European Commissioner: Extent of Corruption Across the EU is 'Breathtaking'

According to
a report
from the European Commission, corruption costs the
European Union at least 120 billion euros (about $162 billion) a
year.

European Union Home Affairs Commissioner Cecilia Malmstroem, who
presented the report, wrote about corruption in the Swedish
newspaper
Göteborgs-Posten
, saying that, “The extent of the
problem is breathtaking.”

The report mentions the finding of Eurobarometer surveys, which
show that in Scandinavian European Union member states and
Luxembourg residents believe that corruption is widespread in their
country at rates less than the E.U. average (74 percent) and very
few expect to pay bribes.

In some E.U. member states, such as Germany, France, and the
Netherlands, more than half of residents claim that corruption is
widespread, despite the fact that very few residents say they
expect to pay bribes.

There are of course some countries in the E.U. where many
residents do expect to pay bribes and do think that corruption is
widespread:

As for countries lagging behind in the scores concerning both
perceptions and actual experience of corruption, these include
Croatia, the Czech Republic, Lithuania, Bulgaria, Romania and
Greece. In these countries, between 6 % and 29 % of respondents
indicated that they were asked or expected to pay a bribe in
the past 12 months, while 84 % up to 99 % think that
corruption is widespread in their country. Croatia and the Czech
Republic appear to make a somewhat more positive impression
with slightly better scores than the rest of the
countries from the same group. 

Map based on some of the Eurobarometer findings below:

Transparency
International
ranks countries for corruption. According to last
year’s rankings, the U.S. is more corrupt that Denmark, Sweden, the
U.K., and Germany, but is less corrupt than Ireland, Greece, Italy,
Spain, and France.

Sixty percent of the
American respondents
to the Transparency International survey
believe that corruption has increased over the past two years by
either “a lot” or “a little.” Perhaps unsurprisingly, political
parties are viewed as the most corruption institutions in the U.S.,
with 76 percent of respondents saying that political parties are
either “corrupt” or “extremely corrupt.”

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A. Barton Hinkle Says Gay Marriage Is Loving v. Virginia All Over Again

Foes of gay marriage — a shrinking cohort — do
not like comparisons to interracial marriage. The reason is
obvious: Everyone now recognizes that prohibitions against
interracial marriage, which the Supreme Court struck down in the
aptly named Loving v. Virginia, were completely
irrational and thoroughly unjust. If the analogy with gay marriage
is valid, A. Barton Hinkle asserts, then that debate is over.

View this article.

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“Paranoid Libertarianism” Is Just As Mainstream As Modern Liberalism

The specter of “paranoid libertarianism” continues to haunt
American liberals. Hot on the heels of Sean Wilentz’s
recent fretting
in The New Republic that Edward
Snowden, Glenn Greenwald, and Julian Assange have undermined the
case for big government by drawing too much attention to various
instances of big government malfeasance, former Obama
administration official Cass Sunstein has now weighed in with his
own contribution to the genre, an op-ed titled “How
to Spot a Paranoid Libertarian
.”

According to Sunstein, paranoid libertarianism is characterized
by such pathologies as “a presumption of bad faith on the part of
government officials–a belief that their motivations must be
distrusted,” as well as “a belief that liberty, as paranoid
libertarians understand it, is the overriding if not the only
value, and that it is unreasonable and weak to see relevant
considerations on both sides.”

Sunstein tries very hard to make that sound like dangerous and
exotic stuff, but in fact what he’s really describing is mainstream
American jurisprudence when it comes to such vast areas of the law
as free speech, voting, abortion, privacy, and gay rights. In those
areas, our judicial system basically operates exactly as Sunstein
describes: it subjects government regulations to what lawyers call
strict (or intermediate) scrutiny. In essence, judges presume that
the government has acted illegitimately when it legislates in such
areas, and therefore forces the government to shoulder the burden
of proof and justify its actions with extremely convincing
rationales. Why do the courts place these government actions under
the microscope? To protect the people’s liberty to speak, vote,
associate, and enjoy various forms of privacy. One more thing:
American liberals overwhelmingly favor this approach in such
cases.

Here’s a recent example. During the March 2012 oral argument
over the constitutionality of Section 3 of the Defense of Marriage
Act in United
States v. Windsor
, Supreme Court Justice Elena Kagan
openly questioned the motives of each and every member of Congress
who voted in favor of that law. “We have a whole series of cases
which suggest the following,” Kagan told Republican lawyer Paul
Clement, who was arguing in favor of DOMA. “That when Congress
targets a group that is not everybody’s favorite group in the
world, that we look at those cases with some…some rigor to say,
do we really think that Congress was doing this for uniformity
reasons, or do we think that Congress’s judgment was infected by
dislike, by fear, by animus, and so forth?”

Is Elena Kagan a “paranoid libertarian?” Judging by Sunstein’s
definition, the answer is yes. Welcome to the brave new world.

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Banks Wary of Marijuana Money Say a New DOJ Memo Won’t Be Enough to Make Them Comfortable

A couple of weeks ago, when Attorney General Eric
Holder said the Justice Department and the Treasury Department will
be issuing guidance “very soon” to banks wary of dealing with
state-licensed marijuana producers and distributors, I
wondered
whether it would be enough to make cautious financial
institutions comfortable with taking deposits from businesses that
federal law still treats as criminal enterprises. A recent
Politico article
suggests not:

Financial firms must comply with a slew of anti-money-laundering
rules enforced by bank regulators, and the risk of violations could
be big for banks that choose to do business with companies that are
breaking federal laws.

Also, the DOJ directive wouldn’t be binding, and there have been
past examples of prosecutors who disagree with similar guidance
ignoring the directive. The next administration could also wipe it
off the books. All it takes is one U.S. attorney to file criminal
charges, and a bank could lose its charter and be forced to shut
down.

With this in mind, for many banks—even with assurances from
Justice as well as Treasury’s anti-money-laundering division—the
risks still outweigh the rewards.

“From my conversations with bankers, I don’t see that there’s
anything they can do that’s going to give a bank the comfort they
need until Congress changes the law,” said Rob Rowe, senior counsel
at the American Bankers Association….

Don Childears, the president of the Colorado Bankers
Association, which has pushed hard for changes to the rules, said
he is not convinced that an opinion from the executive branch is
enough.

“It’s a murky area,” Childears said. “It literally will take an
act of Congress.”

One Colorado bank, Pueblo Bank & Trust, does not even allow
its ATMs to be placed in or near marijuana businesses, presumably
because it does not want customers to use cash from the machines to
buy cannabis. “Marijuana remains an illegal drug under federal
law,” PB&T President Mike Seppala told
The Pueblo Chieftain last week, “and that’s the bank’s
policy.”

Because growing and selling marijuana remain federal felonies,
providing financial services to businesses engaged in those
activities can be viewed as money laundering or aiding and abetting
drug trafficking. Holder can announce that such prosecutions should
not be a high priority for U.S. attorneys, but they won’t
necessarily listen, and the policy can be changed at any moment, by
this administration or the next. Without new federal legislation,
banks accepting marijuana money will always be taking a legal
risk.

The Respect State
Marijuana Laws Act
, introduced last spring by Rep. Dana
Rohrabacher (R-Calif.), would address the problem by declaring that
the provisions of the Controlled Substances Act dealing with
cannabis “shall not apply to any person acting in compliance
with state laws.”  The Marijuana
Businesses Access to Banking Act
, introduced last summer by
Reps. Ed Perlmutter (D-Colo.) and Denny Heck (D-Wash.), takes a
narrower approach, protecting banks that deal with state-legal
marijuana businesses from criminal investigation or prosecution and
from regulatory repercussions, including loss of federal deposit
insurance.

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Banks Wary of Marijuana Money Say a New DOJ Memo Won't Be Enough to Make Them Comfortable

A couple of weeks ago, when Attorney General Eric
Holder said the Justice Department and the Treasury Department will
be issuing guidance “very soon” to banks wary of dealing with
state-licensed marijuana producers and distributors, I
wondered
whether it would be enough to make cautious financial
institutions comfortable with taking deposits from businesses that
federal law still treats as criminal enterprises. A recent
Politico article
suggests not:

Financial firms must comply with a slew of anti-money-laundering
rules enforced by bank regulators, and the risk of violations could
be big for banks that choose to do business with companies that are
breaking federal laws.

Also, the DOJ directive wouldn’t be binding, and there have been
past examples of prosecutors who disagree with similar guidance
ignoring the directive. The next administration could also wipe it
off the books. All it takes is one U.S. attorney to file criminal
charges, and a bank could lose its charter and be forced to shut
down.

With this in mind, for many banks—even with assurances from
Justice as well as Treasury’s anti-money-laundering division—the
risks still outweigh the rewards.

“From my conversations with bankers, I don’t see that there’s
anything they can do that’s going to give a bank the comfort they
need until Congress changes the law,” said Rob Rowe, senior counsel
at the American Bankers Association….

Don Childears, the president of the Colorado Bankers
Association, which has pushed hard for changes to the rules, said
he is not convinced that an opinion from the executive branch is
enough.

“It’s a murky area,” Childears said. “It literally will take an
act of Congress.”

One Colorado bank, Pueblo Bank & Trust, does not even allow
its ATMs to be placed in or near marijuana businesses, presumably
because it does not want customers to use cash from the machines to
buy cannabis. “Marijuana remains an illegal drug under federal
law,” PB&T President Mike Seppala told
The Pueblo Chieftain last week, “and that’s the bank’s
policy.”

Because growing and selling marijuana remain federal felonies,
providing financial services to businesses engaged in those
activities can be viewed as money laundering or aiding and abetting
drug trafficking. Holder can announce that such prosecutions should
not be a high priority for U.S. attorneys, but they won’t
necessarily listen, and the policy can be changed at any moment, by
this administration or the next. Without new federal legislation,
banks accepting marijuana money will always be taking a legal
risk.

The Respect State
Marijuana Laws Act
, introduced last spring by Rep. Dana
Rohrabacher (R-Calif.), would address the problem by declaring that
the provisions of the Controlled Substances Act dealing with
cannabis “shall not apply to any person acting in compliance
with state laws.”  The Marijuana
Businesses Access to Banking Act
, introduced last summer by
Reps. Ed Perlmutter (D-Colo.) and Denny Heck (D-Wash.), takes a
narrower approach, protecting banks that deal with state-legal
marijuana businesses from criminal investigation or prosecution and
from regulatory repercussions, including loss of federal deposit
insurance.

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Thousands Stuck in Obamacare Appeals Limbo

You may have heard that HealthCare.gov,
which powers the federally run health insurance exchange for 36
states, is, after its disastrous rollout last year, all fixed up
and working basically fine. Obamacare is on track. But that’s not
true, it seems, for anyone who wants to file an appeal regarding
insurance coverage obtained through the system.

Some 22,000 people have already filed appeals, saying that the
system made a mistake with their application. But those appeals
have gone nowhere, because the computer system meant to handle them
has not been built,
according to The Washington Post
, which obtained
access to internal government data on progress completing the
website. Telephone help doesn’t work either, because call center
employees can’t access the appeals system either. 

The Post had to rely on leaked government data and
anonymous insiders for its report because the Obama administration
never disclosed the exchange’s lack of appeals functionality. When
asked about the appeals mechanism, an administration spokesperson
responded with a weasely half-admission that, yes, the appeals
system isn’t finished, saying, “We are working to fully implement
the appeals system.” Progress! Always progress. Except that there’s
no indication that the administration is making any. Insiders tell
the Post that they have no idea when the system
will be complete.

If anything, the administration has worked to mislead people
about the status of the appeals functionality, setting up a system
that allowed someone to file an appeal that, after being sent off,
entered a sort of digital limbo.

The appeals system appears to be one of many components of
Obamacare’s technology that has not been built yet. At the end of
last year, a senior tech official for Medicare, which manages the
health exchange,
told members of Congress that 30-40 percent of the system had yet
to be completed
, including crucial payment systems. Those
payment systems, which include various money-shuffling
risk-mitigation schemes that the administration
says are critical
to keeping the whole law afloat, still
haven’t been completed. The administration recently fired its old
tech contractor brought on a new firm to complete the remaining
work.

Whatever else one thinks about the law and its design, it’s
clear that the administration, as well as
several state governments
attempting to build their own
exchanges, wasn’t even close to sufficiently prepared for launch
last October. This looks like a project that needed another year or
more before going live. Instead, the administration chose to beta
test a faulty, incomplete product on the public while papering over
their own administrative failures and incompetence.

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Whose Fake Outrage Are We Faking Being Outraged About Today?

Not quite as boring as the game, but close.Last night, during the annual
televised Department of the Interior round-up and execution of wild
horses (which took place in New Jersey this year for some odd
reason), Coca-Cola premiered a new commercial that included: 1)
part of “America the Beautiful” being sung in a language other than
English; and 2) a family with two dads.

People being outraged about everything under the sun has been a
theme on Twitter for a while. Media outlets hunting down the
outrage and publicizing it as a relatively cheap way to score hits
from people who like to be outraged about the outrage of other
people followed not long after. For the Coca-Cola commercial,
reaction tweets were posted at
USA Today
,
E! Online
, the
Daily Mail
,
Talking Points Memo
,
Mediaite
, and likely others.

In each case, a handful of tweets are intended to serve as
evidence as some sort of widespread attitude among a certain
demographic, which will then subsequently be used to judge a much
larger group of people. Thus, we had the infamous
MSNBC Cheerios tweet
that assumed right-wingers would hate an
advertisement that featured a biracial family.

But is there any substantive evidence that this outrage actually
existed to a degree large enough to justify multiple media reports?
It certainly doesn’t seem like it, but man, aren’t those easy
stories to put together? Toss a few search terms on Twitter and you
can find all sorts of opinions! Reporters can put together “man on
the street” stories without ever even leaving their desks or
actually interacting with any other human beings at all!

“Man on the Street” pieces were never all that interesting or
useful to begin with, but at least it involved an actual person in
an actual place who chose to share his or her opinions to a
reporter for our evaluation. This nearly contextless sharing of
random angry tweets illuminates even less. But it’s good for
stirring up a round of counteroutrage, isn’t it? And that
counteroutrage at some anonymous, undefined number of people
behaving badly on the Internet makes some others feel more
superior, doesn’t it?

Below, the ad:

I am outraged by how utterly pedestrian it is. This could have
been a Levi’s ad five years ago. It could be advertising
anything.

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A.M. Links: Philip Seymour Hoffman Dead, Yellen To Be Sworn in as Fed Chair, EU Commissioner Calls Corruption Across the EU ‘Breathtaking’

  • Academy Award-winning actor
    Philip Seymour Hoffman
    was found dead in his Manhattan
    apartment yesterday. Unnamed law enforcement officials told the
    Associated Press that Hoffman is believe to have died from a drug
    overdose.

  • Janet Yellen
    will be sworn in as the Chairwoman of the Federal
    Reserve today.
  • European Union Home Affairs Commissioner Cecilia Malmstroem has
    said that
    corruption across the E.U.
    is “breathtaking.”
  • Al Qaeda claims that it has no ties to the
    Islamic State in Iraq and the Levant
    , which has been fighting
    rebel groups in Syria.
  • Today is the deadline for top aides to New Jersey Governor

    Chris Christie
    to reply to subpoenas made by legislators
    investigating lane closures between Fort Lee and the George
    Washington Bridge.
  • The recent
    election in Thailand
    has done little to end the political
    stalemate. 

Follow Reason and Reason 24/7 on
Twitter, and like us on Facebook.
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can also get the top stories mailed to
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The Old-School Empire Strikes Back

ClassroomSchool choice has been winning some battles in
recent years. But just after the close of a week celebrating
gains
in expanding education options for families, old-school
(in the literal sense) defenders of one-size-fits-all learning push
back in two of the country’s more … umm … authoritarian
jurisdictions. Newly minted New York City Mayor Bill de Blasio
wants to gut funding for privately managed charter schools that
offer myriad  approaches and philosophies, while Illinois
lawmakers look to weaken a state commission that has the power to
authorize charters over the objection of entrenched local school
districts.

According to the editorial board at the New York
Post
:

On Friday, Mayor Bill and Schools Chancellor Carmen Fariña
announced that they plan to redirect $210 million away from charter
public schools to traditional public schools. The funds will come
from the 2015-19 capital plan, which hasn’t been released.
Basically, what this means is that money that would’ve gone for the
expansion of successful charter schools will go to build more
pre-kindergarten seats at the traditional public schools.

This is astonishing on several scores. To begin with, the best
research we have suggests the returns on most pre-K programs
diminish after a few years, while the charter gains are impressive.
If you were going to help children get a decent education, where
would you put your dollars?

Even before his election, Bill de Blasio had a reputation as a
defender of state-controlled everything (including
horses
). As the Post notes,
research on charter schools
has generally shown encouraging
educational outcomes for children when compared to traditional
public schools. That’s especially impressive when you consider that
charters tend to attract families that have been sorely
disappointed by the often cookie-cutter traditional schools.

But even if the research didn;t how such impressive outcomes,
there’s value in choice in and of itself. It allows families to
pick and choose among philosophies and environments that best suit
their own children and don’t treat them as identical products with
uniform needs.

Likewise, the Chicago Tribune‘s
editorial board warns
:

Illinois lawmakers created a special board in 2011 to encourage
education choice. The Illinois State Charter School Commission has
the power to override local school districts that reject efforts to
open innovative public schools in their communities.

We strongly backed the creation of the commission because
Illinois needs more top-performing charter schools. The idea did
not drum up much controversy. The Illinois House and Senate cast
overwhelming votes in favor of the commission. But there’s already
a move to scrap it.

That move is being led by state Rep. Linda Chapa LaVia and Sen.
Kimberly Lightford, who voted just a couple of years ago to create
the commission.

Chapa LaVia has filed another bill that would preserve the
commission, but allow voters to overturn a decision of the
commission by referendum.

The big problem, from lawmakers’ perspective, is that the
commission actually seems to like charter schools, while the local
districts it overrules to authorize charters almost always don’t.
Also, politics may have played into some of the commission’s
decisions—a not entirely unknown phenomenon in the state of
Illinois, and one that’s likely inevitable in any activity
involving government bodies doling out permissions and funds. The
school districts do the same, but they do so with the approval of
pet legislators.

The result in both New York and Illinois is a threat to one of
the more popular and fast growing education options.

That’s not to say the news is all bad. North Carolina
introduced vouchers
to help low-income students attend private
schools, despite lawsuits. Wisconsin has
done the same
, while Indiana
expanded its voucher program to nearly 20,000
students.

But there’s no doubt that, in some parts of the country, fans of
old-line, state-dominated education are starting to push back, and
making efforts to limit the options available. If they win any of
their battles, that’s bound to hurt some families and students.

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Can Rand Paul Get Votes From Women? (Hint: He Already Has)

Just a week ago,
Sen. Rand Paul (R-Ky.), a leading GOP figure for libertarian
policies geared around reducing the size, scope, and spending, was
assailed at Time.com for prematurely declaring that the “war on
women” is over and the women had won. According to Paul:

“The whole thing with the War on Women, I sort of laughingly
say, ‘yeah there might have been,’ but the women are winning
it.”

After wrangling with stats that showed women surging ahead
of men in some areas and lagging behind in others, Charlotte Alter
wrote,

The fact that Rand Paul thinks the war on women is over means he
had no idea what it was about in the first place. Nobody accused
the Republican party of standing in the way of women going to
veterinary school– women’s financial and educational advancements
are propelled by social changes that aren’t being specifically
debated on the Senate floor. The “War on Women” is about abortion
rights and access to affordable contraception more than anything,
and Paul is fighting against both of them.


Read the whole piece here
.

Yesterday in The New York Times, columnist Maureen Dowd
interviewed Paul and seemed more sympathetic to him, even dubbing
him “not-so-bland,” which practically passes for a Mae West-style
come-on from the the author of Are Men Necessary? The
junior senator has figured out a legitimate way to “make Monica
haunt Hillary’s dreams.”

Paul reiterated to me that he disdains the Democratic “hypocrisy
within the party that wants to blame Republicans for somehow not
liking women, that somehow we’re this party that has some kind of
war going on, and they have as a leader and one of the most
prominent fund-raising people in their party still to this very
day, a person who seems in some ways to have his own private war on
women.”

He’s speaking of
Bill Clinton, of course. Dowd continues:

Veterans of Hillaryworld admired Paul’s savvy appeal to the
base. As one noted dryly, “When you’re playing with the hard-core
base, there’s no statute of limitations on crazy fooling around
with an intern in the Oval Office.”

I agree that Paul’s aim was true. He distracted from the
Republicans’ abysmal war on women by pointing at an abysmal moment
in feminist history, when feminists betrayed their principles to
defend a president who had behaved in a regressive way with women
because he had progressive policies on women.

Instead of owning up, Bill Clinton forced his humiliated wife, a
feminist icon, and women in his cabinet — Madeleine Albright and
Donna Shalala — into the dreadful position of defending him when he
was lying about his conduct.

Paul also tells Dowd, “I’ve never met a Republican who was
against birth control or who thought that somehow we would try to
prevent women from having birth control.”


Read the whole column.

Is Rand Paul accurate when he says that Republicans aren’t
against birth control? I did a quick search for GOP leaders who
have inveighed against the very idea of contraception. Not an
exhaustive search by any means, but nothing turned up, even among
the strongly Catholic folks such as Rick Santorum. There’s no
question that the Republicans are against often, even typically,
against state-funded birthcontrol, and strongly against forcing
employers to cover contraceptives via Obamacare mandates (among
liberals and
those further out on the left
, there is often no distinction
between allowing something and having the government pay for
it).

There’s no question that Paul is strongly anti-abortion. Yet
contra Charlotte Alter in Time, it’s far from clear that being in
favor of abortion in any way reflects gender. As Gallup has shown
for decades, men’s and women’s positions on abortion
are essentially the same
(indeed, by some measures, men are
more supportive of abortion).
Pew documents
that women are more likely to favor the
contraceptive mandates in Obamacare and they are more likely to
identify as Democrats (in 2012, for instance, about 52 percent of
women identified as Democratic, compared to about 42 percent of
men; while the numbers change, that 10-point gap has stayed pretty
constant).

Yet it’s clear that on at least some issues, Republicans who
follow Rand Paul’s lead on foreign policy and war are in synch with
female voters. Women, Pew finds, are substantially more likely than
men to favor diplomacy and cast a cold eye on military strength as
a means to “achieving peace.”

The “War on Women” meme isn’t going away any time soon, of
course, but as women achieve economic parity with men (as Alter
notes, women make up 57 percent of college students and 48 percent
of med school grads; Millennial women make 93 percent of what their
male counterparts do), it’s likely that gender will fade as a clear
indicator of voting preference. If Rand Paul can charm Maureen Dowd
– and score points with “veterans of Hillaryworld” – while
convincing women that he’s not an existential threat to
contraception, he may be a national GOP figure who will close the
gender gap in 2016. In his 2010 Senate race, after all,
he won women
by 1 percentage point over his challenger.

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