A Lawful Executive Action: Declassifying Marijuana

I’ve been quite hard on President Obama for his abuse of executive power – and will soon file another brief in the 26-state challenge to his immigration action – but there are certainly things that he or any president can do to protect and secure our liberty without violating the Constitution. One such executive action would be to “declassify” marijuna: remove it from the list of controlled substances (or at least move it further down the list, which would have significant positive legal effects). I explain in this video:

In case you don’t have time to watch, here’s a transcript:

While legalizing marijuana as a matter of federal law would take an act of Congress, President Obama can decriminalize it. He can do this by moving it out of Schedule I of the Controlled Substances Act, which is reserved for substances of no medical purpose and a high potential for abuse, and therefore have high criminal penalties attached to their mere possession.

Virtually all marijuana-­related arrests are handled by state and local law enforcement. The federal Drug Enforcement Agency (DEA) simply lacks the resources to enforce the federal ban across all 50 states. That’s why the Justice Department decided not to fight the legalization of marijuana in the handful of states that have taken that step.

President Obama — without rewriting any laws or going outside of his constitutional authority — can direct the attorney general to start the process of reclassifying marijuana as a Schedule IV or V substance, or declassifying it altogether.

Reclassifying marijuana as a Schedule III substance or lower would have significant benefits for the budding marijuana industry and individual users. For example:

Declassifying marijuana would solve all of these problems.

But even merely reclassifying it would make it easier for legal businesses to access the full economy and reduce violent crime.

Marijuana deregulation sits squarely within the control of the executive. The president should use his executive powers to allow for intelligent enforcement of drug policy without eroding the rule of law.

I guarantee that if President Obama does this, he won’t be impeached for high times crimes and misdemeanors.

Can Money-Market Mutual Funds Reliably Avoid the Problem of Runs?

The majority of federally insured savings and loans failed in the 1980s, wiping out the Federal Savings and Loan Insurance Corporation in 1989.  The fiasco ultimately cost taxpayers around $150 billion to make savings depositors whole.  Two years later, the failures of hundreds of commercial banks put the Federal Deposit Insurance Corporation in the red.  (The FDIC got a bridge loan from the US Treasury, which it eventually repaid.)  It became clear that deposit insurance had fostered immense moral hazard, enabling the growth of unsound S&Ls and commercial banks.

For many reformers these events raised the question of how the core services of banks (intermediation and payments) might be provided without the expense of tax-funded guarantees, and yet without the danger of runs that had prompted the creation of the FSLIC and FDIC.  A number of economists (myself included) pointed to checkable money-market mutual funds (MMMFs) as an alternative to bank deposits that are not run-prone and therefore have no need for taxpayer-funded guarantees.

Going to Extremes: Federal Climatologist Slams Alarmist Federal Climate Report

Global Science Report is a weekly feature from the Center for the Study of Science, where we highlight one or two important new items in the scientific literature or the popular media. For broader and more technical perspectives, consult our monthly “Current Wisdom.”

Second only to incidences of high temperature, supporters of government action to restrict energy choice like to say “extreme” precipitation events–be they in the form of rain, sleet, snow, or hail falling from tropical cyclones, mid-latitude extratropical storms, or summer thunderstorm complexes–are evidence that greenhouse gas emissions from human activities make our climate and daily weather worse.

The federal government encourages and promotes such associations. Take, for example, the opening stanzas of its 2014 National Climate Assessment: Climate Change Impacts in the United States, a document regularly cited by President Obama in support of his climatic perseverations:

This National Climate Assessment concludes that the evidence of human-induced climate change continues to strengthen and that impacts are increasing across the country.

Americans are noticing changes all around them. Summers are longer and hotter, and extended periods of unusual heat last longer than any living American has ever experienced. Winters are generally shorter and warmer. Rain comes in heavier downpours.

President Obama often calls out the extreme rain meme when he is running through his list of climate change evils. His Executive Order “Preparing for the Impacts of Climate Change,” includes:

The impacts of climate change – including…more heavy downpours… – are already affecting communities, natural resources, ecosystems, economies, and public health across the Nation.

So, certainly the science must be settled demonstrating a strong greenhouse-gas altered climate signal in the observed patterns of extreme precipitation trends and variability across the United States in recent decades, right?

Wrong.

Protecting Coal Mining From the Stream Protection Rule

On Wednesday, February 3, the Senate Environment and Public Works committee will hold a hearing on a new “Stream Protection Rule” being proposed by the Department of the Interior’s Office of Surface Mining (OSM) that looks to be another nail being hammered into the coal industry’s coffin by the Obama Administration.

Energy and mineral resource development in the U.S. is being thwarted by a wave of agenda-driven federal agency rulemakings being rushed through before the end of this administration. Oil, natural gas, and coal have been targeted for replacement by renewable energy sources. The coal industry has been fast-tracked by the OSM’s proposed new “Stream Protection Rule” (SPR). 

The new SPR would supersede the existing Stream Buffer Zone Rule, enacted in 2008 to regulate surface coal mining on aquatic environments in Appalachia. But, as is so often the case in the world of environmental regulation, that was not sufficient for the OSM, and, over the past seven years it has continued to press for more and stricter regulations on coal mining all across the United States.  They seem to prefer a nationwide one-size-fits-all regulatory enforcement scenario, even though local geology, geochemistry, and terrain vary widely between states and basins.  As it is, these concerns are more efficiently addressed by the states and policed by the industry.

That aside, the real impacts of the SPR, openly acknowledged by OSM, leave tens of billions of dollars’ worth of coal in the ground with no chance of future development—“stranded reserves,” as OSM terms them in the rule. Those coal deposits, according to OSM, “…are technically and economically minable, but unavailable for production given new requirements and restrictions included in the proposed rule.”  Yet, OSM’s engineering analysis, cited by a Congressional Research Service study, states that there will be no increase in “stranded reserves” under the SPR. In other words, the same volume of coal will be mined under the proposed rule as under the current rule…an OSM oversight, no doubt.

The proposed rulemaking employs questionable geoscience and mining engineering issues such as overemphasizing the importance of ephemeral streams to limit mining activities in all areas, requiring needless increases of subsurface drilling and geologic sampling, redefining accepted technical terms such as “approximate original contour” and “material damage to hydrologic balance,” and creating new unfamiliar terms such as “hydrological form” and “ecological function.”

But OSM likely is not focused on technical issues as much as their main concern: that the new rule is more stringent than the existing 2008 rule as is possible, and that it will apply nationally. Hence, the rule appears to be more for the benefit of regulators and places undue burden and expense on coal miners. Neither is OSM overly concerned with the big three tangible adverse impacts of their proposed rulemaking: lost jobs, lost resources, and lost tax revenue—with Appalachia being hit the hardest. Consensus estimates—not OSM’s—of the number of mining-related jobs lost nationally due to the SPR: in excess of 100,000 to upwards of 300,000. The decrease in coal tonnage recovered: between roughly 30 to 65 percent less. The annual value of coal left in the ground because of the rule: between 14 to 29 billion dollars. The estimated decrease in Federal and coal state tax bases: between 3.1 to 6.4 billion dollars. These are not very encouraging statistics for an industry that is currently responsible for supplying 40 percent of U.S. electrical power generation.   

Interior’s Office of Surface Mining has failed to adequately justify its proposed Stream Protection Rule in light of the federal and state rules and regulations already in place. Rather, OSM has embarked on a seven year odyssey of agenda-driven rulemaking that would force-fit regional and local characteristics coal mining operations to a nationwide template. However, Congress and the courts had already established that a uniform nationwide federal standard for coal mining would not be workable given the significant differences in regional and local geology, hydrology, topography, and environmental factors related to mining operations everywhere. On the non-technical side, OSM does not retreat from its admission in the preamble to the proposed rule that the SPR is politically motivated. Press reports have quoted an OSM official as acknowledging that there was pressure to get the SPR done in this administration’s last year.

Enacting the new SPR would be an ominous threat to a coal mining industry that deserves much better from this or any other future administration. This is one reason why OSM’s proposed SPR has been tagged by the National Mining Association as “a rule in search of a problem.” However, to paraphrase a more appropriate quote: the voluminous Stream Protection Rule is not the solution to the coal industry’s problems—rather the Stream Protection Rule is the problem.

It will be interesting to see how this all plays out in the Senate on Wednesday.

Air Traffic Control Reform

In the 1990s, the Clinton administration proposed restructuring our air traffic control (ATC) system, creating a self-funded organization outside of the Federal Aviation Administration (FAA). The idea went nowhere in Congress at the time.

Since then, numerous countries have successfully privatized their ATC systems, including Britain and Canada. Meanwhile, our ATC is still trapped inside the FAA bureaucracy, and it continues to fall short on crucial technology upgrade projects.

The good news is that major restructuring is back on the agenda in Congress. House Transportation and Infrastructure Committee chairman, Bill Shuster, is expected to soon unveil a major reform proposal, perhaps along the lines of Canada’s non-profit ATC corporation, Nav Canada. The FAA must be reauthorized by the end of March, which gives some momentum to reform. If President Obama wants an important pro-growth legacy in his final year in office, he should get behind this effort.

Are Almost All NYC Public Schools Actually Voucher Schools?

A popular knock against vouchers and other school choice programs is that private schools do not serve many students with disabilities, whereas public schools serve everyone. If that’s true, then the vast majority of public schools in New York City must actually be private.

According to a federal investigation just rejected by the de Blasio administration, the large majority of New York City elementary schools – 83 percent – are not “fully accessible” to students with disabilities. That forces many disabled students to travel far afield from their local public schools, which are supposed to serve every zoned child. The U.S. Department of Justice’s letter to the city laying all this out contains this anecdote:

In the course of our investigation, we spoke to one family who went to extreme measures to keep their child enrolled in their zoned local school, rather than subject the child to a lengthy commute to the closest “accessible” school. A parent of this elementary school child was forced to travel to the school multiple times a day, every school day, in order to carry her child up and down stairs to her classroom, to the cafeteria, and to other areas of the school in which classes and programs were held.

Money Buys Elections

Jeb Bush spent at least $14.9 million trying to win the Iowa Republican primary, the most of any candidate in either party. He finished sixth.

Will this persuade people that money does not buy elections? Probably not. The belief that “money buys elections” is not really falsifiable. It is a matter of faith.

But perhaps those who believe that money buys elections will now think it is somewhat less probable they are correct.