Professor’s Prior Restraint Lawsuit Against Collin College Can Go Forward

From Judge Amos Mazzant’s decision Monday in Phillips v. Collin Community College Dist. (E.D. Tex.):

This case arises from a series of statements—a newspaper publication, an interview, class discussions, and social media posts—made by Phillips during the time he was a professor at Collin College. According to Phillips, Defendants “violat[ed] his constitutional rights by retaliating against him for speaking as a private citizen about public issues” in each of the enumerated instances. Specifically, Phillips complains that Defendants placed a prior restraint on his speech through a number of policies and directives, all of which Phillips claims were “attempt[s] to silence College faculty” from speaking “as private citizens on matters of public concern.”

Phillips asserts that the conflict between Phillips and Defendants began in 2017 when Phillips co-authored an open letter published in the Dallas Morning News advocating for the removal of Confederate memorials. In the letter, Phillips identified himself as a professor at Collin College and listed his faculty email as a point of contact. According to Phillips, he co-authored the letter as a private citizen. Nonetheless, after the letter was published, two Collin College administrators met with Phillips and reminded him of Collin College’s policy that requires faculty to “‘exercise appropriate restraint, exhibit tolerance for differing opinions, and indicate clearly that they are not an official spokesperson for the College’ when they speak or act as private citizens.”

Later, in 2019, Phillips granted the Washington Post an interview wherein he discussed race relations and the then-recent shooting at an El Paso, Texas grocery store. The shooter was a former Collin College student but was not a former student of Phillips’s. Prior to Phillips’s interview, Collin College’s President, H. Neil Matkin, sent out a directive via email to the Collin College campus:

Friends,

The press has reached out to multiple campus administrators and district personnel regarding the El Paso shooting. At this time, it is believed that the shooter was a college student as late as spring 2019.I have issued a statement as follows (forgive the size—working from home): [attached]

Please refer all press inquiries you may receive to Marisela Codena-Smith at mcsmith@.collin.edu or by phone to the president’s office (972-758-3800). Any law enforcement personnel should be referred to Chief Bill Taylor at wtavlor@collin.edu or by phone to the president’s office.

Please keep the El Paso (and also the Ohio) victims and their [families] in your thoughts and prayers.

Thank you all,

Neil

Ten days after the directive was sent out and five days after the interview was published, Defendants required that Phillips meet with Associate Dean Kristin Streater … to discuss his violation of the directive. Nearly a month later, on September 3, 2019, Defendants provided Phillips with an “Employee Coaching Form” related to the interview, informing Phillips that “[e]xpectations moving forward are to follow the President’s directives when approached by the media.”

In June of 2020, shortly after the start of the global COVID-19 pandemic, Phillips commented on Collin College’s response to the pandemic in a post to his personal Facebook account. Following his post, Defendants called Phillips into a meeting with Streat and then-Dean Mary Barnes-Tilley … to discuss the Facebook post. During the meeting, Barnes-Tilley asked Phillips “do you still want to work here?” and told him that his post violated the Collin College Employee Standards of Conduct’s. According to Phillips’s, he interpreted Barnes-Tilley’s comments during the meeting “as a threat to terminate his employment if he continued to speak out.”

On August 11, 2021, Phillips posted a photo of a slide from a faculty meeting on his personal Facebook and Twitter accounts. The slide in the photo indicated that faculty were forbidden from requesting, requiring, or recommending masks be worn. Defendants offered Executive Order GA-38 as the basis for this policy. Following these posts, on August 27, 2022, Streater issued Phillips a “Level I Warning” for insubordination and failing to use internal communication channels to address his concerns. The warning referenced the two latest posts, continuous failure of Phillips to bring his concerns in an appropriate manner, the 2019 interview, and the 2020 Facebook post.

At the beginning of the Fall 2021 semester, Phillips assigned his students an essay on the history of pandemics and epidemics from the time of Columbus to the current COVID-19 crisis. During the class discussions pertaining to pandemics, Phillips voiced his annoyance with wearing masks, but commented that resistance to similar policies in the past had hindered societies from combatting the spread of other viruses in an attempt to engage his class in discussion on the issue. Due to these class discussions, Defendants asked Phillips to meet with Chaelle O’Quin …. During the meeting, O’Quin informed Phillips that “in order to make sure no one mandates masks, it is best to never discuss them at all” and then placed Phillips on a “Performance Improvement Plan.”

Following these incidents, Barnes-Tilley informed Phillips that his contract would not be renewed. Despite attempts to appeal the decision not to renew his contract, Phillips was terminated from his position once his current contract expired….

Defendants moved to dismiss, but the court disagreed:

Moving Defendants allege that their policies and directives do not amount to a prior restraint on speech because they do not expressly forbid certain speech or require prior approval to speak. Rather, Moving Defendants contend that the issue in the case at hand relates entirely to punishments placed on Phillips subsequent to his speech. Phillips, on the other hand, maintains that the policies and directives put forward and enforced by Defendants were meant to, and did, chill potential speech before it happened. The Court, accepting as true all well-pleaded facts in the complaint and viewing those facts in the light most favorable to Phillips, agrees with Phillips….

Moving Defendants are correct that “[t]he term ‘prior restraint’ is used to describe administrative and judicial orders forbidding certain communications when issued in advance of the time that such communications are to occur.” Moving Defendants’ narrow interpretation of the word “forbidding,” however, does not comport with well-established caselaw on the matter. See United States v. Nat’l Treasury Emps. Union (1995) (holding that a ban which did not expressly prohibit any particular kind of speech was nonetheless a ban that abridged the First Amendment because it induced employees to “curtail their expression if they wish[ed] to continue working for the Government.”); Baker v. City of Fort Worth (N.D. Tex. 2020) (holding that a city council permission scheme requiring the city council approve all posters is a prior restraint on speech despite no specific kind of poster being banned).

Accordingly, after reviewing the current complaint, and the arguments presented in the briefing, the Court finds that Phillips has stated plausible claims for relief in his fifth cause of action….

Congratulations to Greg Rebuel, Joshua Bleisch, JT Morris, and Katlyn Patton of the Foundation for Individual Rights and Expression, as well as Robert Wayne Schmidt of the Crews Law Firm PC, who represent Phillips. (Note that I’ve consulting for FIRE on various matters, but not on this case, and no-one asked me to blog about it.)

The post Professor's Prior Restraint Lawsuit Against Collin College Can Go Forward appeared first on Reason.com.

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When We’ll Know The Bear Market Is Over

When We’ll Know The Bear Market Is Over

By Simon White, Bloomberg Markets Live reporter and analyst

It’s a Gordian Knot, but it remains the central question for investors: When will the bear market in US equities and other risk assets be over?

Nobody has a crystal ball, but there are three strong contenders for conditions that will first need to be met:

  • A return of “fiscal credibility”.
  • Real-yield curve inversion.
  • Positive and rising liquidity.

Today’s backdrop is all about inflation. The seismic moves in assets and currencies around the world all boil down to the world’s largest central bank locked in a “death or glory” fight with unanchored price rises. The corollary is we won’t get a green light for risk assets to climb on a sustainable basis until the Federal Reserve has done enough to return inflation to a low and stable regime
The ultimate cause of the current inflation is the large fiscal deficits funded by monetary largesse in the years leading up to the pandemic. The pandemic itself and the Ukraine war didn’t jump-start the rise in prices, they merely worsened the already-changing underlying inflation dynamics.

The role of government spending is critical to understanding this. In a recent Fed paper presented at Jackson Hole, the authors show that when investors do not believe large fiscal imbalances will be stabilized the job of the central bank becomes extremely difficult.

Simply put, if there is a belief public debt will not be contained, it leads to a structural rise in inflation because any monetary tightening by the central bank causes growth to slump and the debt-to-GDP ratio rise. Due to the lack of fiscal credibility, debt buyers assume the rise in the ratio will have to be inflated away, and therefore expect higher inflation.

This is termed “fiscal stagflation,” and it means that the central bank can exacerbate inflation pressures by tightening rates when fiscal credibility is in short supply. The paper shows the massive fiscal interventions in Covid led to this loss in fiscal credibility in the US (although it is arguable it predated that, when Modern Monetary Theory came into vogue).

The first condition for an end to the bear market is thus fiscal credibility. With no strong commitment to bring debt down, there is little sign of it in the US at the moment.

The second condition is an inversion in the real-yield curve (as defined in the chart below). The curve steepened consistently all through the 1970s despite periods of very large interest-rate rises. The Fed in that decade did not have the will or the mandate to raise rates aggressively and persistently enough to break the back of inflation.

It wasn’t until Paul Volcker was at the helm that real progress was made. The Volcker Fed initially had “imperfect credibility” because it wasn’t willing to raise rates come what may, and the market assumed the central bank would ease when a recession hit, rejuvenating inflation. This was reflected in longer-term yields rising even as the Fed hiked aggressively.

After a false start in early 1980, when the Fed prematurely cut rates due to the slowdown, the central bank eventually got it right when it continued hiking aggressively through the 1981-82 recession, with rates peaking at 20%.

The real-yield curve began to flatten hard in 1980 as short-term real yields started to rise faster than long-term ones, and inverted in April 1981. Still, buying at that point would have been on the early side, before the multi-year rally started in August 1982.

Therefore a final condition is needed for the end of the bear market. Liquidity is one of most important medium-term drivers of equities. Its growth was still negative when the real-yield curve inverted in 1981, but by early 1982, it was positive and rising.

Buying the S&P in February 1982 after liquidity started growing would have faced about 10%-12% downside in the shorter term, before the position enjoyed an almost uninterrupted +220% rally.

With fiscal credibility in abeyance, the real-yield curve steep and still rising, and liquidity conditions very negative, none of the conditions are currently in place. Until they are it is difficult to have much confidence this bear market hasn’t got further to run.

Tyler Durden
Thu, 09/29/2022 – 15:25

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Next Blowup Shows The Sheer Pain In UK Backdrop

Next Blowup Shows The Sheer Pain In UK Backdrop

By Heather Burke, Bloomberg markets live commentator and reporter

To get a sense of the deteriorating UK macro backdrop, look no further than the slump in one of its biggest retailers as UK stocks, the pound and bonds have another tough day.

Next gave its second profit warning this year, saying inflation is keeping UK shoppers from buying non-essential items. The bellwether said in its financial report:

Sales during August were below our expectations and, despite improving sales in September, we think it is sensible to moderate our expectations for sales and profit in the second half. It is important to stress that, with so many variables at play, predicting near-term sales trends is unusually difficult. All the more so with recent Government stimulus measures yet to take full effect.”

Next also said the pound’s devaluation looks set to prolong inflation, even once factory gate prices ease. It looks like “we may be set to have two cost of living crises: this year, a supply side led squeeze, next year a currency led price hike as devaluation takes effect.”

H&M is cutting costs after its exit from Russia and higher garment and transport costs pressured earnings. Retail and autos are leading European stocks lower in early trading as recession fears rise, with Next the biggest Stoxx 600 decliner. UK stocks are lagging peers, with FTSE 100 declines led by retail. S&P 500 futures are also extending declines as the risk-off backdrop picks up.

Tyler Durden
Thu, 09/29/2022 – 15:05

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Facebook Announces Hiring Freeze, Warns Of “Team Restructuring”, Stocks Slumps

Facebook Announces Hiring Freeze, Warns Of “Team Restructuring”, Stocks Slumps

As advertising revenue growth stalls, Meta Platforms Inc., the owner of Facebook and Instagram, told employees that it plans to implement a hiring freeze and restructure employee teams in the latest effort to trim costs, reported Bloomberg

A person in attendance during a company Q&A session said CEO Mark Zuckerberg announced the hiring freeze as this is the latest evidence advertising revenue growth for the social media giant is slowing. There’s also the concern about waning activity among users. 

“For the first 18 years of the company, we basically grew quickly basically every year, and then more recently our revenue has been flat to slightly down for the first time,” Zuckerberg told staff Thursday.

“I had hoped the economy would have more clearly stabilized by now, but from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively,” he added.

Last week, Meta began quietly cutting staff by reorganizing departments while giving ‘reorganized’ employees the ability to apply for other roles within the company, according to WSJ. 

The goal of reshuffling employees is to thwart the mass issuance of pink slips. 

Zuckerberg sounded the alarm in July that Meta would “steadily reduce headcount growth … and many teams are going to shrink so we can shift energy to other areas.”

Bloomberg noted Meta’s internal priorities include Reels, focusing on its competitor: TikTok, and Zuckerberg’s futuristic metaverse. 

Meta shares are down more than 4% near session lows.

The company reported having 83,553 employees at the end of Q2, up 32% from a year earlier. 

… “realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said at a company town hall in June. 

Tyler Durden
Thu, 09/29/2022 – 14:50

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US Rail Volumes Fell 4.4% In Latest Week

US Rail Volumes Fell 4.4% In Latest Week

By Progressive Railroading.

U.S. freight-rail traffic declined 4.4% to 489,111 carloads and intermodal units in the week ending Sept. 24 compared with the same period in 2021, according to Association of American Railroads data.

The railroads logged 231,258 carloads, down 3.2%, and 257,853 containers and trailers, down 5.4%.

Three of the 10 carload commodity groups that AAR tracks weekly posted increases. They were motor vehicles and parts, up 1,610 carloads to 13,165; coal, up 819 carloads to 70,697; and nonmetallic minerals, up 372 carloads to 34,436. 

Commodity groups that posted decreases compared with the same week in 2021 included metallic ores and metals, down 3,405 carloads to 20,708; grain, down 2,276 carloads to 19,540; and chemicals, down 1,758 carloads to 30,261.

For the first 38 weeks of 2022 compared with the same period in 2021:

  • U.S. railroads reported cumulative volume of 18,782,988 carloads and intermodal units, down 2.7%;
  • Canadian railroads reported 5,499,480 carloads, containers and trailers, down 2.4%;
  • Mexican railroads reported 1,417,850 carloads and intermodal containers and trailers, up 2.5%.

Meanwhile, Canadian railroads posted 79,152 carloads for the week, down 1.2%, and 68,448 intermodal units, down 3.6%. Mexican railroads reported 22,855 carloads, up 22.4%, and 15,718 intermodal units, up 15.3%.

Tyler Durden
Thu, 09/29/2022 – 14:20

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“You’re Nobody” and the Law: Removing Candidate’s Ballotpedia Page Isn’t Libelous

From Magistrate Judge Phillip Green’s Report & Recommendation Tuesday in Trouten v. Ballotpedia (W.D. Mich.):

Plaintiff alleges that Ballotpedia “has withdrew the ‘Bryan Trouten for United States House of Representatives Campaign’ on their website.” Plaintiff alleges that this action constitutes libel and/or defamation under state law. Plaintiff seeks $5,000,000.00 in damages….

It must first be noted that Plaintiff does not allege that Defendant made any false or defamatory statement concerning him. Instead, Plaintiff alleges that Defendant merely removed information from its website concerning him. Defendant argues that Plaintiff’s claim fails the first element. But Plaintiff further alleges that, by removing the information in question from its website, Defendant was falsely “claiming that [Plaintiff] withdrew his campaign.” Thus, Plaintiff asserts that Defendant’s actions implied, falsely, that Plaintiff had withdrawn his campaign.

Michigan recognizes a cause of action for defamation by implication. To prevail on such a claim, Plaintiff must establish that the defamatory implication is “materially false.” Plaintiff alleges that he did not withdraw his candidacy for the U.S. House of Representatives and, moreover, that he timely submitted with the State of Michigan the paperwork necessary to be considered a write-in candidate. Thus, contrary to Defendant’s arguments, Plaintiff’s allegations satisfy the initial element of the analysis.

{Defendant asserts that it merely “listed [Plaintiff] as an inactive candidate after the Michigan Department of State released an official candidate list without [Plaintiff’s] name on it.”  Defendant further asserts that “[w]hen Trouten informed Ballotpedia that he was an active write-in candidate, Ballotpedia updated its encyclopedia to reflect that status.” These assertions are not supported by any evidence and go beyond the scope of a motion asserted under Federal Rule of Civil Procedure 12(b)(6). The Court has, therefore, disregarded the assertions in question. If Defendant wanted to present evidence and argue that it is entitled to relief as a matter of law, it should have asserted a motion [for summary judgment] under Federal Rule of Civil Procedure 56.}

Plaintiff’s claim nevertheless fails because the implication that Plaintiff withdrew his candidacy for the U.S. House of Representatives is simply not defamatory because it does not tend to harm Plaintiff’s reputation or deter third persons from associating with Plaintiff. See, e.g., Kevorkian v. American Medical Association (Mich. Ct. App. 1999) (the court “may determine, as a matter of law, whether a statement is actually capable of defamatory meaning”).

Plaintiff’s claim fails for a second reason as well. Because Plaintiff was a candidate for public office, he is considered, for present purposes, a public figure. As such, Plaintiff must establish that Defendant acted with “actual malice” or “with knowledge that [its implied statement] was false or with reckless disregard of whether it was false or not.” Plaintiff has failed to allege any facts which, if proven, would satisfy this standard. Thus, Plaintiff’s claim fails, in the alternative, for this reason.

In his response to the present motion, Plaintiff fails to present any argument, or identify any authority, in opposition to Defendant’s motion. Rather, Plaintiff merely states, “I didn’t want to[o] much information about my case being exposed to the defense, because I actually have material facts as well as many other factual evidence that are deemed troublesome to this case.” This vague, unsworn statement fails to advance Plaintiff’s position. Plaintiff further states, “I want to end with this” and requests that he be permitted to “express [his] side of the case in person” because “[i]t will definitely provide the material needed in understanding the case a little better….” The Court appreciates Plaintiff’s desire to be heard, but Plaintiff has presented no argument or authority suggesting that oral argument would assist the Court in determining the legal sufficiency of the allegations in Plaintiff’s complaint….

Congratulations to Joseph E. Richotte, Jennifer A. Dukarski & Barrett R.H. Young of Butzel Long, P.C., who represent Ballotpedia.

The post "You're Nobody" and the Law: Removing Candidate's Ballotpedia Page Isn't Libelous appeared first on Reason.com.

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Professor’s Prior Restraint Lawsuit Against Collin College Can Go Forward

From Judge Amos Mazzant’s decision Monday in Phillips v. Collin Community College Dist. (E.D. Tex.):

This case arises from a series of statements—a newspaper publication, an interview, class discussions, and social media posts—made by Phillips during the time he was a professor at Collin College. According to Phillips, Defendants “violat[ed] his constitutional rights by retaliating against him for speaking as a private citizen about public issues” in each of the enumerated instances. Specifically, Phillips complains that Defendants placed a prior restraint on his speech through a number of policies and directives, all of which Phillips claims were “attempt[s] to silence College faculty” from speaking “as private citizens on matters of public concern.”

Phillips asserts that the conflict between Phillips and Defendants began in 2017 when Phillips co-authored an open letter published in the Dallas Morning News advocating for the removal of Confederate memorials. In the letter, Phillips identified himself as a professor at Collin College and listed his faculty email as a point of contact. According to Phillips, he co-authored the letter as a private citizen. Nonetheless, after the letter was published, two Collin College administrators met with Phillips and reminded him of Collin College’s policy that requires faculty to “‘exercise appropriate restraint, exhibit tolerance for differing opinions, and indicate clearly that they are not an official spokesperson for the College’ when they speak or act as private citizens.”

Later, in 2019, Phillips granted the Washington Post an interview wherein he discussed race relations and the then-recent shooting at an El Paso, Texas grocery store. The shooter was a former Collin College student but was not a former student of Phillips’s. Prior to Phillips’s interview, Collin College’s President, H. Neil Matkin, sent out a directive via email to the Collin College campus:

Friends,

The press has reached out to multiple campus administrators and district personnel regarding the El Paso shooting. At this time, it is believed that the shooter was a college student as late as spring 2019.I have issued a statement as follows (forgive the size—working from home): [attached]

Please refer all press inquiries you may receive to Marisela Codena-Smith at mcsmith@.collin.edu or by phone to the president’s office (972-758-3800). Any law enforcement personnel should be referred to Chief Bill Taylor at wtavlor@collin.edu or by phone to the president’s office.

Please keep the El Paso (and also the Ohio) victims and their [families] in your thoughts and prayers.

Thank you all,

Neil

Ten days after the directive was sent out and five days after the interview was published, Defendants required that Phillips meet with Associate Dean Kristin Streater … to discuss his violation of the directive. Nearly a month later, on September 3, 2019, Defendants provided Phillips with an “Employee Coaching Form” related to the interview, informing Phillips that “[e]xpectations moving forward are to follow the President’s directives when approached by the media.”

In June of 2020, shortly after the start of the global COVID-19 pandemic, Phillips commented on Collin College’s response to the pandemic in a post to his personal Facebook account. Following his post, Defendants called Phillips into a meeting with Streat and then-Dean Mary Barnes-Tilley … to discuss the Facebook post. During the meeting, Barnes-Tilley asked Phillips “do you still want to work here?” and told him that his post violated the Collin College Employee Standards of Conduct’s. According to Phillips’s, he interpreted Barnes-Tilley’s comments during the meeting “as a threat to terminate his employment if he continued to speak out.”

On August 11, 2021, Phillips posted a photo of a slide from a faculty meeting on his personal Facebook and Twitter accounts. The slide in the photo indicated that faculty were forbidden from requesting, requiring, or recommending masks be worn. Defendants offered Executive Order GA-38 as the basis for this policy. Following these posts, on August 27, 2022, Streater issued Phillips a “Level I Warning” for insubordination and failing to use internal communication channels to address his concerns. The warning referenced the two latest posts, continuous failure of Phillips to bring his concerns in an appropriate manner, the 2019 interview, and the 2020 Facebook post.

At the beginning of the Fall 2021 semester, Phillips assigned his students an essay on the history of pandemics and epidemics from the time of Columbus to the current COVID-19 crisis. During the class discussions pertaining to pandemics, Phillips voiced his annoyance with wearing masks, but commented that resistance to similar policies in the past had hindered societies from combatting the spread of other viruses in an attempt to engage his class in discussion on the issue. Due to these class discussions, Defendants asked Phillips to meet with Chaelle O’Quin …. During the meeting, O’Quin informed Phillips that “in order to make sure no one mandates masks, it is best to never discuss them at all” and then placed Phillips on a “Performance Improvement Plan.”

Following these incidents, Barnes-Tilley informed Phillips that his contract would not be renewed. Despite attempts to appeal the decision not to renew his contract, Phillips was terminated from his position once his current contract expired….

Defendants moved to dismiss, but the court disagreed:

Moving Defendants allege that their policies and directives do not amount to a prior restraint on speech because they do not expressly forbid certain speech or require prior approval to speak. Rather, Moving Defendants contend that the issue in the case at hand relates entirely to punishments placed on Phillips subsequent to his speech. Phillips, on the other hand, maintains that the policies and directives put forward and enforced by Defendants were meant to, and did, chill potential speech before it happened. The Court, accepting as true all well-pleaded facts in the complaint and viewing those facts in the light most favorable to Phillips, agrees with Phillips….

Moving Defendants are correct that “[t]he term ‘prior restraint’ is used to describe administrative and judicial orders forbidding certain communications when issued in advance of the time that such communications are to occur.” Moving Defendants’ narrow interpretation of the word “forbidding,” however, does not comport with well-established caselaw on the matter. See United States v. Nat’l Treasury Emps. Union (1995) (holding that a ban which did not expressly prohibit any particular kind of speech was nonetheless a ban that abridged the First Amendment because it induced employees to “curtail their expression if they wish[ed] to continue working for the Government.”); Baker v. City of Fort Worth (N.D. Tex. 2020) (holding that a city council permission scheme requiring the city council approve all posters is a prior restraint on speech despite no specific kind of poster being banned).

Accordingly, after reviewing the current complaint, and the arguments presented in the briefing, the Court finds that Phillips has stated plausible claims for relief in his fifth cause of action….

Congratulations to Greg Rebuel, Joshua Bleisch, JT Morris, and Katlyn Patton of the Foundation for Individual Rights and Expression, as well as Robert Wayne Schmidt of the Crews Law Firm PC, who represent Phillips. (Note that I’ve consulting for FIRE on various matters, but not on this case, and no-one asked me to blog about it.)

The post Professor's Prior Restraint Lawsuit Against Collin College Can Go Forward appeared first on Reason.com.

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Feds Allow Single Foreign Ship To Deliver Fuel to Hurricane-Ravaged Puerto Rico


Home wrecked by Hurricane Fiona

On Wednesday, Department of Homeland Security Secretary Alejandro Mayorkas announced that the federal government would approve a “temporary and targeted” waiver of the Jones Act to allow a single foreign ship laden with diesel oil to dock there.

As Florida is getting battered by Hurricane Ian, Puerto Rico is still reeling from the effects of Hurricane Fiona. Ten days after that hurricane’s passage, hundreds of thousands of Puerto Ricans are still without power.

Complicating Puerto Rico’s ability to recover is the Jones Act, also known as the Merchant Marine Act of 1920. This deliberately protectionist federal law requires that any ships that transport goods between U.S. ports be American-made from an American-owned company and crewed by Americans. There are fewer than 100 such ships. It shields American domestic maritime shippers from foreign competition. By its very nature, it also drives up the prices of goods in far-flung parts of America like Puerto Rico, Alaska, and Hawaii. It also makes a crisis situation like a natural disaster worse because it limits who is legally permitted to assist these areas.

And so, a BP ship full of fuel to supply the country with power could not legally dock in Puerto Rico because it had already previously stopped in a Texas port. Many public officials and even some members of Congress had been asking DHS to provide blanket waivers allowing foreign ships to assist in resupplying the country. But as Reason noted on Tuesday, the Jones Act was recently amended to actually make it even harder for the federal government to give blanket permission for foreign ships to travel from port to port, even in a time of great crisis. DHS had to analyze the situation and determine that Jones Act–approved vessels were not sufficient to meet current needs and provide limited targeted waivers for specific ships.

That’s what happened Wednesday. “In response to urgent and immediate needs of the Puerto Rican people in the aftermath of Hurricane Fiona, I have approved a temporary and targeted Jones Act waiver to ensure that the people of Puerto Rico have sufficient diesel to run generators needed for electricity and the functioning of critical facilities as they recover from Hurricane Fiona,” Mayorkas announced.

He then insisted that the Jones Act is “vital to maintaining the strength of the American shipbuilding and maritime industries,” the company line in the Biden administration, which implies that it’s apparently government policy to drive up prices of goods for American consumers in order to benefit a much smaller number of people in the maritime industry. It’s anti-competitive cronyism, plain and simple.

Remarkably, the maritime industry loudly resisted even this single ship getting a waiver. The American Maritime Partnership (AMP) put out a press release Wednesday claiming to “debunk” the need for a waiver and that Puerto Rico’s shipping needs were being met, despite the governor of Puerto Rico begging the federal government to provide waivers.

The release contains this remarkable and completely shameless quote from AMP President Ku’uhaku Park that is worthy of some fisking: “This stunt by a foreign oil company showing up unannounced in Puerto Rico while on its way overseas hoping to sell its fuel at a premium to Puerto Ricans in need, and thereby triggering a public and political rush to judgment, is bad precedent, a circumvention of U.S. law, and should never be tolerated. American Maritime is dedicated to Puerto Rico and while foreign oil traders seek to line their pockets at the expense of the Puerto Rican people, we will always be committed to our fellow citizens, including our own employees and their families, in Puerto Rico.”

So, according to AMP, there is no shipping crisis in Puerto Rico that justifies Jones Act waivers. The release is full of quotes insisting that goods from Jones Act ships are getting to Puerto Rico just fine and that supply chain problems are happening due to land transportation issues. While there’s no doubt that there are all sorts of supply chain logistics problems in responding to the hurricane, AMP’s insistence that there isn’t a shipping problem is contradicted by Park’s own words, claiming that this foreign company is attempting to “sell its fuel at a premium to Puerto Ricans in need.” He amazingly goes on to complain about the foreign oil traders who “seek to line their pockets at the expense of the Puerto Rican people” by, you know, selling them fuel they need to turn their lights back on.

How is this at the expense of the Puerto Rican people? It’s complete gibberish attempting to deflect attention away from the cruelty of the anti-competitive practices that financially benefit Park (who is an executive at American shipping company Matson). This ship can’t be “taking advantage” of Puerto Ricans unless there is a shortage of available fuel that would drive up prices. And if that’s the case, then AMP’s insistence that the island is already getting shipped what it needs is not accurate.

This concept that certain companies should be able to control whether their competition is allowed to operate is reminiscent of the loathsome, anti-competitive “Certificate of Need” license regulations that plague the health care industry and drive up prices.

Eric Boehm and others have critiqued these laws here at Reason. Certificate of Need programs put government-mandated limits on health services and equipment by essentially giving health industry incumbents the power to prevent competitors from expanding what they provide. In Virginia, the state’s Certificate of Public Need law was used to stop a hospital in Salem from building specialized neonatal care facilities that just so happen to be offered by a nearby hospital in Roanoke. Despite support by the citizens of Salem, the state balked due to objections by representatives of the nearby hospital. Officials decided that the care unit simply wasn’t “needed” and rejected the license. What the people of Salem wanted and what the marketplace could support was irrelevant to the decision.

And, of course, it gave the other hospital a local monopoly on certain health services, just as the Jones Act gives a small number of shipping firms a monopoly on domestic shipping between U.S. ports. Park is telling the government and the people to ignore market signals, ignore what people in Puerto Rico say they need, and trust him and his buddies to decide whether the island truly needs other ships to come.

It’s like if Pizza Hut had the legal power to decide what companies can deliver food to your house. Perhaps instead of being allowed to enjoy Kung Pao chicken in the comfort of your home, Pizza Hut would decide that what you really “need” is more pizza.

Mayorkas was right to give the ship a waiver. The Jones Act is a plague on the marketplace that really needs to be purged.

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FDA Admits Vaping Is Safer Than Smoking But Refuses To Correct the Record


Woman with red lipstick has vapor coming out of her open mouth, with a vape pen near her lips.

Is the Food and Drug Administration (FDA) changing its tune on electronic cigarettes?

In May, Brian King was appointed head of the FDA’s Center for Tobacco Products. King is not known for championing e-cigarettes or reduced-risk alternatives to cigarettes. But after a few months on the job, he’s out on the media and conference circuit giving a clearer idea of how he envisions the future of nicotine regulation.

In an interview with the Associated Press on Monday, King was asked about surveys showing most people think e-cigarettes are just as dangerous as traditional cigarettes and whether that was a problem. “I’m fully aware of the misperceptions that are out there and aren’t consistent with the known science,” King replied. “We do know that e-cigarettes — as a general class — have markedly less risk than a combustible cigarette product.” King went on to say that communication campaigns must use science and evidence and be careful to avoid unintended consequences.

Earlier this year, Clive Bates, a tobacco harm reduction advocate and former chief of the anti-smoking charity Action on Smoking and Health, called the public misperceptions of vaping an “American crime scene.” Bates was referencing the 2020 Health Information National Trends Survey showing just 2.6 percent of Americans accurately believed e-cigarettes were “much less harmful than combustible cigarettes.”

Harm reduction advocates such as Bates believe these misperceptions about the risks of vaping are holding back many smokers from switching to a safer product and causing a rash of bad public policy decisions. These include bans on nontobacco flavors in e-cigarettes, capping nicotine levels, and taxes that make vapes just as expensive as cigarettes.

King’s acknowledgment that much of the public is wrong on the “known science” and that we “know that e-cigarettes — as a general class — have markedly less risk than a combustible cigarette product” is more straightforward than anything you’ll find on the FDA’s website.

“Many studies suggest e-cigarettes and noncombustible tobacco products may be less harmful than combustible cigarettes,” reads the FDA’s main page on e-cigarettes. “However, there is not yet enough evidence to support claims that e-cigarettes and other ENDS [Electronic Nicotine Delivery Systems] are effective tools for quitting smoking.”

After King’s statement Monday, many were hoping to elicit further detail in a speech he gave two days later at the Global Tobacco & Nicotine Forum (GTNF), an annual conference that bills itself as a “global exchange for views and ideas between public health experts, government representatives, the industry, and investors.” The conference’s sponsors and most attendees are drawn from the tobacco and e-cigarette industries.

Those looking for an expansion on King’s remarks to the A.P. were left disappointed. King told attendees that he believes in the “continuum of risk” regarding nicotine products. The idea is that combustible cigarettes are the most dangerous form of nicotine consumption and nicotine replacement therapies are the safest. Toward the safer end of the spectrum are products like e-cigarettes that offer smokers a satisfying nicotine product but without the smoke that may kill them.

But King didn’t mention the public’s misperceptions about the relative risks of e-cigarettes. Instead, King highlighted that the FDA had denied more than 99 percent of e-cigarette applications to stay on the market, and e-cigarettes still present a danger for youth.

When asked by Reason whether the FDA is going to commit any resources to correct misperceptions about e-cigarettes, King simply responded with “I can’t commit to any specific actions.”

When asked for further comment, an FDA spokesperson responded said the “FDA continues to explore how best to communicate with the public about the continuum of risk related to tobacco products. We cannot comment on or commit to any specific actions at this time. However, we do note that it is critical that the development and implementation of public health education campaigns are evidence based to best achieve intended effects on the target population while minimizing adverse consequences for the population as a whole.”

In other words, the FDA has no plan to correct any of the widespread misinformation about e-cigarettes anytime soon. If you want to know the real risks of e-cigarettes vs. combustible cigarettes, you’ll have to look to the U.K. government for that.

The post FDA Admits Vaping Is Safer Than Smoking But Refuses To Correct the Record appeared first on Reason.com.

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Public Schools Experiencing ‘White Flight’


"White Flight" from public schools

Six months before the COVID-19 pandemic prompted mass school closures nationwide, a K-12 district in Brooklyn became the vanguard of a citywide, nationally watched push to combat “desegregation” through scrapping selective admissions criteria and instituting the algorithmic lottery system of “controlled choice.” Meaning, families would rank their choices for middle school, and the Department of Education (DOE) would feed those preferences into a complicated sorting process through which government can better control the racial and socioeconomic distribution among the schools.

These admissions changes, which affected incoming middle schoolers the year my eldest daughter was entering sixth grade in that very same district, was prematurely declared a success upon arrival by the progressive Democrats who had pushed them through. It was “the white flight that wasn’t,” declared the Daily News headline on a 2019 op-ed co-bylined by the relevant city councilman (now comptroller for the whole city) Brad Lander, and equity activists Nyah Berg and David Tipson from the advocacy group New York Appleseed. “New data reveal that Brooklyn school integration is working.”

Well, about that.

The pandemic, an asteroid-level event that permanently altered the landscape for public education in the U.S., is the Big Bang when it comes to plummeting enrollment numbers and catastrophic learning loss in government-run K-12. And the big-city systems that were most likely to be closed or to impose onerous COVID-19 restrictions from the fall of 2020 onward were the ones that suffered the most bleed along both measures.

But they are also, as in New York, the most likely districts to adopt such “equity“-driven policy changes as controlled choice for admissions, ending specialized schools and Gifted & Talented programs, and adopting “restorative justice” approaches to student discipline. Some of those policies were already correlating with unforeseen enrollment declines before the pandemic; others became political flashpoints during the COVID years as newly involved public school parents noticed with bewilderment that even shuttered systems were focusing to an obsessive degree on policies related to diversity, equity, and inclusion (DEI).

At the time Brad Lander et al. wrote their triumphant op-ed, the first-year enrollment results of Brooklyn’s District 15 indeed showed no significant difference in the districtwide proportions of the ethnic/racial categories the DOE tracks (white, Hispanic, black, Asian). But as I detailed back then, the overall enrollment of new middle schoolers declined for the first time in at least a half-decade, in part because the lottery/algorithm produced a disproportionately large number of choices that parents did not want for their kids. Sneered Lander & Co.:

Many observers prophesied that this long-overdue correction would cause many white and affluent families, including those in neighborhoods like Park Slope, to exit the public school system altogether.

We have predicted otherwise—both because the new plan hardly lays such a burden on these families as to cause anything so drastic, and, more fundamentally, because we have more faith in our community….

While we may have lost a handful of families who were not interested in building diverse and supportive school communities, we may be gaining some who are.

Or not. District 15, which indeed has some of the most traditionally sought-after middle schools in the city (particularly Park Slope’s M.S. 51, where both Lander and former Mayor Bill de Blasio had already graduated their kids, and where they chose to announce the district’s trailblazing equity policies), has seen since changing the admissions policy the number of enrolled sixth graders plummet by 17.6 percent, compared to a 9.6 percent decline for the rest of the city. (Those data go through the 2021–22 school year; we’re still waiting on the figures from this fall.)

Who bolted? White students and others whose family incomes did not qualify them for Free and Reduced Price Lunches (FRPL). Using income as a proxy for race (K-12 schools have been barred since 2007 by the Supreme Court from taking race as a direct consideration in enrollment), the district reserved spots in desirable schools for poorer kids while removing screens that had disproportionately kept them out, thus doubly decreasing the odds of the nonpoor being assigned their preferred choices.

“[The plan] resulted in a large increase in the shares of White students and non-FRPL students enrolling outside the public school system,” concluded researcher Clémence Idoux in a June 2021 MIT paper. Why? “Because they were assigned on average to schools with lower achieving potential peers after the integration plans….Compared to previous years, White applicants and non-FRPL applicants were offered on average a choice ranked…1.4 position[s] lower in their list.”

The admissions changes by Districts 15 and 3 (the latter of which, on the west side of Manhattan, ushered in a similar system the same year) did succeed in reducing both economic and racial segregation, Idoux concluded. But: “As a result of these white student and high income students enrollment losses, the integration plans’ effects on racial and economic segregation were halved in both districts.”

Keep in mind those were the results after the first year of the admissions change; the district and the city have been bleeding students ever since. New York’s DOE, which temporarily copied District 15’s removal of middle-school admissions screens for the past two years due to the pandemic, has seen K-12 enrollment shrink by 10 percent since the onset of COVID-19. “We have a massive hemorrhaging of students—massive hemorrhaging,” Mayor Eric Adams said in July. “We’re in a very dangerous place in the number of students that we are dropping.”

What’s happening in New York is happening across the country. Big city districts that were disproportionately closed and adopted more stringent COVID restrictions have faced the largest enrollment drops, suffered the worst learning loss, and seen the most unequal results among racial and socioeconomic groups. With funding dollars typically pegged to enrollment numbers, and with federal bailout money coming to an end, districts are sounding bewildered in the face of the enormity of change.

“We’ve never seen anything like this,” Marguerite Roza, the director of the Edunomics Lab at Georgetown University, recently told Education Week. The EdWeek Research Center last month published the results of a study examining enrollment trends in the nation’s 25 largest metropolitan areas from 2019–2020 to 2020–21, concluding in the headline: “Suburban Schools Saw Huge Drops in White Enrollment During the Pandemic.”

Suburban schools that first COVID year lost 5 percent of their white population, compared to 2 percent each for black and Latino kids, and 1 percent of Asians. The overall share of white students in those schools declined by two percentage points in three years, and 14 percentage points since the 2006–2007 school year.

I will admit here to a certain discomfort in using such crude and broad racial/ethnic classifications to sort populations. Race is a dodgy and ever-malleable construct at best, and we have too much experience with the worst, including and especially in schools. But also, these are the categories being measured by government (try as I personally might to opt out), and those categories’ distribution within various systems and outcomes are the object of tangible government policy, which has direct impact on the 50 million–plus K-12 students and their families nationwide, and indirect impact on everyone else, whether taxpayer or resident anywhere near a school.

The most widespread school-integration policy of my childhood—busing—led directly to families evacuating public education and high-tailing out of cities, which then experienced dysfunction and decline. Busing’s contemporary successor of controlled choice is producing a similar result, while failing to deliver measurable improvements in schools or measurable closures in the achievement gaps between racial/ethnic and socioeconomic populations.

And now, with the Big Bang of pandemic policies still fresh in parental minds, public educators are waking up to find their workplace landscape almost unrecognizable from even a few years ago.

“Some of them are scratching their heads, saying ‘This is something we didn’t expect,'” Suzanne Speck, executive vice president of School Services of California, recently told The 74 Million.

A new national survey of 3,100 K-12 parents by the consulting group Tyton Partners showed a one-year, 9 percent drop in the number of parents who said their kids were enrolled in government-run schools. From 2019–2022, the study estimated, private school enrollment increased from 5.7 million to 7.3 million, charter schools jumped from 3.5 million to 5.5 million, and homeschooling more than doubled from 1.9 million to 4.3 million. “This post-pandemic decline in K-12 public school enrollment,” the Tyton researchers concluded, “suggests that this is no temporary anomaly but may instead reflect a tipping point.”

New York City is now trying to tip the point back. This morning, school Chancellor David Banks announced that the citywide two-year suspension of middle-school admissions screening is over, while laying out new admissions criteria for high schools. “We do believe in high standards,” Banks said. Whether parents believe in that belief remains to be seen.

Bonus video: Here’s me at the beginning of 2020 talking about controlled choice.

The post Public Schools Experiencing 'White Flight' appeared first on Reason.com.

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