From the category archives:

Politics

Signs of Occupy Portland

by Jacob Grier on November 20, 2011

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Last Saturday I went down to the Occupy Portland camps to have a look at what was going on there. This was the last day of occupation at the initial camp before the city ordered their eviction later that night. I’ve made my share of jokes about the Occupy movement, and I have a hard time taking any political movement too seriously, but I did want to give it a fair shot. As a friend of mine said in an “Appeal to Libertarians Concerning Occupy Wall Street,” we share significant common ground and shouldn’t dismiss the movement:

But, hold on a second. Last time I checked, aren’t we against bailouts and crony capitalism (a.k.a. capitalism), too? Remember how we have gay friends, and immigrant friends, and how we like freedom of expression, and we hate thug cops, and all that good stuff?

It was in that spirit that I walked through the camp. So first some good things, then some things I can’t get on board with.

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One encouraging observation from the camp was the almost complete absence of signs promoting politicians. This is probably due in part to the fact that Obama faces no serious challenge to the Democratic nomination, so there’s no one campaigning hard left for Occupiers to get behind. But still, a lot of the people protesting were probably pretty excited about Hope and Change a few years ago, and today they are disillusioned with government, or at least with the current crop of politicians. Who knows how long it will last, but it’s heartening to see.

I didn’t notice any signs for Lyndon LaRouche, so hey, progress! There were limited signs of support for Ron Paul, presumably for his strong anti-war and anti-bailout stances. Unsurprisingly, there was nothing for Gary Johnson. He’s a successful two-term governor of a Democratic state. He’s anti-war and wants to cut defense spending. He’s liberal on abortion, same-sex marriage, and drug legalization. He’s against crony capitalism. He’s Ron Paul with actual executive experience and none of the social conservative baggage. Unfortunately he’s running as a Republican and not receiving any media attention, so he’s not getting any traction here. Or anywhere else for that matter. So if any Occupiers feel like getting behind a quixotic presidential campaign and totally confusing the narrative, well, here’s your guy.

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Another interesting thing about the movement is its experiment in spontaneous order. A bunch of people setting up semi-permanent camp in a public park creates all kinds of logistical problems, like resolving conflicts, finding lost people, and taking care of basic sanitation. What it reminded me of is Hernando de Soto’s description of how extra-legal tent cities develop, which he analogizes in The Mystery of Capital to putting on your shoes before your socks:

Consider what it takes for a new migrant from a rural area to create a home for his family in a shantytown outside a large city. First, he not only has to find a spot for his house but also has to occupy the land personally, with his family. The next step is to set up a tent or shelter made from, depending on the country, straw matting, mud bricks, cardboard, plywood, corrugated iron, or tin cans — and thus stake out a physical claim (because a legal one is unavailable). The migrant and his family will then gradually bring in furniture and other household items. Obviously, they need a more livable and durable edifice. But how to build it without access to credit? They do what everyone else does — stock solid building materials and begin to build a better house, stage by stage, according to what kinds of materials they can accumulate.

Once the inhabitants of these new buildings have organized enough to protect their holdings or the local authorities take pity on their deprivation, they can bring in pavement, water, waste disposal, and electricity — typically at the cost of having to destroy parts of their houses in order to hook up the utilities. Only after years of building and rebuilding, and saving construction materials, are these owners finally in a position to live comfortably.

The Occupiers were living out the first parts of this process. I was impressed by the ingenuity required to set up a semi-functional community in the middle of a downtown park. Yet the protesters also demonstrated how the basic rudiments of capitalism — secure property rights and an accessible legal system — make it so much easier to get things done and can make the poor immensely better off. To be fair, this isn’t the sort of capitalism that most of them are protesting, but from a global perspective the Occupiers have to acknowledge that they have it pretty good. I’m not asking for three cheers for capitalism, but how about just one?

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It’s signs like the above, and the “Capitalism is Destroying Our World” sign at the top of the page, that ensure I’ll stay politically homeless. The anti-intellectualism and social conservatism of the Tea Party prevent me from getting on board with that group. Similarly, no matter how much I agree with Occupiers about some of the flaws in our current system, I can’t ever march under banners like these. Capitalism and the pursuit of profit remain the most reliable methods we have of improving people’s lives. The trick is to differentiate between profits earned by creating value and profits taken via subsidies, tax breaks, and regulations that cripple one’s competitors. I realize it’s trite to point out the irony of people damning capitalism while tweeting from their iPhones, but what else can you do?

“People Not Profits” is not the answer. “People And Profits, Not Subsidies” is a mantra I could get behind. Alas, not catchy.

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“Corporate personhood is not the issue here, Dude!” — What I feel like yelling at a lot of people lately. If you follow the Occupy hashtags on Twitter or walk through the protests you hear a lot of anger directed at corporate personhood, and it’s as facepalm-inducing as the “People Not Profits” signs.

As Pascal-Emmanuel Gobry helpfully explains, corporations are persons, not people. This means that “they’re recognized by the law as entities that can have a name, sue in court, be a party to contracts and have property.” And that is incredibly important. This doesn’t mean that corporations must be given all the rights enjoyed by flesh and blood people. The law is perfectly capable of recognizing different rights for different types of persons. See for example the different treatment of natural born citizens, naturalized citizens, non-citizens with visas, and undocumented workers. They’re all legal persons; they don’t all have the same rights. If the government has a compelling interest in restricting rights of corporations, it can do so.

Since corporations are persons, not people, why give them rights at all? Another way to ask the question is, why should people forfeit their rights just because they organize in the corporate form? Corporations would be useless if they did. It’s emphatically a good thing that the government cannot seize corporate assets without due process. It’s emphatically a good thing that it can’t take corporate-owned land for public use without paying just compensation. And yes, it’s emphatically a good thing that corporations have at least some speech rights to express the interests of their shareholders.

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Which brings us to the real issue here, Citizens United. Reasonable people can disagree about where to set the limits on corporate speech rights, but this case was a fairly perfect example of the sort of speech the First Amendment was designed to protect. Citizens United is a non-profit advocacy group funded mostly by individuals that sought to air a movie criticizing a presidential candidate. If that’s not protected speech, what is?

The Court arguably ruled more broadly than it needed to in Citizens United, but it’s worth pointing out how much didn’t change as a result of the ruling. Corporations are still forbidden from contributing to political campaigns. Citizens United addressed the relatively narrow question of whether corporations could pay for broadcast ads mentioning a candidate by name 60 days prior to a general election or 30 days prior to a primary. That’s it. Before and after Citizens United, corporations had and still have many other ways to speak politically. They can form PACs. They can broadcast issue ads. Wealthy individuals who work for or own corporations can spend as much of their own money as they please. Corporations can promote their messages in other media. Hell, they can become media by purchasing a newspaper or a TV station. And that’s just speech; this list doesn’t even get into the numerous other ways corporations can gain influence. About half of the states were already operating without laws similar to those overturned by Citizens United.

I happen to think that Citizens United was decided essentially correctly, but I also don’t think it’s quite the disaster for progressives that some of them think it is. It’s worth noting too that the decision also extends rights to unions and non-profits whose speech rights had also been restricted.

Fundamentally, beyond limits on direct campaign contributions and requirements of disclosure, it’s just not easy to limit expenditures on speech without violating First Amendment rights of deserving speakers. Even Lawrence Lessig now says:

Of course money equals free speech. And we should ask the people who are railing against the idea of money being free speech: “What if congress passed a law, and the Supreme Court allowed it, that said ‘Nobody can spend more than a thousand dollars challenging an incumbent.’”? You’d say, wait a minute, that’s a pretty effective way to guarantee an incumbent will always win, and I want to use my money as a way to speak freely about my desire to challenge the incumbent.

There’s no simple solution for reducing the influence of money on politics. Lessig proposes a sort of voucher system of public financing. Libertarians say we need to reduce the scope of government so that its favors are less important. Regardless, while Citizens United may work as a symbol for too much money in politics, I take Lessig to be right about this much: We’re better off finding new ways to enable speech than seeking new ways to restrict it. It’s disappointing that one of the more popular ideas among the Occupiers is a desire to reduce the scope of the First Amendment.

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One of the most frequently noted difficulties with the Occupy movement is figuring out exactly what it’s fighting for. The spontaneous order that it has successfully used to organize tactics has been less useful for building consensus about political ends. The camp in Portland became a place to air a mish-mash of complaints. There’s nothing wrong with that per se, but it makes it hard to hold together a coherent protest. Protests work best when there are specific wrongs to be righted. Stop denying people’s right to vote. Stop denying people’s right to marry. Stop executing people when there is untested DNA evidence that could exonerate them. Or in this example of a sit-in that worked, stop your university from investing in companies that do business in Apartheid era South Africa. These are demands that can be acted on and goals that can be met.

It’s not clear that the same is true for Occupy, whose goals seem to be much more nebulously grouped around a loose concept of economic justice. At what point does the economic system become sufficiently just for protesters to stop occupying? Without articulated aims the movement never gets to declare victory and go home. Already, in reaction to evictions, it’s hard to tell if occupation is a means to an end or if it’s becoming an end in itself. What are the occupations accomplishing now that couldn’t be accomplished through regular meetings, smart online advocacy, and well-planned protests?

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Post-eviction, the best thing going for Occupy Portland is that they provoked a response from the police. They got a chilling photo of cops in riot gear shooting pepper spray into the face of an unarmed woman. Things are even uglier in other cities. You look at those photos and videos and whose side are you going to be on? I have my share of disagreements with the Occupiers, but I’m absolutely disgusted by cops using excessive force against non-violent protesters.

But longer term, the movement needs to figure out what it’s doing. Prior to the evictions last weekend it was a point of pride for Occupy Portland that it was only protesting on public space. And while it’s a dubious proposition that the right of peaceable assembly includes setting up indefinite camp on public land, I’m all for people getting out there and protesting crony capitalism. Protest away! I was glad to see the Tea Party emerge and I’m glad to see the Occupy movement echoing some of the same themes.

But please, keep it to peaceful protests in public venues. I can’t tell you how much sympathy I lost for Occupy Portland when I saw the mob shutting down private bank branches, and from scanning local tweets I wasn’t the only one. Interfering in the private commerce of ordinary individuals is no way to advance a cause. An appeal to the Occupiers: By all means, persuade the customers of big banks to switch to local credit unions, but don’t become so certain of your views that you feel you have the right to force them on your fellow citizens.

Ultimately, the Occupy movement is going to have to accept that it doesn’t speak for the 99%. The 99% is divided. Support for Occupy is only around 33%. The consensus that groups can arrive at in a General Assembly is much greater than what they can pull off among the general population. Achieving anything in practice is going to require the much more prosaic business of working changes through the democratic process. Julian Sanchez says this more eloquently than I could:

[...] if disagreement is real—if large numbers of my fellow citizens sincerely hold very different views about what policy is best—then protest, however vital as a consciousness raising tool, can only be a preparation for the more humdrum enterprise of convincing your neighbors with sustained arguments (or being convinced yourself), electing candidates, and all the rest. To imagine protest not as prologue to politics, but as a substitute for it, suggests a denial of the reality of pluralism, and an unwillingness to find out what democracy actually looks like.

I’m afraid the alternative is going to be a self-defeating conflict between Occupiers and anyone who disagrees with them or is unwilling to sacrifice for the movement. There is some sign of this in the indifference shown to the many Portlanders, almost surely in the 99%, who couldn’t get to public transportation or their bank branch. Or in the decision of Occupy DC protesters to forcibly prevent people from leaving an Americans for Prosperity dinner where they listened to contrary views. Or in this reaction to Oakland workers who just wanted to get past the protest and to their jobs:

“These people tried to kill us. I can’t believe they are being that aggressive over a paycheck, over your own people fighting for you.”

If I counted myself among the Occupiers, I’d be looking very closely at the Tea Party right now. Despite all the jokes directed at the Tea Party it has endured as a political force. What it hasn’t done is produce a credible candidate for the presidency. Here’s Conor Friedersdorf explaining this failure:

[...] the actual tea party isn’t savvy. It overestimates its clout within the GOP, fails to appreciate the many obstacles to winning a general election, let alone implementing its agenda, and is therefore careless and immature in choosing its champions. It elevates polarizing figures of questionable competence like Sarah Palin because doing so is cathartic. [...]

Why couldn’t the tea party produce a viable candidate? Its partisans put fiery rhetoric ahead of substance, judged GOP politicians based on the extravagance of their promises more than what they’d actually accomplished, failed to demand of its champions some baseline level of competence, and insisted on pols who deliberately piss off outsiders rather than Reaganesque communicators intent on converting them. Tea partiers got drunk off the pleasure of hearing their prejudices echoed. They’re now waking up to face their hangover. And his name is Mitt Romney.

Is Occupy up for the challenge of doing better?

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Cocktail Camp PDXCocktail Camp PDX returns next Sunday after a successful debut last year. This time it’s going to be bigger (at the Armory!) and better (we can serve full drinks!). Ezra Johnson-Greenough and I will be there giving a session on beer cocktails. Tickets are $40 if you buy them now; they go up to $50 starting tomorrow. I’ve copied the full schedule below; it’s a great line-up, so if you’ll be around Portland be sure to check it out.

10:30 — Lillet Meet & Greet and social hour
Morning social hour with complimentary low-alcohol cocktails served by Lillet. Come have a morning refresher and meet some of your fellow cocktail enthusiasts before the day gets started.

11:00 — The Art of Tasting Beer and Spirits
Set the stage and your palate for the day by learning how to really taste your spirits and beer. Learn what makes spirits different and how to pick out their defining characteristics. Lee Medoff (Bull Run Distillery), Nathan Gerdes (h50), and Alex Ganum (Upright Brewing) will lead the discussion.

12:15 — Beer cocktails: Why Have One When You Can Have Both?
Jacob Grier (Metrovino) and Ezra Johnson-Greenough (Upright Brewing) will teach you how to craft fantastic cocktails using the unlikeliest of ingredients.

1:00 — Northwest Distillery Social hour
Complimentary cocktail and punch bar hosted by Northwest Distillery and served by Nathan Gerdes.

2:00 — The New American Whiskey
The other whiskeys that have been taking bars by storm and redefining what “American whiskey” means. Learn more from Lance Winters (St. George Spirits), Lee Medoff (Bull Run Distillery), and Sebastian Degans (Stone Barn Brandy Works) about this growing movement.

3:00 — House Spirits social hour
Complimentary cocktail and punch bar hosted by House Spirits Distillery and served by Kyle Webster (St. Jack).

3:00 — Yes, You Can Entertain!
Learn how to plan your own amazing cocktail parties with the help of David Shenaut (Beaker and Flask, Irving Street Kitchen) and Jacqueline Patterson (Lillet).

4:15 — DIY Sodas, Syrups, and Bitters
Expert instruction on doing it yourself from San Francisco’s Jennifer Colliau (Small Hand Foods, Slanted Door) and Columbine Quillen (10 Below).

Times are approximate and subject to change as the event approaches.

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Defending Dudley

by Jacob Grier on September 27, 2010

Republican candidate for Oregon governor Chris Dudley is taking some heat for comments he made suggesting that Oregon should add a tip credit to its minimum wage laws. (Tip credits allow businesses to pay less than the standard minimum to tipped employees on the assumption that the difference will be made up in gratuities; all but seven states make some sort of allowance for this.) The proposal is being used to drum up opposition to him from people in the service industry, as in this video:

If you’re a tipped employee already making minimum wage, then of course you’re not going to like this idea. But there are other considerations:

1) At $8.50 per hour, Oregon has one of the highest minimum wages in the country. We also have one of the highest unemployment rates. If you work or are seeking work in the hospitality industry here you’ve probably seen the crowds of people who show up in response to job ads; 700 lining up and even camping overnight at a new Olive Garden in Bend is an extreme example. Lines like that are an indication that the combination of a high minimum wage and no tip allowance is raising the demand for hospitality jobs while reducing their supply.

Many of these people lining up would likely be willing to work for less than the minimum wage rather than be unemployed. As a personal example, when I moved to Portland it took six months for me to find full-time employment behind a bar. I’d have gladly accepted a barback job for less than minimum wage in order to get my foot in the door somewhere, but it would have been illegal to negotiate such a deal.

2) The higher the minimum wage, the harder it is for employers to offer non-wage compensation. One of the biggest complaints from people in the hospitality industry is the difficulty of getting health insurance. Many of them might gladly trade a lower hourly wage for an equivalent contribution toward health insurance. (Actually more than equivalent, since health benefits wouldn’t be taxed. I’d be curious to see numbers relating minimum wage to provision of non-wage benefits, adjusted for other factors.)

As another personal example, the restaurant where I worked in DC paid less than the minimum wage, but employees who worked enough hours were eligible for insurance. That’s not a bargain we could make here.

To be clear, I’m not writing to advocate one way or the other on this issue. I’d just like to see better economic thinking in the discussions about it. Tip credits are portrayed as being bad for workers, but the trade-offs are more complex than that. Oregon’s current law favors employed hospitality workers over those seeking jobs in the industry and wages over non-wage compensation. These might be worthwhile trade-offs, but they are trade-offs, and so far I haven’t seen any acknowledgment of them in the critical responses to Dudley’s comments.

For more background on Oregon’s minimum wage and service industry employment see Patrick Emerson.

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Portland’s favorite book store has a sense of humor:

rangel

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Ross Douthat’s column against gay marriage is more honest than most in acknowledging that many of the usual arguments are factually wrong, but that leaves the remaining argument pretty weak:

So what are gay marriage’s opponents really defending, if not some universal, biologically inevitable institution? It’s a particular vision of marriage, rooted in a particular tradition, that establishes a particular sexual ideal.

This ideal holds up the commitment to lifelong fidelity and support by two sexually different human beings — a commitment that involves the mutual surrender, arguably, of their reproductive self-interest — as a uniquely admirable kind of relationship. It holds up the domestic life that can be created only by such unions, in which children grow up in intimate contact with both of their biological parents, as a uniquely admirable approach to child-rearing. And recognizing the difficulty of achieving these goals, it surrounds wedlock with a distinctive set of rituals, sanctions and taboos.

The flaw in this argument is supposing that the definition of marriage cannot adapt and must include both monogamy and heterosexuality. I think it’s more realistic at this point to say that conservatives need to choose between the two. They can protect the special place of lifelong (or at least post-marriage) monogamy or they can protect the special place of heterosexuality. Jonathan Rauch put it well in Gay Marriage: Why It Is Good for Gays, Good Straights, and Good for America:

“… the river of history has rounded a bend. We have a choice to make. Marriage can be universal and thus the norm for serious couples, or it can be exclusive and thus only one of several norms for serious couples. But it cannot be both, and there are risks on both sides. We need to stop hyperventilating, sit down, think hard, and get this right.

[...]

Thinking people, though, have a duty to remember that a future without marriage for gay couples is also a leap into the unknown. It leaps into the future in which a new legal and social infrastructure grows up outside marriage; in which various forms of socially and legally sanctioned nonmarriage become, for all homosexual couples and many heterosexual couples, substitutes for marriage; in which a wedding band might mean married or civilly united or domestically partnered or just “committed”; in which “traditional marriage” becomes only one color on the lifestyle palette; in which polite people no longer ask each other whether they are married but, more discreetly, whether they are “partnered” or “coupled” or “with someone.” Imagine that.

Regardless of whether social conservatives find the idea of legally sanctioned same-sex marriage appealing, their opposition to it strikes me as a tactical mistake given their other concerns, in addition to being wrong for many other reasons.

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Indiana governor Mitch Daniels is getting some favorable attention from libertarians, perhaps with some justification given his reading habits. However he has nothing kind to say about the atheists among us:

People who reject the idea of a God -who think that we’re just accidental protoplasm- have always been with us. What bothers me is the implications -which not all such folks have thought through- because really, if we are just accidental, if this life is all there is, if there is no eternal standard of right and wrong, then all that matters is power.

And atheism leads to brutality. All the horrific crimes of the last century were committed by atheists -Stalin and Hitler and Mao and so forth- because it flows very naturally from an idea that there is no judgment and there is nothing other than the brief time we spend on this Earth.

Everyone’s certainly entitled in our country to equal treatment regardless of their opinion. But yes, I think that folks who believe they’ve come to that opinion ought to think very carefully, first of all, about how different it is from the American tradition; how it leads to a very different set of outcomes in the real world.

I was going to write a longer post about this until I realized the quote is from a December interview. That’s remarkable in itself, given that I just recently came across it. An American governor saying that any religion “leads to brutality” would surely have made bigger headlines, but disparage atheists and hardly anyone takes notice until months later.

Atheists have polled as the least trusted group in the US and a majority of respondents say they would not vote for an atheist candidate. Statements from politicians like Daniels are part of the reason. Since atheists are an invisible minority we have the option of letting such comments slide. As I’ve written before, I think this is a mistake:

Respondents to the survey call atheists elitist and in one sense they are right. Academia and the sciences are wide open to us. Educated Americans on the coasts are more tolerant of atheism. Unless we’re running for public office, no ceiling blocks our ambitions. Unlike other minorities, we have the luxury of not caring what other people think. And so we don’t.

So maybe we ought to be speaking up more. I don’t mean by forming advocacy groups or adopting pretentious new words like “brights,” but by being forthright when people inquire about our religious beliefs. I’m as guilty as anyone of equivocating by saying I’m “not religious” when asked rather than matter of factly admitting to atheism. This polite ambiguity prevents some awkwardness, but keeps atheism outside the boundaries of what is publicly acceptable and, ultimately, shows a lack of respect for ourselves and the people we interact with. Enough of that. We’ve got catching up to do.

To their credit, the Center for Inquiry Indiana has taken Daniels to task for his comments, and Jonathan Turley was on it immediately.

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We boozehounds on Twitter were abuzz today about a proposed California ballot initiative that would drastically increase taxes on all forms of potable alcohol:

A new initiative that would increase the tax on alcohol was cleared for signature gathering today by the Secretary of State’s Office. And it’s not a modest tax increase, it’s huge. Tax on a six-pack of beer would increase from 6-cents to $6.08. And say goodbye to two-buck chuck–a tax on a 750 ml bottle of wine would go from 4-cents to $5.11. And the tax on a 750 ml bottle of distilled spirits would increase from from 65-cents to $17.57.

I find it hard to believe that this would pass in a state that has so much riding on its alcohol industry and I think that’s sort of the point. Consider the idea of the Overton window:

The Overton Window is a concept in political theory, named after its originator—Joe Overton—former vice president of the Mackinac Center for Public Policy. It describes a “window” in the range of public reactions to ideas in public discourse, in a spectrum of all possible options on an issue. [...]

Overton described a method for moving that window, thereby including previously excluded ideas, while excluding previously acceptable ideas. The technique relies on people promoting ideas even less acceptable than the previous “outer fringe” ideas. That makes those old fringe ideas look less extreme, and thereby acceptable. The idea is that priming the public with fringe ideas intended to be and remain unacceptable, will make the real target ideas seem more acceptable by comparison.

Now it’s possible that the sponsors of this initiative, Josephine and Kent Whitney, truly believe this is a reasonable tax increase. But I doubt that winning the vote is the only goal of this initiative. The aim is to get lots of news coverage for their far-out idea and thereby make smaller tax increases seem reasonable by comparison. So if you don’t want them to succeed, don’t take them too seriously.

Additional note: The Overton window is often described in a very cynical, manipulative context. In contrast, the late Joe Overton’s peers at the libertarian Mackinac Center use it to explain how think tanks can change public policy for the better. They see shifting the window as the noble aim of libertarians working in a world often hostile to free markets and individual liberty. As Nathan Russel wrote for the Center:

A long-term focus on shifting the Overton window allows a think tank to follow its ideals and perform a genuinely positive public service, instead of being constrained to merely advocating those policies that are currently possible. When the window of political possibilities is moved along the political spectrum, the impossible becomes desirable and the simply desirable becomes imperative. This is the true influence of a think tank — shaping the political climate of future legislative and legal debates by researching, educating, involving and inspiring.

[Hat tip to Rumdood, who tweets, "Look, I'm OK with a modest increase in taxes on booze, but from $.65 to $17.57 for a 750mL bottle of rum is insane." Manipulation of the Overton window in action? See also Jeff Woodhead and Chad Wilcox on the Overton window and health care reform.]

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To minimize the penalties you may suffer under health care reform, withdraw from your HSA now and spend the money on some indoor tanning. From this helpful timeline [.pdf] detailing what’s in the reform bill:

Indoor Tanning Services Tax. Imposes a ten percent tax on amounts paid for indoor tanning services in lieu of the tax on cosmetic surgery. Indoor tanning services are services that use an electronic product with one or more ultraviolet lamps to induce skin tanning. The tax would be effective for services on or after July 1 , 2010.

I dislike indoor tanning as much as anyone who’s had “Jersey Shore” intrude into their cultural lexicon but I don’t know why taxing it should be part of health care reform, why this is a logical substitute for taxing cosmetic surgery, or why we were thinking about taxing cosmetic surgery in the first place. Thankfully I tan the natural way, from the glow of my computer monitor.

[Link via Arnold Kling.]

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Public choice and BPA

by Jacob Grier on February 16, 2010

This week the Oregon Senate is considering a bill to ban Bisphenol-A, or BPA, from use in products intended for children under the age of four. BPA is a common chemical in plastic containers. There is some fear that it causes harm by leaking into food and drink products. I am skeptical, as I am of most such scares, but I haven’t done enough research on the topic to have a firm opinion either way.

Writing at Blue Oregon, Kari Chisholm is sure that we should pass the ban. In fact he’d like to ban it in all food containers, not just the ones intended for children. Some of his reasoning is based on scientific research but the rest is biased towards what’s good for legislators. Here’s one of his arguments:

Smart legislators will vote for SB 1032. It’s the right thing to do, but it’s entirely possible that it could become a political issue in upcoming campaigns. When our son was born, I had never heard of BPA. But hanging around with a bunch of new parents, I quickly learned about it - and this is a major worry with young families. (Legislators who don’t have young children of their own would be smart to check in with some new parents — they may be surprised how deep the concern runs about BPA. Entire businesses have been built to help parents avoid this chemical.)

Given a choice between protecting the health and well-being of Oregon children - and protecting a bunch of out-of-state (and overseas) chemical and plastics manufacturers - I think the choice is clear. You can imagine what the attack ads will look like for those who vote against the bill.

This also isn’t about jobs. No one in Oregon produces BPA or the products affected by SB 1032.

This might all be true, but there’s nothing praiseworthy in the provincial idea that we should go ahead with the ban because the only people who would be hurt by it are non-Oregonian Americans or foreigners who are likely economically worse off than we are. It’s expedient for legislators to think that way but it’s not a principle we should encourage. (If Oregon was home to a BPA plant, would Chisholm want legislators to ignore science to protect their political prospects?)

Then he updates with this:

Over at the OLCV blog, Jon Isaacs notes that the Bisphenol-A baby-bottle ban is an opportunity for a big bipartisan accomplishment, at a time when there’s been a lot of partisan bickering and stonewalling.

I don’t even know what the point of this is supposed to be. Bipartisanship is only good if the laws that are being passed are good. It’s not good for it’s own sake. If all it does is give politicians something to point to when they’re running for re-election and cover from lobbying groups then I don’t see the value. The same blog post he links to notes that 90% of the bottles for sale in Oregon are already BPA-free anyway, suggesting that concerned parents and retailers are handling the alleged problem reasonably well on their own.

There might be good reasons to ban BPA in bottles, but after reading this Blue Oregon post I’m less convinced than ever that the decision will be based on sound science rather than on the self-interest of legislators.

Update 2/16/10: The bill failed.

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Thanks for the ride

by Jacob Grier on October 23, 2009

I’d like to thank all my readers living outside of Portland for buying me a streetcar:

Peter Rogoff, administrator of the Federal Transit Administration, today signed a contract dedicating $75 million in federal money for the Portland Streetcar eastside loop extension and promised similar federal efforts across the nation.

The contract guarantees the money Portland-area agencies have been anticipating for the project, which started construction during the summer. As The Oregonian has reported, the money was delayed for years by the Bush administration, which funded bus rapid transit projects but blocked streetcars. [...]

[U.S. Rep. Earl] Blumenauer praised the eastside loop project, which will extend from the Pearl District, across the Broadway Bridge to the Lloyd Center Mall, and south along Grand Avenue and Martin Luther King Boulevard to the Oregon Museum of Science and Industry.

They’re not paying for it but local politicians are quick to claim credit:

“It’s an important down payment on our future in Portland, creating over 1,300 high wage jobs, spurring development and helping jump start the economy for the entire state,” Blumenauer said.

And to hand out contracts to favored constituents:

United Streetcar, a unit of Clackamas-based Oregon Iron Works, Inc., has a contract to build the streetcars needed for the new line.

U.S. Rep. Peter DeFazio, a Springfield Democrat, wrote legislation that made it nearly impossible for anyone but United Streetcar to bid on the work.

DeFazio and the Obama administration see domestic production of streetcars as a way to shore up the nation’s heavy manufacturing employment while creating more walkable, mixed use neighborhoods.

This street car line would run right by my current apartment, though by the time it’s built I hope to live somewhere else. Will it be an efficient use of resources? Possibly, but given the political incentives at work it would be a huge leap for me to believe so. Streetcars are grand, sexy projects. They give politicians a great deal to take credit for. Buses aren’t sexy. However they are cheap and adaptable to changing traffic patterns. If Oregonians paid for their own transit we might be funding those. But since the rest of you are paying, sure, let’s build a streetcar!

Transit contrarian Randal O’Toole takes on this sort of thing in his Cato paper “A Desire Named Streetcar.” His analysis seems apt for the current situation.

I’ve had only two experiences with the Portland streetcar. When I first moved here I enjoyed a gin-company sponsored ride around town with Pegus in hand. Last week I almost wrecked my bike slipping a wheel into its rails. Aesthetics aside, I don’t know what purpose the streetcar fulfills that couldn’t be served equally well by buses driving the same route.

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Shunning Mackey

by Jacob Grier on August 18, 2009

I hadn’t planned on writing anything about John Mackey’s health care op/ed in the Wall Street Journal, but Radley’s response to the resulting boycott of Whole Foods is worth quoting:

[...] I also think the general premise is ridiculous. I shop at Costco. A lot. If the CEO of Costco wrote an op-ed calling for a single payer health care system, I’d shrug, maybe write a blog post about why I think he’s wrong, and then I’d probably go to Costco this weekend to buy some dog food, some meat, and to try to eat my membership dues in free samples. Now, if the CEO of Costco wrote an op-ed calling for genocide against redheads, then yeah, I’d stop shopping there. But calling for a boycott of a conscientious company over its CEO endorsing proven ideas like HSAs and mainstream policies like tort reform is an attempt to push good ideas you disagree with to the fringe. It’s a way of zoning your opponents best arguments out of the realm of civilized debate. In other words, it’s a way to marginalize your opponents without actually having to debate them.

This is exactly right. Many of my friends on the left have lamented the state of debate on health care reform. We’d all like to see it move beyond death panels and keeping government’s hands off our Medicare. So it’s disappointing that when a CEO expresses cogent opinions about the matter and presents serious alternative policy proposals he is treated to such a harsh backlash. The response I’ve seen from many on the left is to dismiss him as a corporate shill or refuse to patronize his stores without giving serious consideration to his arguments.

The first response is irrelevant to the correctness of his ideas, even if the accusation is true (though I don’t doubt that Mackey truly believes what he writes). The second is counterproductive to the goal of achieving a better discourse. Is opposition to the public option really so evil as to deserve a boycott?

Reasonable people can disagree about the wisdom of the public option. Even if you support it, the only way to be sure of one’s position is to test it against the best challengers. The response to Mackey’s op/ed has demonstrated an unwillingness to do this and with it a tendency for the left to become as closed-minded on this issue as the right is currently perceived on others.

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Rich Rodgers had a post at Blue Oregon this weekend lamenting the fact that some people stubbornly refuse to get on board with the public option for health insurance. He suggests that in the face of such irrationality there’s nothing to do now but agree to disagree. Maybe he’d have more luck convincing his opponents if he treated them with a little more respect. Here’s his opening:

Free market economists use models that assume that people are given complete information and make rational decisions. How absurd. No one has complete information, most people have terribly unreliable information, and people make stupid decisions all the time. Witness the election of George W. Bush in 2004.

There are many intelligent people who describe themselves as free market economists. One or two of them have probably noticed that in the real world people don’t have perfect information. Yet those silly economists persist in their crazy beliefs! Perhaps that’s because they realize that simplified models are often useful starting points for understanding the world. The arguments of free market economists don’t depend on perfectly informed buyers and sellers any more than the designs of engineers depend on perfectly frictionless surfaces.

If Rodgers bothered to look into what libertarian economists actually think he’d see that it’s often the absence of perfect information that drives them to support markets. If knowledge was easily obtainable there’d be little reason not to hand over power to enlightened planners; we’d just figure out what’s efficient and do it. Unfortunately no one person or agency has that much information, so we use markets and price signals to coordinate the dispersed and incomplete knowledge of market actors.

At the risk of being overly generous, I’m assuming that Rodgers doesn’t think we should set up public options to pay for our groceries, our oil changes, our TV sets, or any of countless other goods we consume on a daily basis. We manage to handle these transactions fairly well on our own despite our lack of omniscience. In some arenas, at least, the free market model works pretty well. It’s possible that health care isn’t one of them, but Rodger’s opening canard doesn’t provide any reason for thinking so.

Ironically, one of the leading arguments against free market health care is that consumers have too much information, causing adverse selection and the unraveling of insurance markets. That’s a challenging point! Alas, it’s not the sort you bother making when you start from the assumption that your opponents are stupid.

(It’s also telling that Rodgers’ example of uninformed, stupid decision-making was the election of George W. Bush, a decision that was political, not economic. In the political sphere people are free to make stupid choices because the personal cost of being wrong is virtually nil. This is a reason to be skeptical of further politicizing health care.)

But that’s just the first paragraph. After Rodgers unfairly dismisses free market arguments he goes on to say that people who oppose the public option are dupes of the insurance companies:

The insurance industry is massively funding the campaign against health care reform, especially reform that includes an option for publicly administered insurance. They want to keep making a lot of money, so they prefer to keep things the way they are. The industry is abetted by its mouthpieces on Fox News, talk radio, and in the op-ed pages of the Wall Street Journal. Their teams of strategists are rolling out some rabid crusaders to try to stop the conversation, apparently encouraging them to use tactics as close to brute force as the law will allow (and then some).

This illogical outrage and outrageous behavior obviously didn’t spring up overnight, it’s been cultivated for years by political strategists and interest groups on the right. The rabid dogs know what they’re doing–they know their role, even if they can’t control themselves. If you sat these birthers and screamers and Glenn Beck fans down and asked them to explain how the universe is put together, the story you heard would be scary and wrong, but they would believe every word of it.

While it rests uneasily on an old foundation of philosophical principles, the right’s current ‘platform’ on health care is a twisted-up mess of distortions and opportunity-driven sound bites. It makes very little sense for an ordinary working person to adopt a stance against public health insurance–what exactly is so great about private health insurance?–but rational decision-making has nothing to do with this. People are committed to being on a team, and they will fight for the team.

It’s great sport to mock the fringe elements of one’s ideological opponents — and the conservative movement certainly deserves some mocking right now — but picking on the nutjobs is no substitute for engaging with actual arguments. And if Rodgers looked beyond FOX News he’d find that arguments do exist. Free market economists have a coherent perspective on health care that’s in fact deeply critical of the current system. And the reforms they suggest, such as expanding HSAs, shifting the tax exemption for health insurance from employers to consumers, and eliminating barriers to competition among states, are logical extensions of that perspective, not cover for the interests of insurance companies.

Does Rodgers consider those arguments? Or does he instead suggest that his opponents are a bunch of country rubes? If you guessed the latter, you’re correct!

The current debate in DC has focused on 1) a national public option for everyone or 2) state-by-state decisions on whether a public option is available. Neither of these approaches successfully take into account the reality that people are bitterly divided on the issue, and will stay that way. One answer to the dilemma might be to create a national public health insurance option, but give local communities the choice to opt in or out. Union County can vote in or out. Multnomah County, same choice. Equity can be ensured via the tax code.

It’s a foregone conclusion that the major urban areas will all opt in. Both coasts will be in. In parts of the country where the political divide is intense, communities will have their say; e.g. rural Georgia will probably be out, and Atlanta will opt in. With most cities in, the population base will be plenty large enough to ensure maximum bargaining power. And the conservative communities that are whipped into a frenzy can sit this one out.

I’m picking on Rodgers here, but only because his post exemplifies the tendency I’ve seen in many progressives to ignore the best arguments of their opponents, focus on the extremes, and assume that ordinary people who disagree with them are victims of their own ignorance. This is its own kind of tribalism and with that attitude it’s no wonder disagreement seems so intractable.

I’m not writing this post to defend any particular perspective on health care. I obviously lean to the libertarian side, but this isn’t an area in which I claim any expertise. All I’m suggesting to progressives is that if they want to win over skeptics like me, demonstrating that they’ve engaged with free market arguments would be a better place to start than insulting our intelligence.

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Chavez is no Lovejoy

by Jacob Grier on July 9, 2009

The Portland City Council has voted unanimously to rename 39th Avenue NE in honor of Cesar Chavez, resolving a two-year debate in the city. I, for one, am deeply offended. Not because I have anything against Chavez, about whom I know very little and assume was a swell chap. I’m offended that we pay the members of our city council salaries of more than $90,000 a year to pat themselves on the back for doing things like renaming 39th Avenue.

Prediction: Decades from now, Portlanders will take more pride in having “Simpsons” characters named after their streets than in having streets named after historical figures. And I’ll drink a Duff to that!

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Denied again

by Jacob Grier on April 10, 2009

It took them two months to get back to me, but I finally got a response to my letter asking for stimulus money to open a crappy vodka bar from Senator Ron Wyden’s office. Just like Earl Blumenauer, Wyden completely ignores the substance of my arguments to launch into some standard chatter about the economy. He stresses that he does not “take spending $787 billion of taxpayer dollars lightly.” Whew, that’s a relief! I’m glad to know the burden of spending other people’s money weighs so heavily on his shoulders.

I’m still waiting to hear from Jeff Merkley. Don’t let me down, Jeff! You’re my last hope for making Crazy Jake’s Discount Cocktail Barn a reality.

Full text of the boring letter below the break.
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Who is John Galt?

by Jacob Grier on March 10, 2009

There’s been a lot of talk lately about free market types “going Galt” to protest current economic policies. This provokes my friend Jeff, and many others, to say “Go ahead, be my guest.” They’re right that few productive people are really going to venture off into the wilderness and watch the rest of the world descend into chaos, and that adolescent power fantasy is undeniably part of Atlas Shrugged’s appeal. But there’s a more sophisticated reading than that, one that’s relevant to current debates. Jason Kuznicki puts it very well in the third item of this post:

Ayn Rand hated F. A. Hayek, but in a weird way, the Hayekian idea of the entrepreneur — a little guy who happens to stumble onto a tiny, useful bit of knowledge, and who finds himself free to employ it — is a better fit to the relatively more sophisticated view of Rand’s work, which holds that Atlas is just a metaphor, not a blueprint for world takeover. Schumpeter’s heroic entrepreneur is, I think, empirically wrong, but better suited to a literal reading of Atlas.

Who is John Galt? An ephemeral process. And if you could follow that, well, you get the libertarian gold star for today.

I won’t pretend to have any great insight into how current policies will affect that process; Jim Manzi takes a stab at it here, arguing that they could be very detrimental to entrepreneurship. Even if, like Jeff, you’re not concerned about losing talent, losing investment capital and reducing the rewards to innovation should be a significant concern.

A fascinating paper from Tyler Cowen is worth contemplating here (”Caring About the Distant Future: Why It Matters and What It Means,” [pdf]). He makes the underappreciated point that economic growth isn’t simply cumulative; growth provides the fuel for further growth in an exponential process. To oversimplify, a few years delay in getting Edison’s bulb to market is a few years in which other entrepreneurs toil less productively in the dark. From the paper:

Just as the present appears remarkable from the vantage point of the past, our future may offer comparable advances in benefits. Continued progress might bring greater life expectancies, cures for debilitating diseases, and cognitive enhancements. Millions or billions of people could have much better and longer lives. Many features of modern life might someday seem as backward as we now regard the large number of women who died in childbirth for lack of proper care. It is a simple failure of imagination to believe that human progress has run its course. [...]

The importance of the growth rate increases the further into the future we look. If a country grows at 2 percent, as opposed to growing at 1 percent, the difference in welfare in a single year is relatively small. But over time the difference becomes very large. For instance, had America grown 1 percentage point less per year between 1870 and 1990, the America of 1990 would be no richer than the Mexico of 1990. At a growth rate of 5 percent per annum, it takes just over 80 years for a country to move from a per capita income of $500 to a per capita income of $25,000, defining both in terms of constant real dollars. At a growth rate of 1 percent, such an improvement takes 393 years.

Robert Lucas put it succinctly: “The consequences for human welfare involved in questions like these are simply staggering: Once one starts to think about [exponential growth], it is hard to think about anything else.”

Again, I’m not bringing this up with regard to any particular policy. But we are living in a time in which drastic measures are being taken in response to an immediate economic crisis, the costs of which will be felt for decades to come. The impact these policies will have on the ephemeral process of market production deserves attention. Conservatives and libertarians threatening to “go Galt” aren’t merely expressing selfish frustration at having to pay more taxes; they’re calling our attention to the vital moral imperative of considering long-term growth.

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A reply!

by Jacob Grier on February 24, 2009

I admit I felt a very slight pang of guilt when I sent that letter to my congressmen proposing sending me stimulus money to invest in my terrible bar idea. That’s because the letter would never actually get to the politicians. I knew it was going to be some poor overworked aide who’d have to read my letter, figure out if I’m being earnest or not, and send me a reply. I didn’t feel too guilty, obviously, because if you sign up to work in Congress I figure you deserve all the BS that gets thrown at you. But still, some of them are genuinely nice people, despite what one might conclude after to going to a few happy hours on Capitol Hill.

One of those nice people was visiting Portland this weekend, so I asked her what she’d do if she’d received my letter. She said she’d get annoyed at having to waste time on me and fire off some boilerplate jibber jabber about the stimulus bill. Whoever works in Representative Earl Blumenauer’s office thinks the same way and replied to me this morning. On the off chance you want to read through the whole thing (not recommended), it’s below the break.
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Priorities

by Jacob Grier on February 10, 2009

Selected tweets from my friends in the last 24 hours:

Discussions of Obama being “Good for a beer” and regular White house cocktail parties makes me happy on many, many levels.

ZOMG. Obama says he’d “go for a beer with Hannity”. Obama’s like 500000% better a person than I could ever be.

Has a man crush on Obama

These soon after the administration cited state secrets to block the Binyam Mohamed case. Obama’s a swell guy and all, but he’s not a better person than you. He wouldn’t go for a beer with Hannity because he’s so wonderful. He’d do it because that kind of glad-handing chumminess is what makes a person appeal to more than 50% of American voters. You, my friends, couldn’t put up with two years of that campaign bullshit. You wouldn’t try to cover up the previous administration’s complicity in rendition cases either. That’s why I like you. Snap out of it.

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