Ask Reason Magazine’s Editors Everything: Webathon 2021


Our beloved Reason Roundtable listeners did not hold back: per Reason tradition, they sent in questions (and one limerick) and editors Katherine Mangu-Ward, Peter Suderman, Nick Gillespie, and Matt Welch have now given their answers. This is all in the spirit of Reason‘s annual webathon, in which we try to persuade you to make a tax-deductible donation to the nonprofit foundation that publishes our work. In fact, an anonymous, generous donor offered to match the next $100,000 you give us! Or, bid now to win the first-ever Reason NFT, if that’s more your thing.

What did the editors do as soon as they were vaccinated? Which fictional characters best represent them? Are there new Reason podcast shows on the horizon? Can Peter really segue almost anything into a Marvel reference? (Spoiler: Yes.) Cocktails, American literature, relationship advice (it is cuffing season after all) and more all right here on this special video podcast. Want to not just hear but also see the collective groan in response to the phrase “2024 election”? Check out the video version here. You definitely, maybe, possibly will be a better, smarter, more interesting, and maybe freshly date-able person after consuming this podcast. So please give us some money so we can do this all again next year, okay? Okay.

Cheers and libertarian love,

The Reason Roundtable

 

 

Audio production by Ian Keyser
Assistant production by Regan Taylor
Music: “Angeline,” by The Brothers Steve

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You Asked, We Gave You Libertarian Solutions, Star Trek Characters and…Dating Advice?


2

Our beloved Reason Roundtable listeners did not hold back: per Reason tradition, they sent in questions (and one limerick) and editors Katherine Mangu-Ward, Peter Suderman, Nick Gillespie, and Matt Welch have now given their answers. This is all in the spirit of Reason‘s annual webathon, in which we try to persuade you to make a tax-deductible donation to the nonprofit foundation that publishes our work. In fact, an anonymous, generous donor offered to match the next $100,000 you give us! Or, bid now to win the first-ever Reason NFT, if that’s more your thing.

What did the editors do as soon as they were vaccinated? Which fictional characters best represent them? Are there new Reason podcast shows on the horizon? Can Peter really segue almost anything into a Marvel reference? (Spoiler: Yes.) Cocktails, American literature, relationship advice (it is cuffing season after all) and more all right here on this special video podcast. Want to not just hear but also see the collective groan in response to the phrase “2024 election”? Check out the video version here. You definitely, maybe, possibly will be a better, smarter, more interesting, and maybe freshly date-able person after consuming this podcast. So please give us some money so we can do this all again next year, okay? Okay.

Cheers and libertarian love,

The Reason Roundtable

 

 

Audio production by Ian Keyser
Assistant production by Regan Taylor
Music: “Angeline,” by The Brothers Steve

The post You Asked, We Gave You Libertarian Solutions, Star Trek Characters and…Dating Advice? appeared first on Reason.com.

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Ask Reason Magazine’s Editors Everything: Webathon 2021


Our beloved Reason Roundtable listeners did not hold back: per Reason tradition, they sent in questions (and one limerick) and editors Katherine Mangu-Ward, Peter Suderman, Nick Gillespie, and Matt Welch have now given their answers. This is all in the spirit of Reason‘s annual webathon, in which we try to persuade you to make a tax-deductible donation to the nonprofit foundation that publishes our work. In fact, an anonymous, generous donor offered to match the next $100,000 you give us! Or, bid now to win the first-ever Reason NFT, if that’s more your thing.

What did the editors do as soon as they were vaccinated? Which fictional characters best represent them? Are there new Reason podcast shows on the horizon? Can Peter really segue almost anything into a Marvel reference? (Spoiler: Yes.) Cocktails, American literature, relationship advice (it is cuffing season after all) and more all right here on this special video podcast. Want to not just hear but also see the collective groan in response to the phrase “2024 election”? Check out the video version here. You definitely, maybe, possibly will be a better, smarter, more interesting, and maybe freshly date-able person after consuming this podcast. So please give us some money so we can do this all again next year, okay? Okay.

Cheers and libertarian love,

The Reason Roundtable

 

 

Audio production by Ian Keyser
Assistant production by Regan Taylor
Music: “Angeline,” by The Brothers Steve

The post Ask Reason Magazine's Editors Everything: Webathon 2021 appeared first on Reason.com.

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Framing the Abortion Argument

It was an absorbing two hours of oral argument – well-argued by the lawyers, and a very engaged and well-prepared bench.  Like Super Bowl matchups, arguments in the Big Cases often disappoint, given the huge buildup beforehand; this one, however, did not – to my ears, anyway.  [If you missed the proceedings, the full audio is available here, and the official transcript here]

It is difficult to say anything truly novel about the issues in the case, which have been picked over and argued about for 50 years or so. Two points that were the focus of the argument, however, struck me as noteworthy.

The first involves the application of the doctrine of stare decisis. This is, obviously, central to the case; Mississippi explicitly requests that the Court overrule the holdings of prior precedent (Roe v. Wade and Planned Parenthood v. Casey) in regard to the existence and scope of a woman’s constitutional right to terminate her pregnancy.

This is not unusual; litigants frequently ask the Court to overturn its prior holdings, and the analysis of the question is pretty well-trodden ground, with a pretty well-developed protocol for answering the question. As the Court put it in Casey:

When this Court reexamines a prior holding, its judgment is customarily informed by a series of prudential and pragmatic considerations designed to test the consistency of overruling a prior decision with the ideal of the rule of law, and to gauge the respective costs of reaffirming and overruling a prior case. Thus, for example, we may ask [a] whether the rule has proved to be intolerable simply in defying practical workability; [b] whether the rule is subject to a kind of reliance that would lend a special hardship to the consequences of overruling and add inequity to the cost of repudiation; [c] whether related principles of law have so far developed as to have left the old rule no more than a remnant of abandoned doctrine; or [d] whether facts have so changed or come to be seen so differently, as to have robbed the old rule of significant application or justification.

What does make this case unusual, though, is that the Court has already done the stare decisis analysis in connection with this constitutional right – in Casey itself, where it held, after a lengthy consideration of the question, that “within the bounds of normal stare decisis analysis, and subject to the considerations on which it customarily turns, the stronger argument is for affirming Roe’s central holding, with whatever degree of personal reluctance any of us may have, not for overruling it.” [The discussion in Casey of how the rule of stare decisis should be applied to the constitutional right recognized in Roe is quite interesting; if you haven’t read it, you can find it here]

Thus, as Julie Rinkelman, attorney for the Respondents challenging the Mississippi law, put it, this case is about “precedent on precedent” – precedent squared. Mississippi is not merely asking the Court to discard stare decisis by overturning the substantive holdings of Roe and Casey (that a woman has a constitutional right to terminate a pregnancy pre-viability); it is also asking the court to discard stare decisis by overturning Casey’s stare decisis holding (that the “normal stare decisis analysis” does not call for overruling Roe’s substantive holding).

To put it differently: the Court must, if it is to overrule Roe and Casey, explain why, under the principles of stare decisis, it is discarding its own prior holding applying the principles of stare decisis to this constitutional right.

It’s a little headache-inducing (could we get precedent^3? will the decision in this case be precedent for the use of precedent to determine the use of precedent? and so on) – but I do think framing the central question this way works considerably to Respondent’s advantage. To do what Mississippi asks it to do, the Court will have to explain not only why and how Roe got it wrong (and not just wrong, but wrong in a way that justifies tossing it aside), but why and how Casey got it wrong when it held that the principles of stare decisis do not require overturning Roe (and not just wrong, but wrong in a way that justifies our tossing that holding aside as well). I don’t think that’s going to be too easy to do.

The second noteworthy moment came in a discussion of the source of the underlying constitutional right that the Respondents were asserting. Justice Thomas asked the question this way:

JUSTICE THOMAS: Back to my original question. I know your interest here is in abortion, I understand that, but, if I were to ask you what constitutional right protects the right to abortion, is it privacy? Is it autonomy? What would it be? … What I’m trying to focus on is to lower the level of generality or at least be a little bit more specific. In the old days, we used to say it was a right to privacy that the Court found in the due process, substantive due process clause, okay? So I’m trying to get you to tell me, what are we relying on now? Is it privacy? Is it autonomy? What is it?

I liked Ms. Rikelman’s terse reply:

MS. RIKELMAN: It’s liberty, Your Honor.

Basta cosi.  That line should appear on t-shirts in the near future.

She continued:

It’s the textual protection in the Fourteenth Amendment that a state can’t deprive a person of liberty without due process of law, and the Court has interpreted liberty to include the right to make family decisions and the right to physical autonomy …

The question was a little (or more than a little) disingenuous on Justice Thomas’ part. It is true that Roe itself was less than transparently clear about precisely where it was situating the constitutional right in question, leading to several decades of wrangling over “penumbral rights” and “shadow rights” and the “right to privacy” and the “right to medical autonomy” and the like.

But Casey – as Justice Thomas, who was on the Court at the time, is surely aware – settled the matter:

Constitutional protection of the woman’s decision to terminate her pregnancy derives from the Due Process Clause of the Fourteenth Amendment. It declares that no State shall “deprive any person of life, liberty, or property, without due process of law.” The controlling word in the case before us is “liberty.”

The Court’s decisions have afforded constitutional protection to personal decisions relating to marriage, procreation, family relationships, child rearing and education, and contraception, and have recognized the right of the individual to be free from unwarranted governmental intrusion into matters so fundamentally affecting a person as the decision whether to bear or beget a child. [Many citations, omitted]

Or as Ms. Rikelman put it later in the argument: “For a state to take control of a woman’s body and require that she go through pregnancy and childbirth, with all the physical risks and life-altering consequences that brings, is a fundamental deprivation of her liberty. Preserving a woman’s right to make this decision until viability protects her liberty while logically balancing the other interests at stake.”

I leave it to others to explain why Justice Thomas would want to obfuscate this question by referring to pre-Casey confusion. Framing it as “liberty” – the way Casey framed it – makes it seem not just reasonable but almost self-evident (and, dare I say it here on the VC, squarely libertarian). Surely most people would agree that we enjoy the “liberty” in this country of making vital, intensely personal, life-altering decisions – when and with whom to start a family, where to live, what religion to adhere to (or not), who to have sex with (or not), whether to send one’s children to public or parochial school, and the like – without interference from the state.

It is important, I think, to keep this framing of the issue at the forefront of the argument (and I thought Ms. Rikelman did a very good job of doing that).  Framing matters, in constitutional litigation as much or more than anywhere else – the campaign for the right to marry whomever you wish to picked up vital steam when it was no longer a campaign for “same-sex marriage” but for “marriage equality.”

FWIW, my personal prediction is that the Court will not overrule Roe and/or Casey, at least insofar as there will be five votes to re-affirm the existence of a due-process-protected right to decide whether to terminate one’s pregnancy. Justice Roberts will succeed at getting persuading at least one of the post-Casey Justices to join in his opinion, which will confirm the existence of the right while simultaneously discarding the “viability” standard for determining when the State’s countervailing interest in the life of the fetus arises and giving States more leeway in defining the timing of their prohibitions. Just a guess.

The post Framing the Abortion Argument appeared first on Reason.com.

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Framing the Abortion Argument

It was an absorbing two hours of oral argument – well-argued by the lawyers, and a very engaged and well-prepared bench.  Like Super Bowl matchups, arguments in the Big Cases often disappoint, given the huge buildup beforehand; this one, however, did not – to my ears, anyway.  [If you missed the proceedings, the full audio is available here, and the official transcript here]

It is difficult to say anything truly novel about the issues in the case, which have been picked over and argued about for 50 years or so. Two points that were the focus of the argument, however, struck me as noteworthy.

The first involves the application of the doctrine of stare decisis. This is, obviously, central to the case; Mississippi explicitly requests that the Court overrule the holdings of prior precedent (Roe v. Wade and Planned Parenthood v. Casey) in regard to the existence and scope of a woman’s constitutional right to terminate her pregnancy.

This is not unusual; litigants frequently ask the Court to overturn its prior holdings, and the analysis of the question is pretty well-trodden ground, with a pretty well-developed protocol for answering the question. As the Court put it in Casey:

When this Court reexamines a prior holding, its judgment is customarily informed by a series of prudential and pragmatic considerations designed to test the consistency of overruling a prior decision with the ideal of the rule of law, and to gauge the respective costs of reaffirming and overruling a prior case. Thus, for example, we may ask [a] whether the rule has proved to be intolerable simply in defying practical workability; [b] whether the rule is subject to a kind of reliance that would lend a special hardship to the consequences of overruling and add inequity to the cost of repudiation; [c] whether related principles of law have so far developed as to have left the old rule no more than a remnant of abandoned doctrine; or [d] whether facts have so changed or come to be seen so differently, as to have robbed the old rule of significant application or justification.

What does make this case unusual, though, is that the Court has already done the stare decisis analysis in connection with this constitutional right – in Casey itself, where it held, after a lengthy consideration of the question, that “within the bounds of normal stare decisis analysis, and subject to the considerations on which it customarily turns, the stronger argument is for affirming Roe’s central holding, with whatever degree of personal reluctance any of us may have, not for overruling it.” [The discussion in Casey of how the rule of stare decisis should be applied to the constitutional right recognized in Roe is quite interesting; if you haven’t read it, you can find it here]

Thus, as Julie Rinkelman, attorney for the Respondents challenging the Mississippi law, put it, this case is about “precedent on precedent” – precedent squared. Mississippi is not merely asking the Court to discard stare decisis by overturning the substantive holdings of Roe and Casey (that a woman has a constitutional right to terminate a pregnancy pre-viability); it is also asking the court to discard stare decisis by overturning Casey’s stare decisis holding (that the “normal stare decisis analysis” does not call for overruling Roe’s substantive holding).

To put it differently: the Court must, if it is to overrule Roe and Casey, explain why, under the principles of stare decisis, it is discarding its own prior holding applying the principles of stare decisis to this constitutional right.

It’s a little headache-inducing (could we get precedent^3? will the decision in this case be precedent for the use of precedent to determine the use of precedent? and so on) – but I do think framing the central question this way works considerably to Respondent’s advantage. To do what Mississippi asks it to do, the Court will have to explain not only why and how Roe got it wrong (and not just wrong, but wrong in a way that justifies tossing it aside), but why and how Casey got it wrong when it held that the principles of stare decisis do not require overturning Roe (and not just wrong, but wrong in a way that justifies our tossing that holding aside as well). I don’t think that’s going to be too easy to do.

The second noteworthy moment came in a discussion of the source of the underlying constitutional right that the Respondents were asserting. Justice Thomas asked the question this way:

JUSTICE THOMAS: Back to my original question. I know your interest here is in abortion, I understand that, but, if I were to ask you what constitutional right protects the right to abortion, is it privacy? Is it autonomy? What would it be? … What I’m trying to focus on is to lower the level of generality or at least be a little bit more specific. In the old days, we used to say it was a right to privacy that the Court found in the due process, substantive due process clause, okay? So I’m trying to get you to tell me, what are we relying on now? Is it privacy? Is it autonomy? What is it?

I liked Ms. Rikelman’s terse reply:

MS. RIKELMAN: It’s liberty, Your Honor.

Basta cosi.  That line should appear on t-shirts in the near future.

She continued:

It’s the textual protection in the Fourteenth Amendment that a state can’t deprive a person of liberty without due process of law, and the Court has interpreted liberty to include the right to make family decisions and the right to physical autonomy …

The question was a little (or more than a little) disingenuous on Justice Thomas’ part. It is true that Roe itself was less than transparently clear about precisely where it was situating the constitutional right in question, leading to several decades of wrangling over “penumbral rights” and “shadow rights” and the “right to privacy” and the “right to medical autonomy” and the like.

But Casey – as Justice Thomas, who was on the Court at the time, is surely aware – settled the matter:

Constitutional protection of the woman’s decision to terminate her pregnancy derives from the Due Process Clause of the Fourteenth Amendment. It declares that no State shall “deprive any person of life, liberty, or property, without due process of law.” The controlling word in the case before us is “liberty.”

The Court’s decisions have afforded constitutional protection to personal decisions relating to marriage, procreation, family relationships, child rearing and education, and contraception, and have recognized the right of the individual to be free from unwarranted governmental intrusion into matters so fundamentally affecting a person as the decision whether to bear or beget a child. [Many citations, omitted]

Or as Ms. Rikelman put it later in the argument: “For a state to take control of a woman’s body and require that she go through pregnancy and childbirth, with all the physical risks and life-altering consequences that brings, is a fundamental deprivation of her liberty. Preserving a woman’s right to make this decision until viability protects her liberty while logically balancing the other interests at stake.”

I leave it to others to explain why Justice Thomas would want to obfuscate this question by referring to pre-Casey confusion. Framing it as “liberty” – the way Casey framed it – makes it seem not just reasonable but almost self-evident (and, dare I say it here on the VC, squarely libertarian). Surely most people would agree that we enjoy the “liberty” in this country of making vital, intensely personal, life-altering decisions – when and with whom to start a family, where to live, what religion to adhere to (or not), who to have sex with (or not), whether to send one’s children to public or parochial school, and the like – without interference from the state.

It is important, I think, to keep this framing of the issue at the forefront of the argument (and I thought Ms. Rikelman did a very good job of doing that).  Framing matters, in constitutional litigation as much or more than anywhere else – the campaign for the right to marry whomever you wish to picked up vital steam when it was no longer a campaign for “same-sex marriage” but for “marriage equality.”

FWIW, my personal prediction is that the Court will not overrule Roe and/or Casey, at least insofar as there will be five votes to re-affirm the existence of a due-process-protected right to decide whether to terminate one’s pregnancy. Justice Roberts will succeed at getting persuading at least one of the post-Casey Justices to join in his opinion, which will confirm the existence of the right while simultaneously discarding the “viability” standard for determining when the State’s countervailing interest in the life of the fetus arises and giving States more leeway in defining the timing of their prohibitions. Just a guess.

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The Perverse Incentives of Puerto Rico’s Debt Deal


zumaamericastwentyeight101025

Puerto Rico’s Financial Oversight and Management Board, created under the administration of former President Barack Obama, recently reached an agreement with the Commonwealth’s government to restructure the island’s debt, which has been in default since 2017. Media outlets have speculated about a possible “end to the largest bankruptcy proceeding in U.S. history.” The only remaining obstacle is the approval of Chief United States District Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York, who is in charge of the proceedings according to the 2016 PROMESA law (the Puerto Rico Oversight, Management, and Economic Stability Act).

The deal only reached Swain’s desk, however, after the federal oversight board agreed to Puerto Rico Gov. Pedro Pierluisi’s demands “of zero cuts to pensions of current retirees and current accrued benefits of active public employees,” plus funding of $500 million per year for the University of Puerto Rico until 2027.

As John Dizzard of the Financial Times wrote, the holders of Puerto Rico’s defaulted bonds “are being handed deep haircuts on their face value whilst pensions for retired public sector employees are left intact.” As bondholders lose out to pensioners, politicians are turning the logic of secured credit investing on its head.

One of the hearings for Puerto Rico’s defaulted debt concerned $3 billion “in bonds backed by Puerto Rico highway tolls and excise taxes,” and $800 million “in debt secured by taxes on rum paid to Puerto Rico by the federal government,” notes Courthouse News Service‘s Thomas F. Harrison. After the default, Harrison adds, “the insurers for the bondholders tried to collect from the trust funds” to which the revenues were supposed to be paid, only to find “that the (Puerto Rican) government had been diverting the money away.”

One reason why the federal oversight board is legitimizing such conduct is the precedent from the 2008-2009 bailouts and bankruptcy proceedings of Detroit carmakers. Some of the same decision-makers of the financial crash era have also been involved in the Puerto Rican debt dealings.

In 2016, Obama named former judge Arthur J. Gonzalez to the federal oversight board for Puerto Rico. In 2009, Gonzalez was in charge of the Chrysler bankruptcy proceeding. As George Mason University law professor Todd Zywicki wrote of that “egregious” process: “Creditors who held the company’s secured bonds were steamrolled into accepting 29 cents on the dollar for their loans. Meanwhile, the underfunded pension plans of the United Auto Workers—unsecured creditors, but possessed of better political connections—received more than 40 cents on the dollar.”

Gonzalez resigned from the Puerto Rico oversight board in October 2020, a year after his original three-year term had expired. But the spirit of the Chrysler bankruptcy still permeates the recent debt deal. This could have effects beyond Puerto Rico.

As Marc Joffe, a senior policy analyst at the Reason Foundation (the nonprofit that publishes this website), comments: “What does it say to retail buyers of municipal bonds on the U.S. mainland about who is to be rescued after a default?” Political pressure groups in Puerto Rico have tried to put the spotlight on the speculators who have bought the island’s defaulted bonds in expectation of a bailout, the hedge funds which they call “vulture funds,” but the fact remains that over two thirds of municipal securities are “held by individual investors either directly or through mutual funds,” according to the Municipal Securities Rulemaking Board.

Atara Miller, an attorney at the Milbank law firm in New York, told Courthouse News that Puerto Rico’s debt proceeding leaves bondholders “with an umbrella that we can only use on sunny days.” This risks the spread of contagion to states with high debt burdens and unfunded pension schemes such as New Jersey, Illinois, and Kentucky.

Besides its potential effects on the entire municipal bond market, which encompasses nearly $4 trillion in general obligation and revenue bonds, the Puerto Rican debt saga has also made a mockery of the rule of law. According to municipal finance expert Cate Long, who predicted that Puerto Rico would default on its debt as early as 2012, the island’s government is three years behind on releasing audited financial statements, although “Congress explicitly required in the PROMESA law that Puerto Rico’s financials had to be up to date.”

While Puerto Rico has failed to make debt service payments since 2017, government spending is up over 12 percent since then despite a drastic population decrease. Long says Puerto Rican officials are realizing “how easy it is to hide financial data, pretend austerity, and fool their creditors.” For its part, she adds, the U.S. government is creating all the incentives for Puerto Rico “to become a serial defaulter, like Argentina,” a country on the brink of its tenth default since 1816.

The comparison is ominous; Argentina’s longstanding practice of acquiring heaps of debt on the global markets before failing to repay it reflects the workings of its internal politics. As scholars Pablo Spiller (of the University of California, Berkeley) and Mariano Tomassi (of the Universidad San Andrés in Argentina) wrote in 2007, Argentina’s brand of federalism combines decentralized spending for the provinces with largely centralized tax collection and funding schemes. The system, which began to arise in the late 19th century, still motivates “subnational governments [to] adopt a lax fiscal stance in the expectation that they will be bailed out in the event of a fiscal crisis.” 

In turn, they write, the top regional politicians tend to be the crony machine operators “who are best at the game of extracting rents from the common central pool.” Similarly, negotiating rescue packages with the International Monetary Fund has become a part of an Argentine president’s unofficial job description. Will governors of Puerto Rico assume the same role vis-à-vis the White House and Congress?

Certainly, U.S. taxpayers should consider the long-term consequences of their bailout of Puerto Rico, where children of politicians tend to be overrepresented as recipients of six-figure government salaries and seven-figure government contracts. The habitual debt busts of Buenos Aires is one Latin American export that is better left on the dock.

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The Perverse Incentives of Puerto Rico’s Debt Deal


zumaamericastwentyeight101025

Puerto Rico’s Financial Oversight and Management Board, created under the administration of former President Barack Obama, recently reached an agreement with the Commonwealth’s government to restructure the island’s debt, which has been in default since 2017. Media outlets have speculated about a possible “end to the largest bankruptcy proceeding in U.S. history.” The only remaining obstacle is the approval of Chief United States District Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York, who is in charge of the proceedings according to the 2016 PROMESA law (the Puerto Rico Oversight, Management, and Economic Stability Act).

The deal only reached Swain’s desk, however, after the federal oversight board agreed to Puerto Rico Gov. Pedro Pierluisi’s demands “of zero cuts to pensions of current retirees and current accrued benefits of active public employees,” plus funding of $500 million per year for the University of Puerto Rico until 2027.

As John Dizzard of the Financial Times wrote, the holders of Puerto Rico’s defaulted bonds “are being handed deep haircuts on their face value whilst pensions for retired public sector employees are left intact.” As bondholders lose out to pensioners, politicians are turning the logic of secured credit investing on its head.

One of the hearings for Puerto Rico’s defaulted debt concerned $3 billion “in bonds backed by Puerto Rico highway tolls and excise taxes,” and $800 million “in debt secured by taxes on rum paid to Puerto Rico by the federal government,” notes Courthouse News Service‘s Thomas F. Harrison. After the default, Harrison adds, “the insurers for the bondholders tried to collect from the trust funds” to which the revenues were supposed to be paid, only to find “that the (Puerto Rican) government had been diverting the money away.”

One reason why the federal oversight board is legitimizing such conduct is the precedent from the 2008-2009 bailouts and bankruptcy proceedings of Detroit carmakers. Some of the same decision-makers of the financial crash era have also been involved in the Puerto Rican debt dealings.

In 2016, Obama named former judge Arthur J. Gonzalez to the federal oversight board for Puerto Rico. In 2009, Gonzalez was in charge of the Chrysler bankruptcy proceeding. As George Mason University law professor Todd Zywicki wrote of that “egregious” process: “Creditors who held the company’s secured bonds were steamrolled into accepting 29 cents on the dollar for their loans. Meanwhile, the underfunded pension plans of the United Auto Workers—unsecured creditors, but possessed of better political connections—received more than 40 cents on the dollar.”

Gonzalez resigned from the Puerto Rico oversight board in October 2020, a year after his original three-year term had expired. But the spirit of the Chrysler bankruptcy still permeates the recent debt deal. This could have effects beyond Puerto Rico.

As Marc Joffe, a senior policy analyst at the Reason Foundation (the nonprofit that publishes this website), comments: “What does it say to retail buyers of municipal bonds on the U.S. mainland about who is to be rescued after a default?” Political pressure groups in Puerto Rico have tried to put the spotlight on the speculators who have bought the island’s defaulted bonds in expectation of a bailout, the hedge funds which they call “vulture funds,” but the fact remains that over two thirds of municipal securities are “held by individual investors either directly or through mutual funds,” according to the Municipal Securities Rulemaking Board.

Atara Miller, an attorney at the Milbank law firm in New York, told Courthouse News that Puerto Rico’s debt proceeding leaves bondholders “with an umbrella that we can only use on sunny days.” This risks the spread of contagion to states with high debt burdens and unfunded pension schemes such as New Jersey, Illinois, and Kentucky.

Besides its potential effects on the entire municipal bond market, which encompasses nearly $4 trillion in general obligation and revenue bonds, the Puerto Rican debt saga has also made a mockery of the rule of law. According to municipal finance expert Cate Long, who predicted that Puerto Rico would default on its debt as early as 2012, the island’s government is three years behind on releasing audited financial statements, although “Congress explicitly required in the PROMESA law that Puerto Rico’s financials had to be up to date.”

While Puerto Rico has failed to make debt service payments since 2017, government spending is up over 12 percent since then despite a drastic population decrease. Long says Puerto Rican officials are realizing “how easy it is to hide financial data, pretend austerity, and fool their creditors.” For its part, she adds, the U.S. government is creating all the incentives for Puerto Rico “to become a serial defaulter, like Argentina,” a country on the brink of its tenth default since 1816.

The comparison is ominous; Argentina’s longstanding practice of acquiring heaps of debt on the global markets before failing to repay it reflects the workings of its internal politics. As scholars Pablo Spiller (of the University of California, Berkeley) and Mariano Tomassi (of the Universidad San Andrés in Argentina) wrote in 2007, Argentina’s brand of federalism combines decentralized spending for the provinces with largely centralized tax collection and funding schemes. The system, which began to arise in the late 19th century, still motivates “subnational governments [to] adopt a lax fiscal stance in the expectation that they will be bailed out in the event of a fiscal crisis.” 

In turn, they write, the top regional politicians tend to be the crony machine operators “who are best at the game of extracting rents from the common central pool.” Similarly, negotiating rescue packages with the International Monetary Fund has become a part of an Argentine president’s unofficial job description. Will governors of Puerto Rico assume the same role vis-à-vis the White House and Congress?

Certainly, U.S. taxpayers should consider the long-term consequences of their bailout of Puerto Rico, where children of politicians tend to be overrepresented as recipients of six-figure government salaries and seven-figure government contracts. The habitual debt busts of Buenos Aires is one Latin American export that is better left on the dock.

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Socialist Students Want Arizona State University To Expel ‘Racist Murderer’ Kyle Rittenhouse


Screen Shot 2021-12-01 at 9.23.25 PM

Many socialists believe that education is a universal human right. But evidently, not Arizona State University’s (ASU) Students for Socialism. On Wednesday, they staged a protest to pressure campus administrators to expel Kyle Rittenhouse, the recently acquitted Kenosha shooter.

“Join us and rally against racist murderer Kyle Rittenhouse being permitted on our campus,” said the student group on Twitter.

If video footage of the event on social media is any indication, it seemed sparsely attended. In fact, pro-Rittenhouse counterdemonstrators appeared to outnumber the socialists. When a leader of the protest—who was equipped with a megaphone—denounced Rittenhouse as a white supremacist killer, spectators pointed out that all three of the people he shot were white; this did not deter the protester, who responded that Rittenhouse was a descendant of white colonists who had murdered black and brown people.

In any event, there is little chance of Rittenhouse setting foot at ASU: He is not currently enrolled as a student. (He was, at one point, signed up to take online classes while awaiting admission.) But if he did, the public university would have no reason to evict him, and it should consider his hypothetical application as if he were any other student. He is a free man who was deemed innocent by a jury of his peers—a jury that agreed he acted in self-defense when he shot three men after each had allegedly attacked him. He is neither a murderer nor does he appear to be a racist; he has publicly declared that he supports Black Lives Matter and lamented that prosecutors can use their power to mistreat defendants of color.

Leftist students have free speech rights, and they can exercise those to protest Rittenhouse if they wish. But a great many university administrations—whose formal stances on public policy matters unrelated to education would be better left unsaid—have also taken sides against Rittenhouse.

The Atlantic‘s Conor Friedersdorf noted in a recent article that the Universities of California at Santa Cruz and Irvine, as well as The New School in New York, all released statements protesting the outcome of the trial and suggesting that Rittenhouse’s not-guilty verdict was evidence of the power of white supremacy in U.S. society.

“We are disheartened and dismayed by this morning’s not guilty verdict on all charges in the trial of Kyle Rittenhouse,” wrote U.C. Santa Cruz in a statement. “We join in solidarity with all who are outraged by this failure of accountability. Trials such as these that have race-related implications can cause our BIPOC communities distress and harm. This is harm that is endured everyday through acts of racism, the pervasiveness of white supremacy and a flawed justice system.”

At U.C. Irvine, the vice chancellor for equity, diversity, and inclusion and chief diversity officer said in his official capacity that “the conclusion of this trial does not end the reckoning about systemic racism in the United States. If anything, it has simply made it more legible.”

It’s difficult to understand why the chief diversity officer of a school thousands of miles away from Kenosha felt the need to weigh in on this matter on behalf of the school, and in a manner that suggests any student who disagrees might be an accomplice to racism. But weigh in he did.

The Connecticut State Colleges and Universities system said the verdict was a reminder “that systems of inequity were not built in a day or a moment—they have been manufactured, crafted, and honed through generations of practice and reinforcement.” And Fitchburg State University’s Center for Diversity and Inclusiveness set up racially segregated safe spaces—separate spaces for students of color and white students—to process their trauma regarding the outcome.

It would have been entirely proper for colleges and universities to foster vigorous debate on Rittenhouse’s acquittal, and to make it possible for students and professors dismayed by the verdict to speak up and explain their perspectives. But when administrators treat the outcome as obviously and undeniably wrong—and in fact, racist—they are more likely to render such a discussion impossible.

ASU’s administration, to its credit, did not join in. A spokesperson confirmed to the media that Rittenhouse wasn’t actually enrolled, but said nothing about keeping him off campus—to the disappointment of the socialists, undoubtedly.

Some conservative and libertarian students, on the other hand, said that they would welcome Rittenhouse. The student organization Young Americans for Liberty (YAL) released a statement chiding the left for hypocrisy.

“How ironic that the same socialists who call higher education a ‘human right’ also want to deny Rittenhouse that fundamental human right,” said Sean Themea, YAL’s chief of staff.

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Socialist Students Want Arizona State University To Expel ‘Racist Murderer’ Kyle Rittenhouse


Screen Shot 2021-12-01 at 9.23.25 PM

Many socialists believe that education is a universal human right. But evidently, not Arizona State University’s (ASU) Students for Socialism. On Wednesday, they staged a protest to pressure campus administrators to expel Kyle Rittenhouse, the recently acquitted Kenosha shooter.

“Join us and rally against racist murderer Kyle Rittenhouse being permitted on our campus,” said the student group on Twitter.

If video footage of the event on social media is any indication, it seemed sparsely attended. In fact, pro-Rittenhouse counterdemonstrators appeared to outnumber the socialists. When a leader of the protest—who was equipped with a megaphone—denounced Rittenhouse as a white supremacist killer, spectators pointed out that all three of the people he shot were white; this did not deter the protester, who responded that Rittenhouse was a descendant of white colonists who had murdered black and brown people.

In any event, there is little chance of Rittenhouse setting foot at ASU: He is not currently enrolled as a student. (He was, at one point, signed up to take online classes while awaiting admission.) But if he did, the public university would have no reason to evict him, and it should consider his hypothetical application as if he were any other student. He is a free man who was deemed innocent by a jury of his peers—a jury that agreed he acted in self-defense when he shot three men after each had allegedly attacked him. He is neither a murderer nor does he appear to be a racist; he has publicly declared that he supports Black Lives Matter and lamented that prosecutors can use their power to mistreat defendants of color.

Leftist students have free speech rights, and they can exercise those to protest Rittenhouse if they wish. But a great many university administrations—whose formal stances on public policy matters unrelated to education would be better left unsaid—have also taken sides against Rittenhouse.

The Atlantic‘s Conor Friedersdorf noted in a recent article that the Universities of California at Santa Cruz and Irvine, as well as The New School in New York, all released statements protesting the outcome of the trial and suggesting that Rittenhouse’s not-guilty verdict was evidence of the power of white supremacy in U.S. society.

“We are disheartened and dismayed by this morning’s not guilty verdict on all charges in the trial of Kyle Rittenhouse,” wrote U.C. Santa Cruz in a statement. “We join in solidarity with all who are outraged by this failure of accountability. Trials such as these that have race-related implications can cause our BIPOC communities distress and harm. This is harm that is endured everyday through acts of racism, the pervasiveness of white supremacy and a flawed justice system.”

At U.C. Irvine, the vice chancellor for equity, diversity, and inclusion and chief diversity officer said in his official capacity that “the conclusion of this trial does not end the reckoning about systemic racism in the United States. If anything, it has simply made it more legible.”

It’s difficult to understand why the chief diversity officer of a school thousands of miles away from Kenosha felt the need to weigh in on this matter on behalf of the school, and in a manner that suggests any student who disagrees might be an accomplice to racism. But weigh in he did.

The Connecticut State Colleges and Universities system said the verdict was a reminder “that systems of inequity were not built in a day or a moment—they have been manufactured, crafted, and honed through generations of practice and reinforcement.” And Fitchburg State University’s Center for Diversity and Inclusiveness set up racially segregated safe spaces—separate spaces for students of color and white students—to process their trauma regarding the outcome.

It would have been entirely proper for colleges and universities to foster vigorous debate on Rittenhouse’s acquittal, and to make it possible for students and professors dismayed by the verdict to speak up and explain their perspectives. But when administrators treat the outcome as obviously and undeniably wrong—and in fact, racist—they are more likely to render such a discussion impossible.

ASU’s administration, to its credit, did not join in. A spokesperson confirmed to the media that Rittenhouse wasn’t actually enrolled, but said nothing about keeping him off campus—to the disappointment of the socialists, undoubtedly.

Some conservative and libertarian students, on the other hand, said that they would welcome Rittenhouse. The student organization Young Americans for Liberty (YAL) released a statement chiding the left for hypocrisy.

“How ironic that the same socialists who call higher education a ‘human right’ also want to deny Rittenhouse that fundamental human right,” said Sean Themea, YAL’s chief of staff.

The post Socialist Students Want Arizona State University To Expel 'Racist Murderer' Kyle Rittenhouse appeared first on Reason.com.

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The Academic Freedom Podcast #8 with Howard Gillman

A new episode of The Academic Freedom Podcast from the Academic Freedom Alliance is now available. Subscribe through your favorite platform so you don’t miss an episode.

In this episode I talk with Howard Gillman about the view from a university president’s office on the campus free speech situation today. Gillman is the chancellor of the University of California at Irvine and a former dean at the University of Southern California. He is the co-author of Free Speech on Campus and advisory board co-chair of the National Center for Free Speech and Civic Engagement.

I hope this is the first of a few conversations with university leaders about how they think about academic freedom and the challenges they face in protecting it. The conversation with Gillman is particularly wide ranging, and he has thought about these issues more deeply than your average university president given his own scholarly background in constitutional law. There is a lot to learn here.

Listen to the whole thing here.

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