Posts tagged with: corruption

Blog author: jcarter
Wednesday, December 17, 2014
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Political-Corruption-Bigger-Threat-than-TerrorismPolitical corruption is the use of legislated powers by government officials for illegitimate private gain. While it isn’t as endemic in the U.S. as it is in some countries (Somalia, North Korea, and Afghanistan being the most corrupt), the problem still exists. According to the Justice Department, in the last two decades more than 20,000 public officials and private individuals were convicted for crimes related to corruption and more than 5,000 are awaiting trial, the overwhelming majority of cases having originated in state and local governments.

But measuring corruption based on convictions can be tricky for a variety of reasons, ranging from inadequate data to partisan bias. One alternative measure is to use perceptions, especially of state and local governments. Oguzhan Dincer and Michael Johnston surveyed the news reporters covering state politics in addition to the investigative reporters covering issues related to corruption during the first half of 2014 to gauge their perception of state corruption:

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If corruption were a global industry, it would be the third largest, accounting for 5 percent of the global economy.

In many parts of the world, bribery and corruption are simply considered the price of doing business. However, corruption (both in business and in politics) undermines people’s trust in these institutions. Corruption also forces many people and businesses out of the marketplace and out of the political arena: those with more money are always at an advantage. Transparency International is a German-based organization that works to end corruption. Their video explains what corruption is and how it can be stopped.

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job seekerAccording to the U.S. Department of Labor, unemployment across the country is at about 6.1 percent (here in Michigan, it’s at 7.4 percent, which puts us in the bottom 10 states.) That means a lot of folks are still struggling to find a job, or a job where they are not underemployed.

Peter Morici, an economist at the University of Maryland give 5 reasons for this. Have all the “good” jobs moved overseas? Do we need to raise the minimum wage? Are we Americans lagging behind in math and science? Here are Morici’s thoughts: (more…)

[Part 1 is here.]

In his case against capitalism, Wendell Berry argues that the average person not only is anxious because he depends upon so many other people for his wellbeing (truckers, utility companies, etc.) but that he ought to be anxious. There’s a grain of truth here. We shouldn’t become helpless sheep without a clue what to do were the power to go down for a couple of days in January. But inter-dependency, far from a sign of cultural sickness, is the mark of a healthy society, one where enough trust exists to allow for broadening circles of productivity and exchange, for markets that extend beyond clan and tribe. (more…)

[Part 1 is here.]

Even a cursory look at the annual list of the freest and least free economies in the world suggests a strong correlation between economic freedom and the prosperity of its citizens, including its poorest citizens. But there’s another correlation that tends to capture the attention of those making a cultural critique of the free economy. They note that America is economically free, and that it’s experiencing cultural decay, so they conclude the first causes the second. The conclusion isn’t absurd, but it also doesn’t follow necessarily. Sometimes correlation is due to causation, and sometimes it isn’t. To avoid confusion and false conclusions, we need to distinguish the idea of economic freedom from some things it isn’t.

A lot of people view economic freedom as synonymous with big corporations cutting sweetheart deals with politicians to suppress competitors and consumer choice. This stuff goes on all the time, of course, but it isn’t economic freedom. It’s the leviathan state and big business colluding to manipulate the market, to stack the deck in favor of political insiders. Every market economy on the planet has some of this sort of thing, since economies are operated by fallen human beings. The question is, where does cronyism tend to be the worst? (more…)

briberyThere’s an old saying that corruption is authority plus monopoly minus transparency. That combination makes state-level governments especially prone to the temptations of corruption.

A new study in Public Administration Review, “The Impact of Public Officials’ Corruption on the Size and Allocation of U.S. State Spending,” looks at the impact of government corruption on states’ expenditures. Defining corruption as the “misuse of public office for private gain,” the authors of the paper note that public and private corruption can have a range of negative effects, including lower-quality work, reduced economic productivity, and increased poverty.

According to Leighton Walter Kille, the researchers explored two possible theories: First, higher levels of corruption should cause states’ spending levels to be higher than they would be otherwise. Second, corruption would distort states’ spending priorities in ways that favor bribes from private firms and others. Some of the findings include:
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Many who reject capitalism in favor of some “third way” do so because they often mistake it for government-corporate cronyism, says Jonathan Witt in this week’s Acton Commentary. But in countries that have begun extending true economic freedom to the masses, capitalist activity has already lifted hundreds of millions of people out of extreme poverty.

Happily, a new piece in The Economist magazine offers some helpful medicine for the confusion, insisting on the distinction between cronyism and capitalism while also pointing to some hopeful signs that a rising middle class around the globe is gaining the clout to fight the power structures that still wall millions out of the wealth creation game. My reservation about the article is that it misreads America’s Progressive era, and in the process, leaves cronyism’s favorite trick unexposed.

According to the piece, crony capitalism in America “reached its apogee in the late 19th century, and a long and partially successful struggle against robber barons ensued. Antitrust rules broke monopolies such as John D. Rockefeller’s Standard Oil. The flow of bribes to senators shrank.” Later, it tells readers that while developing countries are making progress against cronyism, “governments need to be more assiduous in regulating monopolies.”

The full text of his essay can be found here. Subscribe to the free, weekly Acton News & Commentary and other publications here.

Edwin Edwards once declared that the only thing that could keep him from Louisiana’s governor’s mansion was getting caught in bed with a “dead girl or a live boy.” He’s been called “The Luca Brasi of the Bayou,” “The Silver Zipper,” and “The Pirate Kingfish.” When Edwards ran against and trounced former Ku Klux Klan leader David Duke in the 1988 governor’s race, he had bumper stickers printed up that read, “Vote for the Crook. It’s Important.” He then declared that the only thing he had in common with Duke was “that we are both wizards under the sheets.”

Edwards

Edwards, a convicted felon, who just three years ago was released from federal prison for conviction on seventeen charges that included extortion, racketeering, conspiracy, money laundering, wire fraud, and mail fraud. Edwards, who was notoriously corrupt, was under investigation for decades. After his conviction, Edwards quipped, “I will be a model prisoner as I was a model citizen.”

He’s tried without success to secure a pardon from President Barack Obama to run for governor of Louisiana, a position the 86 year old is not eligible to hold for 15 years because of his criminal record. However, he’s eligible to run for U.S. Congress, and declared his candidacy yesterday.

Edwards, a life long Democrat, has lived a fascinating if not surreal life in Louisiana politics. There may be no politician that is a better model for Lord Acton’s famous dictum, “power corrupts.” Edwards however, is still loved by large segments of Louisiana’s population. Agnes Brouilette, his mother, was pure Cajun French. As some have said of Edwards in Louisiana, “Un de nous autres.” He’s one of us. His charm and mastery of retail politics is renowned.
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facebook_ad_large_1On-demand ride-sharing services such as Uber and Lyft are on the rise, allowing smartphone users to request cab drivers with the touch of a button. But though the services are popular with consumers and drivers alike, they’re finding less favor among their taxi-company competitors and the unions and government bureaucrats who protect them.

Calling for increased regulation, entrance fees, and insurance requirements, competitors are grappling to retain their privileged, insulated status. In Miami-Dade County, an area with particularly onerous restrictions and regulations, Diego Feliciano, president of the South Florida Taxicab Association, argues that the change is bound to “ruin the very thing it’s trying to improve,” all because it threatens the fat cats who pay his salary, and who can afford to jump through the regulatory hoops. “When looking at new technologies,” he writes, “we must also be sure people’s basic civil rights and the safety of the riding public are protected.”

Bringing these petty municipal battles into the limelight, actor Ashton Kutcher, an early investor in Uber, recently appeared on Jimmy Kimmel Live, decrying “antiquated legislation,” “old-school monopolies,” and “old-school governments” who continue to stand in the way of innovation and consumer demand. In areas like Miami, Kutcher says, there is a “Mafioso mentality” against letting the “new guys” in.

Indeed, as Miami’s Feliciano aptly demonstrates, the protectionist mindset only sees what is, viewing economic activity in static and self-centered terms, and failing to recognize or value the type of opportunity and possibility that comes with increased freedom and ownership. Feliciano claims that he’s interested in “safety” and “basic civil rights,” but the only folks being protected are those with power and pocketbooks. (more…)

John Howard Yoder
Photo Credit: New York Times

Today at Ethika Politika, in my essay “Prefacing Yoder: On Preaching and Practice,” I look at the recent decision of MennoMedia to preface all of Mennonite theologian John Howard Yoder’s works with a disclaimer about his legacy of sexually abusive behavior:

Whatever one thinks of MennoMedia’s new policy or Yoder’s theology in particular (being Orthodox and not a pacifist I am relatively uninterested myself), this nevertheless raises an interesting concern: To what extent ought the character of a theologian matter to their readers and students?

While I am unsure whether MennoMedia has handled this rightly, I appreciate the effort on their part not to turn a blind eye to the complexity of this issue. When it comes to theologians and teachers of morality, personal character does matter, though certainly poor character does not justify dismissing off-hand all a theologian says.

Yet, as I note at Ethika Politika, “while one may be able to study all the mechanics of swimming, for example, and teach them to others from a purely technical point of view, people would naturally be skeptical about the value of this teaching if they discovered their teacher could not actually swim.” Thus, I do not find it surprising or unfounded to be skeptical of Yoder. But what caused this situation? As Lord Acton wrote, “Power tends to corrupt.” (more…)