Topic: Government and Politics

New Study on Low-Income Housing Subsidies

A new study at Downsizing Government looks at low-income housing aid. Howard Husock of the Manhattan Institute examines the history of federal aid and discusses problems with current policies, particularly rental subsidies and public housing.

One problem is that housing aid is costly to taxpayers. The federal government spent $30 billion on rental subsidies (Section 8 vouchers) and almost $6 billion on public housing in 2016.

Another problem is that housing aid and related rules are costly to urban communities. Howard argues that federal interventions undermine neighborhoods, encourage dependency, and create disincentives for long-term maintenance and improvements in housing.

No Side Is ‘Shameful’ in Trump’s Change to Transgender Bathroom Policy

President Trump’s administration has rescinded the Obama administration’s “Dear Colleague” letter requiring that public schools let transgender students use the bathrooms and locker rooms of their choice. It was probably the right thing do, and there was nothing “shameful” about the decision: equally decent people can, and do, have competing views of what is good.

There is no reason, of course, to believe anything other than that the Obama administration’s initial guidance was well-intended, driven by a desire to see transgender students empowered to make decisions for themselves about who they are. It is also absolutely a legitimate worry that school districts might discriminate against transgender students.

But equally decent people could feel very uncomfortable sharing a bathroom or changing room with someone of the opposite biological sex — sex-based privacy has been a time-honored norm — and could also have religious objections to such mixing. What about their rights? There were also legitimate worries about the legality of the order, delivered as a sudden reinterpretation of long-standing regulations.

Finally, societal evolution takes time. It may well be better to let smaller units (states, communities, families) grapple with and adjust to social change than suddenly impose one vision of the good on everyone.

Of course, there may be no solution in a diverse school or district that equally respects the values and desires of all. This is a major reason that school choice is so crucial: it enables families and educators to freely choose the values they want taught and respected, rather than government choosing one side to win and the other to lose.

Rio’s Olympic Disaster

“The legacy of the Rio Olympics is a farce,” writes sports columnist Nancy Armour in USA Today. She continues:

The closing ceremony was six months ago Tuesday, and already several of the venues are abandoned and falling apart. The Olympic Park is a ghost town, the lights have been turned off at the Maracana and the athlete village sits empty…. the billions that were wasted, the venues that so quickly became white elephants, the crippling bills for a city and country already struggling to make ends meet…

She notes that more and more cities are realizing that Olympic games are glamorous but not economically sound. I made that point two years ago when Boston withdrew its bid to host the 2024 Summer Olympics:

Columnist Anne Applebaum predicted a year ago that future Olympics would likely be held only in “authoritarian countries where the voters’ views will not be taken into account” — such as the two bidders for the 2022 Winter Olympics, Beijing and Almaty, Kazakhstan.

Fortunately, Boston is not such a place. The voters’ views can be ignored and dismissed for only so long.

The success of the “10 people on Twitter” and the three young organizers of No Boston Olympics should encourage taxpayers in other cities to take up the fight against megaprojects and boondoggles — stadiums, arenas, master plans, transit projects, and indeed other Olympic Games.

I cited then some of the evidence about the impact of the Olympics on host cities:

The critics knew something that the Olympic enthusiasts tried to forget: Megaprojects like the Olympics are enormously expensive, always over budget, and disruptive. They leave cities with unused stadiums and other waste.

E.M. Swift, who covered the Olympics for Sports Illustrated for more than 30 years, wrote on the Cognoscenti blog a few years ago that Olympic budgets “always soar.”

“Montreal is the poster child for cost overruns, running a whopping 796 percent over budget in 1976, accumulating a deficit that took 30 years to repay. In 1996 the Atlanta Games came in 147 percent over budget. Sydney was 90 percent over its projected budget in 2000. And the 
Athens Games cost $12.8 billion, 60 percent over what the government projected.”

Bent Flyvbjerg of Oxford University, the world’s leading expert on megaprojects, and his co-author Allison Stewart found that Olympic Games differ from other such large projects in two ways: They always exceed their budgets, and the cost overruns are significantly larger than other megaprojects. Adjusted for inflation, the average cost overrun for an Olympics is 179 percent.

In the latest edition of Cato Policy Report, Flyvbjerg examined “the ‘iron law of megaprojects’: over budget, over time, over and over again.”

Brazil has great resources, great ambitions, and great problems, including a vast corruption scandal that has taken down numerous public officials including President Dilma Rousseff. But the lives of its people will not improve through grandiose projects. Brazil needs financial reform, tax and regulatory reform, fiscal reform, and more. Megaprojects are not the road to prosperity.

Donald Trump’s “Rules of Civility and Decent Behavior”

As any pedantic patriot can tell you, there’s really no such thing as “Presidents’ Day”–the official name for the federal holiday we celebrated on Monday is “Washington’s Birthday.” And it wasn’t the first president’s actual birthday, which is today, February 22.

Washington had his faults, but, especially when compared to most of those who followed him, he provided an admirable model of probity and restraint. The teenage Washington copied in his own hand 110 precepts on etiquette: “The Rules of Civility and Decent Behavior in Company and Conversation,” and, as I noted recently, they make for a pretty stark contrast with the deportment of 1600 Pennsylvania’s current occupant. So, in honor of Washington’s (actual) Birthday, contemplate the distance between our first president and our 45th, with a selection of Washington’s “Rules”–and Trump’s:

Washington’s “Rules”:

Shew Nothing to your Freind that may affright him.

Speak not when you Should hold your Peace

do not Presently play the Physician if you be not Knowing therein.

Undertake not what you cannot Perform but be Carefull to keep your Promise.

Trump: “I will give you everything. I will give you what you’ve been looking for for 50 years. I’m the only one” (campaign rally, North Dakota).

Margaret Thatcher’s $3 Trillion Revolution

Margaret Thatcher came to power in 1979 determined to revive the stagnant British economy with market-based reforms. During her 11 years as prime minister, she deregulated, cut marginal tax rates, repealed currency exchange controls, and tamed militant labor unions.

However, it was privatization that became Thatcher’s most important and enduring economic legacy. She popularized the word privatization and oversaw the sale to the public of British Airways, British Telecom, British Steel, and British Gas, and other major businesses.

Spurred by the success of Thatcher’s reforms, privatization swept the world. Governments in more than 100 countries moved thousands of state-owned businesses to the private sector. Since the Iron Lady’s campaign to give ownership of Britain’s economy back to the people, more than $3.3 trillion of government businesses have been privatized around the world.

I take a look back at Thatcher’s privatization reforms in this month’s Cato Journal.

What is the relevance for U.S. policymaking today? Many types of businesses that Britain privatized are still partly or fully owned by governments in this country, including airports, seaports, postal services, air traffic control, electric utilities, and passenger rail. So there is an opportunity here for our leaders to spur growth and innovation by adopting Thatcher’s playbook.

But privatization is important for more than just the economic benefits. Thatcher said privatization is also about “reclaiming territory for freedom” and ensuring that “the state’s power is reduced and the power of the people enhanced.”

In toasting Margaret Thatcher in Washington, February 27, 1981, President Ronald Reagan said “everywhere one looks these days the cult of the state is dying.” Thatcher’s privatization program would help make that promise come true.

The photo shows the free-market friends at the White House, February 28, 1981.

Remembering Calvin Coolidge’s Record on Civil Rights

Libertarians often point out that Progressive-era President Woodrow Wilson (in office 1913-1921), together with his other bad qualities, was thoroughly awful on the subject of civil rights for black Americans: he re-segregated the federal civil service, demoted and snubbed black federal officials and dignitaries, and wrote favorably about the Ku Klux Klan, even helping bring in D.W. Griffith’s Klan-fest “The Birth of a Nation” as the first motion picture to be screened in the White House. Soon a revived version of the Klan had picked up enormous momentum, peaking by the early 1920s at a membership of millions, hostile not just to blacks but to Catholics, Jews, urban intellectuals, and cosmopolitan influences in general.

Then the spell broke. In the second half of the 1920s the Klan’s ranks collapsed, and by 1930 it was but a shadow of its former self, down from millions to perhaps tens of thousands. What happened?

Many things happened, but one of them was the presidency of Calvin Coolidge, who served from 1923 to 1929. The Coolidge Presidential Foundation recently published a piece by University of Baltimore president Kurt Schmoke, formerly mayor of Baltimore, entitled “The Little Known History of Coolidge and Civil Rights.” As Schmoke makes clear, the Vermont-born president’s record was a shining spot in an era that otherwise reflected little credit on American race relations. 

Consider, for example, the practice of lynchingwidespread and informally tolerated around much of the nation. With the sole exception of the war year of 1917, which had 36, America saw at least 50 lynchings in each year between 1883 and 1922, the last year before Coolidge took office; the recent peak had come at war’s end with 70 lynchings in 1919 followed by a drop to 51 by 1922.  But 1923, the year Coolidge took office, saw a drop to 29, and never again was the number to rise above the mid-20s; in his final year, 1929, there were 7. In the 1930s, Congress debated a national anti-lynching law, but Democratic president Franklin D. Roosevelt was notably tepid toward the idea. Not until 1936 was the number of lynchings consistently reduced to below 10 a year.

Coolidge took a particular interest in the cause of Howard University in Washington, D.C. And he spoke out on behalf of the interests of blacks, the foreign born, and other minorities on many other occasions as well, grounding his views in a civic patriotism that held its distance from nationalist passions of blood and soil. Writes Schmoke: 

Coolidge gave his most pointed rebuke to the Klan spirit during his 1925 speech to the American Legion in Omaha, where he said “whether one traces his Americanism back three centuries to the Mayflower, or three years of the steerage, is not half so important as whether his Americanism of to-day is real and genuine. No matter by what various crafts we came here, we are all now in the same boat.”

Something to think about on this President’s Day.

Time for a War on Presidents’ Day

It’s nice to combine a long weekend with a chance to pick up some bargain kitchenware; but outside of that, what’s the point of Presidents’ Day? Modern presidents are ubiquitous and inescapable: hectoring us from above every treadmill at the gym and meddling in every area of American life, from where we get our groceries to which bathroom we’re allowed to use. It’s not as if we’ll forget they exist without setting aside a special day to salute them. Besides, neither the individual presidents we inflict on ourselves every four to eight years nor the institution itself is worth celebrating.

It’s some consolation, then, that, at the federal level at least, there’s no such thing as “Presidents’ Day.” The official designation for the third Monday in February is “Washington’s Birthday.” That’s been the case since one of our less meddlesome presidents, bewhiskered nonentity Rutherford B. Hayes, signed the holiday into law in 1879. 

Granted, it hasn’t been observed on the first president’s actual birthday, February 22, since the Nixon administration. With the 1968 Uniform Monday Holiday Act, Congress sacrificed accuracy in order to give Americans the benefit of three-day weekends, stipulating that “Washington’s Birthday” would be observed on February’s third Monday.

Still, every so often, some civic-minded busybody insists that it’s presidents—or worse, the presidency in general—that we should be commemorating. In the late ‘90s, for example, Sen. Dick Durbin (D-Ill.) introduced a bill (cosponsored by Ted Kennedy and Tom Daschle) to redesignate “the legal public holiday of Washington’s Birthday as Presidents’ Day … in recognition of the importance of the institution of the Presidency and the contributions that Presidents have made to our nation’s development and the principles of freedom and democracy.”

Bah, humbug. Our presidents—especially the “great” ones—have more often trampled those principles than upheld them. When scholars rank the presidents, their “Top 10” lists typically include a Murderers’ Row of chief executives whose “contributions” to freedom and democracy include Japanese internment, Indian removal, unconstitutional wars, illegal spying, and the imprisonment of peaceful dissenters.

And while there’s no denying “the importance of the institution,” what freedom and self-government we still enjoy persists in spite, not because of, our presidential system. In a pioneering 1990 article, “The Perils of Presidentialism,” the political scientist Juan Linz argued that presidential systems—those that feature a powerful executive, directly elected by the people and serving for a fixed term—are prone to catastrophic breakdowns and degeneration into autocratic rule. By combining the roles of head of state and head of government in one figure, such systems encourage presidents to imagine themselves the living embodiment of the popular will. The president “becomes the focus for whatever exaggerated expectations his supporters may harbor,” Linz writes, and in turn may “conflate his supporters with ‘the people’ as a whole.”

Worse still, the rigidity of presidential terms makes it far harder to throw the bums out if they go rogue. Prime ministers serve at the pleasure of parliament and can even be replaced by their own party. But in all of U.S. constitutional history, we’ve never successfully used the impeachment process to remove a president (Nixon quit). Unless he’s catatonic or certifiable, we’re stuck with him for the duration.