A Mind Is a Terrible Thing to Waste (after High School)

The South Carolina NAACP is among the most strident opponents of a new education tax credit proposal in that state that would make it easier for families – especially poor families – to choose private schools for their kids.

But the NAACP’s national platform states that:

The NAACP is a leading advocate of equal access to quality education.  In an effort to promote and ensure education opportunities for minority youth, the NAACP offers the following national scholarships: Earl G. Graves Scholarship, Agnes Jones Scholarship, …. These awards help eliminate financial difficulties that may hinder students’ education goals.   

Doesn’t that put the SC NAACP’s position into clear conflict with its parent organization? Actually, no. I deleted the qualifier “higher” before the word “education” in the block quote above. The NAACP strongly supports scholarships for poor kids to attend private schools, so long as the kids are over 18 or so.

A few years ago I debated this bizarre inconsistency with a very candid and pleasant NAACP representative, and his response boiled down to this: ”I lived through the Jim Crow South and I don’t trust a bunch of white Republicans to have our best interests in mind.” Fair enough. We shouldn’t trust politicians of any stripe to have the public’s interests in mind on any issue. We should instead look at what actually works best both here and around the world, and do that.

From the largest shanty town in Africa, to the slums of Hyderabad, India, to the remote rural villages of in-land China, the poor are already choosing private schools in vast numbers. And those schools are significantly outperforming their public sector counterparts at a fraction of the cost. Their stories are told in The Beautiful Tree, a compelling new narrative non-fiction book by scholar and world-traveler James Tooley. Cato is launching the book at noon on April 15th at our DC headquarters. I hope someone from the NAACP will attend.

Oh, and in case it matters to anyone, the lead advocate of SC’s tax credit school choice program is state senator Robert Ford, an African American Democrat. For some reason the NAACP still opposes it.

Af-Pak and the U.S.

The violence ripping across Afghanistan will not be stopped unless the problems in nuclear armed Pakistan are addressed, says Cato scholar Malou Innocent, who traveled to Pakistan late last year.

In a new Cato video, Innocent explains what the United States can do to protect its interests and return stability to the region.

Her forthcoming paper, “Pakistan and the Future of U.S. Policy” will be released next month.

Monday Podcast ‘The Politics of Medical Marijuana’

As of this writing, 13 states have passed legislation legalizing medical marijuana. President Obama’s pledge to stop raiding medical marijuana facilities was met with praise from opponents of the drug war, but what does it mean for the future of drug policy?

In Monday’s Cato Daily Podcast, Rob Kampia, executive director of the Marijuana Policy Project, explains his organization’s goals and strategies for ending marijuana prohibition in the United States.

Our society is not quite ready yet to completely end marijuana prohibition. So what we want to do is keep as many people from being arrested and put in jail as possible in the short run. One way of doing that is to legalize medical marijuana state by state.

Kampia spoke at a policy forum on medical marijuana at the Cato Institute in March.

Obama’s First Tax Hike Hits the Poor

It is curious that President Obama keeps claiming that he is not raising taxes on lower-income Americans, yet a tax hike that will impose a disproportionately large burden on the poor goes into effect Wednesday

In February, Obama signed into law a large tax hike on cigarette consumers. The federal tax on cigarette consumers is jumping from 39 cents per pack to $1.01 per pack – a huge 159 percent increase. If you smoke two packs per day, President Obama has raised your taxes by a $453 annually.

Next on the Obama low-income tax hike agenda: global warming taxes of about $80 billion per year, as revealed in the Obama budget, which equals an annual tax boost of $700 for every household in the United States.

Amusing, but Tragically Accurate, Video on Ag Subsidies from the U.K.’s Taxpayers Alliance

It is unclear whether European Union agriculture policy is more absurd or less absurd than American agriculture policy. Both systems reward special interests. Both systems distort markets. Both systems deprive people in the developing world. Both systems are bad news for taxpayers. The real issue is whether it is possible to reverse these terrible policies. Maybe a bit of satire will do the trick. Our friends at the Taxpayers Alliance in England have put together a video which uses humor to explain the absurdity of Europe’s so-called common agricultural policy.

After watching this video, I’m feeling a bit envious. My mini-documentaries on economic issues (see examples here, here, and here) have received some good feedback, but perhaps we could change more minds in America by using mockery instead of wonkery.

Events This Week

Tuesday, March 31, 2009

POLICY FORUM - Can the Market Provide Choice and Secure Health Coverage Even for High-Cost Illnesses?

12:00 PM (Luncheon to Follow)

In a study recently published by the Cato Institute, economist John Cochrane argues that the market can solve a huge piece of the health care puzzle: providing secure, life-long health insurance and a choice of health plans to even the sickest patients. The key, Cochrane explains, is to eliminate government policies that force the healthy to subsidize the sick, such as the tax preference for employer-sponsored coverage and other attempts to impose price controls on health insurance premiums.

Featuring John H. Cochrane, Myron S. Scholes Professor of Finance, University of Chicago Booth School of Business Research Associate, National Bureau of Economic Research; Bradley Herring, Assistant Professor, Johns Hopkins Bloomberg School of Public Health; moderated by Michael F. Cannon, Director of Health Policy Studies, Cato Institute.

Please register to attend this event, or watch free online.


Friday, April 3, 2009

PglennOLICY FORUM - Drug Decriminalization in Portugal

12:00 PM (Luncheon to Follow)

In 2001, Portugal began a remarkable policy experiment, decriminalizing all drugs, including cocaine and heroin.

In a new paper for the Cato Institute, attorney and author Glenn Greenwald closely examines the Portugal experiment and concludes that the doomsayers were wrong. There is now a widespread consensus in Portugal that decriminalization has been a success. The debate in Portugal has shifted rather dramatically to minor adjustments in the existing arrangement. There is no real debate about whether drugs should once again be criminalized. Join us for a discussion about Glenn Greenwald’s field research in Portugal and what lessons his findings may hold for drug policies in other countries.

Featuring Glenn Greenwald, Attorney and Best-selling Author; with comments by Peter Reuter, Department of Criminology, University of Maryland; moderated by Tim Lynch, Director, Project on Criminal Justice, Cato Institute.

Please register to attend this event, or watch free online.

Topics:

Tax Havens Have Stronger Governance Standards

Congratulations to The Economist for reporting on a new study showing that so-called tax havens actually have the strongest laws to weed out shady money. The article cites new research by an Australian political scientist, who conducted real-world tests to confirm that it is much easier to set up anonymous structures in nations such as the United States and United Kingdom than it is to set up similar structures in places such as Bermuda and Switzerland:

…with a budget of $10,000 and little more than Google (and the ads at the back of this paper), [Jason Sharman, a political scientist at Australia’s Griffith University] showed how easy it was to circumvent prohibitions on banking secrecy, forming anonymous shell companies and secret bank accounts across the world. In doing so he has uncovered an uncomfortable truth for many of the leaders of Group of 20 nations meeting on April 2nd to discuss, among other things, sanctions against offshore tax havens. The most egregious examples of banking secrecy, money laundering and tax fraud are found not in remote alpine valleys or on sunny tropical isles but in the backyards of the world’s biggest economies. …A money-laundering threat assessment in 2005 by the federal government found that corporate anonymity offered by Delaware, Nevada and Wyoming rivalled that of familiar offshore financial centres. For foreigners, America is a particularly attractive place to stash cash, because it does not tax the interest income they earn. Thus with both anonymity and no taxation, America offers them all the elements of a tax haven. …America is not the only rich nation Mr Sharman tested. He tried to open anonymous shell companies and bank accounts 45 times across the world. These were successful in 17 cases, of which 13 were in OECD countries. One example was Britain, where in 45 minutes on the internet he formed a company without providing identification, was issued with bearer shares (which have been almost universally outlawed because they confer completely anonymous ownership) as well as nominee directors and a secretary. …In contrast, when trying to open accounts in Bermuda and Switzerland, he was asked for documentation such as notarised copies of his birth certificate. “In practice OECD countries have much laxer regulation on shell corporations than classic tax havens,” Mr Sharman concludes.