Tag Archives: public policy

Maybe The Horse Isn’t Dead Yet…

My friend Morton Marcus–an Indiana columnist who was for many years the Director of   the Indiana Business Research Center–used a recent column to weigh in on the plight of local journalism. As he noted, one of the major causes of the decline of local news outlets has been the displacement of private financing “from independent, local entrepreneurs to large corporate chains that “trimmed” costs.”

“Trimmed ” is a very nice word for the ferocious and destructive cost-cutting that has virtually killed local news– the very product those outlets were selling.

As Morton noted (I got this in an email, so no link–sorry)

Corporations behave like individuals; they seek to avoid the risks of change and the challenges of diversity. Therefore, editors who accept the risk of divergent views are best removed. Reporters who impede corporate strategy are best discharged. Radio and TV stations are bought and stripped of their distinctive local content.
Given lower costs of production, newspaper and magazine offices, TV and radio stations, housing older equipment, with their associated personnel, become unnecessary drags on profits. A conglomerate can morph an enterprise from news and reasoned commentary into a conveyor of entertainment and sensationalism. “Efficiency” of the corporation often out-weighs the quality and nature of the product.

Lest you think Morton’s column was merely another flogging of that “dead horse” along the lines of my post yesterday, you will be happy to learn that he ended with some very good news: the introduction of companion measures in both the House and Senate titled “The Local Journalism Sustainability Act.”

The bill is intended to provide a “pathway to financial viability” for local news produced by newspapers–including all-digital ones–plus television and radio. The mechanism through which this is to be achieved is a combination of three tax credits: a credit aimed at incentivizing subscribers; a credit to provide news outlets an increased ability to hire and retain journalists; and a credit intended to encourage small businesses to advertise in these local news outlets.

The individual credit for subscribers is described as a five-year credit of up to $250 annually, available to individuals who either subscribe to a local newspaper or donate to a nonprofit news organization. It would cover 80% of those costs the first year, and 50% in four subsequent years.

The effort is billed as bipartisan, which–if accurate–should increase its chances of passage.

Will these tax credits work to stem the bleeding? Who knows? I have my concerns about the use of tax incentives, which tend to add to the complexity of America’s tax system, and where “goodies” intended to reward donors can be shielded from the light of day. On the other hand, there are–as I have recently noted–examples of the successful use of such incentives to prompt socially beneficial behaviors.

Perhaps the most significant positive aspect of this effort is that it signals recognition of the problem. If this particular measure doesn’t pass–or fails to stem or reverse the decline of local news–that recognition is a sign that other interventions are likely to be tried.

The importance of that–the importance of agreement over the existence of a problem–is hard to overstate.

There really is no problem we humans cannot address more or less successfully, once there is broad agreement on the existence and nature of a problem.We see this most vividly as we confront climate change and regret the years wasted–the years during which we might have avoided what is now unavoidable–because too many people refused to admit the existence and nature of the threat. We are seeing it in the insistence by right-wingers who refuse to get vaccinated that COVID is a “hoax.”

We can’t solve problems we refuse to see.

What is most heartening about the Local Journalism Sustainability Act is its recognition of the importance of credible, comprehensive local news sources, and the determination to keep that horse alive.

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Are States Outmoded?

Indiana residents who follow state economic trends probably know the name Morton Marcus. Marcus–who sometimes comments here– used to head up a business school think tank at Indiana University, and even though he’s retired, remains a popular public speaker–not just because he is very knowledgable, but because he’s always been willing to speak his mind and share his often “unorthodox” opinions.

When I first joined the faculty at IUPUI, Morton’s office was down the hall, and he would sometimes pop in to discuss those opinions. I still remember a conversation in which he argued that states–whose boundaries have always been artificial–no longer made sense. Instead, he thought the U.S. should be governed through designated areas of economic influence: the Chicago region, the Boston region, etc.

I thought back to that conversation when I read a recent paper issued by the Brookings Institution. Many years later, Brookings scholars have evidently come to the same conclusion.

The paper began by noting the country’s haphazard response to the coronavirus pandemic, exacerbated by the failure to coordinate governance across local and state lines.

There are a number of ways in which the patchwork of state responses–and the tendency of many Republican governors and legislators to treat the pandemic as a political and economic problem rather than a public health crisis–is leading to thousands of unnecessary deaths. The recent majority decision by Wisconsin’s conservative Supreme Court justices to the effect that the state’s Democratic governor lacked the authority to order a uniform state response is just an extreme example of the chaos caused by internal state political struggles.

Even without the politicization of Covid-19, however, state lines complicate government’s response. New York Governor Andrew Cuomo explained the problem during a  briefing about plans to deploy contact tracing:

“If I turn up positive, yeah, my residence is in Westchester County, but I work in New York City, and I would have contacted many more people in New York City than I did in Westchester…If you’re going to do these tracing operations, you can’t do it within just your own county, because you will quickly run into people who are cross-jurisdictional.”

The paper pointed out that the multiple governance dysfunctions caused by state lines aren’t limited to those highlighted by the pandemic:

Before the arrival of the coronavirus, our planning processes formalized many inequities within and across regions, ranging from hospital bed availability to housing inventory to environmental racism…

Before the coronavirus arrived, both established metropolitan regions and “megaregions”—combinations of two or more metro areas—were consolidating at unprecedented levels. This brief presents evidence documenting these trends, and makes the case for new state and federal policy frameworks to address cross-jurisdictional equity problems that emerge when everyday activities happen in a mega-region.

The paper describes the changes in residential and commercial activity over the past decades, resulting in the creation of what the authors call “large polycentric regions, or a “megapolitan America.” Jobs, housing, and consumption now occur across multiple state and municipal jurisdictions. Significant numbers of people commute between cities or town centers. Etc.

The paper describes several of these regions, and the inequities within them, and I encourage those of you who are interested in the data to click through and read the entire paper. But living in Indiana, I was particularly struck by this description of one problem caused by the mismatch between legal jurisdictions and contemporary realities:

The lack of regional governance institutions is particularly problematic for addressing equity problems within regions. For example, a worker may live in a lower-cost municipality and work in a wealthier one. The revenues generated in the wealthy area will not normally support the services available in the worker’s lower-cost neighborhood if it is in a different county.

We have the opposite situation in the Indianapolis region: workers who commute to Indianapolis from wealthy suburbs in other counties. These commuters use the infrastructure and public services paid for by cash-strapped Indianapolis (where state government agencies and nonprofit statewide organizations occupy roughly 25% of the real estate and are exempt from property taxation), but their taxes go to their already flush home counties.

The Brookings paper provides one more example of an over-arching and increasingly dire problem–the failure of America’s governing institutions to keep pace with contemporary realities. Structures like the Electoral College, the filibuster, the way we conduct and finance elections, and the way we allocate governance responsibilities among local, state and federal authorities are just a few of the systems that no longer serve their intended purposes.

A blue wave in November is an absolutely essential first step toward addressing America’s creaky governing infrastructure.  Given the percentage of voters who remain in the cult that was once the GOP, however, I don’t have high hopes for the thoroughgoing reforms we need.

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Right Diagnosis; Wrong Prescription

I know that this blog tends to reiterate certain themes, but we all have our preoccupations. Those who are regular readers will recognize a couple of mine: the importance of “hiring” (electing or appointing) government officials who actually know something about government; and the critical difference between “what should we do?” and “how should we do it?”

The election of Donald Trump and his subsequent choice of cabinet officials has pretty emphatically made the case for my first premise. (There’s a Facebook meme to the effect of “If you think anyone can run  the government, I hope your next colonoscopy is performed by a plumber.”)

My second preoccupation–the difference between “what” and “how”– remains less obvious. I thought of it, however, when I read this column by Catherine Rampell in the Washington Post. As she points out, it’s one thing to correctly diagnose a problem. It’s quite another to devise a remedy that will solve the problem rather than inadvertently making it worse.

By all means, let’s raise the living standards of workers at Amazon, Walmart, McDonald’s and other employers of low-wage Americans.

And, by all means, let’s raise Jeffrey P. Bezos’s taxes, too. The founder of Amazon (and owner of The Post) is the wealthiest man in the world. He didn’t need the tax cut that Republicans just gave people like him.

But the sloppily designed Stop Bad Employers by Zeroing Out Subsidies Act (a.k.a., ahem, the “Stop BEZOS Act”) is a terrible way to do either of these things. It’s virtually guaranteed to hurt the very low-income working families its sponsors want to help.

The bill Rampell is citing addresses an issue that I’ve written about several times: some of the nation’s largest companies (including Amazon) pay their workers so poorly that taxpayers make up the difference with food stamps and other social welfare benefits.. In effect, we are paying a portion of those workers’ wages. Meanwhile, the company’s  “savings” go to shareholders as additional profit.

It’s pretty despicable, and it should stop.

The “Stop Bezos Act” would establish a “corporate welfare tax” on firms with at least 500 employees. Companies would pay a tax equal to 100 percent of the value of safety-net benefits their employees receive, including Medicaid, housing subsidies, food stamps and subsidized school lunches.

That certainly sounds good. As Bernie Sanders, the bill’s sponsor, has said,

The working families and middle class of this country should not have to subsidize the wealthiest people in the United States of America. That’s what a rigged economy is all about.

Agreed. The diagnosis is spot on. The prescription, however, would be a disaster; it would hurt the very people it aims to help, because it would discourage firms from hiring workers suspected of drawing benefits.

These workers come, disproportionately, from some of the most vulnerable populations: families with children, older people and workers with disabilities.

Families with children are much more likely to use food stamps. Older Americans who are poor are much more likely to be on Medicaid. And workers with disabilities would face even more barriers to employment under this bill than they already do.

Under this bill, Medicaid-eligible workers with disabilities or other health issues would become thousands of dollars more expensive. Working-age people over 45, who cost Medicaid about twice as much as their younger counterparts, might face even more discrimination in the job market than they already do.

The bill tries to address these issues by barring employers from asking job candidates about benefits. But firms could easily infer which applicants are more likely to get them, based on their races, genders, Zip codes, etc. Such “statistical discrimination” would be difficult to police.

Moreover, employers get information about dependents and marital status when newly hired workers fill out their HR forms. Guess which workers would be at the top of the list when it’s time to downsize?….

Perhaps worst of all, as the Center on Budget and Policy Priorities points out, the bill would ultimately create a new corporate constituency to push for cuts to social programs and stricter eligibility requirements. Suddenly, reductions to Medicaid or school lunches would be directly equivalent to a corporate tax cut.

This bill would also require new oversight, probably spawn multiple lawsuits alleging discrimination, raise equal protection issues (why treat companies with 500 employees differently than those with 480?) and generate numerous new regulations.

Simply raising the minimum wage would go a long way toward solving the problem without creating perverse incentives or requiring additional bureaucracy.

Stop Bezos is a great soundbite. We should do it. How we should do it, however, matters. A lot.

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Why Politics Matters

Do you know folks who think political decisions don’t affect them? Who think voting is a waste of time? Among all of the other reasons they’re wrong, it turns out that a state’s political environment affects how long its residents live.

That was the astonishing conclusion of a study reported by Inc.The study ranked life expectancy in all 50 states, and came to some truly eye-opening conclusions. Among them: residents of Mississippi have the same life expectancy as residents of Bangladesh.

This truly is a fascinating study, pulling together reams of data to create “the most comprehensive state-by-state health assessment ever undertaken,” according to a press release. (The study itself was published in the Journal of the American Medical Association.) It’s unusual because most big studies examine the United States as a whole, and yet there’s a vast disparity of health and longevity among the states.

The report itself focused primarily on the data, rather than on differences in the public policies of the various states, but the following excerpt from the Discussion section is illuminating on that score.

Mortality reversals in 21 states for adults ages 20 to 55 years are strongly linked to the burden of substance use disorders, cirrhosis, and self-harm, and this study shows that the trends for some of these conditions differ considerably across different states. Case and Deaton have called some of these conditions “deaths of despair” and argued that they are linked to the social and economic status of white US adults.

States differ widely in their support of interventions to curb substance and alcohol abuse, and in the availability of programs addressing those dependencies. As far as the statistics on “self-harm,” the language is guarded, but clear: “self-harm” is suicide, and most people who kill themselves use a gun.

The availability of guns is a huge public health issue, and medical and public-health professionals have been arguing for a public health approach to gun violence more  forcefully in recent years. The American Public Health Association and the American Medical Association have both issued statements calling gun violence a public-health problem, and advocating more research. (The “Dickey Amendment,” passed by Congress in 1996, effectively prohibited the CDC from even studying the issue.)

The larger “take away” from the data is economic. States where the percentages of low-income Americans are highest have higher incidences of alcoholism, drug abuse and suicide. It shouldn’t come as a shock that Mississippi, where citizens have poor health outcomes also has an economy that ranks in the bottom of American states.

The environment also plays a part: states that do a better job of controlling hazards like lead and coal ash, for example, reduce illnesses and deaths from avoidable environmental pollutants.

All of these influences on lifespan–the economic health of a state, the efficacy of local environmental protection, the easy availability of guns–are direct outcomes of the  public policies supported by state and local lawmakers. (It will not shock anyone who follows these issues that the states with the worst outcomes tend to be reliably Republican.)

If the disaster that is Donald Trump hasn’t brought home the importance of voting, perhaps explaining to the disengaged that local political policies have a demonstrable effect on our lifespans and those of our families and friends will do the trick.

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And Now A Word From the Fantasy-Based Community

I read Dispatches from the Culture Wars regularly. Ed Brayton is a witty and perceptive commentator with an excellent grasp of America’s constitutional foundations–but his greatest appeal (for me) comes from the fact that he monitors behaviors that I wouldn’t have the stomach to follow. He keeps tabs on the kooks of the far, far right (and sometimes the far, far left)–the “celebrities” of the wacko fringes.

Most of the time, when reading about the pronouncements and delusions of these characters, I take comfort in reminding myself of the limited appeal of whatever brand of crazy a particular figure is peddling.

But this was truly appalling.

Earlier this month, the city of San Antonio (Texas) held a mayoral forum in which candidates talked about the impact of and challenges for non-profit groups in the community.

At one point, current Mayor Ivy Taylor was asked about the “deepest systemic cause of generational poverty.” There’s no simple answer to that, of course, but Taylor’s response wasn’t even close.

“Not even close” is an understatement. Here’s the Mayor’s response.

To me, it’s broken people. People not being in a relationship with their Creator, and therefore, not being in good relationship with their families and their communities, and not being productive members of society. I think that’s the ultimate answer.

As Ed points out, that not only isn’t the “ultimate answer,” it’s an answer that betrays vast ignorance of American economic realities and that displays the sort of breathtakingly smug religious arrogance that you encounter from time to time from people who give religion a very bad name. As Brayton puts it,

Poor people aren’t all poor because they’re “broken” or atheists or in need of a better relationship with their families. (While we’re at it, they’re also not poor because they’re lazy and addicted to welfare checks.)

People are poor, in many cases, because they don’t have opportunities to put their skills to work, they never had access to a quality education, and they live in areas where upward mobility is hard to come by. In some cases, they can work multiple jobs with little sleep and still have a hard time getting out of whatever debt they’re already in. Poverty is tough to overcome. Generational poverty, even tougher.

The vast majority of poor Americans work 40 or more hours a week at jobs that don’t pay a living wage. (Not that it is relevant, but a sizable majority of them identify as Christian, and profess a “relationship” with a “Creator.” Atheists in the U.S. actually tend to be well-educated and financially comfortable–when you aren’t constantly struggling to put food on the table, you have the time and resources to ponder theological questions and consider counter-majoritarian conclusions…But I digress.)

I’ve written before about the United Way of Indiana’s description of ALICE families (Asset Limited, Income Constrained, Employed) and the huge gap between what those families need simply in order to survive and the pitifully inadequate public and private resources available to them.

There are a lot of things policymakers could do to decrease poverty: raise the minimum wage, reinstitute Reagan-era tax brackets, strengthen unions, eliminate the ACA in favor of “Medicare for All”…and jettison a self-satisfied ideology that blames poverty on a lack of productivity and an inadequate “relationship with the Creator.”

The fact that Americans elect people who mouth such inanities (beginning with Donald Trump and definitely including Mayor Ivy Taylor) is evidence of a different kind of poverty.

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