politics

When they work well, democratic governments make laws to protect people from harmful things that they cannot prevent on their own. This is the basic role of good government, yet the American public hears a constant drumbeat of anti-regulatory messages from conservative politicians and think tanks and influential business organizations like the U.S. Chamber of Commerce. According to these groups, regulations are almost always bad for the country, because they interfere with “free” market activity and inhibit investment and job growth.

But the arguments against sensible regulations are not valid empirically or in principle. Much evidence shows that the benefits of regulations vastly outweigh the costs. Furthermore, anti-regulatory claims rest on faulty ideas about the economy and democratic governance.

Wrong Empirically

For many years, the U.S. Office of Management and Budget has systematically studied the costs of regulation. Looking at more than 100 major regulations over the ten-year period ending in 2010, it found that benefits were three to ten times greater than costs. For every regulatory agency considered, benefits exceeded costs. As the Office reported to Congress in June 2014, the economic benefits of federal regulations totaled in the hundreds of millions of dollars over the previous decade, while the costs were a mere fraction of that total.The U.S. Office of Management and Budget reported in 2014 that, in the prior decade, the economic benefits of federal regulations totaled in the hundreds of millions of dollars. The costs were a mere fraction of that amount.

Many other studies have also shown that regulations have little impact on employment – or else a slight positive effect on balance. Businesses find ways to deal with new regulations. When automobile companies were required to reduce air pollution, for example, they started using catalytic converters. Car prices rose slightly, perhaps leading to some job layoffs, but employment grew overall as more workers were hired to make, sell, and install the converters.

Wrong about How the Economy Really Works

In Econ 101, students learn that, in theory, a pure market consisting of large numbers of independent buyers and sellers will produce goods and services in optimal amounts at the lowest possible prices. In this ideal pure market world, rules restricting buyers or sellers can only distort the optimal distribution of goods and services. However, this abstract academic lesson tells us little about the real world, because pure market conditions almost never exist in actual commerce. Real-world markets differ from theoretical models in markets in several ways – and good regulations can help those imperfect markets work better:Pure market conditions almost never exist in actual commerce.

• Real-world customers often lack complete information about products they might buy, or have difficulty understanding technical terms describing goods like cars, pharmaceutical drugs, and mortgages. Consumer protection regulations help by requiring companies to spell out the features and risks of their products.
• In the real world, markets are often dominated by one or a small number of sellers, who can limit production and force customers to pay artificially high prices. Anti-monopoly regulations can insure greater competition and fairer prices.
• Unregulated markets do not take social costs into account. Unimpeded by public rules, anything-goes markets give us air and water pollution, employment discrimination, exposure to pornography by children, and other harmful results that most people in society abhor. Democratic governments can put in place rules that force sellers to avoid or limit such unacceptable consequences of market activities (called “negative externalities”).

In addition to the departures from “pure free market” theory that almost all experts understand, the new field of behavioral economics has discovered clear evidence that peoples’ preferences are strongly influenced by how choices are presented to them. For example, experiments show that people’s plans about retirement programs vary depending on whether they have to “opt in” or are automatically enrolled and have to “opt out.” Corporations spend billions to influence consumer preferences and set up choices to maximize profits, so it hardly seems out of line for governments to use product information rules to ensure optimal consumer information and beneficial options for citizens.

Wrong about Good Governance

Throughout American history, governments have subsidized businesses and established conditions for markets to function. But periodically, as Americans experienced unacceptable harms from market practices, they have insisted that public authorities override protests from profit-seekers and step in to secure the public interest. Examples of such public-interest regulations include laws to outlaw child labor, building code regulations to ensure stable construction and prevent catastrophic fires, food and pharmaceutical regulations, environmental protections, and laws to prevent irresponsible mortgage lending. Those who claim that all such regulations are unwarranted are implying that governments should only maximize private profits, not protect the environment and ensure public health and security. This makes little sense.Not all regulations are effective or achieve their purposes. Some are too restrictive, while others are weak or improperly implemented. But that does not mean that all regulation is harmful.

Claims that regulation is bad for business are wrong – because the interests of more companies are well served by regulations in the public interest. To sell their products, businesses depend on public confidence that products will not harm people. Businesses also benefit when all of them have to meet the same standards, so some firms cannot undercut others. Even when some businesses are in fact disadvantaged by proposed regulations—such as coal-fired power plants required to limit pollution—others will benefit, such as firms promoting wind and solar power.

Not all regulations are effective or achieve their purposes. Some are too restrictive, while others are weak or improperly implemented. But that does not mean that all regulation is harmful. Although society benefits from well-functioning markets, critics are wrong to claim that all government regulations are bad for business. To produce optimal results for firms and citizens, America needs a balance between markets free from unnecessary impediments and public rules to prevent businesses from inflicting grievous harms on people and the environment.

Education beyond high school is increasingly necessary for a good job, and so growing numbers of people are paying ever-rising prices to attend college. Yet many are not completing degrees. Food insecurity should be added to the list of factors contributing to this shortfall. Our work suggests that too many undergraduates are struggling to afford sufficient nutritious food – and current policies provide insufficient support. An expansion of the National School Lunch Program to help college students could help many more complete their degrees. more...

Controversies about “identity theft” are at the center of U.S. immigration enforcement. During a 2008 federal immigration raid at a Kosher meatpacking plant in Postville, Iowa, for example, authorities arrested 389 undocumented immigrants for “aggravated identity theft” – claiming that they had knowingly and intentionally used the identities of others without their consent. In Arizona, meanwhile, state authorities expanded the definition of “identity theft” to include the use of fake documents to obtain employment. Since that happened in 2008, the Maricopa County Sheriffs’ Office has arrested more than 700 undocumented workers on such charges.

Although identity theft is widely decried, the majority of undocumented immigrant farmworkers say they actually obtain work authorization documents through loans – that is, through voluntary arrangements to obtain work documents. My findings on this topic come from interviews I conducted with 57 immigrant farm workers and six labor supervisors. In response to my queries about how undocumented immigrants get the documents they need for employment, and with what effects on their work conditions, many workers explained that direct supervisors often initiate loans of identity documents. The supervisors can profit personally even as they recruit workers for agricultural companies or contractors.Many workers explained that direct supervisors often initiated loans of identity documents; the supervisors can profit personally as they recruit workers for agricultural companies or contractors. more...

As the 1996 Personal Responsibility and Work Opportunities Reconciliation Act marks its twentieth anniversary, researchers are still exploring the impact of this law, called “welfare reform.” Although this law’s Temporary Assistance for Needy Families program helps some groups of poor people, it leaves others without any stable cash support. One group seriously at risk consists of low-income single mothers with children who end up with no incomes from either welfare or paid jobs. Researchers call them “economically disconnected.”

Why Should We Care?

Low-income mothers and children who have have no documented cash income of their own may be eligible for Temporary Assistance to Needy Families, yet many do not get those benefits. This is a cause concern, because families suffer when they have no cash at all. And we can also ask whether these programs are sufficiently accessible to those in most need. Available data show that “take-up rates,” that is, use of benefits, fell to about 30 percent in 2009 for eligible families. In 1990, moreover, studies found that about ten percent of low-income women subsisted without any cash; but the proportion rose to more than 20 percent by 2010.

Such “disconnected mothers” with little or no income are among America’s most economically vulnerable people. They are more likely than other low-income single mothers to live in public housing as opposed to apartments, and they experience severe hardships, sometimes even going without food. Prior studies have identified a number of reasons why certain poor women become so cut off from both work and public cash assistance. Many find it hard to get or keep jobs, because they lack childcare or transportation, or because they have to care for an ill family member. Many of these women also suffer physical and mental health problems that prevent them from working; or they have few opportunities due to limited work experience, learning disabilities, and low levels of educational attainment.“Disconnected mothers” with little or no income are among America’s most economically vulnerable people. more...

State laws limiting funding for abortion and requiring additional steps for women seeking abortion have been enacted for almost four decades, but more new restrictions were put in place between 2011 and 2013 than in the entire previous decade. At times, new enactments add new restrictions on top of older ones, such as lengthening the time periods in laws that require delays for women seeking abortions from 24 hours to 48 or 72 hours. Laws of this sort not only mandate that women seeking abortions must wait after hearing state-mandated information, they often require the information to be delivered in person rather than over the phone, so women have to make two visits. As of February 2016, 27 states mandated waiting periods, four of them with a 72 hour delay; and 13 states had rules that necessitated two visits.

Research on Utah’s 72-hour Waiting Period

Arguments rage about these laws. Advocates in support of them maintain that waiting periods are necessary to ensure that abortion providers will give women the time and opportunity to change their minds, while others argue that the logistical difficulties caused by waiting periods and two-visit requirements may prevent women from having abortions they want. Who is right? So far, researchers have not developed sound evidence about women’s actual experiences with these laws.

To help address this research shortfall, we, along with colleagues, have studied Utah’s 72-hour waiting period law, which in 2012 became the first 72-hour mandate to go into effect. Our study recruited 500 women who came for the required first abortion information visit at four family planning facilities in the state. Women completed iPad surveys before receiving the state-mandated information and any abortion counseling the facility routinely provided. Three weeks later, the women completed telephone follow-up interviews. more...

Title IX, the U.S. civil rights law that prohibits sex discrimination in federally funded education programs, is one of the most significant steps toward gender equality in the last century. By requiring schools to provide equal opportunities regardless of sex, the law intervenes to ameliorate disparities at the institutional level. President Obama concisely summarizes Title IX’s importance: “From addressing inequality in math and science education to preventing sexual assault on campus to fairly funding athletic programs, Title IX ensures equality for our young people in every aspect of their education.”

Despite the law’s importance – as well as the fact that it has been on the books for over 40 years – we have insufficient information about patterns of alleged violations and ultimate dispositions. Existing research has tracked the changing scope of the law and its overall effects on higher education. For example, how have issues like peer harassment come to be defined as forms of discrimination subject to Title IX enforcement? And how has Title IX affected the U.S. educational system and student experiences – for example, by creating new athletic opportunities for women, fostering gender parity in science and math programs, and mandating that colleges and universities set up procedures for handling sexual harassment allegations?Complaints and costs are skyrocketing. more...

Back in October 2014, pollster Robert Jones pointed out that white evangelicals were declining as a percentage of the U.S. population, even in the South – which could have been bad news for Republicans who count on loyal support from white evangelical voters. Starting in November 2014, Jones predicted, evangelical population decline could start tipping close races to Democrats in Bible Belt states like Arkansas, Georgia, Kentucky, and North Carolina. But Election Day on November 4^th proved Jones wrong. White evangelicals turned out at high rates and played a major role in handing Republicans decisive victories in Senate races across the country. White evangelicals may be declining as a percentage of the population, but because they flock to the polls when Democratic constituencies often stay home, they still rule the midterms.For good and for ill, white evangelical Christians are one of the most effectively organized and reliably Republican constituencies. more...

A very large number of Americans are held in jails and prisons – some 762 out of every 100,000 residents. Although the United States has only five percent of the world’s population, it holds one quarter of all the world’s prisoners. However, the social burdens occasioned by so much imprisonment are not borne equally by all segments of the American population. According to recent estimates, one of every 15 black men is held in jail or state or federal prison, compared to one of every 106 white males. This racial disparity has a big impact on the life fortunes of white and black men – contributing to gaps in many domains, ranging from jobs and family life to health and mortality.

But the social reverberations of mass incarceration do not stop with the prisoners themselves. The consequences can be even greater for children, family members, and associates attached to those who are imprisoned. A burgeoning research literature suggests that having a family member sent to prison damages the mental and physical health of those left at home. The imprisonment of a family member means one less person to contribute to household support, increasing stress and making everyone less economically secure.The social reverberations of mass incarceration do not stop with the prisoners themselves.

Although researchers have documented these indirect social impacts from imprisonment, they have been unable before now to estimate how many adult women and men are connected to an inmate – and therefore, have not been able to specify the scope of negative consequences faced by people tied to America’s prisoners. Now, for the first time, data from the 2006 General Social Survey make it possible to estimate the reach and wider social impact of the U.S. prison system. We use this data and build on previous studies to explore the impact of imprisonment on the family members and associates of black and white prisoners. more...

Climate policy advocates want to increase public support for renewable energy. Because renewable energy is a low-carbon source, substituting it for coal in electricity generation can help reduce carbon emissions in the United States. This approach gains credibility with experts and advocates as the cost of renewable electricity generation declines and renewable portfolio standards spread in U.S. states. Following President Obama’s August 2015 announcement of his Clean Power Plan, the various U.S. states gain important responsibilities for planning and implementation. We can expect to see more campaigns in the states to boost the use of renewable energy in the American power sector. In Paris, recently, the United States pledged to lower carbon emissions, and public support will be needed to make sure this promises is actually met.

Advocates frame renewable energy in ways they hope will appeal to the broader public, calling it a home-grown source that avoids pollution and never runs out. Wind and solar power are touted as clean and abundant resources that can help make America “energy independent” and create “green jobs.” As the Natural Resources Defense Council puts in on its website, this kind of electricity “comes from natural sources that are constantly and sustainably replenished. The technologies featured here will make our families healthier, more secure, and more prosperous by improving our air quality, reducing our reliance on fossil fuels, curbing global warming, adding good jobs to the economy and – when they’re properly sited – protecting environmental values such as habitat and water quality.”Renewable energy advocates cannot win the hearts and minds of the American public simply by pointing to nice features of their preferred approach. They have to win the debate with opponents.

Such positive arguments are not the end of it, however, because opponents of electricity generation from renewable sources are bound to have their say in a democratic setting. Opponents warn the public that using renewable sources will increase electricity prices make supplies unreliable, because the sun does not always shine and the wind does not always blow. Conservative consultant Rupert Darwall declared in The Wall Street Journal that electricity generation from renewables “does not produce jobs, growth or prosperity.” more...

Getting a college degree is an increasingly expensive endeavor and many students struggle to make ends meet while they are in school. Although the rising cost of college tuition and fees receives a great deal of public attention, students face other costs, too – including often hefty payments for living expenses, textbooks, and transportation to and from classes. These inescapable extra costs constitute half to three-quarters of total college expenses, and when students cannot afford to cover them, they often struggle to focus on school work and spend less time in the classroom. In dire cases, students may find themselves without a secure place to live or enough food to eat.

Financial aid for college students is meant to help cover the extra expenses, but aid packages often fall short because of chronic underfunding and complex bureaucratic administrative hurdles. Researchers and practitioners have found that when students run into short-term financial problems, college financial aid offices often have difficulty responding quickly.

In addition to traditional financial aid programs, there is also a need for emergency assistance. Promptly responsive emergency aid programs can help keep students enrolled, perhaps allowing more of them to complete studies and receive degrees. In a recent research project we used surveys and interviews to examine such programs, aiming to better understand how they operate and when they succeed. Our work lays the groundwork for much-needed additional evaluations.Promptly responsive emergency aid programs can help keep students enrolled and receiving degrees. more...