More on the Second Amendment Ruling

The Washington Post has a story today on the plaintiffs in the landmark Second Amendment lawsuit.  Among the plaintiffs interviewed is Cato’s Tom Palmer, who once had to use a firearm in self-defense.

Cato associate policy analyst, David Kopel, recently did a Second Amendment literature survey [pdf]. Take the list and go directly to Amazon!  Buy some for your friends as well.  Come to think of it, it’s the perfect graduation gift for third year law students-especially those who will be going to work as clerks on the Supreme Court next year!

For those interested in a shortcut through all the legal and historical material, I suggest you listen to this Cato briefing–featuring the key players who masterminded last week’s legal victory.

For more legal posts on last week’s ruling and the Second Amendment generally, visit Instapundit, How Appealing, and the Volokh Conspiracy.  For related Cato work, go here.

Let America Benefit from Brain Drain

In a globalized economy, it is very easy for capital to cross national borders. This provides an excellent way for the market to punish governments that over-tax, over-spend, and over-regulate since capital will flow to jurisdictions with less statism. It also is increasingly easy for skilled labor to shift from less competitive nations to those with more opportunity. The United States often is at the top of the list of desired destinations for the world’s best-and-brightest. Unfortunately, even though these skilled workers and entrepreneurs would generate more wealth for America, they often are unable to overcome restrictive immigration laws. Investors’ Business Daily explains how this policy hurts the United States:

America has it all backward. Our country’s doors are open to the low-skilled while we keep out the talent that’s crucial to our competitiveness. …The global economy is a brain game, and the nations with the best-educated work forces are the ones that win. …there’s a talent gap that can be filled only by relaxing restrictions on foreign computer scientists, software engineers and other highly trained workers who want jobs in the U.S. …Much of the work in fields such as software development might still get done offshore. But that would not produce jobs here. More critically in the long run, it would deny America a stream of capable, creative people. For many visa holders, the temporary permit is a step toward permanent residency. Allowed to stay, they may do more than just work here. They may start their own businesses and create work for others. …The issue here isn’t America’s failure to control its borders. It’s that America does too good a job of excluding some of the people it most needs.

Iceland’s Laffer Curve

The Wall Street Journal notes that corporate tax revenue has jumped dramatically in Iceland, even though the corporate tax rate has been slashed to 18 percent. That sentence actually should say that revenues jumped because of the lower tax rate. Iceland is a clear example of the Laffer Curve. As the rate fell, companies had less reason to avoid taxes. The low rate also encouraged additional economic activity. Iceland’s workers are the biggest winners, of course, since they now enjoy higher incomes and more prosperity:

The benefits of low taxes are on full display in Iceland, which provides an almost perfect demonstration of the Laffer Curve. From 1991 to 2001, as the corporate-tax rate fell gradually to 18% from 45%, tax revenues tripled to 9.1 billion kronas ($134 million in today’s exchange rate) from just above 3 billion kronas. Since 2001, revenues more than tripled again to an estimated 33 billion kronas last year. Personal income-tax rates were cut gradually as well, to a flat rate of 22.75% this year from 33% in 1995. Meanwhile, the economy averaged annual growth rates of about 4% over the past decade.

The editorial also notes that tax competition is encouraging good policy in other European jurisdictions. It is not surprising that Swiss cantons are lowering tax rates, but it is noteworthy that even the tax-loving German politicians are being forced to reduce the tax burden:

In addition to Eastern Europe’s flat-tax movement, there is healthy rivalry from Switzerland, where the individual cantons can set their rates independently. Obwalden just lowered its corporate-tax rate to 6.6%, drawing criticism from the European Union, which called it an illegal subsidy. One of the biggest critics, Germany, recently announced that it will cut its corporate-tax rate to just below 30% next year from the current rate of about 38%.

Mandatory HPV Vaccines: Who Benefits?

The lure of government mandates has turned Merck, if it wasn’t already, into an unethical company.  In principle, I have nothing against Merck publicizing its products and their benefits.  But Merck has exaggerated the benefits of its Gardasil vaccine and has shamelessly lobbied lawmakers to make a vaccine of questionable benefit mandatory.

At $360, the Gardasil vaccine against four types of human papillomavirus (HPV) is one of the most expensive vaccines on the market. On June 8th of last year the Food and Drug Administration (FDA) approved Gardasil for use in girls age nine to 26.

It is important to mention that technically “mandatory vaccination laws” are not “mandatory” because they all contain constitutionally required opt-out provisions.  Nevertheless when lawmakers, Merck, the press and everyone else call’s such laws “mandatory,” they in effect become so because the public perception is that they are.

Factual Errors.

Merck has misrepresented the facts, or is at least standing by dumb while others misrepresented them.  It is misleading to say the human papillomavirus (HPV) causes cervical cancer.  Not all HPV viruses cause cervical cancer and, while HPV is prevalent, those types (types 16 and 18) that cause cervical cancer are not nearly as prevalent. There are 37 or more types of genital HPV.  The rate of all 37 types together is high – 34% among women ages 14 to 24, but the rate for the types 16 and 18 that are responsible for 70% of cervical cancer cases in the U.S. – is only 1.5% and 0.8% respectively.  See the Journal Watch article published today.

Parts of the “Patient Product Information” link for Gardasil on the Merck website are vague at best and confusing and misleading at worst.   In light of the information above consider these two paragraphs:

What is Human Papillomavirus (HPV)?

HPV is a common virus. In 2005, the Centers for Disease Control and Prevention (CDC) estimated that 20 million people in the United States had this virus. There are many different types of HPV; some cause no harm. Others can cause diseases of the genital area. For most people the virus goes away on its own. When the virus does not go away it can develop into cervical cancer, precancerous lesions, or genital warts, depending on the HPV type. See “What other key information about GARDASIL should I know?”

Who is at risk for Human Papillomavirus?

In 2005, the CDC estimated that at least 50% of sexually active people catch HPV during their lifetime. A male or female of any age who takes part in any kind of sexual activity that involves genital contact is at risk. The U.S., unlike some other countries, has been very successful at reducing cervical cancer rates.  Both the actual number of cases of cervical cancer and the number of deaths from cervical cancer has been declining steadily for the past ten years.  (seer.cancer.gov/statfacts/html/cervix.html).  Furthermore, the effectiveness of condoms in preventing the spread of both HPV and HIV is well documented, as is the value of routine pap smears in preventing death from cervical cancer.

Policy Errors.

Merck is also clearly taking advantage of some very fallacious policy analysis.  It is very difficult to do a cost benefit analysis in public health because there are so many factors, known and unknown, that come into play, but to have the debate ignore considerations that are blatantly obvious is suspect.  While it is horrible that anyone should die of cervical cancer, it probably does not make sense to advocate mandatory vaccination for approximately 30,000,000 school aged girls with a brand new vaccine in order to prevent fewer than two percent of those girls from getting cervical cancer in the future.

Risk assessment is not easy, particularly when, as is the case with Gardasil, the long term effects of a vaccine are totally unknown.  Women who participated in the drug trials were followed for an average of less than three years.  Consider this totally hypothetical example: what if 90% of all school age girls are vaccinated within the next five years and then ten or twenty years from now it is discovered that the vaccine made them sterile or actually caused them to get a different type of cancer than what they were vaccinated against?  Or worse yet, because of the difference in sample size, once millions of  9 and 10-year olds were vaccinated instead of just a couple of hundred, one percent of the girls had side effects severe enough to cause brain damage or death?

The principle of unintended consequences suggests that, in all but the clearest cases, health risk assessments should be left up to individual families, not only because making such determinations rightly rests with families, but also because it simply does not make sense from a public policy standpoint to experiment on such a large portion of our population all at once.  Let parents choose for their girls, then there will be portions of the population that does and that doesn’t get the vaccine and others that received it later or earlier, or yet others that receive it while younger or older.  Allowing parents to make their own risk assessments is a natural way to protect the population from some negative unintended consequence of the vaccine affecting a whole demographic all at once.

To add insult to injury, not only has Merck left policy makers in the dark as to the myriad of possible downsides to mandatory vaccination for HPV, it has actively lobbied and paid large campaign contributions to politicians willing to support mandatory vaccination policies.  According to documents obtained by The Associated Press last month, Merck donated $5000 to Texas Gov. Rick Perry (R) on the same day Perry’s chief of staff met with the governor’s budget director and others for a “HPV vaccine for Children Briefing.”

Similar scenarios played out in at least seven other states.  This seems quite a bit like bribing politicians to do something for Merck, something that will bring Merck huge profits, very possibly at the expense of the general population – or at least at the expense of little girls.

Unfortunately, 20 states or more are currently considering mandatory HPV vaccination laws.

Banning the Ban

Since Mayor Fenty is sure to demagogue today’s D.C. Circuit ruling to death, it’s worth making a few points about what this case did and did not involve.  First, it is not about concealed carry.  There are excellent arguments for concealed carry, but Parker was not a challenge to the provisions of D.C. law that forbid carrying on the street, concealed or otherwise.  Instead, the plaintiffs in Parker challenged the provisions of the D.C. code that make it well-nigh impossible for ordinary, law-abiding citizens to own firearms for use in home defense.  Shadow representative Eleanor Holmes Norton has referred to these provisions as D.C.’s “Gun Safety Laws.”  Which is cute.  Here’s what those laws actually provide:

First, you can’t own an unregistered gun.

Second, you can’t register a handgun that you didn’t register prior to September 24, 1976, which is a nice Catch-22.

Maybe you’ve somehow managed to leap these two hurdles.  Maybe you thought ahead and registered a handgun back when disco was king.  If so, you’ve got a gun you can keep in your home.  But it must be quote “unloaded and disassembled or bound by a trigger lock” endquote, thus rendering it utterly useless if someone breaks into your home.  What you’ve got there is an expensive paperweight. 

And as hard as it is to believe, even if you own a lawfully registered pre-1976 handgun, you cannot legally carry it from room to room within your own home without a license.  The penalty for carrying a pistol in your own home without a license is imprisonment for up to one year, and a fine of up to $1,000.  And you can’t get a license. 

If the “right of the people” to keep and bear arms means anything, it means that, at a minimum, such laws cannot stand.  That is what the D.C. Circuit held today.

Landmark Second Amendment Ruling Today

Today, a federal appeals court ruled that the District of Columbia’s draconian gun control law is unconstitutional.  This is a very big deal.  The Supreme Court is very likely to review this case, which means we’re about a year away from a definitive ruling from the high court on the meaning of the Second Amendment–is it just about militias or does the Constitution guarantee an individual right to keep and bear arms? 

I doubt there will be much of an immediate practical impact on the ordinary lives of people.  Attorneys for the government, for example, will probably get a “stay” of this ruling pending its appeal to the Supreme Court.  The significance is that a debate that has been raging in academic and, to some extent, in legislative arenas, is now moving to our highest courts.  The impact on the lives of ordinary folks will likely follow slowly over the next few years–first in the District of Columbia and then in other jurisdictions.

Prior coverage of this controversy here.  For related Cato work, go here.

Update: Read the Cato Institute press release on the decision

U.S. Economic Misery — or Delusion?

Opponents of trade liberalization are painting themselves into a corner. They repeat endlessly that rising imports and trade deficits are bad for the U.S. economy and American workers. Imports and the trade deficits they fuel supposedly reduce U.S. employment and wages and impoverish American households as we borrow more and more and sell off the family jewels to support consumption. And since imports and trade deficits keep expanding, our economy must be getting worse, right?

Wrong. This morning the Labor Department reported that the U.S. unemployment rate fell again last month, to 4.5 percent, which must be full employment by anybody’s definition. Almost 100,000 net jobs were added in February, despite cold weather that crimped construction. Those job gains come on top of a revised net gain of 372,000 jobs in December and January, bringing net employment growth in the past four years to 6.5 million. Today’s report also confirms that real wages continue to rise for American workers.

Adding to the favorable picture, the Federal Reserve Board reported yesterday that the net household wealth of American families in the last quarter of 2006 reached a record $55.6 trillion. And that is net wealth: what we own after subtracting mortgage, consumer and other debts. Our net wealth is up 43 percent in the past four years, driven by increases not only in home values but also stock prices.

Granted, our infinitely complex, $13.5 trillion economy will have its ups and downs, but the current reality simply does not square with the politically tainted picture of economic misery and hopelessness being portrayed by certain critics of trade.