Topic: Regulatory Studies

Even Lawyers Have the Right to Earn an Honest Living

An Argentine attorney, Maximiliano Gluzman, completed a master’s in law (LL.M.) at Vanderbilt Law School—including a heavy dose of common-law subjects—but was denied an opportunity to sit for the Tennessee bar, even though nobody disputes that he’s an “obviously a very, very qualified” lawyer (as one of the bar examiners conceded) and “one of the very best students” ever to graduate from his school (as its dean put it). In January 2016, however, new bar rules went into effect that essentially prevent foreign students from sitting for the bar by requiring a J.D. from an American law school.

The case is now before the state supreme court. The Beacon Center, Tennessee’s most prominent free-market advocacy group, has filed a brief supporting Mr. Gluzman, which Cato and the Goldwater Institute have joined. Our brief focuses on the right to earn an honest living going back to Magna Carta.

Indeed, Tennessee was founded out of nothing so much as the pursuit of economic opportunity. The state constitution reflects the special importance of the right to earn a living by embedding it in the “Law of the Land” Clause. This provision traces directly to the Magna Carta, a document itself primarily concerned with property rights and the right to earn a living.

While federal courts tend to provide thin protections to this right under the U.S. Constitution, the Tennessee supreme court has long protected it as a “fundamental” right. Importantly, the Tennessee legislature recently reaffirmed that the right was fundamental in the appropriately named “Right to Earn a Living Act.”

Yet the board of bar examiners concluded that Mr. Gluzman’s education in Argentina and at Vanderbilt was not “substantially equivalent” to a J.D.—discounting the right as somehow inapplicable and missing the significance of the Act as a restatement of longstanding Tennessee constitutional doctrine. Under the doctrine of constitutional avoidance, and out of respect for the importance of the underlying right itself, the “substantial equivalency” rule should be read with lenity.

Although Mr. Gluzman’s sterling educational qualifications are beyond reproach, if it is still unclear whether his education satisfies the state bar, the rule should be read to favor the liberty interest and permit his inclusion. Nor is his exclusion demonstrably necessary to protect the public; the tailored way of assessing Mr. Gluzman’s competency would be to simply allow him to take the exam and settle the matter once and for all. That process would at once follow clearly stated legislative priorities and the constitutional principles that gave rise to the Right to Earn a Living Act.

The Tennessee Supreme Court hears Gluzman v. Tennessee Board of Bar Examiners later this spring.

Greener, Not Browner

A recent Science paper by J-F. Busteri and 30 named coauthors assisted by 239 volunteers found, looking at global drylands (about 40% of land areas fall into this category), that we had undercounted global forest cover by a whopping “at least 9%.” 239 people were required to examine over 210,000 0.5 hectare (1.2 acre) sample plots in GoogleEarth, and classify the cover as open or forested. Here’s the resultant cool map:

This has been the subject of a flood of recent stories, blog posts, tweets, and whatever concerning Bastin et al. But here at the Center for the Study of Science, we’re value added, so here’s some added value.

Last year, Zaichin Zhu and 31 coauthors published a remarkable analysis of global vegetation change since satellite sensors became operational in the late 1970s. The vast majority of the globe’s vegetated area shows greening, with 25-50% of that area showing a statistically significant change, while only 4% of the vegetated area is significantly browning. Here’s the mind-boggling map:

Trends in Leaf Area Index, 1978-2009. Positive tones are greening, negative are browning, and the dots delineate where the changes are statistically significant. There is approximately 9 times more area significantly greening up than browning down.

Trends in Leaf Area Index, 1978-2009. Positive tones are greening, negative are browning, and the dots delineate where the changes are statistically significant. There is approximately 9 times more area significantly greening up than browning down. 

Hope you’re sitting down for the money quote:

We show a persistent and widespread increase of growing season integrated LAI (greening) over 25% to 50% of the global vegetated area, whereas less than 4% of the globe shows decreasing LAI (browning). Factorial simulations with multiple global ecosystem models show that CO2 fertilization effects explain 70% of the observed greening trend…

And the other greening driver that stood out from the statistical noise was—you guessed it—climate change.

Now, just for fun, toggle back and forth between the two maps. As you can see, virtually every place where there’s newly detected forest is greening, and a large number of these are doing it in a statistically significant fashion. This may lead to a remarkable hypothesis—that one of the reasons the forested regions were undercounted in previous surveys (among other reasons) is that there wasn’t enough vegetation present to meet Bastin’s criterion for “forest,” which is greater than 10% tree cover, and carbon dioxide and global warming changed that.

References:

Bastin, F-L., et al., 2017. The extent of forest in dryland biomes. Science 356, 635-638.

Zhu, Z., et al., 2016. Greening of the earth and its drivers. Nature Climate Change, DOI: 10.1038/

NCLIMATE30004. 

Why Is Insider Trading Illegal?

Kenesaw Mountain Landis, the legendary baseball commissioner, once said that every boy builds a shrine to some baseball hero, and before that shrine a candle always burns. Growing up a Baltimore Orioles fan during the franchise’s glory days, my shrine had many heroes, including central figures Cal Ripken (HOF 2007), Eddie Murray (HOF 2003), and John Lowenstein. Not central but still part of the shrine was Doug DeCinces, a good glove/solid bat third baseman who manned the O’s hot corner for nine of his 15 major league seasons.

And so I was saddened to read that last Friday DeCinces was convicted of 14 charges of insider trading.

Back in 2008, his neighbor, James Mazzo, then CEO of an ophthalmic surgical supply company, told DeCinces that the firm was about to be acquired by medical giant Abbott Labs. DeCinces owned stock in the firm and purchased more after he learned of the deal. He also shared the tip (though apparently not its provenance) with some friends, including Murray. DeCinces ultimately profited about $1.3 million on the deal according to press reports.

His maneuver seems inoffensive if shrewd; after all, who wouldn’t buy something that he can then sell at a profit? That is fundamental to the marketplace, and it typically makes all participants better-off.

But in DeCinces’ case it’s a crime, and a very serious one. He can receive as much as 20 years in federal prison for each of the 14 charges he was convicted on.

The question is why. Remember that all an inside trader does is act on private information that more accurately reflects the future value of some financial asset than the current price does. He buys or sells that asset at a price that someone else voluntarily accepts. He does nothing that damages (or falsely props up) the ultimate value of the asset. Nor does he hurt the broader financial marketplace; if anything, his trading slightly pushes the asset price toward a more appropriate value.

Knowing about Segregationist Housing Policy Is the First Step to Justice

In education, there is a widespread belief: the federal government ended segregation. This is, of course, based on the Supreme Court’s landmark ruling in Brown v. Board of Education, and subsequent federal efforts to end segregated schooling. But as a sobering new book by the Economic Policy Institute’s Richard Rothstein makes clear, while all levels of government forced, coerced, or cajoled racial segregation through housing policy, the feds may have been the worst, and the crippling legacy of those actions may be much further reaching than even schooling policy.

The Color of Law: A Forgotten History of How Our Government Segregated America is essentially a catalogue of discriminatory housing policies perpetrated throughout the 20th Century, but peaking from the 1930s through the 1960s. It chronicles local injustices including police ignoring or even stoking mobs that tormented African Americans who dared buy a home in a white neighborhood, and states with segregationist intent mandating local referenda to approve low-income family public housing. But it is the federal government that seems to have had the most powerful hand in it all, if for no other reason than only it could sweep every American into the corners where it decided they did—or did not—belong.

Sessions Re-Escalates the Drug War

And so it begins:

In a move expected to swell federal prisons, Attorney General Jeff Sessions is scuttling an Obama administration policy to avoid charging nonviolent, less-serious drug offenders with long, mandatory-minimum sentences.

Mr. Sessions’s new guidelines revive a policy created under President George W. Bush that tasked federal prosecutors with charging “the most serious readily provable offense.”

Drug War critics have feared this moment ever since President Trump nominated Sessions; now it is a reality.  The effects will be no different than after past escalations: more crime and corruption, with little or no impact on drug use.

 

A New Approach for Occupational Licensing in Wisconsin

A decade ago an errant pass in a basketball game hit my thumb hard along the nail. After a couple days of intense pain, the thumbnail fell off and then grew back misshapen. It turned out that the injury killed a portion of the nail bed. As afflictions go it is pretty minor, but it is a tad grotesque and makes a few tasks a bit more difficult.

An orthopedic surgeon suggested I either opt for surgery—which may not have worked or been covered by insurance—or else have the entire nail permanently removed for aesthetic reasons. I oped to leave it alone and began getting a regular manicure to keep the thumbnail under control.

A couple months ago, the owner of the salon I frequent asked if a new employee could do my manicure. The issue was that he spoke no English and had no license, but they assured me he had been doing manicures for years in Vietnam and was quite talented. I agreed.

The owner explained my thumbnail issue to him, and he spent several minutes on the digit. A few days later, to my surprise, the dead nail bed began growing again. The nail now looks almost normal.

The story of my healing nail asks a question: to what extent should states license manicurists, or professions that by and large have nothing to do with health and safety? Wisconsin—and many other states—requires graduation from an accredited institution that teaches the trade as well as hundreds of hours of experience. It does not automatically recognize licenses issued by another state or country either. In other words, there would be no clear path for this manicurist to legally practice his profession in the state.

The typical state licenses hundreds of professions. Some of those are unobjectionable—most people want doctors and anesthetists to undergo a licensing regime before assuming their professions, for instance. But other licenses are problematic. For instance, many states require interior designers and florists to be licensed. Do we really need to be protected from a rogue designer who might do damage to the color scheme of our homes? The same question can also be asked of manicurists, barbers, aestheticians, and other professions that have little to do with health or safety.

The harm in excessive licensing is twofold. First, people with an aptitude for a profession but without the means to take the classes to obtain the license are effectively shut out of a way to earn a decent living. A license for an interior designer, for instance, requires six years of training, including at least two years of school.

Second, the higher wages from excessive licensing translates to higher costs for these services as well. A manicure in Oshkosh—a former home of mine—costs more than in Washington DC, where I currently reside. While not everyone might need or want such services, the disparity in prices between my high-cost current home and my former low-cost residence suggests that someone’s getting a bad deal.

Should Taxpayers Back the ‘Organic’ Label?

Why are consumers willing to pay almost double for food labeled organic?  The average consumer probably believes that the “USDA Organic” label issued by the U.S. Department of Agriculture implies the food comes from small local farms that use production techniques that are environmentally friendly and result in food that is better for human health.  The Washington Post published an article recently about an organic farm that does not seem to be consistent with such perceptions.  The High Plains dairy complex in Colorado, the main facility of Aurora Organic Dairy, has over 15,000 cows. In the organic dairy industry 87 percent of farms have less than 100 cows, but farms with 100 or more cows produce almost half of organic dairy products.

The Post article argues that these large dairy operations may be violating the USDA’s regulations for organic milk. Though Aurora officials maintain that they meet all the requirements for the USDA Organic label, the article contends that satellite images, visual inspections by Post reporters, and tests of milk from High Plains all indicate that the company may not be complying with the natural grazing standards of the organic regulations.

But the Post article misses the important point that even if Aurora were in technical compliance with the grazing regulation, the label does not convey any information about health and environmental benefits. As then-secretary of agriculture Dan Glickman stated at the release of the final standards for organic foods in 2002:

Let me be clear about one thing: the organic label is a marketing tool. It is not a statement about food safety. Nor is ‘organic’ a value judgment about nutrition or quality.