Showing posts with label unintended consequences. Show all posts
Showing posts with label unintended consequences. Show all posts

Wednesday, March 9, 2016

Occupy Brain Cells



Legislating in the streets

It is a complex world in which we live. We’re sure we know what we want, our grand vision. Social activists protest, lobby, and press. The President wields his pen and his phone. Legislators legislate. Bureaucrats regulate. The politically correct cudgel us into their approved mindsets. Humiliation is used as a weapon to ensure lock-step thinking. Yes, we are a happy people, all happy together, thinking our approved, happy thoughts.

But sometimes this man-made nirvana falls short. Here are a few examples.

The Cecil Effect

You may recall Walter Palmer, the dentist who shot Cecil the lion. The outcry was enormous, Palmer thoroughly villainized, and trophy hunting put into the shame locker. All as it should be, you might observe.

Except that it’s not.

On February 23, the Los Angeles Daily News published a piece entitled “Why the Cecil effect is bad news.” Apparently trophy hunting has dropped sharply in Africa. The Bubye Valley Conservancy, a huge wildlife reserve in Zimbabwe, is reporting a sharp overpopulation of lions.

According to the article, “Bubye Valley Conservancy has more than 500 lions, and they may have to cull 200 in order to reach a level that is sustainable.” (To those not in the know, a cull is a selective slaughter).

The other animals in the conservancy are suffering as a result. Hungry lions are “eating up way too many antelope, giraffe, cheetah, leopards and wild dogs.”

It is also reported that villagers who had relied on the hunters’ trade are sinking deeper into poverty.

This is a perfect example of an unintended consequence. Activists and lobbyists and shamers were quick to jump on Dr. Palmer in particular and trophy hunting in general with no thought of the predictable outcome.

That’s a good start… here’s another one closer to home.

Legalized Marijuana and Heroin Deaths

There has been a sea change in how marijuana is viewed in our nation.  According to Governing Magazine, “Twenty-three states and the District of Columbia currently have laws legalizing marijuana in some form.”

One of those states is Massachusetts, where medical marijuana has been legalized and personal use decriminalized. This is the right thing to do from a classic libertarian point of view. But perhaps not without consequences.

While the pot smokers are happy, there has been a disturbing, and very deadly, increase in deaths from opioid overdoses. (This includes heroin and painkillers).

For Massachusetts, according to Masslive, “the number of confirmed cases of unintentional opioid overdose deaths for 2014 was 1,089 – a 63 percent increase from the 668 deaths in 2012, and a 20 percent increase over the 911 cases in 2013.”

It’s not just a local issue. The Boston Globe tells us that “nationally, 125 people a day die from overdosing on heroin and painkillers.” That’s over 45,000 deaths per year, about the same as automobile deaths and gun homicides combined. Where is this plague coming from?

The Washington Post has a clue. In a January 11th article, they tell us “Mexican traffickers are sending a flood of cheap heroin and methamphetamine across the U.S. border, the latest drug seizure statistics show, in a new sign that America’s marijuana decriminalization trend is upending the North American narcotics trade.”

We shouldn’t have been surprised by the outcome of legalizing weed. It was perfectly predictable, and could have been accompanied by mitigating actions with only a little foresight. (For instance, the Swiss drug policy model, which offers free, safe opioid substitutes to addicts).

Alright, time for just one more.

Shootings double in Chicago

The Chicago Tribune reported just a few weeks ago that the homicide rate in Chicago has doubled compared to a year ago.

In Chicago, “The city has recorded at least 95 homicides since the first of the year, compared to 47 last year, according to data kept by the Tribune. The city has also more than doubled the amount of people shot - about 420 this year compared to 193 last year.”

What is happening?

One theory is this – police are pulling back. They have reportedly seized far fewer illegal guns so far this year as compared to last. “Evidence of a pullback starts with an 80 percent decrease in the number of street stops that the officers have made since the first of the year.”

Again, it is not entirely a surprise that if we vilify our police, they may feel less anxious to put their lives and careers on the line for us.

We have now seen several instances of social or public policy which seem to have backfired. What is the common theme here? One is the preeminence of emotion over logic. Public policy should be carefully based on reason and fact, not on feelings and sentiments. We are far too often tempted by emotion – but should always pause and calculate.

Better public policy is possible. Perhaps, one day, when the computers are in charge…

Tuesday, December 4, 2012

The unintended consequences of Obamacare



President Obama signing the Affordable Care Act

What do these disparate items have in common?

          -  9.9 horsepower outboard motors
          -  50-seat regional jets
          -  29 hour work week

All are unintended consequences of government actions.

For instance, the great state of Maine, as well as other jurisdictions, require that 10 horsepower outboard motors and above be registered (and therefore taxed). What was the reaction of manufacturers? Of course, they detuned their 10 horsepower models slightly and rebranded them as 9.9 hp. Now, in the marketplace, 10 horsepower motors are extremely rare and 9.9 models plentiful.

The Federal Aviation Agency has a safety regulation (FAR 121 section 391) that specifies the following:

“For airplanes having a seating capacity of more than 50 but less than 101 passengers – two flight attendants [are required]”

Airlines could save a lot of money by using only one flight attendant in a 50 seat aircraft. And indeed they did, ordering the Bombardier CRJ200 in the 50 seat configuration in great numbers even though the aircraft was capable of carrying 52 passengers.

And finally, the Affordable Care Act (“Obamacare”) defines full time employees as those working 30 hours or more, and requires that those employees must be provided with full health insurance coverage.

“For purposes of section 4980H, a “full-time employee” is an employee who is employed on average at least 30 hours per week.”

So, once again, the reaction of the marketplace is predictable. The Huffington Post reports that the “Community College Of Allegheny County will cut the hours for some instructors to avoid paying for their health insurance coverage under new Affordable Care Act rules.” CCAC President Alex Johnson announced that they will be cutting the hours of 400 employees to less than 30 hours to avoid paying for health insurance, thereby saving $6 million.

But the surprising thing here is the comments posted in response to the Huffington Post article by their audience of typically liberal readers. Here is an example, directed at CCAC:

“If you can't afford to pay for employee benefits, don't start a business. Period.”

So let’s analyze this sentiment. This particular individual, representing the voting bloc that reelected President Obama, is advocating for higher unemployment.

How about this one?

“This is being portrayed as a failure of Obamacare, but it's more a failure of inadequate financing of state run higher education.”

This Obama voter is calling for higher tuition rates, a burden that parents and students already find intolerable.

And CCAC is only the tip of the iceberg. Similar stories are emerging regarding many other companies including Walmart and numerous others. For instance, the New American reports:

“According to the Orlando Sentinel, Darden Restaurants, Inc., operator of casual dining chains such as Olive Garden, Red Lobster, and LongHorn Steakhouse, is doing just that [reducing hours].”

The Affordable Care Act was validated by the Supreme Court and cemented by the election of 2012. The only surprise is that Mr. Obama’s supporters are surprised by its unintended consequences. Apparently, the 1,017 page bill should have been read before being voted into law.

Many liberals are now calling for additional legislation to prohibit companies from reducing hours to avoid health insurance costs. Proof only that big government always leads to even bigger government.