Oil Rebounds As OPEC+ Confirms Expected Supply Hike

Oil Rebounds As OPEC+ Confirms Expected Supply Hike

The OPEC+ coalition ratified an oil-production increase that completes the return of supplies halted during the pandemic, while deferring discussions on its next move for another day.

The 23-nation group led by Saudi Arabia rubber-stamped plans to add 648,000 barrels a day in August, restoring the final tranche of the 9.7 million barrels a day that was shuttered just over two years ago

But with most members besides the Saudis and their neighbors unable to raise output, the decision is largely symbolic.

As a reminder, OPEC+ is falling further and further behind its production goals

Is Macron right and OPEC+ producers are at or near their capacity limits?

“Spare capacity is very low, demand is still recovering,” Shell Plc Chief Executive Officer Ben van Beurden said in Singapore on Wednesday.

“There is a fair chance we will be facing a turbulent period.”

WTI rallied back

Full OPEC+ Statement:

The 30th OPEC and non-OPEC Ministerial Meeting was held via video-conference on 30 June 2022. In view of current oil market fundamentals and the consensus on its outlook, the OPEC and participating non-OPEC oil producing countries agreed to:

  1. Reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.

  2. Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th and 29th OPEC and non-OPEC Ministerial Meetings and the decision to adjust upward the monthly overall production for the month of August 2022 by 0.648 mb/d.

  3. Reiterate the critical importance of adhering to full conformity and to the compensation mechanism. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.

  4. Hold the 31st OPEC and non-OPEC Ministerial Meeting on 3 August 2022.

So given all that, what will the Saudis and Emiratis do next month when Biden visits to beg for more production?

Tyler Durden
Thu, 06/30/2022 – 09:06

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Shoot a Cat, Lose Your Dog (and the Right to Own Other Dogs, Forever): Not Cruel and Unusual Punishment

From State v. Doll, decided Tuesday by the Washington Court of Appeals (Chief Judge Rebecca Glasgow, joinedby Judge Bradley Maxa and Bernard Veljacic),

John Fredrick Doll fired a rifle across a street, gravely injuring a neighbor’s pet cat. Neighbors found the injured cat the next morning and it had to be euthanized. After a bench trial, Doll was convicted of first degree animal cruelty and discharge of a firearm in a public place. [“A person is guilty of animal cruelty in the first degree when, except as authorized in law, he or she intentionally (a) inflicts substantial pain on, (b) causes physical injury to, or (c) kills an animal by a means causing undue suffering or while manifesting an extreme indifference to life ….”] …

Doll was sentenced to 30 days of confinement. In addition, former RCW 16.52.200(4)(b) (2016) permanently barred anyone convicted of first degree animal cruelty “from owning, caring for, or residing with any similar animals” to the one harmed in the offense. “Similar animal” was defined as “[f]or a mammal, another animal that is in the same taxonomic order.” This prohibition was included in Doll’s judgment and sentence. {The legislature has since amended the statute to provide that a conviction for first degree animal cruelty results in a lifetime ban on “owning, caring for, possessing, or residing with any animals,” not just similar animals.}

At the time of his sentencing, Doll owned a dog. Cats and dogs are the same taxonomic order, Carnivora….

The court concluded, among other things, that this wasn’t cruel and unusual punishment, which sounds right to me:

First degree animal cruelty is a class C felony. It is not a “most serious offense” or a “violent offense.” But the nature of the crime requires the intentional infliction of substantial pain, injury, or death upon an animal through a means that causes undue suffering or manifests an extreme indifference to life…. [T]he nature of first degree animal cruelty, especially in light of the facts of the present case, where Doll shot a cat in the dark and did not check whether it had survived, supports concluding that a lifetime prohibition on ownership of similar animals is proportionate to the crime of first degree animal cruelty….

Doll argues that no other state has a mandatory lifetime ban on animal ownership as a punishment for an animal cruelty conviction….

Several states have some form of mandatory ban on allowing individuals convicted of animal cruelty to possess animals and many more have permissive bans allowing for trial court discretion. For example, a defendant convicted of attempting to kill a cat or dog in Maine may be prohibited “from owning, possessing or having on the defendant’s premises an animal for a period of time that the court determines to be reasonable, up to and including permanent relinquishment.” Virginia allows lifetime prohibitions on “possession or ownership of companion animals” at the discretion of the trial court. In Delaware, a person convicted of felony animal cruelty “shall be prohibited from owning or possessing any animal for 15 years after said conviction,” except for the licensed sale of animals or animal products. And Illinois allows courts to impose bans for all animals on both the defendant “and persons dwelling in the same household as the convicted person who conspired, aided, or abetted in the unlawful act that was the basis of the conviction, or who knew or should have known of the unlawful act … for a period of time that the court deems reasonable.” …

We have found no other state that imposes a mandatory lifetime ban on possession of animals for people convicted of first degree animal cruelty, although the nationwide trend has been to reduce trial court discretion and require longer prohibitions on animal ownership as a consequence of such convictions. We acknowledge the countervailing trend toward easing reentry and allowing defendants more opportunities for rehabilitation, which cuts against endorsing any lifetime punishment, including a permanent prohibition on animal ownership. No lifelong punishment allows the full opportunity for rehabilitation. But Washington’s statute is relatively close to the national norms. We conclude that this factor supports an assessment that the permanent similar animal ownership prohibition is proportional to the crime of first degree animal cruelty….

[Finally, we compare] the punishment for the defendant’s crime against Washington’s punishments for other offenses. Doll contends that the prohibition on owning similar animals bars him “from permanently possessing a family member,” comparing the prohibition to the loss of custody of a child. We disagree.

Doll points to no law that guarantees a fundamental right to possess animals. “Pets, as a matter of law, are considered personal property” without any constitutional protections for ownership…. Owning an animal is a privilege, not a right. Washington revokes driver’s licenses for vehicle-related offenses that do not necessarily involve any harm to persons or property, for example. Revocation can occur even though the ability to operate a motor vehicle is crucial to the necessities of life and participation in society.

We also emphasize that the legislature’s punishment for animal cruelty is not without nuance. A person commits second degree animal cruelty if they “knowingly, recklessly, or with criminal negligence inflict[ ] unnecessary suffering or pain upon an animal,” abandon an animal, or fail “to provide the animal with necessary shelter, rest, sanitation, space, or medical attention and the animal suffers unnecessary or unjustifiable physical pain as a result of the failure.” At the time of Doll’s offense, a single conviction for second degree animal cruelty resulted in a two-year prohibition on possession of similar animals that became permanent after the second conviction. But the right of possession could be restored in such cases upon the defendant’s petition to a court. The legislature took care to fine-tune the punishment for animal cruelty and allows leniency for lesser versions of Doll’s offense if the defendant presents evidence of rehabilitation. Only defendants convicted of the most severe form of animal cruelty are more permanently prohibited from animal ownership. …

Doll’s actions were intentional, and he plainly caused unnecessary suffering when he shot the cat through the spine without following up to confirm whether it was experiencing ongoing suffering…. [I]t was not disproportionate to prohibit Doll from possession of similar animals, especially given the legislature’s limitation of the lifetime ban only to the worst animal cruelty offenses.

The post Shoot a Cat, Lose Your Dog (and the Right to Own Other Dogs, Forever): Not Cruel and Unusual Punishment appeared first on Reason.com.

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Watch: Biden Climate Advisor Seems Happy About American Job Losses

Watch: Biden Climate Advisor Seems Happy About American Job Losses

Authored by Steve Watson via Summit News,

One of Joe Biden’s senior advisors bragged this week about how the administration’s forced transition to green energy is causing people working in the fossil fuels industry to lose their jobs.

Speaking from the Aspen Ideas Festival, Biden’s climate advisor Gina McCarthy stated “We have opportunities now to transfer to clean energy in a way that grows thousands of jobs. We just had a recent report that is showing that all of the energy and the employment stats from last year. Clean energy is winning. Fossil fuels losing jobs.”

Watch:

McCarthy is referring to a Department of Energy (DOE) report that reveals American oil producers lost more than 31,000 jobs last year, while American coal producers lost over 7,000 jobs.

McCarthy bragged that jobs had been created in green energy sectors, without explaining that those sectors fulfil less than 20 percent of the country’s energy needs.

McCarthy previously called for anyone criticising the green energy transition to be silenced and censored.

The administration has spent two years trying to “end” the fossil fuel sector, and is openly bragging about it, meanwhile Biden is threatening oil companies in an effort to try to get them to produce more.

Independent Petroleum Association of America spokesperson Jennifer Marsteller reacted to the DOE report by saying it “is not only reflective of the broader pandemic slowdown, but also highlights an Administration that has worked overtime on restricting American natural gas and oil production.”

Meanwhile, in the midst of a supply chain crisis, Biden’s climate czar John Kerry is pushing for ‘green shipping’, the infrastructure for which also does not even exist.

Kerry made the comments from a conference in Portugal. Presumably he got there on a private jet as per usual.

Kerry has also previously called the loss of jobs in the fossil fuels energy sector a necessary ‘sacrifice’:

*  *  *

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Tyler Durden
Thu, 06/30/2022 – 08:55

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Fed’s Favorite Inflation Indicator Dips, US Spending Slows In May

Fed’s Favorite Inflation Indicator Dips, US Spending Slows In May

The headline-maker from this morning’s macro melange is The Fed’s favorite inflation indicator – Core PCE Deflator – printed lower than expected at +4.7% YoY (vs +4.9% expected and +4.9% prior). The headline May PCE printed +6.3%, equal to the April data

Source: Bloomberg

As a reminder, however, this is May data, and gas prices have soared in June.

 

Americans pace of spending slowed significantly in May to just +0.2% MoM (half the expected +0.4%) while incomes rose +0.5% MoM (as expected)…

Source: Bloomberg

Americans spending rose slower than their incomes for the first time since December…

On a year over year basis, incomes grew at 5.3% but spending rose at 8.5%…

Source: Bloomberg

The BEA revised historical data which lifted April’s savings rate from 4.4% to 5.2% and May’s print upticked to 5.4% – the highest since February…

So this is good news – inflation rolling over and Americans pulling back from over-spending?

The question is – will the former re-accelerate in June while the latter continues?

Developing…

Tyler Durden
Thu, 06/30/2022 – 08:43

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Shoot a Cat, Lose Your Dog (and the Right to Own Other Dogs, Forever): Not Cruel and Unusual Punishment

From State v. Doll, decided Tuesday by the Washington Court of Appeals (Chief Judge Rebecca Glasgow, joinedby Judge Bradley Maxa and Bernard Veljacic),

John Fredrick Doll fired a rifle across a street, gravely injuring a neighbor’s pet cat. Neighbors found the injured cat the next morning and it had to be euthanized. After a bench trial, Doll was convicted of first degree animal cruelty and discharge of a firearm in a public place. [“A person is guilty of animal cruelty in the first degree when, except as authorized in law, he or she intentionally (a) inflicts substantial pain on, (b) causes physical injury to, or (c) kills an animal by a means causing undue suffering or while manifesting an extreme indifference to life ….”] …

Doll was sentenced to 30 days of confinement. In addition, former RCW 16.52.200(4)(b) (2016) permanently barred anyone convicted of first degree animal cruelty “from owning, caring for, or residing with any similar animals” to the one harmed in the offense. “Similar animal” was defined as “[f]or a mammal, another animal that is in the same taxonomic order.” This prohibition was included in Doll’s judgment and sentence. {The legislature has since amended the statute to provide that a conviction for first degree animal cruelty results in a lifetime ban on “owning, caring for, possessing, or residing with any animals,” not just similar animals.}

At the time of his sentencing, Doll owned a dog. Cats and dogs are the same taxonomic order, Carnivora….

The court concluded, among other things, that this wasn’t cruel and unusual punishment, which sounds right to me:

First degree animal cruelty is a class C felony. It is not a “most serious offense” or a “violent offense.” But the nature of the crime requires the intentional infliction of substantial pain, injury, or death upon an animal through a means that causes undue suffering or manifests an extreme indifference to life…. [T]he nature of first degree animal cruelty, especially in light of the facts of the present case, where Doll shot a cat in the dark and did not check whether it had survived, supports concluding that a lifetime prohibition on ownership of similar animals is proportionate to the crime of first degree animal cruelty….

Doll argues that no other state has a mandatory lifetime ban on animal ownership as a punishment for an animal cruelty conviction….

Several states have some form of mandatory ban on allowing individuals convicted of animal cruelty to possess animals and many more have permissive bans allowing for trial court discretion. For example, a defendant convicted of attempting to kill a cat or dog in Maine may be prohibited “from owning, possessing or having on the defendant’s premises an animal for a period of time that the court determines to be reasonable, up to and including permanent relinquishment.” Virginia allows lifetime prohibitions on “possession or ownership of companion animals” at the discretion of the trial court. In Delaware, a person convicted of felony animal cruelty “shall be prohibited from owning or possessing any animal for 15 years after said conviction,” except for the licensed sale of animals or animal products. And Illinois allows courts to impose bans for all animals on both the defendant “and persons dwelling in the same household as the convicted person who conspired, aided, or abetted in the unlawful act that was the basis of the conviction, or who knew or should have known of the unlawful act … for a period of time that the court deems reasonable.” …

We have found no other state that imposes a mandatory lifetime ban on possession of animals for people convicted of first degree animal cruelty, although the nationwide trend has been to reduce trial court discretion and require longer prohibitions on animal ownership as a consequence of such convictions. We acknowledge the countervailing trend toward easing reentry and allowing defendants more opportunities for rehabilitation, which cuts against endorsing any lifetime punishment, including a permanent prohibition on animal ownership. No lifelong punishment allows the full opportunity for rehabilitation. But Washington’s statute is relatively close to the national norms. We conclude that this factor supports an assessment that the permanent similar animal ownership prohibition is proportional to the crime of first degree animal cruelty….

[Finally, we compare] the punishment for the defendant’s crime against Washington’s punishments for other offenses. Doll contends that the prohibition on owning similar animals bars him “from permanently possessing a family member,” comparing the prohibition to the loss of custody of a child. We disagree.

Doll points to no law that guarantees a fundamental right to possess animals. “Pets, as a matter of law, are considered personal property” without any constitutional protections for ownership…. Owning an animal is a privilege, not a right. Washington revokes driver’s licenses for vehicle-related offenses that do not necessarily involve any harm to persons or property, for example. Revocation can occur even though the ability to operate a motor vehicle is crucial to the necessities of life and participation in society.

We also emphasize that the legislature’s punishment for animal cruelty is not without nuance. A person commits second degree animal cruelty if they “knowingly, recklessly, or with criminal negligence inflict[ ] unnecessary suffering or pain upon an animal,” abandon an animal, or fail “to provide the animal with necessary shelter, rest, sanitation, space, or medical attention and the animal suffers unnecessary or unjustifiable physical pain as a result of the failure.” At the time of Doll’s offense, a single conviction for second degree animal cruelty resulted in a two-year prohibition on possession of similar animals that became permanent after the second conviction. But the right of possession could be restored in such cases upon the defendant’s petition to a court. The legislature took care to fine-tune the punishment for animal cruelty and allows leniency for lesser versions of Doll’s offense if the defendant presents evidence of rehabilitation. Only defendants convicted of the most severe form of animal cruelty are more permanently prohibited from animal ownership. …

Doll’s actions were intentional, and he plainly caused unnecessary suffering when he shot the cat through the spine without following up to confirm whether it was experiencing ongoing suffering…. [I]t was not disproportionate to prohibit Doll from possession of similar animals, especially given the legislature’s limitation of the lifetime ban only to the worst animal cruelty offenses.

The post Shoot a Cat, Lose Your Dog (and the Right to Own Other Dogs, Forever): Not Cruel and Unusual Punishment appeared first on Reason.com.

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Initial Jobless Claims At 5-Month Highs As Layoffs Accelerate

Initial Jobless Claims At 5-Month Highs As Layoffs Accelerate

The number of Americans filing for jobless benefits for the first time was 231k last week (down very modestly from an upwardly revised 233k) leaving the 4-week average at the highest since January 2022.

There were 1.328 million continuing claims, very modestly below an upwardly revised 1.331 million last week, but an upward trend remains…

Source: Bloomberg

As a reminder, Deutsche Bank has noted that continuing claims is the best early recession indicator.

Developing…

Tyler Durden
Thu, 06/30/2022 – 08:34

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Political Power Slippery Slopes: Some Examples


slippery

[This month, I’m serializing my 2003 Harvard Law Review article, The Mechanisms of the Slippery Slope.]

Assume that the Supreme Court holds that Congress may legalize marijuana but ban marijuana ads, notwithstanding the commercial speech doctrine. Now Congress can enact a law that allows marijuana sales but not advertising (decision A) without fear that the Court will hold that marijuana advertising must also be legal (result B).

But can Congress prevent itself from legalizing marijuana advertising? Once marijuana sales are decriminalized, a multi-billion dollar marijuana industry will come out into the open, and probably grow. If industry members find that advertising is in their interest, they will probably lobby Congress to repeal the advertising ban. They may spend money on public advocacy campaigns, on contributions aimed at electing pro-advertising candidates, and on organizing marijuana users into a powerful voice. They will have employees who will tend to support the companies’ positions. And the companies will likely have the ear of legislators from marijuana-growing states.

Decision A may thus change the balance of political power by empowering an interest group that might use this power to promote B; getting to A first and then to B would thus be politically easier than getting to B directly (though of course still not certain). And this would happen without multi-peaked preferences, small change tolerance, or attitudes altered by public deference to legal institutions.

Another classic political power slippery slope arises when a legislature creates a new benefits program or a new bureaucracy (decision A). The legislature might not want the program or bureaucracy to get bigger (result B), but decision A creates interest groups—the funding beneficiaries and the agency employees—that have a strong economic interest in the program’s growth. Getting to B directly from the initial position 0 might have been politically impossible, because of the legislature’s initial reservations about creating the program. But getting to A and then going to B would be easier.

Thus, for example, a school choice program that provides $8000 vouchers will create a cadre of parents who use the program, and who will mostly strongly support increasing the voucher value (say, to the over $15,000 that equals the average per-pupil cost in the public schools). Government spending on military procurement or prison construction increases the number of military contractor employees and prison guards who will probably press their legislators to vote for still more spending. Temporary wartime rent control creates a political bloc of beneficiaries, which may lead to permanent rent control. The creation of an enforcement agency creates a group of people who tend to favor broadening the law that they are enforcing. Though these trends aren’t ineluctable, the constituency created by the enactment of A may often help bring about B.

The same can happen even without financial incentives for one or another political actor; all that matters is that a law changes the size of a political group. Consider a hypothetical example: say the public is currently 52.5%- 47.5% against a total handgun ban (decision B), but this split breaks down into two groups—50% of the voters are gun owners, who are 80%-20% against the ban, and 50% are nonowners, who are 75%-25% in favor of the ban.

The legislature then enacts a law (decision A) making it harder for new buyers to buy handguns, for instance by requiring time-consuming and costly safety training classes. We’re not banning handguns, the legislators say—we’re only imposing reasonable safety regulations. Many existing handgun owners may support the law because it seems reasonable, and because it doesn’t affect them. They might respond similarly if the legislature imposes a substantial but not prohibitive tax on new gun purchases.

Over time, though, the extra difficulty of getting a gun may lead fewer people to become gun owners, which may in fact be part of A‘s purpose. Some gun owners die or move away, and are replaced by new residents who are less likely to own guns because of the new law. The population now shifts from 50%-50% to 40% gun owners and 60% nonowners.

Thus, without any changes in attitudes among gun owners or nonowners, the overall public attitude towards a total handgun ban has shifted from 52.5%- 47.5% opposed to 53%-47% in favor (40% x 80% + 60% x 25% = 47%). B would lose if proposed at the outset, but it can win if A is enacted first and then B is enacted after A has helped shift the balance of political power.

This is a stylized example, with a wide gulf between the views of the two groups—the non-gun-owners, whose number increases as a result of decision A, and the gun owners, whose number decreases—and with a considerable change in the groups’ populations. {Moreover, the relative size of the groups and the numbers in each group that support B aren’t the only important factors: the relative intensity of people’s feelings also matters. For instance, to the extent that decision A makes the remaining gun owners feel more strongly about the need to block B—perhaps because it makes them feel embattled, or because those people who continue owning guns after a burdensome regulation is enacted will likely to be the more hardcore supporters of gun ownership—the risk of slippery slope would decline.}

But these effects may be reinforced by others. Gun owners may, for instance, be likelier than nonowners to contribute to pro-gun-rights groups, and nonowners may be likelier than owners to contribute to pro-gun-control groups; and beyond that, the political power slippery slope may work together with some of the other types of slippery slopes that I have identified.

The post Political Power Slippery Slopes: Some Examples appeared first on Reason.com.

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Don’t Rely On Unbridled Optimism To Divine Profits’ Path

Don’t Rely On Unbridled Optimism To Divine Profits’ Path

By Simon White, Bloomberg Markets Live Commentator and Reporter

Earnings estimates start falling too late and stop falling too early in recessions. Macro-driven indicators are much more reliable indicators of the profit outlook, with the majority currently pointing to much weaker earnings through the rest of this year.

In a recent post, I showed that earnings estimates are most wrong in recessions. We can see what actually happens in the chart below. Typically earnings and their forward estimates track each other quite closely in the run up to a recession but, when one starts, things go a bit haywire. Earnings themselves don’t start to fall for several weeks, while forward earnings have one last burst of optimism, jumping higher, before reflecting reality and falling.

Earnings estimates cease falling long before the median recession ends, even while trailing earnings have much further to fall.

Stock analysts miss recessions as they are not really looking for them. They are experts in their field, and are generally able to intuit when and whether their sector is about to face a pervasive fall in earnings.

But recessions are different. A macro-focused strategist or even a housing expert may have been able to tell you the severity of the hurricane about to hit in 2007, but it is unlikely, say, a telcos analyst would have been in a position do do.

Today, the macro warnings for a recession are mounting, leaving earnings looking increasingly exposed. China is one clear example, but there are several others.

The country has yet to fully open up as it battles with Covid, while there is a continued reluctance to return to “flood-like” stimulus. As a result, liquidity in China is struggling, which has historically posed a significant headwind for US tech earnings (which despite their recent fall are still 43% of S&P 500 earnings).

Tyler Durden
Thu, 06/30/2022 – 08:22

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Watch Live: Biden Holds Post-NATO Press Conference

Watch Live: Biden Holds Post-NATO Press Conference

President Biden will deliver final remarks from Madrid following his trip to Europe to meet with NATO leaders amid Russia’s invasion of Ukraine:

Watch:

Biden and NATO leaders held a highly consequential summit on Thursday aimed at responding to the war in Ukraine, during which they agreed to take steps such as new sanctions against Russia and increased military aid.

During today’s press conference, Biden is expected to provide an update on the state of the war, after his top spy on Wednesday called the situation “grim.”

Biden may also address NATO’s formal membership invitation to Finland and Sweden, a path which was cleared after Turkey dropped its objections.

 

Tyler Durden
Thu, 06/30/2022 – 08:11

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Political Power Slippery Slopes: Some Examples


slippery

[This month, I’m serializing my 2003 Harvard Law Review article, The Mechanisms of the Slippery Slope.]

Assume that the Supreme Court holds that Congress may legalize marijuana but ban marijuana ads, notwithstanding the commercial speech doctrine. Now Congress can enact a law that allows marijuana sales but not advertising (decision A) without fear that the Court will hold that marijuana advertising must also be legal (result B).

But can Congress prevent itself from legalizing marijuana advertising? Once marijuana sales are decriminalized, a multi-billion dollar marijuana industry will come out into the open, and probably grow. If industry members find that advertising is in their interest, they will probably lobby Congress to repeal the advertising ban. They may spend money on public advocacy campaigns, on contributions aimed at electing pro-advertising candidates, and on organizing marijuana users into a powerful voice. They will have employees who will tend to support the companies’ positions. And the companies will likely have the ear of legislators from marijuana-growing states.

Decision A may thus change the balance of political power by empowering an interest group that might use this power to promote B; getting to A first and then to B would thus be politically easier than getting to B directly (though of course still not certain). And this would happen without multi-peaked preferences, small change tolerance, or attitudes altered by public deference to legal institutions.

Another classic political power slippery slope arises when a legislature creates a new benefits program or a new bureaucracy (decision A). The legislature might not want the program or bureaucracy to get bigger (result B), but decision A creates interest groups—the funding beneficiaries and the agency employees—that have a strong economic interest in the program’s growth. Getting to B directly from the initial position 0 might have been politically impossible, because of the legislature’s initial reservations about creating the program. But getting to A and then going to B would be easier.

Thus, for example, a school choice program that provides $8000 vouchers will create a cadre of parents who use the program, and who will mostly strongly support increasing the voucher value (say, to the over $15,000 that equals the average per-pupil cost in the public schools). Government spending on military procurement or prison construction increases the number of military contractor employees and prison guards who will probably press their legislators to vote for still more spending. Temporary wartime rent control creates a political bloc of beneficiaries, which may lead to permanent rent control. The creation of an enforcement agency creates a group of people who tend to favor broadening the law that they are enforcing. Though these trends aren’t ineluctable, the constituency created by the enactment of A may often help bring about B.

The same can happen even without financial incentives for one or another political actor; all that matters is that a law changes the size of a political group. Consider a hypothetical example: say the public is currently 52.5%- 47.5% against a total handgun ban (decision B), but this split breaks down into two groups—50% of the voters are gun owners, who are 80%-20% against the ban, and 50% are nonowners, who are 75%-25% in favor of the ban.

The legislature then enacts a law (decision A) making it harder for new buyers to buy handguns, for instance by requiring time-consuming and costly safety training classes. We’re not banning handguns, the legislators say—we’re only imposing reasonable safety regulations. Many existing handgun owners may support the law because it seems reasonable, and because it doesn’t affect them. They might respond similarly if the legislature imposes a substantial but not prohibitive tax on new gun purchases.

Over time, though, the extra difficulty of getting a gun may lead fewer people to become gun owners, which may in fact be part of A‘s purpose. Some gun owners die or move away, and are replaced by new residents who are less likely to own guns because of the new law. The population now shifts from 50%-50% to 40% gun owners and 60% nonowners.

Thus, without any changes in attitudes among gun owners or nonowners, the overall public attitude towards a total handgun ban has shifted from 52.5%- 47.5% opposed to 53%-47% in favor (40% x 80% + 60% x 25% = 47%). B would lose if proposed at the outset, but it can win if A is enacted first and then B is enacted after A has helped shift the balance of political power.

This is a stylized example, with a wide gulf between the views of the two groups—the non-gun-owners, whose number increases as a result of decision A, and the gun owners, whose number decreases—and with a considerable change in the groups’ populations. {Moreover, the relative size of the groups and the numbers in each group that support B aren’t the only important factors: the relative intensity of people’s feelings also matters. For instance, to the extent that decision A makes the remaining gun owners feel more strongly about the need to block B—perhaps because it makes them feel embattled, or because those people who continue owning guns after a burdensome regulation is enacted will likely to be the more hardcore supporters of gun ownership—the risk of slippery slope would decline.}

But these effects may be reinforced by others. Gun owners may, for instance, be likelier than nonowners to contribute to pro-gun-rights groups, and nonowners may be likelier than owners to contribute to pro-gun-control groups; and beyond that, the political power slippery slope may work together with some of the other types of slippery slopes that I have identified.

The post Political Power Slippery Slopes: Some Examples appeared first on Reason.com.

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