Lack of Economic Basis For Payday Loan Limitations

Today’s Springfield News-Leader has an op-ed (link via Combest) written by a state rep who is seeking to promote the growth of the mafia and loan sharks pass legislation limiting payday loans in Missouri. I never cease to be astounded at politicians, of either party, who consistently attempt to protect people from themselves and casually limit people’s freedoms as they do so.

Read the entire piece. Note the constant begging-the-question, asserting that there is a problem with payday loans without ever attempting to prove it. Enjoy the absolute lack of economic analysis in the piece. Consider the obvious unintended consequences of this, which are not even remotely acknowledged. Discuss the assumption throughout the piece that the state must have a role in limiting private, legal business transactions between free adults. Then come back here in two weeks or so, after we do some economic video performance art, chronicling my plan to take out a payday loan a week from Monday and use the money to go gambling.

“Rightsizing State Government”

I stole the title for this blog entry from Gov. Jay Nixon’s speech the other day. I haven’t discussed it sooner, because I wanted to give it the full think tank treatment, not like the usual ephemera I post on this blog. So, I warn you, this will be a long post.

I strongly recommend everyone watch the video. Speaking as someone who would normally rather take a dart to my eardrum than watch an online video of a political speech, you can trust me that this one is worth it. After you watch it, read the Post-Dispatch’s take on it and try and decide where you stand. Needless to say, I support the governor here. I think that cuts to the size and scope of government in our state, along with consolidations for greater efficiency, are long overdue, and I give great credit to any elected official of either party who is willing to make the tough choices and hard decisions, as the governor is doing here.

I have not fiskedPost editorial or column in a while — probably not since Eric Mink left. But I think that both this topic and article deserve a point-by-point analysis: Continue reading ““Rightsizing State Government””

Chester E. Finn Jr. on the Common Core Standards

Chester E. Finn Jr. is trying to convince conservatives to support the Common Core Standards. Although I don’t know whether he intended to include free-market bloggers in his audience, I’d like to go over his points and consider whether anyone — conservative or not — should be swayed by them. Here are quotes from his five arguments, with my responses:

First, they’re good, solid — indeed very ambitious — academic standards for primary and secondary schooling, at least in the two essential subjects of English and math. Students who attained them would be better off — readier for college, readier to get good jobs, readier to compete in the global economy — than most are today.

Students might be better prepared if they attained these standards, but it’s not clear that adopting the standards would achieve that result. Adopting standards on paper doesn’t, by itself, bring students up to a high academic level. In fact, the more ambitious the standards are, the less likely it is that U.S. students could meet them unless more significant changes were made to the public school system.

Second, they respect basic skills, mathematical computation, the conventions of the English language, good literature, and America’s founding documents.

This is faint praise. It would be pretty pathetic if the standards made fun of America’s founding documents. Nor is this a reason for states to agree to the standards. Anyone can have respect for basic skills and literature without uniform standards.

Third, they emerged not from the federal government but from a voluntary coming together of (most) states, and the states’ decision whether or not to adopt them will remain voluntary. Each state will determine whether the new standards represent an improvement over what it’s now using.

If states fail to adopt the standards, they lose their chance to receive some kinds of federal funding. The federal government approves of these standards and is using its power to get states to agree to them. That’s enough evidence that the federal government is imposing the standards on states. Where the standards originally “emerged” from is irrelevant.

Fourth, they do not represent a national curriculum — though to gain traction they’ll need to be joined by solid curricula, effective instruction, and quality testing.

In other words, if states adopt the standards, a national curriculum is sure to follow. For what would be the point of standards that don’t “gain traction”?

Fifth, one little-noted benefit of properly implemented common standards is a better-functioning education marketplace, in which parents will be able to make choices about schools on the basis of more accurate information about how school A’s performance compares with that of school B — not just within communities and states but also when considering a move from state to state. Entrepreneurial school operators (such as KIPP and Edison) will also be better able to gauge and manage school performance in locations across the land.

Give me a break. It’s the old “standards will help the charter schools” argument. I don’t know how standards alone could give people more information about their limited educational choices — unless states also agreed to tests that match the standards, and then published the scores. Sounds like No Child Left Behind all over again.

Federalism in Action

Yesterday, the Missouri House approved a constitutional amendment designed to check the federal government’s expansion of powers in the realm of health care:

If approved by the legislature, the proposed constitutional amendment prohibiting Missourians from being compelled to participate in any health care system would go to a vote of the people. HJR 48, 50 & 57 is half-way there. The House voted 109-to-46 in favor and sent it to the Senate.

Setting aside for the moment the specific content of the amendment, it is great to see Missouri and other states attempting to use the nearly forgotten tools of interposition and nullification to stop the federal government from abusing its powers. Of course, these are just tools that can be used for good (such as when Wisconsin nullified the Fugitive Slave Act in the 1850s) or ill (such as George Wallace attempting to preserve segregation). However, all else being equal, the more a political system is localized, the less dysfunctional it is likely to be, because the politicians are not as removed from the people. Consequently, anything that takes power away from the federal government and gives it to the states, or from the states to the counties and municipalities, or from the municipalities to the neighborhoods and individuals, should, as a general rule, be applauded.

A Star Is Born!

Show-Me Institute research assistant John Payne, who has been spreading free-market wisdom all over the television and radio as of late, is hitting the airwaves again this afternoon! This time, he will be talking about the Missouri state legislature’s imminent ban of K2, the synthetic marijuana substitute.

Listen to him today at 4:30 p.m. on Columbia’s 93.9 FM, The Eagle. If you aren’t close enough to Columbia to pick it up on your radio, you can listen live on the web!

Saint Louis County Creatively Circumvents Taxpayer Vote

Saint Louis County is using stimulus funds to get around the results of the Nov. 2008 election, when a $120 million bond project failed after receiving a vote of 50.8 percent, which was short of the necessary 57.15 percent needed to pass. The proposition as it appeared on the ballot read:

PROPOSITION I – Improvements to County Buildings & Facilities
Shall St. Louis County, Missouri, issue general obligation bonds up to the amount of One Hundred Twenty Million Dollars for the purposes of constructing various capital improvements to County buildings and facilities, and making improvements to County safety/security and communication facilities?

Saint Louis County officials don’t have to listen to the ballot box results, because their federal benefactor has come to the rescue. The county is using half of its $40 million of Recovery Zone Economic Development funds to build the new health department building that failed to garner support in 2008. A family court building will also be built, using Built America funds. The federal funds won’t fully finance either of these projects, though, and the rest of the money will have to come from the departments’ operating budgets.

Some may argue that the people only voted down the use of a bond to fund these projects, and did not necessarily disapprove of the projects themselves. This may be true, but using stimulus funds to cover only part of these projects will still create an additional burden to taxpayers. It may be a discount, but these stimulus funds will not provide “free” buildings for Saint Louis County — rather, it’s a way around a failed bond issue.

Here’s the real issue: If local voters are not willing to finance their own projects, why should the federal government subsidize them? The federal government does not have a magical money tree; stimulus funds also come from taxpayers, whether present or future. These are buildings that the Saint Louis County taxpayers decided were not necessary, but officials have found a loophole.

Building a Light-Rail System to Nowhere

At the aforementioned forum/debate on Proposition A, which would establish a new half-cent tax to fund MetroLink’s expansion and other Metro services, an important question was raised: What constitutes a plan?

Speaking in favor of the tax increase, Mayor John Nations of Chesterfield said that the details of plans for future expansion are contingent on the availability of funds from the federal and state government. Speaking in opposition of the tax increase, John Burns of Citizens for Better Transit noted that MetroLink’s plans do not stipulate where and when a project would be built, and that a “plan” needs to answer these questions before it can really be considered a plan.

This difference strikes me as an application of the following passage in Economics in One Lesson, “Public Works Mean Taxes,” by Henry Hazlitt:

But a bridge built primarily “to provide employment” is a different kind of bridge. When providing employment becomes the end, need becomes a subordinate consideration. “Projects” have to be invented. Instead of thinking only of where bridges must be built the government spenders begin to ask themselves where bridges can be built.

Public works projects are acceptable when they serve an actual purpose. However, successfully securing funds from the federal or state government does not constitute an actual purpose. This is a concept on which John Burns, Henry Hazlitt, and I appear to agree. If they are to be economically productive, such expenditures must fulfill a need other than diverting creating jobs — or, as Mayor Nations said during the debate, “providing an economic engine for the region.” At the very least, a plan should include basic information such as when and where a public works project will be built. Otherwise, it’s another proverbial “bridge to nowhere.”

Advice From Parents as Teachers

Here’s another blog post that describes someone’s Parents as Teachers experience. This one was written by a woman who’s expecting her first child in a few weeks. I can’t tell whether she’s in Missouri, so I’m just assuming her experience is comparable and counting on in-state participants to comment about whether it’s something that wouldn’t happen here.

The blogger writes that a Parents as Teachers educator came to speak to her parenting class, and gave the following advice:

We were told that we needed to not only read to the little guy everynight (even before he’s born–which we knew) but right now to read the same story. Repitition will help him learn sounds, rhythm, words and will also help him develop comfort and a bond with us. Then when he’s fussy, reading this story that he’s heard so many times in our voices will make him feel better and remind him of when things were less stressful for him before he was born.

This way of doing things might work for many people, but it’s problematic for Parents as Teachers to present it (with state approval and funding) as the correct way to raise a child, when it’s basically somebody’s opinion. The recommendations I’ve seen suggest that parents begin reading to children at six weeks, three months, six months — not every night when the baby is still in the womb. There’s no medical consensus that you have to do that. (There are other ways to interact with unborn babies, like talking to them or singing a song.) And the idea that it has to be the same book every single time is nonsense. Babies learn from repetition in conversations and daily routines; that doesn’t have to come from one book and one book alone.

The assertion that hearing a story repeated will remind the baby of the womb is a nice theory, not a confirmed research result. Babies fuss for many reasons, and hearing a story won’t always calm them. When a story does soothe them, they may be reacting to the parent’s tone of voice or touch. It’s speculation to say that they remember hearing that exact wording from the womb.

Maybe these ideas aren’t completely scientific, but they can’t hurt, right? Actually, they could be harmful to parent-child relationships if parents feel guilty when they can’t maintain the regimen. Skipping reading for a night or two or switching between a few different stories won’t hurt your baby, but people could reach that conclusion if they’ve sat through this presentation by an official state educator. It’s not surprising that the blogger describes herself as “overwhelmed” by what she heard.

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