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Florida Archive

Sunday

10

June 2012

0

COMMENTS

Justice Should Be the Priority

Written by , Posted in The Courts, Criminal Justice & Tort

The Florida Innocence Commission was established in 2009 by the State Supreme Court “to conduct a comprehensive study of the causes of wrongful convictions and of measures to prevent such convictions.” Seem like a reasonable objective to me. The Commission cost $200,000, a more than reasonable price for checking a potential source of government abuse. But Florida’s Governor Rick Scott disagrees, and has defunded the commission.

Providing for criminal justice is an legitimate and vital function of government, and states spend a lot of money doing just that. Many conservatives believe that it is enough to be “tough on crime,” and the stance seems to appeal to most voters. But conservatives should do better than just taking a simplistic, populist approach if it means creating new problems, and if better approaches exist. It’s good to be tough on crime as a general matter, but that can’t involve just taking a blindly aggressive approach to all things criminal justice, otherwise you end up with a system full of abuses and which is tough on both criminals and non-criminals alike.

Since 1973, there have been 23 Florida death row inmates released after evidence emerged to call their guilt into question. It costs a lot of money to process, house and exhaust the legal appeals of a death row inmate, never minding the impact on their civil liberties, and someone truly interested in leading a small, fiscally responsible government should welcome the opportunity to make a tiny investment if it means identifying sources of injustice in the justice system, so that future wrongful convictions can be avoided.

Police, prosecutors and judges are agents of the state. They posses tremendous power over the lives of citizens, and like any state power there is significant potential for abuse. Spending $200,000 to look at whether that power is being applied accurately shouldn’t be too much to ask, and is as smart an investment fiscally as it is the moral and right thing to do.

Tuesday

13

July 2010

1

COMMENTS

“Price Gouging” Laws Compound Natural Disasters with Political Disaster

Written by , Posted in Economics & the Economy, Energy and the Environment, Government Meddling, The Nanny State & A Regulated Society

Florida Senator Bill Nelson is seizing on the BP oil spill as an excuse to pass federal “price-gouging” legislation.  It’s certainly nothing new to see anti-market politicians stirring up populist rage with these so-called “price gouging” laws.  Many states already have them on the books, and politicians are quick to warn greedy capitalists against “exploiting” disasters by raising prices.  But these laws are really nothing more than price controls and, like all price controls, they distort markets and harm consumers.

“Price-gouging” laws generally prohibit “excessive” or “unconscionable” prices – both unconstitutionally vague concepts –   immediately following disaster declarations.  Prosecutions typically follow hurricanes, floods or other major events that knock out power and stress the availability of goods like ice and power generators.

Under normal circumstances, sudden increases in demand result in similarly sudden spikes in prices.  As prices go up, entrepreneurs in nearby areas are motivated to buy goods at their cheaper local prices, transport them into the disaster area, and then sell them for a handsome profit.  This is how price signals work to indicate where goods are most needed.  The entrepreneurs make enough money to justify their efforts, and people in the disaster area are able to get the extra supplies they need.  Yet despite the fact that everyone wins, many politicians have criminalized this behavior.  Rather than cheering the entrepreneurs for bringing relief  supplies that would not otherwise arrive to post-disaster areas, state government officials often prosecute, fine and even jail them.

Not satisfied with the fact that a majority of states already have these misguided price controls on the books, federal politicians have repeatedly tried to have them enacted nationally.  A bill that would have criminalized charging market prices for needed goods passed the House in 2007, but failed to get the 2/3rd votes necessary to override President Bush’s threatened veto.  Now, with a more sympathetic President Obama in office, such legislation could potentially return, and pass.

Bill Nelson’s state of Florida already unnecessarily perpetuates shortages after hurricanes and other disasters with misguided price controls.  He shouldn’t force similar pain on the 20 or so states without price gouging laws.

Monday

12

July 2010

2

COMMENTS

LeBron's Migration Mirrors That Of The Broader Public

Written by , Posted in Economics & the Economy, Taxes

Basketball is not my sport of choice, so I had no vested interest in the outcome of the recent drama surrounding LeBron James.  Even though I still consider Florida my home state, I don’t care that he’s chosen to play in Miami.  I am, however, struck by the degree to which LeBron’s decision mirrors that of so many ordinary Americans and businesses.  Namely, I note that he’s spurned high tax jurisdictions for income-tax free Florida.

Obviously, LeBron made his decision on more than just economic factors, though it’s fair to say that pay and other monetary factors mattered to some degree.  Although the sports community narrative involves James joining basketball super stars Wayne and Bosh – as well as some cries about the fairness of this team construction – the fact that all came together in Florida shouldn’t come as any surprise.  From 1999-2008, more Americans have migrated to the zero-income-tax-having Sunshine State than any other.  Meanwhile, the other states involved in the LeBron saga – Ohio, Illinois and New York – are 3 of the bottom 6 in net migration, with more Americans fleeing New York than any other state in the union.

These patterns should not come as any surprise when you contrast Florida’s lack of an income tax with the top marginal rates of Ohio (7.93%), Illinois (3.0%) and New York (12.62%).  But perhaps more importantly is the degree to which businesses are motivated by the same considerations.  Corporate taxes and regulatory environments shape corporate decisions every day, with states like New York and California increasingly driving businesses away as they look for more favorable environments.  This kind of tax competition is an important check on bad government policy, but it can be painful when you’re in one of the states being driven into the ground by short-sighted politicians.  While LeBron James just might have considered these factors in his decision, that ordinary Americans and businesses do is without question – and the consequences for high tax jurisdictions are as clear as Cleveland’s outrage.