The Municipal League Is on a Roll

Not content with the Missouri Municipal League putting the good of government over the good of the people by trying to block much-needed reforms to our eminent domain laws (yeah, yeah, I know that the “government” is “us” — would somebody please tell the muny league that?), the St. Louis County Municipal League is attempting to pass a use tax on county citizens and businesses. From the article in the Post-Dispatch:

Dooley said he was acting on behalf of the St. Louis County Municipal League, which wrote to Dooley last week seeking his support of the tax.

Here is my testimony on the subject, which I gave in June to the county commission considering these issues. The imposition of a use tax on county businesses will wipe out one of the competitive advantages that St. Louis County has, and just add incentives for businesses to move to St. Charles. Perhaps I shouldn’t care. The county (and, even more so, the cities within it) can always just give away more tax breaks to favored businesses once they pass the higher taxes on to all of them. That certainly sounds like the basis for good policy …

“… and it is anticipated that they will continue to do so in the future.”

A few weeks ago, I pointed out that cities across the state were creating a war chest to try to prevent Missouri’s voters from ending the eminent domain abuse that currently threatens our right to keep what rightfully belongs to us. Shortly thereafter, the secretary of state ruled that, despite the hundreds of thousands of signatures turned in by Missouri Citizens for Property Rights (MO-CPR) in support of their proposed constitutional amendments, the issue would not be on the November ballot.

Last week, MO-CPR filed a lawsuit challenging the secretary of state’s decision and asking the court to allow citizens to have their say on the issue. And, yesterday, the Missouri Municipal League — an organization that collects taxpayer dollars and purports to advance the interests of Missouri’s local governments — moved to block MO-CPR’s lawsuit.

A few choice tidbits from the Municipal League’s filing should allow citizens to evaluate the merits of its “concerns”:

  • The league’s members argue that they should be allowed to intervene because they “have exercised the power of eminent domain for the purpose of acquiring private property for conveyance to private entities for commercial or other development to fight blight and other decay, and it is anticipated that they will continue to do so in the future.”
  • The league opposes the amendments because they might require local governments to pay “just compensation for local land use regulations.” In other words, the cities would have to pay you if they passed a regulation that decreased the value of your property. While not included in their filing, a previous Municipal League analysis of the proposed amendments also worried that they would “significantly increase the amounts of condemnation awards” to citizens being dispossessed of their homes and businesses.
  • The league is concerned that the amendments would require cities to get a court order before they destroyed or condemned property that they thought was a nuisance. While not mentioned in the league’s filing, the amendment would also require cities to give owners an opportunity to fix the problems themselves. I mean, why in the world should cities allow property owners the chance to remove the government’s pretext for giving their property to someone else? Honestly.
  • The league doesn’t like that the amendments would “limit the use of eminent domain to the State or political subdivisions whose officials are directly responsible to elected officials.” This would, of course, allow voters to hold those responsible for using eminent domain accountable for their actions — a radical departure from current law, which allows many unelected, unaccountable organizations to take away private property.
  • Despite justifying its involvement in part by complaining that confirming the number of proper signatures will be expensive, the league calls for the court to recount all 400,000+ signatures, not just the ones challenged by MO-CPR.

MO-CPR issued a press release in response to the Municipal League’s filing. Among the excellent points made in the release, my favorite is where Bevis Shock (a member of the Show-Me Institute’s board of directors) asks, “I wonder if the politicians who approved this legal action have considered how many residents of their cities signed our petition?”

Missouri Ranked No. 1!

For all of you Mizzou Tiger fans, please don’t get your hopes up. This No. 1 ranking has nothing to do with college football. According to an article in the Southeast Missourian, a Ball State University study has ranked Missouri as the No. 1 state for manufacturing in the country. Of the 20 categories that the 2008 National Manufacturing and Logistics Report Card took into account, Missouri was placed at the top for low long-term health care costs, health care premiums, and property taxes.

These high marks in health care costs and premiums can be attributed in part to the passage of HB 818, which helped the Show-Me State show the rest of the nation how free-market health insurance reform is done. This bipartisan solution to the state’s health policy dilemma helps put employees in charge, freeing them to choose their own insurance policies, and puts employers in positions where they can now contribute directly to employees’ plans without the burden of mandated contribution amounts. Furthermore, health savings accounts and individual health plans are portable, so employees are protected even in case of employment changes.

Another key factor associated with our manufacturing job growth (which might easily be overlooked) was the massive tort reform legislation that was passed in 2005. The Ball State rankings represent tangible evidence that good things happen when states reform and alter legal systems in an effort to shut down abuses that lead to “jackpot justice.”

In the midst of a poor economic climate and recent cutbacks in various plants, the great state of Missouri still prevails. Great job, Missouri … let’s keep up the good work!

Mmmm … Cake

With all due respect to my colleague, Sarah, the most ridiculous regulation imposed on the food industry comes from the recent decision by the Los Angeles city government to ban new fast-food restaurants from opening in poor neighborhoods. There was an excellent piece on this regulatory nightmare written by William Saletan at Slate.com, and another for the Los Angeles Times by Joe Hicks, but I want to reiterate several of the reasons why this is such a terrible idea:

  • The fast-food ban assumes that poor people can’t be trusted (and therefore have no right) to make decisions for themselves. This is paternalism at its ugliest, because it says that people’s freedom can and should be stripped from them if the majority believes their choices might prove to be unwise.
  • The ban ignores the realities of these communities. As unhealthy as fast food can be, it is the most convenient, most affordable way for many people to get a meal. Even if someone in a poor community had the time to shop at a grocery store and fashion home-cooked meals, it is far more expensive to purchase fresh foods and the means to prepare them than it is to swing by a local fast-food restaurant. Especially with the escalating cost of food, families worried about day-to-day survival can’t always afford the luxury of securing the most nutritious meals.
  • Fast-food restaurants provide jobs for unskilled workers. While, as Dave Chapelle’s satirical take on this issue points out, these sorts of jobs aren’t likely to end poverty, they do bring money into the community and offer a first step toward more profitable types of employment. The fewer fast-food restaurants in the community, the higher that area’s unemployment level will be.
  • The ban prevents competition in the fast-food market. Los Angeles has only banned new fast food restaurants, insulating the existing businesses from competition. Not only does this alleviate some of the pressure to keep menu prices down, it also allows the existing companies to pay rock-bottom wages because workers have fewer alternative employers.

Unfortunately, as with many ill-advised government schemes, this one seems to be catching on.

Ameren’s Answer to Our Energy Needs

Being an environmentalist opposed to nuclear power is like being a vegetarian who is starving but still refuses meat. The solution to all your primary goals and needs is right in front of your face, but you still refuse to alter your mindset to see it. Let’s see here: Fewer carbon emissions? Check. Clearner burning energy? Check. Reduced use of fossil fuels? Check. Add in the benefits of more affordable energy and a decreased use of foreign energy sources, and I have never understood the opposition to nuclear power.

A short time ago I half-jokingly wrote about how the disaster movies of the 1970s helped fuel the safety-obsessed society we now live in. Smarter people than I have already constructed this equation: One overrated movie + one poorly timed, frightening, but ultimately minor accident + an enormous amount of activism from certain types opposed to nuclear power = a halt on expanded nuclear power in America + more dependence on the exact thing (oil) that environmentalists don’t like in the first place + higher energy costs for everyone.

What is the point of all this? AmerenUE wants to expand its nuclear plant in Cab Callaway County. The Fulton Sun has the story here, about a recent public hearing on the proposal. One of my neighbors showed up to oppose it:

Drey claimed that a natural disaster such as an earthquake or a terrorist attack would cause massive ecological and health problems for a very large area.

“Someone could get in with a plastic explosive through a metal detector and drop it into the plant and that would be the end of Callaway County and the rest of us,” she said.

Where to begin? First of all, the plant is already there (thankfully). It’s not like a terrorist is going to say, “Well, now they have two reactors instead of just one, so let’s target it. Why would we have wasted our time trying to detonate just one nuclear reactor? But now that there are two, it is worth our efforts!” The same goes for earthquakes, but I trust that the engineers who built it — and will build it — have, you know, considered that.

Everything has a cost and a risk. The extensive use of nuclear power has shown that it is safe — except, perhaps, when you let it be run by communists. Congressman Todd Akin (definitely not a communist, but an engineer) has proposed major revisions to American’s energy policy that include expanding the use the nuclear power:

“I have always been a supporter of nuclear energy,” Akin said. “The rewards are substantive as far as its low cost energy and its cleaner.” He noted that nuclear power becomes a more attractive energy source in the context of global warming.

I could not agree with him more.

Oldie but Goodie

I frequently run into critics of parental choice in education who oppose tuition tax credits, charter schools, and other alternatives to the traditional public schools. They argue that these alternatives won’t meet expectations, haven’t succeeded in the past, or perhaps that they’ll even have harmful effects on society. For example, a comment on this post I wrote earlier in the month suggests that charter schools shouldn’t be expanded because not all such schools have a proven track record.

Every time I hear these arguments, I’m reminded of a post Megan McArdle wrote last year. She presents 11 of the most common criticisms of parental choice, and debunks them all. Although she refers specifically to voucher programs, I think her reasoning applies to all the other choice initiatives that are on the table. Here’s how she responds to the oft-heard statement, “Vouchers don’t work”:

Vouchers are no panacea, and they may not work at all. But we know that what we’re doing now isn’t working, and moreover, hasn’t worked for going on fifty years. Unless you’ve got compelling evidence that your plan will overcome all the barriers that have doomed urban school reform for decades, and actually succeed in educating more children (rather than enriching the lives of teachers, administrators, and curriculum salesmen, who certainly have been helped by the many failed educational overhauls), why not let a thousand points of light bloom?

Read the whole thing!

Regulating Restaurants

There are myriad proposals out there to create onerous new regulations, but this one takes the cake:

:In New York City this summer, a law kicked in requiring chain restaurants — from Starbucks to Burger King — to display on menus and menu boards the caloric content of the food they serve. In five other cities and counties elsewhere, similar labeling laws will take effect in coming months.

If the regulators’ goal is to help people make healthier choices, these regulations will probably do just the opposite of what they intend. Collecting information on calories is expensive, and the cost of complying with these laws will be most easily borne by the big fast-food chains. Small restaurants with potentially healthier fare will face this huge obstacle to setting up business. So we could end up with a situation where people know exactly how many calories are in each hamburger at McDonald’s but don’t care because that’s the only place to eat out.

(Not that they care so much now. Everybody knows that fast food isn’t good for you, even if they don’t have the exact calorie count in front of them when they order. It sells anyway.)

Fortunately, this concept hasn’t caught on in Missouri. Let’s hope things stay that way.

SMI on the Air

We are a little late putting this up, but you can listen in to the second half of our appearance on the Gary Nolan Show in Columbia on August 6. They only have the second hour up online, which featured Dave Roland talking about property rights and then a round robin with all three of us to close it out. I can’t think of a more productive way to spend an hour while you watch the Olympics tonight than to listen to it!

Congrats to Gary on his marriage; we thank him again for inviting us to appear while he was on vacation.

Reason Weighs In on Ethanol; ACC Weighs In on Reason

And so goes the circle of life. With all the recent crossover between the Show-Me Institute, Reason, MoDOT rankings, etc., I feel the need to at least point out that Reason has released a new piece about the ethanol industry in America. Now, we didn’t have anything to do with this study, although we did release our own case study two months ago.

Dave over at the Arch City Chronicle was kind enough to note the work we have done with Reason, and the work of ours that they have carried in their 2008 privatization report. But back to ethanol.

The relevant Reason TV episode is very powerful. Please take a few minutes and watch it. The undeniable truth of the ethanol scam is that the entire industry would collapse if not for the subsidies and tariffs that prop it up. And, by the way, with gas prices as high as they are, this is the perfect time to find out: If an unsubsidized and unmandated ethanol product can’t succeed now, then when will it?

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