The Trouble with the Median Voter, as Expressed by a Scientist

A memory from Carl Sagan’s childhood, which he shares on pages 133-34 in the book version of Cosmos:

Even with an early bedtime, in winter you could sometimes see the stars. I would look at them, twinkling and remote, and wonder what they were. I would ask older children and adults, who would only reply, “They’re lights in the sky, kid.” I could see they were lights in the sky. But what were they? Just small hovering lamps? Whatever for? I felt a kind of sorrow for them: a commonplace whose strangeness remained somehow hidden from my incurious fellows. There had to be some deeper answer.

And from the following paragraph, which, while still depressing, at least ends on a positive note:

I asked the librarian for something on stars. She returned with a picture book displaying portraits of men and women with names like Clark Gable and Jean Harlow. I complained, and for some reason then obscure to me, she smiled and found another book–the right kind of book.

Sagan’s career went just fine from there. But how many young would-be Sagans of all disciplines have had their growth stunted by social pressure put on them by other people’s lack of wonder?

In my own native discipline, the layman’s instinctive dismissal of the economic way of thinking is a public tragedy. I feel a twinge of sadness every time someone turns down Bastiat’s enticing invitation to see the unseen, or waves off Adam Smith’s invisible hand, without giving it a second thought (or, often, a first).

The opportunity cost of incuriosity may be even larger than Dawson and Seater suggest in their recent paper, which is a per capita income roughly triple what it actually is today. Frankly, it’s a minor miracle public policies aren’t even worse than they already are.

A little bit of simple curiosity would go a long way towards making the world not just a more interesting place to live, but a wealthier, safer, and friendlier one.

The Case for Closing the Export-Import Bank

Over at American Banker’s BankThink blog, I have a piece making the case for closing the Export-Import Bank, mostly on corruption grounds:

 The Wall Street Journal reported on June 23 that four Ex-Im employees have been removed or suspended in recent months, “amid investigations into allegations of gifts and kickbacks.”

Former Ex-Im employee Johnny Gutierrez allegedly accepted cash payments from an executive of a Florida-based construction equipment manufacturer that has received Ex-Im financing on multiple occasions. In a July 28 congressional hearing, Gutierrez chose to plead the Fifth Amendment rather than deny the allegations. The other cases involve two “allegations of improperly awarding contracts to help run the agency” and another employee who accepted gifts from an Ex-Im suitor.

Read the whole thing here. There are, of course, many other reasons to close Ex-Im. I compiled some of them in a paper here.

The Let Me Google That for You Act

When it comes to government transparency, more is better. As a general principle, the government should make public as many of its documents as possible (a principle CEI is currently litigating for against a number of agencies). Despite transparency shortcomings elsewhere, a bright spot since 1950 has been the Commerce Department’s National Technical Information Service (NTIS). The NTIS collects a slew of scientific and technical government documents from a variety of agencies, and offers them for sale to the public. But a new bill from Sens. Tom Coburn (R-Ok.) and Claire McCaskill (D-Mo.) would eliminate the NTIS altogether.

Why would Senators as outspoken on transparency issues as Coburn and McCaskill favor eliminating an agency that does nothing but increase transparency? Because for some years now, the NTIS has unofficially been part of the federal government’s Department of Redundancy Department. As National Journal notes, “the Government Accountability Office has asked NTIS to stop selling its reports, as that agency posts them on its own site for free.”

Coburn and McCaskill’s bill, the Let Me Google That For You Act, makes that point in its very name. The NTIS doesn’t just charge people for documents that can be found for free with a simple Google search. It also has a staff of 150 and a $66 million budget, which modern technology has rendered completely wasteful.

Transparency is a crucial part of good governance, and for a long time the NTIS played an important role. But times have changed, and its services are now being performed for free by other means. It’s time for the NTIS to close up shop.

For bonus fun, you watch Coburn and McCaskill grill NTIS Director Bruce Borzino in a recent hearing.

CEI’s Battered Business Bureau: The Week in Regulation

blueberries in crates
The dog days of summer may be upon us, but regulatory agencies are still working hard, issuing 46 proposed regulations and finalizing nearly 100 more regulations.

 

On to the data:

  • Last week, 98 new final regulations were published in the Federal Register. There were 74 new final rules the previous week.
  • That’s the equivalent of a new regulation every one hour and 43 minutes.
  • So far in 2014, 2,104 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,554 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,448 new pages were added to the Federal Register.
  • Currently at 44,987 pages, the 2014 Federal Register is on pace for 75,992 pages. This would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 22 such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $7.34 billion to $10.57 billion. They also affect several billion dollars of government spending.
  • 171 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 388 new rules affect small businesses; 58 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

CEI’s Battered Business Bureau: The Week in Regulation

What started off as a slow week ended with a bang, with 31 final regulations and 20 proposed regulations appearing in Friday’s Federal Register.

On to the data:

  • Last week, 74 new final regulations were published in the Federal Register. There were 100 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 16 minutes.
  • So far in 2014, 1,986 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,472 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,409 new pages were added to the Federal Register.
  • Currently at 43,539 pages, the 2014 Federal Register is on pace for 76,118 pages. This would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Twenty-two such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $7.34 billion to $10.57 billion. They also affect several billion dollars of government spending.
  • One-hundred and sixty-two final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 366 new rules affect small businesses; 56 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

Changes

Today is my last day working at CEI’s Washington office. Next week, my wife and I are moving to the Chicago area. I will remain a CEI Fellow and work remotely.

Readers of this blog won’t notice many changes. I will continue to cover the same suite of regulatory, monetary, and financial issues I always have. I will merely be much colder when writing about them.

The reason for the move is family. We’re Midwesterners by birth as well as temperament, and much as we love DC, ten years away is enough. We’re looking forward to being closer to our families and, we hope, to starting a family of our own soon.

I would like to express sincere gratitude to all of my colleagues, especially CEI founder Fred Smith and his wife Fran, for whom I interned back when I was a grad student (and coauthored a paper). My boss and frequent co-author Wayne Crews has done as much as anybody to help build my professional career. Over the last year, I have begun to work closely with Iain Murray, and look forward to continuing to collaborate with and learn from him on a variety of issues. Lawson Bader has proven to be absolutely the right choice to succeed Fred as president, and CEI is soaring to new heights under his leadership.

It has been a privilege to work with them and all of our other colleagues for the last six years–and my privilege it will continue to be. Thank you all.

 

CEI Podcast for July 24, 2014: Victory in Halbig v. Burwell

gavel
General Counsel Sam Kazman talks about what the Halbig decision means for the Affordable Care Act, as well as broader principles such as taxation without representation and the rule of law. Click here to listen.

CEI’s Battered Business Bureau: The Week in Regulation

blue-bowl-and-oranges-8x10_jpg
In addition to 100 final regulations, 62 proposed regulations made their way to the Federal Register last week.

On to the data:

  • Last week, 100 new final regulations were published in the Federal Register. There were 63 new final rules the previous week.
  • That’s the equivalent of a new regulation every one hour and 41 minutes.
  • So far in 2014, 1,912 final regulations have been published in the Federal Register. At that pace, there will be a total of 3,464 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,559 new pages were added to the Federal Register.
  • Currently at 42,130 pages, the 2014 Federal Register is on pace for 76,322 pages. This would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. 22 such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $7.34 billion to $10.57 billion. They also affect several billion dollars of government spending.
  • 159 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 355 new rules affect small businesses; 53 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

Ten Reasons to Abolish the Export-Import Bank

A new CEI study released today compiles ten reasons to abolish the Export-Import Bank. The bank subsidizes companies that export goods abroad, and foreign companies that buy those goods. Whatever the intentions behind the bank, the result is one of the federal government’s largest corporate welfare programs. Ex-Im did $37 billion of business in 2013, and has a total portfolio of nearly $140 billion.

Fortunately, unlike most other agencies, Congress has to reauthorize Ex-Im periodically or it must shut its doors. The next reauthorization vote must happen by September 30, or Ex-Im will cease to exist. The political battle over reauthorizing a previously obscure agency has become a flashpoint issue in the 2014 election. A few of the reasons the paper lists in favor of closing Ex-Im:

  • Ex-Im favors some businesses and hurts others, often benefitting foreign firms rather than domestic ones. It has favored foreign airlines, such as Air India, Korean Air, and Ryannair, over domestic airlines, such as Delta Airlines.
  • As many as 74 instances of fraud and bribery allegations involving Ex-Im employees have been made public over the last five years. For an agency with only 400 employees, this is a serious problem.
  • Ex-Im also favors big businesses over small businesses. Ex-Im touts that the vast majority of its lending activities go to smaller businesses. But more than 80 percent of the bank’s financing, measured in dollars, goes to big firms.

For more, read the paper here. If you prefer a shorter version, here are a short op-ed and a podcast.

CEI Podcast for July 15, 2014: Time to Close the Export-Import Bank

ex-im logoCEI Fellow Ryan Young is author of the new CEI study, “Ten Reasons to Abolish the Export-Import Bank.” Click here to listen.