Category: Law

*Thomas Jefferson: The Art of Power*

I quite liked this book, which is by Jon Meacham.  Here is the bit best suited to MR:

“She [Sally Hemings] was just beginning to understand the French language well, and in France she was free, while if she returned to Virginia she would be re-enslaved,” said Madison Hemings.  “So she refused to return with him.”

It was an extraordinary moment.  Fresh from arranging terms with the bankers of Europe over a debt that was threatening the foundation of the French nation, Thomas Jefferson found himself in negotiations with a pregnant enslaved teenager who, in a reversal of fortune hardly likely to be repeated, had the means at hand to free herself.

…So he began making concessions to convince Sally Hemings to come home to Virginia.  “To induce her to do so he promised her extraordinary privileges, and made a solemn pledge that her children should be freed at the age of twenty-one years,” Madison Hemings said.

Sally Hemings agreed…

Their father kept the promise he had made to Sally in Paris. “We all became free agreeably to the treaty entered into by our parents before we were born,” Madison Hemings said.  It was one of the most important pacts of Jefferson’s life.

The High Price of False Security

Charles Kenny has an excellent piece in Bloomberg BusinessWeek about security:

The attention paid to terrorism in the U.S. is considerably out of proportion to the relative threat it presents. That’s especially true when it comes to Islamic-extremist terror. Of the 150,000 murders in the U.S. between 9/11 and the end of 2010, Islamic extremism accounted for fewer than three dozen. Since 2000, the chance that a resident of the U.S. would die in a terrorist attack was one in 3.5 million, according to John Mueller and Mark Stewart of Ohio State and the University of Newcastle, respectively. In fact, extremist Islamic terrorism resulted in just 200 to 400 deaths worldwide outside the war zones of Afghanistan and Iraq—the same number, Mueller noted in a 2011 report (PDF), as die in bathtubs in the U.S. alone each year.

…According to one estimate of direct and indirect costs borne by the U.S. as a result of 9/11, the New York Times suggested the attacks themselves caused $55 billion in “toll and physical damage,” while the economic impact was $123 billion. But costs related to increased homeland security and counterterrorism spending, as well as the wars in Iraq and Afghanistan, totaled $3,105 billion.

Matt Yglesias adds a good point:

Something that I would love to see the Transportation Security Administration, the FBI, the CIA, and whoever else do is pull together an estimate of how many airplanes they think would have been blown up by terrorists if there was no passenger or baggage screening whatsoever. One way of thinking about it is this. If commercial airplanes were no more secure than your average city bus, planes would be blown up as frequently as city buses—which is to say never. I’ve heard some people postulate that terrorists have a special affection for blowing up planes, but I’m not sure that’s right. In the not-too-distant past, Israel had a substantial terrorists-blowing-up-buses problem and had to take countervailing security measures. But unlike Israel, we’re not doing anything to secure our buses. It’s at least possible that nobody blows up American buses because nobody is trying to blow anything up.

I would also add to the monetary costs the price of lost civil liberties and a populace that has sadly grown accustomed to government surveilling, scanning, and groping. As I said some years ago when visiting Independence Hall, the price of eternal vigilance is liberty.

Comprar una casa obtener una visa

It appears that the “buy a house, get a visa” program that I have long advocated will soon been implemented…in Spain.

Spain has between 700,000 and 1.1 million unsold new homes following the collapse of its real estate market in 2008 with an estimated third of them being designed as holiday homes in coastal tourist areas

…Spain plans to offer foreigners residency permits if they buy houses worth more than 160,000 euros, in a desperate attempt to reduce the nation’s glut of unsold property.

…The scheme would also allow foreign buyers to move around the 25-nation Schengen zone freely, as the agreement allows holders of a residency permit of one country in the area to travel to – though not work in – any other.

160,000 euros is the national average price of a property in Spain and that is only $200,000. Spain has some beautiful coastal property and a nice apartment in Barcelona can be had for a bit more. The time to buy could be soon.

Gaolbalization offshoring markets in everything the culture that is Dutch (Belgian)

Belgium and the Netherlands have an interesting arrangement, an example of economics and incentives working clearly in the public law field. Belgium has more convicts than it can accommodate in its prisons. Neighboring Netherlands has the opposite problem: not enough prisoners. Several years ago, it was facing having to shutter some facilities. But then the two countries made a deal: Belgium rents space for its inmates in Dutch jails, patrolled by Dutch corrections guards. (Perhaps the Flemish hope they can be “transferred” to Dutch custody as well, or at least out of Belgium.)

Here is more, from Eugene Kontorovich, pointer from the estimable Chug.

Don’t Mess with the Mouse

On Saturday the House Republican Study Committee released a radical but sensible position paper on copyright that called for limiting statutory damages (which are typically far higher than actual damages), expanding fair use exceptions, punishing false copyright claims and limiting terms. The position paper included good material on how to interpret copyright law such as:


Myth: The purpose of copyright is to compensate the creator of the content:

…according to the Constitution, the overriding purpose of the copyright system is to “promote the progress of science and useful arts.” In today’s terminology we may say that the purpose is to lead to maximum productivity and innovation.

This is a major distinction, because most legislative discussions on this topic, particularly during the extension of the copyright term, are not premised upon what is in the public good or what will promote the most productivity and innovation, but rather what the content creators “deserve” or are “entitled to” by virtue of their creation. This lexicon is appropriate in the realm of taxation and sometimes in the realm of trade protection, but it is inappropriate in the realm of patents and copyrights.

The paper also made a number of excellent points about how too much copyright can impede innovation and how rent seekers may come to dominate the process.

Mike Masnick and Cory Doctorow called the report “a watershed moment,” and there was lots of discussion on twitter and elsewhere about how this represented a Republican move towards recapturing youth and reasserting support for markets and innovation over business interests.

Alas, it was not to be. Within 24 hours the report was yanked. It doesn’t take much inside knowledge to guess what happened  It does give me some pleasure, however, to say that you can still read the report courtesy of the Maryland Pirates.

The Incidence of Mandated Maternity Benefits

I know that is from 1994, but it is by Jonathan Gruber (pdf) and the point is an important one:

I consider the labor-market effects of mandates which raise the costs of employing a demographically identifiable group. The efficiency of these policies will be largely dependent on the extent to which their costs are shifted to group-specific wages. I study several state and federal mandates which stipulated that childbirth be covered comprehensively in health insurance plans, raising the relative cost of insuring women of childbearing age. I find substantial shifting of the costs of these mandates to the wages of the targeted group. Correspondingly, I find little effect on total labor input for that group.

This has become more relevant in light of a recent story out of California, excerpt:

The ability of the exchange to lower healthcare costs remains unclear. Experts said average premiums could rise in the exchange because the Affordable Care Act requires improved benefits, but consumers’ out-of-pocket medical costs could decrease under those same changes.

California insurance officials have expressed concern about substantial rate hikes for some existing policyholders going into the exchange.

Under a new rating map approved by state lawmakers, the Department of lnsurance estimated that premiums for similar coverage could increase as much as 25% in West Los Angeles, 22% in the Sacramento area and nearly 13% in Orange County.

I believe some of that is from a pooling effect and some from a greater coverage effect.  I do not, by the way, find this reassuring:

Janice Rocco, the state’s deputy insurance commissioner for health policy, said her agency is pushing a new rating map that would cap increases at 8%. That proposal could be considered during a special legislative session in the coming months.

“We want to minimize the rate spikes,” she said.

I’ve said it before and I’ll say it again: the mandate as currently constituted probably won’t work.  The Medicaid extension can, in principle, work, and yet the state-level rebellion against it does not seem to be fading away.

Indian economists want the Food Security Bill modified

You will find their petition here, signed by many notables including from MIT and Princeton.  They want to “abolish the distinction between general and priority households, and give the same PDS entitlements to all households outside the excluded category.”  Furthermore cash transfers are raised as an alternative possibility, a good idea in my view.

Vipin Veetil and Atanu Dey raise some issues which these economists neglected, for instance:

On the production side, laws restricting for-profit corporate investments in agriculture (like those forbidding corporate ownership of agricultural land) starve the rural economy of capital investment and technology transfers. Such laws have two effects. First, they impoverish farmers by reducing demand for their primary asset – agricultural land. Second, corporations bring efficiency gains through large-scale knowledge-intensive farming. This is equally damaging but more difficult to detect. In addition they furnish a steady wage income to workers; this is desirable for low-income households. In the absence of corporations (and markets for insurance) farmers have no way of transferring the risk of production, i.e. they borrow money on fixed rates but face an uncertain return on investment. A crop failure then has the potential to begin a debt-cycle.

All those smart economists on the first petition, and not nearly enough talk of markets.

The culture that is Japan

The number of elderly criminals being caught by Japanese police has rocketed, the Japanese Justice Ministry said yesterday, with pensioners committing almost 50 times more assaults than two decades ago.

The number of criminals aged 65 or older booked by police last year increased by 475 from the previous year to 48,637, more than six times as many as 20 years ago, the ministry said in its latest white paper on crime.

Here is more, courtesy of Mark Thorson.

Marijuana Liberalization Reduces Drunk Driving Fatalities

Anderson, Hansen and Rees look at Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption:

To date, 17 states have passed medical marijuana laws, yet very little is known about their effects. The current study examines the relationship between the legalization of medical marijuana and traffic fatalities, the leading cause of death among Americans ages 5 through 34. The first full year after coming into effect, legalization is associated with an 8 to 11 percent decrease in traffic fatalities. The impact of legalization on traffic fatalities involving alcohol is larger and estimated with more precision than its impact on traffic fatalities that do not involve alcohol. Legalization is also associated with sharp decreases in the price of marijuana and alcohol consumption, suggesting that marijuana and alcohol are substitutes. Because alternative mechanisms cannot be ruled out, the negative relationship between legalization and alcohol-related traffic fatalities does not necessarily imply that driving under the influence of marijuana is safer than driving under the influence of alcohol.

The decline in alcohol consumption is consistent with the fact that alcohol producers have opposed marijuana legalization. Hat tip: Scott Cunningham.

Marijuana, Prescription Requirements and the Doctrine of Informed Consent

It used to be common for physicians to withhold information and even to misinform patients “for their own good.” Authorities as venerable as Hippocrates advocated that some information be concealed from patients. Today, most of us would find it outrageous if a physician misinformed his patient to perform surgery regardless of the reasons. Changes in public opinion and a series of court cases have overruled medical paternalism. In the 1914 case Schloendorff v. Society of New York Hospital, Benjamin Cardozo wrote:

Every human being of adult years and sound mind has a right to determine what shall be done with his own body; and a surgeon who performs an operation without his patient’s consent commits an assault for which he is liable in damages. This is true except in cases of emergency where the patient is unconscious and where it is necessary to operate before consent can be obtained.

It wasn’t until the late 1950s and in particular the 1957 case Salgo v. Leland Stanford, however, that the doctrine of informed consent (DIC) became well accepted in practice and in medical ethics. The doctrine of informed consent has both consequentialist and deontological justifications. On the consequentialist side, informed consent generally leads to better medical outcomes. Patients are also better able to understand their own overall interests than are others so the DIC leads to better overall welfare. On the deontological side, it is today widely accepted that all patients have a right to autonomy and that physicians cannot justly abrogate that right even in the patient’s own interest. It would be wrong to require someone to undergo surgery even if such surgery was necessary to save their life.

In an interesting paper in the Journal of Medical Ethics Jessica Flanigan argues that the same reasons which support the doctrine of informed consent also support a patient’s right to use pharmaceuticals without a doctor’s prescription. Based on Peltzman and Temin she argues that the consequential outcomes of prescription-only have not been good, at least not overwhelmingly so. Most importantly, patient autonomy applies just as much to the choice to medicate as to the refusal to medicate:

Citizens have rights of self-medication for the same reasons that they have rights of informed consent. The prescription drug system has bad consequences and it privileges regulators’ and physicians’ judgements about a patient’s health over the patient’s judgement about her overall well-being. Most troublingly, the prescription drug system violates patients’ rights.

Instead, I propose that prohibitive pharmaceutical policies, which are a kind of strong paternalism, be replaced by nonprohibitive policies that enable patients to obtain whatever medicines they choose while promoting informed consumer choices by making expert advice readily available.

Notice that the argument is not simply that prescription only requirements are against social welfare but rather that support for the doctrine of informed consent also supports the right to use pharmaceuticals without getting the consent of an official.

I am pleased that the voters in Colorado and Washington approved adults to use marijuana for any purpose. In the future people will be shocked that we arrested millions for marijuana use in the same way that we are shocked that doctors used to perform surgeries without a patient’s informed consent.

How not to regulate driverless cars

One issue is that the laws are requiring licensed drivers to sit in the driving seat, eliminating one of the main advantages of the technology.  Yet there are more problems.  From Marc Scribner:

Bizarrely, Cheh’s bill also requires that autonomous vehicles operate only on alternative fuels.

And:

Another flaw in Cheh’s bill is that it would impose a special tax on drivers of autonomous vehicles. Instead of paying fuel taxes, “Owners of autonomous vehicles shall pay a vehicle-miles travelled (VMT) fee of 1.875 cents per mile.” Administrative details aside, a VMT tax would require drivers to install a recording device to be periodically audited by the government. There may be good reasons to replace fuel taxes with VMT fees, but greatly restricting the use of a potentially revolutionary new technology by singling it out for a new tax system would be a mistake.

Cheh is on the D.C. City Council.

What would it look like if we were to rewrite all of the regulations for “drivered” cars today?

When the hoarding equilibrium sets in

There were no laws against price gouging. But the petrol stations knew that every single customer would hate them if they were the only station to let prices rise such that supply and demand came back into equilibrium. And so because the stations didn’t gouge, we were in a terrible equilibrium where everyone’s rational response to the below-clearing price was to hoard, because there was real risk that the stations would run out of fuel. And there was real risk of running out of fuel because of the hoarding. Breaking the hoarding equilibrium would have required a coordinated price hike that both allocated fuel to its highest valued uses and told everyone that there would be fuel available for them in an emergency if they really really needed it. That latter part is crucial – it kills the incentive to hoard.

That is from Eric Crampton.  Eric makes a further point.  Even in the absence of laws against price gouging, individual stations may be reluctant to raise prices and incur the wrath of customers.  Yet if all stations would raise prices, and markets would clear, consumers would know they could get emergency gasoline if they had to.  That would help break the hoarding equilibrium, if done collectively.  The real market failure may be the unwillingness to raise prices.

Addendum: Here is what we are getting: “He also said the Defense Department was sending in 12 million gallons of fuel to be pumped from five mobile stations. “They’ll have a 10-gallon limit,” the governor said. “The good news is, it’s going to be free.”

MOOC cheating (model this)

From an email from Coursera:

Several students have contacted me about cases of cheating on the Final Exam. Frankly, why anyone who do this in a course that focuses on learning and offers no credentials, beats me. Students who cheat are really cheating themselves. If you are sure an answer is plagiarized from somewhere else (often easy to determine with a quick web search), you could simply award 1’s everywhere, which amounts to a score of 0. Whether you do that for one question or the whole exam is up to you. If there is any doubt that the student has broken the honor code, you have to give the student the benefit of that doubt. 0 on the whole exam is more significant than on one question. Though again, the stakes here are essentially zero; it’s mostly about self esteem, surely. For truly egregious cases, send me the details (your login id and the Student number (1, 2, or 3) and I can take it from there. Violation of the honor code is cause for expulsion from the class. Expulsion has occurred, in this class and others, I’m sad to say.

Meanwhile, if you want to know how evaluation training and peer grading looked from our side (the instruction team and the folks at Coursera who were making sure the ship stayed afloat), check out my latest post at MOOCtalk.org to see what was going on behind the scenes. Enjoy! 🙂

I thank AA for the pointer.