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11. Broken Borders: Government, Foreign-Born Workers, and the U.S. Economy

Author:
Benjamin W. Powell and Zachary Gochenour
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
The U.S. government interferes with the market for foreign laborers by restricting the number and mix of immigrants and setting tight quantitative limits on foreign-born guest workers. This has created a mismatch between the demand for foreign workers from U.S. businesses and their supply, directly leading to the illegal immigration situation we confront today. The current system inefficiently limits the gains that our economy could achieve from employing larger numbers of foreign workers, and it disproportionately harms small U.S. businesses. The economic fears associated with increased guest workers or immigrants are unfounded. The current Senate immigration reform proposal would be a marginal improvement but does not go far enough. Red Card, an alternative guest worker proposal, would better coordinate labor markets. Ultimately, an immigration market free from government limitations and interference would be the most efficient solution.
Topic:
Economics, Labor Issues, Immigration, and Governance
Political Geography:
United States and North America

12. 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

13. 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

14. 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

15. 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

16. Keys to Economics of Global Warming: A Critique of the Dismal Theorem

Author:
Sungno Niggol Seo
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
M. L. Weitzman in his paper "On Modeling and Interpreting the Economics of Catastrophic Climate Change" argues that a standard cost-benefit analysis cannot be used as a tool for climate change policy since the problem of climate change possesses a large irresolvable uncertainty. I critique his analysis on two grounds: 1) key issues in the economics of global warming and 2) the claim on catastrophe. I point out that the fundamental economics of global warming is to provide a public good that is spatially global and temporally lasting, for several centuries, by a globally coordinated effort. The fundamental issue is how to cooperate on a global scale to regulate greenhouse gases given the divergent needs and preferences of individuals, businesses, countries, and even future generations. I argue that Weitzman misinterprets climate science by assuming that all scenarios are equally likely and that there will be no policy intervention to control greenhouse gases. In addition, he focuses on long-term climate predictions. Finally, impact studies do not support catastrophic outcomes from climate change within this century.
Topic:
Climate Change, Economics, Environment, and International Cooperation

17. A Report on the Patrol Special Police and Community Safety in San Francisco

Author:
Edward Stringham
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
This paper provides an analysis of one of the longest established private police groups in America, the San Francisco Patrol Special Police (PSP). Dating back to the days of the Gold Rush, the PSP are a collection of independent companies that the city charter authorizes to patrol different neighborhoods at the request of private clients. A survey was conducted to investigate why private parties pay the PSP rather than simply relying on government police. The results indicate that the PSP play an important role in providing safety that citizens cannot obtain if they rely solely on the San Francisco Police Department's safety services. However, despite these evident benefits, the PSP face some challenging political and regulatory obstacles. This article finds evidence that members of the San Francisco Police Department (SFPD) have been using regulations to restrict competition and effectively take over business using the force of law. This report documents some of the expenses these practices cost taxpayers and offers some suggestions for regulatory reform.
Topic:
Law Enforcement
Political Geography:
United States, America, and San Francisco

18. 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

19. Jacob K. Javits and Latin American Economic Integration

Author:
Salvador Rivera
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Since the end of the Second World War the United States has zealously pursued internationalism, the policy of establishing a new economic and political order based on free trade. Internationalism views the world as one community. It seeks to create a common body of political, economic and social values with an emphasis on human rights, environmentalism and the expansion of democracy.
Topic:
Economics, International Trade and Finance, and Regional Cooperation
Political Geography:
United States and Latin America

20. 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