government as we go about our business. I also do my best to articulate the reasons why this is bad, and how we can escape it.

With my senses tuned to the overuse of identification, I’m keenly aware of the osmotic process by which institutions soak up information about us, pass it around, and use it in ways we may not prefer.

Here’s an example from real life: I have recently spoken at several conferences dealing with identification, identity, financial risk management, and the like. When the time came to get reimbursement for my travel, one of the conference organizers asked me to give my Social Security Number if I was going to rely on faxed receipts for reimbursement.

The e-mail thread below shows how complex IRS regulations require financial administrators in the corporate world to over-comply, collecting (and possibly filing with the government) information that neither entity needs.

This is bureaucracy in action (both public and private), and it’s the constant drip, drip, drip of privacy going away.

[Names have been changed to protect the guilty.]

*********************

—–Original Message—–

From: katie [at] conference [dot] org

Sent: Fri 9/29/2006 10:19 AM

To: Jim Harper

Subject: W-9 Forms Needed

Hello Jim,

Thank you so much for sending over your receipts.

Since you did not send me actual receipts, I need you to fill out this W-9 form and fax it back ASAP.

Thanks again,

-Katie

Katie Folsom

Conference Specialist

*****************************

Are you sure? This is reimbursement for travel, not income. And even if it were income, I believe the amount in question here would not even require a W-9. (Also, I’m traveling through Sunday without access to a printer or fax. ;-)

Having suffered through my talk, you probably understand that I don’t needlessly share information with the government or with organizations who are going to needlessly share with the government.

If you could politely ask your accounting folks to show where the law or IRS instructions require them to have my SSN to reimburse me for travel, I would appreciate it. (I’m not a tax law expert, just knowledgeable enough to be dangerous/annoying.) If they can’t show that they need this information, they don’t need it.

Thanks! Sorry for being prickly, but it’s my job.

Jim

Jim Harper

Director of Information Policy Studies

The Cato Institute

***************************

—–Original Message—–

From: elizabeth [at] conference [dot] org

Sent: Friday, September 29, 2006 11:32 AM

To: Jim Harper

Cc: Katie [at] conference [dot] org

Subject: Re: Fw: W-9 Forms Needed

Hi Jim,

While I understand your concern regarding needlessly sharing information, IRS regulations specify that a W-9 must be filled out whenever receiving income from a company. Please see the “Purpose of Form” section on the front of the W-9. Your travel reimbursement is technically considered income.

One way around this (to avoid having to fill a W-9 out), however, is to send us all of you Original receipts and get reimbursed on those. Basically, in layman’s terms, the IRS is trying to avoid “double-dipping”. If we reimburse someone for receipt copies, that person can then claim/deduct the originals on their own personal/business taxes. The W-9 form is the IRS’ tracking solution to this.

Please let Katie what you intend to do, so she can be on the lookout for either your W-9 form or your original receipts in the mail (sent with tracking information for your protection). I hope this cleared things up a bit.

Thank you.

Elizabeth

Elizabeth LaFontaine

Senior Accountant

*********************

“Jim Harper”

10/03/2006 06:04 PM

To elizabeth [at] conference [dot] org

cc Katie [at] conference [dot] org

Subject RE: Fw: W-9 Forms Needed

Hi Elizabeth –

Sorry for the delay. I’ve been traveling. Again.

As I understand it (and I have double-checked), W-9s are needed when you are going to file a 1099. If you believe that there is a requirement to file a 1099 on reimbursement of my travel expenses, could you please tell me where that is? Which 1099 would you file? If you think that it’s the 1099-MISC, please note that the threshold amount for filing the 1099-MISC is $600 in income.

And I have strong doubts that this is income. If you were to file a 1099 dealing with reimbursement for travel expenses, the IRS would be looking for it on my 1040, and I have never included travel expenses on a 1040.

Let me apologize for being a stickler about this, but many administrators believe they have to collect SSNs when they do not. It may be that you are over-collecting SSNs and possibly even filing forms you don’t need to.

If you can point me to documents showing that I’m mistaken, I welcome being corrected. But unless you do, I’m pretty sure that you don’t need a W-9 and can issue a check to me.

Thanks!

Jim

Jim Harper

Director of Information Policy Studies

The Cato Institute

************************

Hi Jim,

As I stated in my previous email, you do not need to fill out a W-9 if you do not wish to. Simply send all of your original receipts to Katie so she can process your check. Unfortunately, that is the only way you will be reimbursed. Sorry for any inconvenience, but those are the policies we strictly abide by and they in no way infringe upon any reservations you may have about providing information you don’t want to provide.

Please let Katie know when she can be expecting your receipts in the mail. We will reimburse you $4.55 for Priority mail with Delivery Confirmation if you’d like.

Regards,

Elizabeth

Elizabeth LaFontaine

Senior Accountant