Immigrants and Patriotism

Donald Trump’s campaign has certainly galvanized feelings of nationalism and patriotism.  John Fonte and John O’Sullivan even wrote that Trump’s election victory represent a “return of American nationalism.”  It’s no coincidence then that he spoke about immigration as much as he did.  There is a common belief that immigrants and their descendants are less patriotic than other Americans. Yet rarely do proponents of this idea bring facts to the table to support their claims. 

A prominent academic paper by Jack Citrin and others challenges the idea that Hispanic Americans are less patriotic.  On the opposite side, responses from a Harris Interactive Survey purport to show less patriotism among immigrants.  Fortunately, the General Social Survey asks many questions about patriotism in 2004 and 2014.  The questions generally show that immigrants and Hispanics have patriotic feelings virtually identical to those of other Americans.

“60 Minutes” Covers ADA Shakedowns

On Sunday Anderson Cooper at CBS “60 Minutes” covered one of our favorite topics: the way lawyers and clients sue retail businesses by the dozens or hundreds over defects in ADA accessibility compliance and then cash in the complaints for quick settlements. Actually entering the business is not always necessary: it can be enough to drive around the parking lot spotting technical violations, in what is known as a “drive-by lawsuit.”

South Florida store owner Mike Zayed says before the complaint arrived “no disabled customer had ever complained about the ramp, the sign, or the parking space.” Zayed “doesn’t think the person who sued him was a real customer because the man claimed he encountered barriers inside the store that didn’t exist.” And now we’re beginning to see “Google lawsuits” in which the complainant consults online aerial maps to discover, for example, which motel owners haven’t yet installed the pool lifts that federal law recently made obligatory. The same attorney using the same client sued more than 60 defendants in 60 days over lack of pool lifts. “At last count, that attorney has sued nearly 600 businesses in just the last two years, many for not having pool lifts.” [Dec. 4 segment and script; full show here (segment begins 32:47).

[adapted from Overlawyered]

Police Misconduct — The Worst Case in November

Over at Cato’s Police Misconduct web site, we have selected the worst case for the month of November: The Albuquerque Police Department, (APD) which is now under investigation, once again, for misconduct.

Here’s the background.  A few years ago, after numerous complaints from community leaders, the Department of Justice (DOJ) launched an investigation of the APD.  In April 2014, the DOJ announced its finding that there was indeed a pattern of excessive force by officers with the APD.  Police officials promised to change and improve.

Shortly thereafter, an APD officer shot and killed 19 year old Mary Hawkes.  It looks like Hawkes stole a car and the police were trying to catch her.  The police said she was a threat and so deadly force was necessary.  Hawkes’ family sued the city for excessive force.  Prior to trial, lawyers asked to see any police body camera footage from the incident.

Now we come to the latest news reports of APD misconduct.  Reynaldo Chavez was an employee of the City of Albuquerque and his job was handling records requests.  Chavez says he was aware that the police department had a peculiar policy regarding police body camera footage.  When the footage helped the police, it was released to the public.  When the footage hurt the police, such as showing excessive force, the footage was altered or destroyed.  In other words, the APD had a policy of tampering with evidence, which is a crime.

Chavez reportedly turned over incriminating body camera footage to the lawyers representing the Hawkes family.  Chavez then lost his job and he is now fighting to get his job back because he says he was punished for doing what he was legally supposed to do.

The APD has denied any wrongdoing, but the state attorney general has seen enough to launch yet another investigation into APD practices.

New International Exam Results: U.S. = Meh

Last week and this morning the results of two major international exams came out: the Trends in International Mathematics and Science Study (TIMSS) and the Program in International Student Assessment (PISA), respectively. Together, they offer a mixed bag of overall mediocre news for the United States.

On TIMSS—an exam that tends to use “traditional” questions such as directly multiplying two numbers—American students saw 4th grade math scores dip a bit between 2011 and 2015, 8th grade math scores rise a statistically significant amount, and 4th and 8th grade science scores rise slightly. We also placed pretty high compared to other countries, though we finished behind Kazakhstan on all tests. On the whole, that’s decent news (Kazakhstan notwithstanding).

PISA would probably be best characterized the opposite way: bad news. Scores on the exam—which is more focused on solving “real world” problems, akin to multi-step word problems, and is only for 15-year-olds—were all down.  Science, math, and reading, as you can see below, all dropped. And our placement among other participating countries? Well below average for advanced countries in math, slightly above in science and reading.

Taking PISA and TIMSS together, the news isn’t great, especially considering that we spend more on K-12 education than almost any other country in the world.

Carrier Revisited

President-elect Donald Trump has claimed victory in his effort to preserve employment for Carrier workers in Indiana.  Assisted by $7 million in tax incentives provided by the State of Indiana, Mr. Trump persuaded the company not to move 800 furnace manufacturing jobs to Monterrey, Mexico.  This works out to a taxpayer-funded subsidy of $8750 per job. 

Another 1300 Carrier jobs still will move to Mexico between now and 2019.  Published reports have indicated that the company anticipated cost savings of some $65 million per year from moving all 2100 positions to Monterrey.  So Carrier is taking at least a partial step toward maintaining its global competiveness, while at least partially appeasing the incoming president.

I wrote an op-ed in Forbes on August 22, 2016, in which I argued that Carrier no doubt had quite good business reasons for planning the move to Mexico.  Carrier’s February 2016 announcement of the decision said that it was due to “ongoing cost and pricing pressures driven, in part, by new regulatory requirements.”  

Carrier has been manufacturing products in Monterrey for some years.  The company certainly has a clear understanding of why moving production of some air conditioning units makes business sense.  It would not be wise for them to explain their reasoning in public because such proprietary knowledge would be of great interest to their competitors. 

Some commentators have opined that the decision was driven largely by lower labor costs.  Carrier’s expenses for employee salary and benefits average about $34 per hour in Indiana, while those costs in Mexico are only around $6 per hour.  It’s possible the move was prompted primarily by labor cost savings, although my analysis of data compiled by The Conference Board suggests otherwise.  The value generated by an hour worked in the United States has risen by 40 percent over the past 22 years of NAFTA.  In Mexico, the gain has been only 10.5 percent.  Productivity has grown faster in the United States, so the incentive to shift production to Mexico today ought to be weaker than it was 10 or 20 years ago.  (Note:  Those figures apply to the productivity of all workers.  If it was possible to analyze just the manufacturing sector, perhaps the findings would change.)

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Pentagon Bureaucracy: $125 Billion in Waste

The Washington Post has a blockbuster story today documenting vast overhead costs in the Department of Defense (DoD). Experts often lambast the DoD’s excessive bureaucracy, and I have charted the growth in the number of civilian DoD workers.

But the Post reveals remarkable new measures of the department’s bloat, based on a leaked study it obtained:

The Pentagon has buried an internal study that exposed $125 billion in administrative waste in its business operations amid fears Congress would use the findings as an excuse to slash the defense budget, according to interviews and confidential memos obtained by The Washington Post.

Pentagon leaders had requested the study to help make their enormous back-office bureaucracy more efficient and reinvest any savings in combat power. But after the project documented far more wasteful spending than expected, senior defense officials moved swiftly to kill it by discrediting and suppressing the results.

The study was produced last year by the Defense Business Board, a federal advisory panel of corporate executives, and consultants from McKinsey and Company. Based on reams of personnel and cost data, their report revealed for the first time that the Pentagon was spending almost a quarter of its $580 billion budget on overhead and core business operations such as accounting, human resources, logistics and property management.

The data showed that the Defense Department was paying a staggering number of people — 1,014,000 contractors, civilians and uniformed personnel — to fill back-office jobs far from the front lines. That workforce supports 1.3 million troops on active duty, the fewest since 1940.

The DoD’s effort to bury the study is appalling, but Pentagon waste is a complex problem. You can’t just chop $125 billion worth of “back office” jobs overnight. However, it is also true that the 1,014,000 such jobs—in logistics, procurement, and other activities—are the exact types of functions that have become vastly more efficient in the private sector.

Pentagon Spikes Report on Waste Because It Found Too Much

In 2014, the Pentagon commissioned a study to identify wasteful practices and improve efficiency, but when the researchers found too much waste – approximately $125 billion worth – the officials who asked for the report tried to bury the findings. As reported in the Washinton Post, Pentagon officials worried that “Congress would use the findings as an excuse to slash the defense budget.”

The Pentagon imposed secrecy restrictions on the data making up the study, which ensured no one could replicate the findings. A 77-page summary report that had been made public was removed from a Pentagon website.

Particularly telling are a series of comments by Deputy Defense Secretary Robert O. Work, the Pentagon’s second-highest-ranking official, and Frank Kendall III, the Pentagon’s chief weapons-buyer.