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1. Better Than Government A New Way of Managing Life’s Risks

Author:
John Goodman
Publication Date:
10-2016
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
For decades, people have increasingly sought to better manage life’s risks by appealing for help from their government, even when other alternatives would yield better results. Moreover, the growing dependence on government to solve major life problems has taken a heavy toll—higher taxes, greater political polarization, and numerous hidden costs and unintended consequences. Fortunately, we need not resign ourselves to this predicament. Opportunities for better managing life’s risks and reducing government waste are all around us, according to Independent Institute Senior Fellow John C. Goodman.
Topic:
Government
Political Geography:
America

2. Failure to Provide: Healthcare at the Veterans Administration

Author:
Ronald Hamowy
Publication Date:
03-2010
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
Prior to World War I, the federal government effectively provided no hospital or medical care to veterans other than extending domiciliary care to a few veterans disabled while in service. With American entry into World War I, however, it was decided to extend the treatment accorded members of the armed forces who were receiving hospital care after they had been mustered out. As a consequence the Veterans Bureau was created in 1921. In 1930 a new agency, the Veterans Administration (VA), took over responsibility for all veterans\' affairs. Following World War II and the passage of a comprehensive GI Bill that included generous medical and hospital care for returning soldiers, the VA rapidly expanded to the point whereby it established itself as the largest supplier of health care in the nation. For most of the period since the end of World War II these medical facilities were plagued by waste, poor management, and negligence. While it is true that conditions at VA facilities have improved since the late 1980s, they still lag behind those that obtain at the nation\'s voluntary hospitals. The shift from inpatient to ambulatory care, an increase in chronic care needs in an aging population, and increases in the demand for medical services as a result of the most recent Middle Eastern conflicts clearly undermines the reason originally put forward to operate a direct health care system. However, given the pressures put upon Congress by the American Legion and other veterans groups, it is unlikely that the United States will follow the lead of the governments of Australia, Canada, and the United Kingdom and close or convert their hospitals to other uses and integrate the treatment of veterans into the general heath-care system.Prior to World War I, the federal government effectively provided no hospital or medical care to veterans other than extending domiciliary care to a few veterans disabled while in service. With American entry into World War I, however, it was decided to extend the treatment accorded members of the armed forces who were receiving hospital care after they had been mustered out. As a consequence the Veterans Bureau was created in 1921. In 1930 a new agency, the Veterans Administration (VA), took over responsibility for all veterans\' affairs. Following World War II and the passage of a comprehensive GI Bill that included generous medical and hospital care for returning soldiers, the VA rapidly expanded to the point whereby it established itself as the largest supplier of health care in the nation. For most of the period since the end of World War II these medical facilities were plagued by waste, poor management, and negligence. While it is true that conditions at VA facilities have improved since the late 1980s, they still lag behind those that obtain at the nation\'s voluntary hospitals. The shift from inpatient to ambulatory care, an increase in chronic care needs in an aging population, and increases in the demand for medical services as a result of the most recent Middle Eastern conflicts clearly undermines the reason originally put forward to operate a direct health care system. However, given the pressures put upon Congress by the American Legion and other veterans groups, it is unlikely that the United States will follow the lead of the governments of Australia, Canada, and the United Kingdom and close or convert their hospitals to other uses and integrate the treatment of veterans into the general heath-care system.
Topic:
Government and Health
Political Geography:
United States, United Kingdom, Canada, Arabia, and Australia

3. Medical Disasters and the Growth of the FDA

Author:
Ronald Hamowy
Publication Date:
02-2010
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
There is strong evidence that the spectacular growth in the size of the federal government is a result of its expansion following one crisis or another, either real or imagined. After the crisis it gains new powers that become the norm for the next stage of growth. The Food and Drug Administration provides a particularly apt example of this increase in powers as a response to a series of crises, each of which has increased the regulatory authority of the agency. The Food and Drug Administration, which did not even exist before the twentieth century, now possesses massive regulatory powers over products that account for no less than twenty-five cents of every dollar spent by the American consumer, totaling well over $1 trillion annually. Historical investigation shows that the agency has been able to take advantage of several perceived crises, the combined effect of which was to increase its authority to determine what Americans ingest to the point where today, at least in the case of drugs, it is the agency—and not the consumer—that determines when and what is available. A regulatory agency originally established to ensure that consumers would be provided with full and accurate information on the drugs available to them has become one that determines which drugs are available, when they might be administered, and who may ingest them. This essay traces this growth in terms of the legislative reaction to three crises, the diphtheria antitoxin crisis of 1901, the sulfanilamide crisis of 1937, and the thalidomide crisis of 1960.
Topic:
Government and Health Care Policy
Political Geography:
United States

4. Internal Enforcement: The Political Economy of Immigration

Author:
Keith D. Malone
Publication Date:
10-2009
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Over the past several years, Americans have become more aware and more vocal regarding the number of illegal aliens who have taken up residence in the United States. While this issue—and a resolution of this issue—is still being debated, many have questioned why current enforcement efforts are so lax. The focus of this paper is on the government agency responsible for the enforcement of our immigration laws, and in particular how the actions of this agency are influenced by political interests. This paper fills a gap in the literature-to-date by examining the enforcement of immigration laws within the interior of the nation. While other studies put border enforcement efforts in a political framework, this analysis is the first, to the authors' knowledge, to place interior enforcement within the interest-group theory of government framework. Our findings indicate that pressure groups shape the pattern of enforcement that emerges. Despite polls that indicate a majority of Americans favoring stricter enforcement, government enforcement agencies charged with this responsibility apparently succumb to the wishes of those that matter most politically.
Topic:
Government, Political Economy, Politics, Immigration, and Law Enforcement
Political Geography:
United States and America

5. Insurance Regulation in the United States and the European Union: A Comparison

Author:
Martin Eling, Robert W. Klein, and Joan T. Schmit
Publication Date:
11-2009
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
In this paper we compare insurance regulatory frameworks in the United States (US) and European Union (EU), focusing primarily on solvency, but also considering product and price regulation, as well as other elements of consumer protection. This comparison highlights the use of more fluid and principles-based approaches in the EU as it is developing under Solvency II, while the US continues to focus essentially on static, rules-based regulation. The discussion further notes evidence suggesting that the EU approach is more successful in promoting a financially solid insurance sector.
Topic:
Government and Political Economy
Political Geography:
United States and Europe

6. Anatomy of a Train Wreck: Causes of the Mortgage Meltdown

Author:
Stan J. Liebowitz
Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
Why did the mortgage market melt down so badly? Why were there so many defaults when the economy was not particularly weak? Why were the securities based upon these mortgages not considered anywhere as risky as they actually turned out to be? This report concludes that, in an attempt to increase home ownership, particularly by minorities and the less affluent, virtually every branch of the government undertook an attack on underwriting standards starting in the early 1990s. Regulators, academic specialists, GSEs, and housing activists universally praised the decline in mortgage-under- writing standards as an “innovation” in mortgage lending. This weakening of underwriting standards succeeded in increasing home ownership and also the price of housing, helping to lead to a housing price bubble. The price bubble, along with relaxed lending standards, allowed speculators to purchase homes without putting their own money at risk. The recent rise in foreclosures is not related empirically to the distinction between subprime and prime loans since both sustained the same percent- age increase of foreclosures and at the same time. Nor is it consistent with the “nasty subprime lender” hypothesis currently considered to be the cause of the mortgage meltdown. Instead, the important factor is the distinction between adjustable-rate and fixed-rate mortgages. This evidence is consistent with speculators turning and running when housing prices stopped rising.
Topic:
Economics, Government, Markets, Financial Crisis, and Minorities
Political Geography:
United States

7. Privatizing the Adjudication of Disputes

Author:
Bryan Caplan and Edward P. Stringham
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Must the state handle the adjudication of disputes? Researchers of different perspectives, from heterodox scholars of law who advocate legal pluralism to libertarian economists who advocate privatizing law, have increasingly questioned the idea that the state is, or should be, the only source of law. Both groups point out that government law has problems and that non-state alternatives exist. This article discusses some problems with the public judicial system and several for-profit alternatives. Public courts lack both incentives to be customer oriented and pricing mechanisms, plus they face problems associated with the bureaucratic provision of services. When parties can choose their tribunals, in contrast, those tribunals must serve customers and be mindful about conserving resources. Competition between arbitrators also can allow for experimentation and the provision of customized services rather than a centrally planned, one size fits all system. Contracts with an arbitration clause can easily stipulate the choice of tribunal, and we argue that if government courts simply refused to overrule binding arbitration agreements, de facto privatization could easily take place. This article discusses how private adjudication of disputes could enable the market to internalize externalities and provide services that customers desire.
Topic:
Civil Society, Government, Markets, and Privatization

8. The Radical Libertarian Political Economy of 19th Century Preacher David Lipscomb

Author:
Edward P. Stringham
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
David Lipscomb (1831-1917) was an influential Tennessee preacher who edited a weekly paper from 1866-1917 and published a book Civil Government in 1889. Although few, if any, economists appear to be aware of David Lipscomb, Lipscomb's writing includes many points that political economists, especially radical libertarian ones, are making today. This article highlights some of Lipscomb's insights and relates them to arguments made by economists in the past three decades. Lipscomb argued that government is not created for the benefit of the public but for the benefit of the rulers. He believed that all governments, including democratic ones, are problematic. He argued that self-serving politicians actually create conflict and violence and that the public should withdraw support from government. He argued that moral people should not participate in politics, should not vote, and should not fight in wars. Modern libertarian economists make similar arguments that Lipscomb made more than a century in advance.
Topic:
Civil Society, Government, and Politics
Political Geography:
United States

9. Somalia After State Collapse: Chaos or Improvement?

Author:
Benjamin Powell, Alex Nowrasteh, and Ryan Ford
Publication Date:
11-2006
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Many people believe that Somalia's economy has been in chaos since the collapse of its national government in 1991. We take a comparative institutional approach to examine Somalia's performance relative to other African countries both when Somalia had a government and during its extended period of anarchy. We find that although Somalia is poor, its relative economic performance has improved during its period of statelessness. We also describe how Somalia has provided basic law and order and a currency, which have enabled the country to achieve the coordination that has led to improvements in its standard of living.
Topic:
Development, Economics, and Government
Political Geography:
Africa and Somalia

10. Development Aid and Economic Freedom: Are They Related?

Author:
Benjamin Powell and Matt Ryan
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
For more than 50 years individual countries and international agencies have given aid to third world countries to promote economic development, yet poverty still persists in many recipient nations. In recent years development economists and agencies have increasingly recognized the importance of institutions that support property rights and economic freedom in promoting development. Nevertheless, nations continue to provide aid to less developed countries. This raises two important questions. Does the receipt of aid lead to increases or decreases in economic freedom, and are increases in economic freedom rewarded with more aid or punished with reduced aid?
Topic:
Development, Economics, Government, and Poverty