Voice For Liberty

Author: Bob Weeks

In Hungary, the rise of nationalism and racism
Zoltán Kész of Free Market Foundation of Hungary.
Zoltán Kész will speak at the Wichita Pachyderm Club on Friday February 21. The public is welcome to attend. For more information on this event, see Hungarian activist to address Pachyderms and guests.
In Hungary, nationalism and racism are rising problems. The Free Market Foundation of Hungary, co-founded by Zoltán Kész fights against these problems. Last November Kesz was in Wichita and I visited with him and a small group.
I asked about economic freedom in Hungary, noting that according to the economic freedom of the world report, Hungary was about in the middle of the European countries, although it is moving in the wrong direction. Kesz said that is right. Hungary had a very good economy in the 1990s, but in the past 13 or 14 years the country has been going in the wrong direction. The government in Hungary has a two-thirds majority he said, which means it can pass any law. The government passed a flat tax, but there are so many other taxes added on that he said it’s not really a flat tax. The flat, or value-added, tax is 27 percent.
Kesz said that while the government in Hungary says it is a conservative government, there have been recent developments that are contrary to free-market principles. For example, private pensions were nationalized in 2010. The government heavily regulates utility prices, and soon all utility companies will be nonprofit.
A serious and growing problem in Hungary is racism. In 2006, the Jobbik party, a group that is openly anti-Jew and anti-Roma (Gypsy) became popular. In 2010 it had 15 percent of the vote in the Hungarian parliament and is the third largest party. The country is very homogeneous, Kesz said, surrounded by Hungarians in other countries. An estimate is that about eight percent are Roma. There are about 100,000 Jews in Hungary, which has a total population of ten million.
The Jobbik party in Hungary — which Kesz described as far-right — is nationalistic and criticizes the loss of territory after World War I. It stirs up emotions for a larger Hungary and for getting the old empire back. Economically, Jobbik rejects globalism and foreign investment, and supports more government redistribution of income and wealth.
Very troubling is the radical, neo-Nazi aspect of Jobbik. The party blames Jews and Gypsies for the problems in Hungary. Kesz told of demands by one Jobbik member of parliament who demanded a list of Jews in the legislature. Leaders of Jobbik have said that Jews should be put in cattle wagons and shipped away to labor camps.
Recent surveys have reported that Jobbik attracts 33 percent of university students, and 52 percent of those say that in some cases they would prefer dictatorship rather than democracy.
It’s hard to overstate how serious is the problem of the rise of racism and nationalism in Hungary. In his recommendation of the free market foundation of Hungary, Tom G. Palmer said “The backsliding towards authoritarian statism and even primitive collectivism in the heart of Europe is extremely disturbing and so it is truly inspiring to see the work that the Free Market Foundation is doing. I was very active in the region as communism was crumbling and remember vividly the struggle of Hungarians to free themselves from the horrors of Communism.”
Last year Zoltan Kesz was named “Liberty Entrepreneur of the Year” by Atlas Economic Research Foundation. You can view his short speech nearby, or click here to view at YouTube.
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February 19, 2014
Kansas Open Records Act and the ‘public agency’ definition
Update: The bill has been referred to another committee, and the February 19 hearing is canceled.
Despite the City of Wichita’s support for government transparency, citizens have to ask the legislature to add new law forcing the city and its agencies to comply with the Kansas Open Records Act.
Open records laws allow citizens to ask government agencies for records. While these laws are valuable, we find that in practice governmental agencies find many ways to avoid filling records requests. Because the City of Wichita does not live up to the standards of open government — even through it proclaims its support for government transparency — citizens are working to have the law changed.
Locally, the City of Wichita is proud to be an open and transparent governmental agency, its officials say. Wichita Mayor Carl Brewer often speaks in favor of government transparency. For example, in his State of the City address for 2011, he listed as an important goal for the city this: “And we must provide transparency in all that we do.” When the city received an award for transparency in 2013, a city news release quoted Wichita City Manager Robert Layton:
“The City Council has stressed the importance of transparency for this organization,” City Manager Robert Layton said. “We’re honored to receive a Sunny Award and we will continue to empower and engage citizens by providing information necessary to keep them informed on the actions their government is taking on their behalf.”
Contrary to what the mayor and manager say, when we look at some specific areas of government transparency, we find that the city’s efforts are deficient. That’s a problem, because citizen watchdogs and journalists need access to records and data.
The City of Wichita has created several not-for-profit organizations that are controlled by the city and largely funded by tax money. The three I am concerned with are the Go Wichita Convention and Visitors Bureau, Wichita Downtown Development Corporation, and Greater Wichita Economic Development Coalition.
I have asked each organization for checkbook-level spending data. Each has refused to comply, using the reasoning that they are not “public agencies” as defined in the Kansas Open Records Act. But consider the WDDC: At the time I made my records request, its percent of revenue derived from taxes was well over 90 percent in every year but one. In many years the only income WDDC received was from taxes and a small amount of interest earned.
The Wichita city attorney backs these organizations and their interpretation of the law. So do almost all city council members. After 14 months investigating this matter at my request, the Sedgwick County District Attorney agreed with the city’s position.
So what is the next step? The Kansas Attorney General is of no help in this matter. His office refers all cases to the local District Attorney. That’s a problem right there, and there is some talk that the AG may open a small bureau to work with records requests problems.
One course of action open to me as a citizen watchdog is to raise thousands of dollars to fund a lawsuit. The irony of this is that citizens will find their own tax dollars being used against them as the city and other agencies defend secrecy.
Another course of action is persuading the city and these agencies to release the records. While these agencies believe the law doesn’t require them to release the records, the law does not prohibit or restrict releasing the records. They could fulfill requests if they wanted to. That would be in line with what the mayor and city manager say they want for Wichita. I and others have tried that.
But that didn’t work. The true attitude of the city was expressed eloquently by Wichita Vice Mayor Pete Meitzner last month in a television news story about the inability of citizens to see how their money is being spent by these organizations. Meitzner said “The public doesn’t need to know about day-to-day spending.”
The vice mayor also told the reporter that these organizations have review boards. Therefore, citizen oversight is not necessary. These boards, however, are usually filled with insiders whose interests may not be aligned with the interests of citizens and promoting good government.
Another course of action is to change the law, and that’s what I and others are trying to do. This week a committee of the Kansas House of Representatives will hear testimony on HB 2567, which will expand the definition of public agency.
The current law says this in defining what agencies are subject to the open records law: “‘Public agency’ means the state or any political or taxing subdivision of the state or any office, officer, agency or instrumentality thereof, or any other entity receiving or expending and supported in whole or in part by the public funds appropriated by the state or by public funds of any political or taxing subdivision of the state.”
The proposed law contains this additional definition: “Further, on and after July 1, 2014, ‘public agency’ shall include any nonprofit organization supported in whole or in part by public funds, which organizations are engaged in economic development, tourism or general marketing activities for the state or any political or taxing subdivision of the state or any office, officer, agency or instrumentality thereof.”
This language, if passed into law, would appear to bring the three problematic agencies under the Kansas Open Records Act. That doesn’t mean that they’ll have to turn over all and any records that are asked for, as the Kansas Open Records Act contains many exclusions. But we should be able to get spending data and other records that will help citizens oversee the operation of their government and the spending of tax dollars.
It’s a little distressing that citizens have to pass new legislation in order to get government to behave well. Citizens have to resort to these measures even though city leaders say they value open and transparent government.
Following is the testimony I will deliver this week.
Testimony to house of Representatives Committee on Judiciary as proponent of HB 2567, concerning public records.
Bob Weeks, February 19, 2014
Chairman Kinzer and members of the Committee:
Thank you for this opportunity to present testimony in support of HB 2567, regarding the Kansas Open Records Act.
Cities and other local governmental bodies have set up non-profit organizations to conduct business such as economic development. These agencies, as in the case of the Wichita Downtown Development Corporation, may in some years receive as much as 98 percent of their revenue from taxation. They often have only one client, that being the governmental agency that provides their tax revenue. They perform functions that are governmental in nature. Yet the Sedgwick County District Attorney says they are not public agencies for purposes of the Kansas Open Records Act. Based on that, these agencies, particularly the WDDC, have refused to fulfill my records requests. This flies in the face of the Legislature’s declared intent in the preamble of the Act: “It is declared to be the public policy of the state that public records shall be open for inspection by any person unless otherwise provided by this act, and this act shall be liberally construed and applied to promote such policy.”
There can be large amounts of money involved. The City of Wichita may soon add a 2.75 percent tax to hotel bills as a “City Tourism Fee.” These new taxpayer-provided funds, estimated at $2.5 million per year, would be spent by Go Wichita Convention and Tourism Bureau. This agency, despite receiving nearly all its revenue from taxation, maintains that it is not a public agency as defined by the Kansas Open Records Act. It refused to fulfill my records request.
Citizen watchdogs and journalists need the ability to examine the spending of tax money. When government creates quasi-governmental bodies that are almost totally funded through taxes and then refuses to disclose how that money is spent, we have to wonder why the city doesn’t want citizens to know how this money is spent.
Recently the vice mayor of Wichita told a television news reporter that these organization have review boards. Therefore, citizen oversight is not necessary. These boards, however, are usually filled with insiders whose interests may not be aligned with the interests of citizens and promoting good government.
There is much that Kansas can, and should do, to strengthen its Open Records Law to give citizen watchdogs and journalists better access to records and documents. Restricting the ability of local governments to erect a protective wall under the guise of non-profit corporations that are almost totally funded by taxation is an important step.
I have additional information about the Kansas Open Records Act and its problems at wichitaliberty.org/open-records.
Respectfully submitted,
Bob Weeks
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February 18, 2014
Voice for Liberty Radio: Rally for school choice
In this episode of WichitaLiberty Radio: This week children and parents rallied for school choice in the Kansas Capitol. This broadcast features two speakers. First is Derrell Bradford, who is Executive Director at Better Education for New Jersey Kids. The second speaker is Chiquita Coggs, who started a charter school in Kansas City, Kansas that had its charter withdrawn.
This is podcast episode number 12, released on February 16, 2014. Here’s selections from a rally for school choice at the Kansas Capitol, February 11, 2014.
Shownotes
Derrell Bradford, Better Education for Kids
Friedman Foundation for Educational Choice
Moving Kansas Schools from Monopoly to Free Choice
Weak Charter School Law Works Against Taxpayers’ Interests
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February 16, 2014
WichitaLiberty.TV February 16, 2014
In this episode of WichitaLiberty.TV: The controversy surrounding the residence of a long-time senator from Kansas raises issues of term limits and the ability of citizens to exercise the power of initiative and referendum. Then, the seen and the unseen applied to economic development in Wichita, and why do we rely on certain experts. Episode 31, broadcast February 16, 2014. View below, or click here to view at YouTube.
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February 14, 2014
Economic development in Wichita, steps one and two
Critics of the economic development policies in use by the City of Wichita are often portrayed as not being able to see and appreciate the good things these policies are producing, even though they are unfolding right before our very eyes. The difference is that some look beyond the immediate — what is seen — and ask “And then what will happen?” — looking for the unseen.
Thomas Sowell explains the problem in a passage from the first chapter of Applied economics: thinking beyond stage one:
When we are talking about applied economic policies, we are no longer talking about pure economic principles, but about the interactions of politics and economics. The principles of economics remain the same, but the likelihood of those principles being applied unchanged is considerably reduced, because politics has its own principles and imperatives. It is not just that politicians’ top priority is getting elected and re-elected, or that their time horizon seldom extends beyond the next election. The general public as well behaves differently when making political decisions rather than economic decisions. Virtually no one puts as much time and close attention into deciding whether to vote for one candidate rather than another as is usually put into deciding whether to buy one house rather than another — or perhaps even one car rather than another.
The voter’s political decisions involve having a minute influence on policies which affect many other people, while economic decision-making is about having a major effect on one’s own personal well-being. It should not be surprising that the quantity and quality of thinking going into these very different kinds of decisions differ correspondingly. One of the ways in which these decisions differ is in not thinking through political decisions beyond the immediate consequences. When most voters do not think beyond stage one, many elected officials have no incentive to weigh what the consequences will be in later stages — and considerable incentives to avoid getting beyond what their constituents think and understand, for fear that rival politicians can drive a wedge between them and their constituents by catering to public misconceptions.
The economic decisions made by governing bodies like the Wichita City Council have a large impact on the lives of Wichitans. But as Sowell explains, these decisions are made by politicians for political reasons.
Sowell goes on to explain the danger of stopping the thinking process at stage one:
When I was an undergraduate studying economics under Professor Arthur Smithies of Harvard, he asked me in class one day what policy I favored on a particular issue of the times. Since I had strong feelings on that issue, I proceeded to answer him with enthusiasm, explaining what beneficial consequences I expected from the policy I advocated.
“And then what will happen?” he asked.
The question caught me off guard. However, as I thought about it, it became clear that the situation I described would lead to other economic consequences, which I then began to consider and to spell out.
“And what will happen after that?” Professor Smithies asked.
As I analyzed how the further economic reactions to the policy would unfold, I began to realize that these reactions would lead to consequences much less desirable than those at the first stage, and I began to waver somewhat.
“And then what will happen?” Smithies persisted.
By now I was beginning to see that the economic reverberations of the policy I advocated were likely to be pretty disastrous — and, in fact, much worse than the initial situation that it was designed to improve.
Simple as this little exercise may sound, it goes further than most economic discussions about policies on a wide range of issues. Most thinking stops at stage one.
We see stage one thinking all the time when looking at government. In Wichita, for example, a favorite question of city council members seeking to justify their support for government intervention such as a tax increment financing (TIF) district or some other form of subsidy is “How much more tax does the building pay now?” Or perhaps “How many jobs will (or did) the project create?”
These questions, and the answers to them, are examples of stage one thinking. The answers are easily obtained and cited as evidence of the success of the government program.
But driving by a store or hotel in a TIF district and noticing a building or people working at jobs does not tell the entire story. Using the existence of a building, or the payment of taxes, or jobs created, is stage one thinking, and no more than that.
Fortunately, there are people who have thought beyond stage one, and some concerning local economic development and TIF districts. And what they’ve found should spur politicians and bureaucrats to find ways to move beyond stage one in their thinking.
An example are economists Richard F. Dye and David F. Merriman, who have studied tax increment financing extensively. Their article Tax Increment Financing: A Tool for Local Economic Development states in its conclusion:
TIF districts grow much faster than other areas in their host municipalities. TIF boosters or naive analysts might point to this as evidence of the success of tax increment financing, but they would be wrong. Observing high growth in an area targeted for development is unremarkable.
So TIFs are good for the favored development that receives the subsidy — not a surprising finding. What about the rest of the city? Continuing from the same study:
If the use of tax increment financing stimulates economic development, there should be a positive relationship between TIF adoption and overall growth in municipalities. This did not occur. If, on the other hand, TIF merely moves capital around within a municipality, there should be no relationship between TIF adoption and growth. What we find, however, is a negative relationship. Municipalities that use TIF do worse.
We find evidence that the non-TIF areas of municipalities that use TIF grow no more rapidly, and perhaps more slowly, than similar municipalities that do not use TIF.
In a different paper (The Effects of Tax Increment Financing on Economic Development), the same economists wrote “We find clear and consistent evidence that municipalities that adopt TIF grow more slowly after adoption than those that do not. … These findings suggest that TIF trades off higher growth in the TIF district for lower growth elsewhere. This hypothesis is bolstered by other empirical findings.”
Here we have an example of thinking beyond stage one. The results are opposite of what one-stage thinking produces.
Some city council members are concerned about creating jobs, and are swayed by the promises of developers that their establishments will employ a certain number of workers. Again, this thinking stops at stage one. But others have looked farther, as has Paul F. Byrne of Washburn University. The title of his recent report is Does Tax Increment Financing Deliver on Its Promise of Jobs? The Impact of Tax Increment Financing on Municipal Employment Growth, and in its abstract we find this conclusion regarding the impact of TIF on jobs:
Increasingly, municipal leaders justify their use of tax increment financing (TIF) by touting its role in improving municipal employment. However, empirical studies on TIF have primarily examined TIF’s impact on property values, ignoring the claim that serves as the primary justification for its use. This article addresses the claim by examining the impact of TIF adoption on municipal employment growth in Illinois, looking for both general impact and impact specific to the type of development supported. Results find no general impact of TIF use on employment. However, findings suggest that TIF districts supporting industrial development may have a positive effect on municipal employment, whereas TIF districts supporting retail development have a negative effect on municipal employment. These results are consistent with industrial TIF districts capturing employment that would have otherwise occurred outside of the adopting municipality and retail TIF districts shifting employment within the municipality to more labor-efficient retailers within the TIF district.
While this research might be used to support a TIF district for industrial development, TIF in Wichita is primarily used for retail development. And, when thinking beyond stage one, the effect on employment — considering the entire city — is negative.
It’s hard to think beyond stage one. It requires considering not only the seen, but also the unseen, as Frederic Bastiat taught us in his famous parable of the broken window. But over and over we see how politicians at all levels of government stop thinking at stage one. This is one of the many reasons why we need to return as much decision-making as possible to the private sector, and drastically limit the powers of politicians and governments.
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February 14, 2014
Viewing the seen and unseen
The lesson of the book “Economics in One Lesson” by Henry Hazlitt is this: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
(The Ludwig von Mises Institute has published an edition of this book which is available at no cost at its website; click here. Amanda BillyRock has illustrated most of the chapters in video. Click here for the playlist.)
Looking beyond what we see at first glance, that’s important. And considering everyone, not just some small group, is important too. You may be familiar with the term “special interest group.” A local example might be the Wichita Area Builders Association, which represents homebuilders. The purpose of groups like this — and I’m sorry to have to single out this group — is to represent their members, and them alone. So last year the Builders Association was able to persuade the Wichita City Council to pass a program that rebates Wichita property taxes on new homes for a few years. This makes it easier to sell these new homes. Homes which are built, of course, by members of the Wichita Area Builders Association.
Did the city council consider the long term effects of this policy, such as the effect on tax revenue in future years? Did the council consider the “Cash for Clunkers” effect, in which incentive programs induce people to buy now, only to depress sales in later years after the program ends? The answer is either a) No, the council did not consider these effects, or b) The council decided to ignore these effects.
Then, what about the effect on other groups besides the builders? Did the council consider that by offering savings when buying these select new homes, it likely reduced the appeal and value of all other homes across the city? Did the council consider that these new homes will require services like police and fire protection, but since they don’t contribute property tax, other taxpayers have to pay to provide these services?
And what about setting another precedent, that when business is not doing well, a special interest group appeals to government for special favors?
This is an example of the city council considering only the immediate effects of a policy, and also the effects on only a single group — the self-interested homebuilders. Things like this happen all the time.
Remember how Hazllitt said these groups will argue “plausibly and persistently?” That happened. As an example, Wichita State University economists prepared an analysis showing that this rebate program benefited the city. Did that analysis consider the long-term effects or only the immediate effects of the policy? Did that analysis consider the effects on all groups? I’m afraid that if we could look under the hood of these models, we’d find that they suffer from the problems Hazlitt warns about.
And the president of the Builders Association argued persuasively before the council. That’s an example of when Hazlitt wrote about a special interest group: “It will hire the best buyable minds to devote their whole time to presenting its case.”
Hazlitt told us what we need to do in these cases, writing: “In these cases the answer consists in showing that the proposed policy would also have longer and less desirable effects, or that it could benefit one group only at the expense of all other groups.”
Special interest groups expend lot of effort to get government to look at the seen and skip the unseen. That’s a reference to the famous parable of the broken window from chapter two of “Economics in One Lesson.” Ahe child who threw a rock through the window of the bakery. The crowd that gathered around the broken window: Someone suggested that the damage is actually a good thing, because the windowmaker now has work to do and earns money. And the windowmaker in turn will spend his new income somewhere else, and so forth. Economic development professionals who make arguments for subsidies to business call this the multiplier effect. It creates what they call indirect impacts.
A few years ago in an effort to drum up taxpayer subsidies for arts, a national organization — a special interest group — made this argument:
A theater company purchases a gallon of paint from the local hardware store for $20, generating the direct economic impact of the expenditure. The hardware store then uses a portion of the aforementioned $20 to pay the sales clerk’s salary; the sales clerk respends some of the money for groceries; the grocery store uses some of the money to pay its cashier; the cashier then spends some for the utility bill; and so on. The subsequent rounds of spending are the indirect economic impacts.
Thus, the initial expenditure by the theater company was followed by four additional rounds of spending (by the hardware store, sales clerk, grocery store, and the cashier). The effect of the theater company’s initial expenditure is the direct economic impact. The subsequent rounds of spending are all of the indirect impacts. The total impact is the sum of the direct and indirect impacts.
That is the same argument made to excuse the destruction of the broken window in the bakery. Doesn’t this sound plausible? But Hazlitt, echoing Bastiat before him, notes this: The baker was going to buy a suit of clothes, and buying that suit would set off its own chain of economic activity.
But now he must spend that money on fixing the broken window. The new window is what is seen. The unbought suit of clothes is more difficult to see. It is the unseen.
If the window was not broken, the baker has a functional window and a new suit of clothes. After the window is broken, however, all the baker has is a replacement window. No new suit of clothes is purchased.
As Hazlitt summarized: “The glazier’s gain of business, in short, is merely the tailor’s loss of business. No new ’employment’ has been added. The people in the crowd were thinking only of two parties to the transaction, the baker and the glazier. They had forgotten the potential third party involved, the tailor. They forgot him precisely because he will not now enter the scene. They will see the new window in the next day or two. They will never see the extra suit, precisely because it will never be made. They see only what is immediately visible to the eye.”
In the case I cited above, it’s easy to see the benefit granted to the homebuilders. But the economic activity that does not take place because of the diversion of resources to the homebuilders? Where is that? It is unseen.
When the theater company spends $20 of taxpayer-provided money to buy paint: Where did that $20 come from? Isn’t it possible that a homeowner might have bought the same gallon of paint, but now is not able to because he must pay taxes to support the theater company? It’s easy to see the theater production with its taxpayer-funded painted set. It’s not easy to see the house that sits unpainted for a year to pay for the theater company’s paint. That is the seen and unseen.
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February 14, 2014
Open Records in Kansas
Kansas has a weak open records law. Wichita doesn’t want to follow the law, as weak as it is.
As citizen watchdogs, I and others need access to information and data. The City of Wichita, however, has created several not-for-profit organizations that are largely funded by tax money. The three I am concerned with are the Wichita Downtown Development Corporation, Go Wichita Convention and Visitors Bureau, and Greater Wichita Economic Development Coalition.
I have asked each organization for checkbook-level spending data. Each has refused to comply, using the reasoning that they are not “public agencies” as defined in the Kansas Open Records Act. But consider the WDDC: When I made a request for records, its percent of revenue derived from taxes was well over 90 percent every year but one. In many years the only income WDDC received was from taxes and a small amount of interest earned. Click here to see how much of WDDC’s revenue comes from taxes.
The Wichita city attorney backs these organizations and their interpretation of the law. So do almost all city council members. After 14 months investigating this matter, the Sedgwick County District Attorney agreed with the city’s position. (Click here to read the determination.) The only course of action open to me is to raise thousands of dollars to fund a lawsuit.
Citizen watchdogs and others need the ability to examine the spending of tax money. When government creates quasi-governmental bodies that are almost totally funded through taxes, and then refuses to disclose how that money is spent, we have to wonder why the city doesn’t want citizens to know how this money is spent.
An example of why this is important is the case of Mike Howerter, a trustee of Labette Community College in Parsons. He noticed that a check number was missing from a register. Upon his inquiry, it was revealed that the missing check was used to reimburse the college president for a political campaign contribution. While the college president committed no violation by making this political contribution using college funds, this is an example of the type of information that citizens may want regarding the way public funds are spent.
In Wichita, because of a loophole in the Kansas Open Records Act, a large amount of tax money is spent without this type of scrutiny. This year the Kansas Legislature is considering HB 2567, which will start to bring accountability for how all tax money is spent..
The Attorney General’s page on the Kansas Open Records Act is here. The Kansas Legislator Briefing Book chapter for the Kansas Open Records Act is here.
Wichita doesn’t value open records and open government
On the KAKE Television public affairs program “This Week in Kansas” the failure of the Wichita City Council, especially council member Wichita City Council Member Pete Meitzner (district 2, east Wichita), to recognize the value of open records and open government is discussed.
For more background, see Wichita, again, fails at open government.
Wichita, again, fails at open government
The Wichita City Council, when presented with an opportunity to increase the ability of citizens to observe the workings of the government they pay for, decided against the cause of open government, preferring to keep the spending of taxpayer money a secret. Continue reading here.
Wichita could do better regarding open government, if it wants
Tomorrow the Wichita City Council will consider renewing its contract with Go Wichita Convention and Visitors Bureau. The renewal will provide another opportunity for the council to decide whether it is truly in favor of open government and citizen access to records. Continue reading here.
Wichita government’s attitude towards citizens’ right to know is an issue
At a meeting of the Wichita City Council, Kansas Policy Institute president Dave Trabert explained the problems in obtaining compliance with the Kansas Open Records Act. Continue reading here.
Open records again an issue in Kansas
Responses to records requests made by Kansas Policy Institute are bringing attention to shortcomings in the Kansas Open Records Act. Continue reading here.
In Wichita, disdain for open records and government transparency
Despite receiving nearly all its funding from taxpayers, Go Wichita Convention and Visitors Bureau refuses to admit it is a “public agency” as defined in the Kansas Open Records Act. The city backs this agency and its interpretation of this law, which is in favor of government secrecy and in opposition to the letter and spirit of the Open Records Act. Continue reading here.
Additional information on open records is at:
February 14, 2014
Wichita Chamber of Commerce: Why these panelists?
Last week the Wichita Metro Chamber of Commerce conducted a panel discussion about economic development and job creation in Wichita. The experts selected as panelists tells us a lot about why the Wichita economy has suffered.
In case anyone is not aware of the performance of the Wichita-area economy, the Wichita Eagle reported “Exhibit No. 1 in their presentation was a Chamber of Commerce chart showing that, five years after the recession ended, Wichita had regained few, if any, jobs from the depths of the economic downturn — while other cities across the region have rebounded strongly.” (Wichita must step up efforts to attract jobs, civic leaders say, Thursday, February 6, 2014)
Wichita Chamber presentation. Click for larger version.
On the same event, the Wichita Business Journal reported “But the luncheon opened with a somber look at Wichita’s ranking among peer cities in the Midwest region. The chart shows Wichita area employment growth since January 2005 well below the other cities, barely above its 2005 employment.” (Chamber luncheon speakers: Wichita needs to compete better for jobs)
The news about the poor performance of Wichita in this regard is no surprise to readers of this site, although I’m not sure that those in charge, such as Wichita Mayor Carl Brewer, believe the numbers. Brewer, along with Dave Unruh and Chamber president Wayne Chambers were the three panelists on Wichita economic development.
What is surprising is that Brewer and Unruh were selected as experts in this field, given the city’s poor performance and the tenure of these two leaders. Brewer has been mayor for nearly seven years, and has served on the city council 2001. Unruh has been in office since 2003, and has been chair of the commission several times, as he is currently.
Brewer — after 13 years holding city office — had this to say, according to the Eagle: “Brewer said the Wichita City Council will look at the results of a recent community engagement survey to see how high a priority to place on economic development.”
Imagine that. Our city’s longtime leader, as he enters the last year of his mayorality: Now he’s going to get serious about economic development, and will do so by relying on a citizen survey.
To use interactive visualizations that explore the Wichita economy, see Wichita’s growth in gross domestic product and For Wichita’s economic development machinery, failure.
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February 10, 2014
Economic freedom, the key to improving lives
Economic freedom, in countries where it is allowed to thrive, leads to better lives for people as measured in a variety of ways. This is true for everyone, especially for poor people.
This is the message presented in a short video based on the work of the Economic Freedom of the World report, which is a project of Canada’s Fraser Institute. Four years ago Robert Lawson, one of the authors of the Economic Freedom of the World report, lectured in Wichita on this topic. The current video is made possible by the Charles G. Koch Charitable Foundation.
One of the findings highlighted in the presentation is that while the average income in free countries is much higher than that in the least-free countries, the ratio is even higher for the poorest people in these countries. This is consistent with the findings that economic freedom is good for everyone, and even more so for those with low incomes.
Civil rights, a clean environment, long life expectancy, low levels of corruption, less infant mortality, less child labor, and lower unemployment are all associated with greater levels of economic freedom.
What are the components or properties of economic freedom? The presentation lists these:
- Property rights are protected under an impartial rule of law.
- People are free to trade with others, both within and outside the country.
- There is a sound national currency, so that peoples’ money keeps its value.
- Government stays small, relative to the size of the economy.
Over the last eleven years, the United States’ ranking has fallen relative to other countries, and the presentation says our position is expected to keep falling. The question is asked: “Will our quality of life fall with it?”
Economic freedom is not necessarily the platform of any single political party. It should be noted that for about eight of the past twelve years — a period in which our economic freedom has been falling — there was a Republican president, sometimes with a Republican Congress. The size of government rose. In 2005 the Cato Institute studied the numbers and found that “All presidents presided over net increases in spending overall, though some were bigger spenders than others. As it turns out, George W. Bush is one of the biggest spenders of them all. In fact, he is an even bigger spender than Lyndon B. Johnson in terms of discretionary spending.” This was before the spending on the prescription drug program had started.
Critics of economic freedom
The defining of what economic freedom means is important. Sometimes you’ll see people write things like “Bernie Madoff was only exercising his personal economic freedom while he ran his investment firm.” Madoff, we now know, was a thief. He stole his clients’ money. That’s contrary to property rights, and therefore contrary to economic freedom.
Or, you’ll see people say if you don’t like government, go to Somalia. That country, one of the poorest in the world — but not the poorest — is used as an example of how bad anarchy is as a form of government. The evidence is, however, that Somalia’s former government was so bad that things improved after the fall of that government. See Peter T. Leeson, Better Off Stateless: Somalia Before and After Government Collapse and History of Somalia (1991–2006).
You’ll also encounter people who argue that some countries are poor because they have no natural resources. But there are many countries with few natural resources that have economic freedom and a high standard of living. Most countries that are poor are that way because they are run by corrupt governments that have no respect for economic freedom, and follow policies that stifle it.
Some will argue that economic freedom means the freedom to pollute the environment. But it is in wealthy countries that the environment is respected. Poor countries, where people are struggling just to find food for each day, don’t have the time or wealth to be concerned about the environment.
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February 10, 2014