Topic: Government and Politics

The Stevens Scandal

Don Boudreaux of George Mason University sent out the following missive about Ted Stevens’s indictment. I don’t see it posted at Cafe Hayek, though it might yet be. But since I can’t improve on his pithy commentary, I offer it here:

I’m delighted to see Sen. Ted Stevens face jail time for his crimes while in office. To charge him with concealing gifts totaling $250,000, however, is the equivalent of charging a confessed mass murderer with jaywalking. If that’s the only way to bring the criminal to justice, fine. But Sen. Stevens’s most significant misdeeds - ones of which he boasts! - are his decades-long success at directing billions of taxpayer dollars to special-interest groups for no reason other than the fact that he possessed the power and position to buy himself even greater security in office by doing so.

Of course, punishing all the criminals guilty of THAT offense would depopulate Capitol Hill.

Treating Angelenos as Children

A law that would prevent fast-food restaurants from opening in South Los Angeles neighborhoods was unanimously approved by the LA City Council on Tuesday.

Paternalist? You bet. Violation of equal protection? It would seem so. The City Council trusts white people, but not the blacks and Latinos who live in South Los Angeles, to make their own food decisions? Ouch.

But I was particularly struck by this statement from Councilwoman Jan Perry, sponsor of the measure: “I believe this is a victory for the people of South and southeast Los Angeles, for them to have greater food options.”

Greater food options? All the council is doing is banning some restaurants. How will that give residents more options? Maybe – maybe – other restaurants will open in South Los Angeles because fewer fast food restaurants will open over the coming year. But residents will still not have “greater food options,” just different options, courtesy of those who know best.

Thomas Sowell wrote in Knowledge and Decisions of the “surprising … persistence and scope of the belief that people can be made better off by reducing their options.” Twenty-eight years later, the belief persists. But now people who reduce other people’s options claim they are increasing options. That’s progress, of a sort.

The citizens of South Los Angeles should rebel against the unchosen nannies who think that they can run adults’ lives better than those adults can run their own lives.

Indictment of Sen. Stevens - An Interesting Tidbit

I suppose the charges brought against Senator Ted Stevens (R-AK) aren’t terribly interesting to most libertarians. Perhaps we get a bit of schadenfreude as one of the mighty fall, but shady dealings that edge into outright corruption are part and parcel of politics.

You’re not going to see a lot of jaws dropping around the Cato Institute with the news of the Senator’s indictment. And (if I may venture to speak for my colleagues) few of us think that if you just “cleaned up” the process, it would actually work.

But here’s an interesting tidbit: The indefatigable David Carney of TechLawJournal has given some thought to why these particular charges were brought. His subscription newsletter has a summary of the case with a section called “DOJ Forum Shopping,” which says, in part:

The 6th Amendment of the Constitution provides that “In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed.”

Federal Rule of Criminal Procedure 18 provides that “Unless a statute or these rules permit otherwise, the government must prosecute an offense in a district where the offense was committed. The court must set the place of trial within the district with due regard for the convenience of the defendant and the witnesses, and the prompt administration of justice.”

Stevens’ house is in Alaska. The alleged home improvements, and all of the transactions alleged in the indictment, occurred in Alaska. Only the filing of the Senate Financial Disclosure Forms (SFDFs) are alleged to have taken place in District of Columbia. Thus, the §1001/SFDF offense is the only one that the DOJ can assert occurred in the District of Columbia.

Thus, the indictment alleges that Sen. Stevens violated §1001 “in the District of Columbia”.

If the DOJ were to charge Sen. Stevens with bribery or tax evasion, then there would be no credible argument that the alleged crime occurred in the District of Columbia, and Sen. Stevens would be entitled to have the case moved to Alaska.

Carney does an extensive analysis of factors that would cause the Justice Department to want to keep the case out of Alaska, and he reports on the evasiveness of a DoJ official when queried why tax charges weren’t brought, which would place the case to the Senator’s home state.

Interesting stuff from a smart lawyer and reporter. Most political coverage is about the “horse race.” David Carney law and technology coverage reveals the chess match.

(And he’s ethical: Carney discloses that he is an ex-Alaskan who voted for Sen. Stevens in the 1984 Senate election. I’ll do the same: I worked for Senator Stevens on the staff of the Senate Committee on Governmental Affairs for a short time in, I believe, 1996.)

Sounds Familiar?

“[The speaker] urged the students to study in order to serve the people and those in need, and not to fill their pockets,” reported the media.

Sound familiar? No, it wasn’t Barack Obama urging students to pursue “collective service” instead of chasing after a “big house and nice suits,” but Aleida Guevara, the daughter of the infamous Che Guevara, talking to Paraguayan students yesterday.

Guevara went on to say that “Each of us isn’t worth anything. The processes belong to the people, and not to any individual man.”

That’s a good audition for the commencement address at Wesleyan University next year.

Obama, McCain, and Health Care

In the face of widespread public demand for changes in the U.S. health care system, both Barack Obama and John McCain have offered detailed proposals for reform. In the new study, ”A Fork in the Road: Obama, McCain, and Health Care,” Cato scholar Michael D. Tanner examines the candidates’ plans, and concludes that, while Senator McCain’s proposal is far from perfect, from a free-market perspective, it appears superior to Senator Obama’s plan.

Another Potential Winner of the “Strange New Respect” Award

Advocates of limited government often joke (otherwise we would cry) that Republicans are the Stupid Party and Democrats are the Evil Party (this is why taxpayers should hide their wallets the moment there’s talk of “bipartisanship,” but I digress).

One of the reasons that the GOP is the Stupid Party is that Republicans generally are easy to manipulate. Most people understand that their enemies don’t want them to succeed. As such, they are — at the very least — skeptical about any advice coming from their opponents (as a Georgia Bulldog, for instance, I wish the coaches of the Florida Gators took suggestions from the Bulldog coaches, but I digress again). Republicans, however, are a tad bit gullible. When statists give them a few kind words and a pat on the head for supporting schemes to expand the burden of government, some Republicans genuinely think that they have a new set of best friends and they become even more likely to surrender to the left. This is so commonplace in D.C. that there’s an unofficial “Strange New Respect” Award, which is given to Republicans who get seduced by those who want to make government bigger and/or to exterminate the GOP.

Treasury Secretary Hank Paulson may be the next winner of this dubious prize. The New York Times business section has a big article featuring lots of praise for Mr. Paulson from some of the most collectivist politicians in Washington:

Mr. Paulson…has won praise on Wall Street and Capitol Hill, particularly among Democrats, for his role in fashioning solutions to economic difficulties this year. “He has handled this crisis extremely well,” said Representative Barney Frank, the acerbic Massachusetts Democrat who is chairman of the House Financial Services Committee and customarily a scathing critic of the Bush administration. “It’s fair to say that he and almost everybody else failed to anticipate some of these problems. We all underestimated it. What I give him credit for is how rapidly he adapted.” …this month, as Mr. Paulson helped hammer out emergency legislation authorizing the federal government to potentially inject hundreds of billions of dollars into Fannie and Freddie if the government-sponsored mortgage makers weaken further, he spent long hours with lawmakers of both parties. …The House speaker, Nancy Pelosi, a California Democrat and a critic of the White House, praised Mr. Paulson for changing Mr. Bush’s mind. Senator Christopher J. Dodd, the Connecticut Democrat who is chairman of the Senate banking committee, is also singing “Kumbaya.” “I’ve watched him grow in the last year, not in terms of intellectual capacity but in his appreciation of how this town works,” says Mr. Dodd.

In the business world, Secretary Paulson never would have taken advice from his competitors on how to land a big client or secure a major deal. Hopefully he will apply the same smarts to the political world and realize that flowery words from the left are a sign that he’s on the wrong path.

Stewart Baker Crosses a Line - What’s the Strategy?

I’ve been nothing if not dogged about responding to DHS’ advocacy for REAL ID and E-Verify. I’ve had fun responding to post after DHS post on the “Leadership Journal” blog promoting E-Verify. But I let one recent post from DHS Assistant Secretary for Policy Stewart Baker go by. Enough people have pointed me to it and asked me what I thought that I’m finally drawn to comment.

Baker’s post, “Exactly What Do They Want?,” addressed none of the substance of the E-Verify program, but simply attacked a group called the Society for Human Resource Management (SHRM).

 Here’s a taste:

SHRM lobbies for the HR execs who do corporate hiring. It also opposes E-Verify. I suppose corporate hiring is easier if you can hire illegal workers, so perhaps I shouldn’t be surprised that SHRM wants to kill a program that makes it harder to hire illegal workers.

But SHRM has taken Washington arts to a new level. SHRM says it doesn’t want to kill E-Verify. SHRM says it wants to replace E-Verify with a new, better program to prevent illegal hiring. A closer look shows that the SHRM alternative is doomed to fail – and will take years to do so. So for a decade, while the SHRM alternative is failing, no one will have a good tool to actually prevent illegal hires. Which may be precisely what SHRM wants.

Politics can be ugly. And attacking the motives of your opponents is ugly politics. But what matters in the first instance is that it’s politics at all. Stewart Baker is an executive branch official who was appointed to his office, not elected. His role is to administer the laws, not to participate in the political processes that decide what the laws are. He crossed a crucial line by becoming a critic - and a harsh critic at that - of a private association because of its public policy stance.

It’s interesting to speculate about what caused Baker’s fit of pique. A theme in his post is the potential transfer of responsibilities for verification of workers from the Department of Homeland Security to other agencies like SSA and HHS. Job #1 for government ministers is to build their fiefdoms, and the SHRM’s preferred employment verification vehicle, the New Employee Verification Act, would be a DHS bureaucrat’s biggest outrage.

But everyone who knows him knows that Stewart Baker is savvy and cool. It’s not like him to lose his temper - especially not in such a public way. So I expect that this is part of some clever strategy, but I just don’t know what it is. Baker’s vitriol has drawn justified indignation from the folks at SHRM. The comments on Baker’s post have lots of interesting tidbits, including allegations that Baker consistently declined to meet with SHRM. He got written up in Politico for starting this public imbroglio. And the human resources blogosphere is popping with discussion of Baker’s explosion.

So, does Stewart Baker surprise us all and pull a rabbit out of a hat? Or has he really lost his cool? It could be frustrating, as he winds down his stint at DHS, to look down the road behind him at his key issues: the E-Verify program limping along, and the REAL ID Act in full collapse.