Archive for the ‘Law and Inequality’ Category

On Social Policy, A Growing Divide Between Conservative Policy Elites and the Base

posted by Frank Pasquale

Mike Konczal has an interesting interpretation of the recent rise of Gingrich in GOP polling:

A common trope for conservative policy intellectuals is that they want to “means test” the welfare state – reduce its availability for those with high wealth and income and focus it on those with the least wealth and income. But the Tea Party base wants the opposite – they are opposed to a welfare state for the poor, young people, undocumented workers and other groups they think are undeserving. The welfare state is ok for people like themselves, but for people they think that don’t make the cut it should be a nonexistent or a burdensome affair.

From the latest research on the Tea Party we learn that “Tea Partiers judge entitlement programs not in terms of abstract free-market orthodoxy, but according to the perceived deservingness of recipients…The fundamental distinction for them is not state vs. individual, it is the division of the United States into ‘workers’ vs. ‘people who don’t work.’” This is welfare as private charity, charity conditional on fitting certain expectations, not as an unconditional right. . . .

[T]he conservative mind doesn’t see the economy as something that is defective when involuntary unemployment shoots up or something that should work to the advantage of those who have the least. To them, the threat of people going hungry for failing in the market is what creates the ability to thrive in that market. The market doesn’t just reward the successful, it punishes those who fall behind. Food stamps deny people of that experience[.]

So, too, might burial money intended for the poor. Gingrich has not yet elaborated on the bracing effects of dying without enough money for a funeral. But he does have hard-edged answers for those near the beginning of life, repeatedly urging a repeal of “outdated” child labor laws. Remember, you heard it on this blog first.

January 23, 2012 at 2:36 pm Posted in: Law and Inequality Print This Post One Comment

“The Workers are Animals. Let’s Replace Them with Robots.”

posted by Frank Pasquale

Among the billionaires at the vanguard of global capital, Terry Gou of Hon Hai (also known as Foxconn) deserves special recognition for his honesty. “Hon Hai has a workforce of over one million worldwide and as human beings are also animals, to manage one million animals gives me a headache,” said the chairman. His company has also begun building “an empire of robots” to replace a whining workforce.

To get a better sense of why the “animals” may be complaining, be sure to listen to Mike Daisey’s extraordinary report on his trip to Shenzhen, home of a massive Foxconn factory. Here’s one excerpt:

N-hexane is an iPhone screen cleaner. It’s great because it evaporates a little bit faster than alcohol does, which means you can run the production line even faster and try to keep up with the quotas. The problem is that n-hexane is a potent neurotoxin, and all these people have been exposed. Their hands shake uncontrollably. Most of them can’t even pick up a glass.

I talk to people whose joints in their hands have disintegrated from working on the line, doing the same motion hundreds and hundreds of thousands of times. It’s like carpal tunnel on a scale we can scarcely imagine. And you need to know that this is eminently avoidable. If these people were rotated monthly on their jobs, this would not happen.

But that would require someone to care. That would require someone at Foxconn and the other suppliers to care. That would require someone at Apple and Dell and the other customers to care. Currently no one in the ecosystem cares enough to even enforce that. And so when you start working at 15 or 16, by the time you are 26, 27, your hands are ruined. And when they are truly ruined, once they will not do anything further, you know what we do with a defective part in a machine that makes machine. We throw it away.

When workers are already treated as machines, perhaps their replacement by robots should be a cause for celebration. But the question then becomes: what do the displaced do for a living? Is there an alternative to exploitation?
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January 20, 2012 at 8:58 am Posted in: Law and Inequality, Science Fiction, Technology Print This Post 16 Comments

Martin Luther King Day Links

posted by Frank Pasquale

To mark the day, a few reflections:

1) Nicholas K. Peart, Why is the NYPD After Me?

Less than two years later, in the spring of 2008, N.Y.P.D. officers stopped and frisked me, again. And for no apparent reason. This time I was leaving my grandmother’s home in Flatbush, Brooklyn; a squad car passed me as I walked down East 49th Street to the bus stop. The car backed up. Three officers jumped out. Not again. The officers ordered me to stand, hands against a garage door, fished my wallet out of my pocket and looked at my ID. Then they let me go. I was stopped again in September of 2010. This time I was just walking home from the gym. It was the same routine: I was stopped, frisked, searched, ID’d and let go. . . .

[L]ast year, the N.Y.P.D. recorded more than 600,000 stops; 84 percent of those stopped were blacks or Latinos. Police are far more likely to use force when stopping blacks or Latinos than whites. In half the stops police cite the vague “furtive movements” as the reason for the stop. Maybe black and brown people just look more furtive, whatever that means. These stops are part of a larger, more widespread problem — a racially discriminatory system of stop-and-frisk in the N.Y.P.D.

2) MLK’s Legacy: The Charleston Hospital Workers’ Strike of 1969:

During the year after her husband’s assassination, Coretta Scott King made several visits to Charleston, S.C., where hospital aides at what was then the Medical College of South Carolina were involved in a protracted fight for decent wages. After a 113-day strike, the union won an agreement that led to wage increases and new grievance procedures.

The campaign was led by Mary Moultrie, a South Carolina native . . . In Moultrie’s telling, the gains that the union won lasted only for a few years. Because South Carolina is a right-to-work state, the union couldn’t manage to maintain much strength. But Moultrie didn’t give up: She was still organizing as recently as 2008.

3) Adam Kotsko, On the commemoration of Martin Luther King
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January 16, 2012 at 1:11 pm Posted in: Civil Rights, Law and Inequality Print This Post One Comment

Pascal on Power and Justice (A Thought for the New Year)

posted by Frank Pasquale

The past few years I’ve tried to find an inspiring quote for the New Year for the blog. There’s a rich vein of insight to be mined from the Carnegie Council podcasts, which I recently discovered on iTunes. One speaker I particularly enjoyed was Krishen Mehta, a former partner with PricewaterhouseCoopers who is now the co-chairman of Global Financial Integrity’s advisory board. Asked about what motivated him to try to stop the shocking abuse of tax havens and mispriced trade by oligarchs, he said the following:

It really is a war against the poor. The inequity that has existed in the past is going to continue unless civil society is informed, asks the right questions of its government, of its business leadership, and asks for more responsibility. One of my favorite writers is Blaise Pascal, who said that “justice and power must be brought together so that whatever is just may be powerful and whatever is powerful may be just.”

A recent study concluded that, “For a salary of between £75,000 and £200,000, tax accountants destroy £47 in value, for every pound they generate.” Mehta, by contrast, is not only creating value, but doing so for the most vulnerable people. How appropriate that a thinker admired by both mathematicians and philosophers would inspire him.

Image Credit: Augustin Pajou. As described on Wikimedia Commons: “Blaise Pascal (1623–1662) studying the cycloid, engraved on the tablet he is holding in his left hand; the scattered papers at his feet are his Pensées, the open book his Lettres provinciales.”

December 31, 2011 at 7:58 pm Posted in: Accounting, Law and Inequality, Tax Print This Post One Comment

The Poor Get One Strike; Banks Get Thousands

posted by Frank Pasquale

Most readers of this blog are already familiar with draconian treatment of the poor by various law enforcers and state bureaucracies. Here’s yet another example:

[A] one-strike clause . . . allows the public housing authority to evict [the tenant] if any member of her household or any guest engages in certain kinds of criminal activity. . . . Stories abound about the one-strike policy being wielded in seemingly egregious ways to evict “innocent tenants,” such as a disabled elderly man in California whose caretaker was caught with crack. . . .The Chicago Reporter wrote in September that 86 percent of Chicago’s one-strike evictions last year did not arise from criminal activity by the person named on the lease.

“These policies, the effect of them on children, families, women, families of color, were not thought through. And I think now a national conversation is beginning to rethink that,” said Ariela Migdal, a senior staff attorney with the Women’s Rights Project of the American Civil Liberties Union. Migdal pointed to a June 2011 letter from HUD Secretary Shaun Donovan to public housing directors, encouraging the directors to use their “broad discretion” to create a flexible set of standards for who will be admitted to and allowed to stay in public housing.

Certainly the Obama administration has ample experience deploying “discretion” and “mercy” in other areas. For example, consider Barry Ritholtz’s summary of a shocking Reuters report by Scott Paltrow on foreclosure fraud:
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December 26, 2011 at 12:26 pm Posted in: Corruption, Criminal Law, Financial Institutions, Law and Inequality, Tax Print This Post 7 Comments

Resisting Elites’ Resistance to the Rule of Law (Review of Glenn Greenwald’s With Liberty and Justice for Some)

posted by Frank Pasquale

(Glenn Greenwald is having a fundraiser; link here. I think his work is well worth supporting.)

There are few (if any) “free markets” in the largest sectors of the US economy. The health care industry is a labyrinth of public and private payers. Sectors known as “guard labor” are also larded with subsidies. The Departments of Defense and Homeland security contract with thousands of companies. The communications industry enjoys various government “givings.” And at this point, everyone knows that our largest financial institutions are taxpayer supported entities. Without the implicit backing of the federal government, they would collapse.

Government subsidy to large industries is not, in and of itself, a bad thing. When wages are stagnant and capital gains are mainly enjoyed by the top thousandth of the population, some entity has to spend for common provision. But the price of that spending should be higher standards for the propped-up industry. In health care, for instance, Medicare Conditions of Participation (and laws like the 1986 EMTALA) require many hospitals to provide care regardless of patients’ ability to pay. Tough fraud and abuse enforcement subjects providers’ bills to rigorous audits; privacy law will soon require audit-capability for digital medical records. Legislation passed in 2009 and 2010 creates many other requirements to channel private provision of health care toward more public ends. It’s certainly not a perfect system, but regulation is serious and purposeful. There are real consequences for many lawbreakers.

Glenn Greenwald tells a very different story about three other heavily subsidized industrial sectors. He gives us serious reason to doubt that law has constrained banks, telcos, and the security sector when they posed critical threats to our economy, privacy, and liberty. His book With Liberty and Justice for Some is a passionate indictment of four distinct trends:

1) elites who violate laws with impunity,
2) retroactive immunity for acts unlawful at the time they were committed,
3) lobbyists’ power to influence legislators to render bad conduct lawful or even subsidized, and
4) a radical increase in punishment of those who fall outside the charmed circle of political and economic elites.

Greenwald has examined each area in his blog, as have other, lonely voices in corporate law (and a more robust chorus in communications & cyberlaw troubled by telecomms’ sweetheart deals). The vital contribution of With Liberty and Justice for Some is to show how the four trends mutually reinforce one another, contributing to a politics of wealth and privilege defense commonly known as oligarchy.
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December 9, 2011 at 8:51 am Posted in: Book Reviews, Corruption, Criminal Law, Financial Institutions, Law and Inequality Print This Post One Comment

Food, Hunger, Science, and Data

posted by Deven Desai

Recent readings and the time of year lead me to two lessons. First, for those of us who can, let’s give to those in need. Second, let’s use science, data, and reason to guide policy. Extreme views for or against modes of farming and issues of the environment lead to mistrust, failures, and, in this case, starvation. Starvation should not be an issue on the table for the 21st century. Questions of efficacy and safety can be addressed. The information is here. The time to use it is now.

Maybe it is the time of year when food feasts like Thanksgiving and the season of holiday giving make me think about simple, direct need and especially hunger. Whatever the reason, today that fundamental issue is upon us more than ever. The Times reports “Millions of American schoolchildren are receiving free or low-cost meals for the first time as their parents, many once solidly middle class, have lost jobs or homes during the economic crisis, qualifying their families for the decades-old safety-net program.” The numbers are stark: “The number of students receiving subsidized lunches rose to 21 million last school year from 18 million in 2006-7, a 17 percent increase, according to an analysis by The New York Times of data from the Department of Agriculture, which administers the meals program. Eleven states, including Florida, Nevada, New Jersey and Tennessee, had four-year increases of 25 percent or more, huge shifts in a vast program long characterized by incremental growth.” More than 3 years ago I wrote about the problems of a stigmatized school lunch program. I don’t know whether that system has evolved, but “apparently many of these formerly middle-income parents have pleaded with school officials to keep their enrollment a secret.” Society’s tendency to look down on the less fortunate is absurd. I am not sure what can be done about that. But perhaps we can reconnect with efforts to provide food across the world. The hard part could be the tensions between industrial farming and the organic movement. Yet, good science and data could show us a way out.

A Long Now Foundation seminar by Pamela Ronald and Raoul Adamchak Organically Grown and Genetically Engineered: The Food of the Future shows that rather than combat, we can sue data and reflection to marry these efforts. Sustainable food should: Provide abundant safe and nutritious food…. Reduce environmentally harmful inputs…. Reduce energy use and greenhouse gases…. Foster soil fertility…. Enhance crop genetic diversity…. Maintain the economic viability of farming communities…. Protect biodiversity…. and improve the lives of the poor and malnourished. (He pointed out that 24,000 a day die of malnutrition worldwide, and about 1 billion are undernourished.)

That is a tall order. As the speakers noted organic farming works well and mitigates the problems of pesticides, (Data point: “Every year in the world 300,000 deaths are caused by the pesticides of conventional agriculture, along with 3 million cases of harm.”). But organic techniques can’t address all the diseases and pests out there and “Its yield ranges from 45% to 97% of conventional ag yield. It is often too expensive for low-income customers. At present it is a niche player in US agriculture, representing only 3.5%, with a slow growth rate suggesting it will always be a niche player.” Genetic engineered plants (often not allowed under current regulation) can fill the gap.

According to the report of Dr. Ronald’s part of the talk, “One billion acres have been planted so far with GE crops, with no adverse health effects, and numerous studies have showed that GE crops pose no greater risk of environmental damage than conventional crops.” Examples include, cotton, papayas, and rice. “About 25% of all pesticide use in the world is used to defeat the cotton bollworm. Bt cotton is engineered to express in the plant the same caterpillar-killing toxin as the common soil bacteria used by organic farmers, Bacillus thuringiensis. Bt cotton growers use half the pesticides of conventional growers. With Bt cotton in China, cases of pesticide poisoning went down by 75%. India’s cotton yield increased by 80%. Other pest management techniques are needed but genetics can do much work. Hawaiian papaya was going extinct from ringspot virus, but a GE solution inoculated the fruit and the saved the industry. As I have written, basic food supply is a huge problem and rice is a key example of that. Dr. Ronald’s work on rice is impressive. The data: “Half the world depends on rice. In flood-prone areas like Bangladesh, 4 million tons of rice a year are lost to flooding—enough to feed 30 million people.” Her work developed “a flood-tolerant rice (it can be totally submerged for two weeks) called Sub1. At field trials in Asia farmers are getting three to five times higher yield over conventional rice.”

Seems compelling to me.

December 8, 2011 at 7:15 pm Posted in: Agricultural Law, Food, Law and Inequality Print This Post 2 Comments

The Jungle Comes to Minnesota

posted by Frank Pasquale

I highly recommend Ted Genoways’s shocking investigative report on the impact of a leading factory meat processor. The piece focuses on Quality Pork Processors Inc. (QPP), in Austin, Minnesota. One worker alleged that the workers in the plant felt nearly as disposable as the animals:

“I feel thrown away,” Miriam Angeles says. “Before, I worked hard and willingly for QPP, but after I got sick and needed restrictions, they threw me away like trash.”

Rest assured, many other employers may be planning to emulate that example. Sickness and exhaustion are apparently a common problem at the plant. As the article notes, “The line speed at QPP had increased from 750 heads per hour in 1989 to 1,350 per hour in 2006, while the workforce barely grew.” It’s the “They Shoot Horses, Don’t They” model of management. Few parts of the production process, from cutting and slicing legs and other parts to vaporizing swine brains, are easy. Health effects are dramatic:

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December 1, 2011 at 12:47 pm Posted in: Agricultural Law, Health Law, Law and Inequality Print This Post No Comments

Unconditional Bailouts: Capitalism’s Undoing

posted by Frank Pasquale

What are we to make of Bob Ivry, Bradley Keoun and Phil Kuntz’s blockbuster report on the Fed’s bailouts? The three journalists conclude that “taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.” Yves Smith argues that “banks lied” and grabbed $13 billion in profit. She also notes that their favorite water carrier, Timothy Geithner, “told Congressmen they were too stupid to be able to shrink banks, and they should leave those questions to the Basel Committee (which has no interest in making big banks smaller).”

For another perspective on the corrupt relationship between megabanks and our central bank, consider John Kay’s recent description of the “martingale” strategy among bettors:

Each time you lose, you increase your stake: to the point at which a win on the next game would recoup all your losses and leave you ahead. Since you will win sooner or later, you are certain to come home with a small profit. Provided you are infinitely rich before you start. Otherwise, if you regularly engage in martingales, you will eventually go bankrupt – and the richer you are, the larger the scale of bankruptcy.

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November 28, 2011 at 9:07 am Posted in: Corruption, Financial Institutions, Law and Inequality Print This Post 6 Comments

Understanding Wealth Defense: Direct Action from the 0.1%

posted by Frank Pasquale

The OWS protests have provoked reflection on the morality of direct action and civil disobedience. How far should the police go to spy on, disrupt, or punish peaceful protesters? Is pepper spray a dangerous chemical agent or “a food product, essentially?” Does current American inequality merit a direct action follow-up to the Civil Rights Movement, whose mass-arrestees and water-cannoned marchers are now viewed as heroes?

It’s difficult to answer these questions without understanding the past and present tactics of the groups OWS is protesting. We can learn something about those tactics from Jeffrey A. Winters’ book Oligarchy and his recent articles. In Winters’ treatment of America’s politics of wealth defense, we can discern a transition from high-stakes defiance of government tax authority to an established position “inside the system.”

Winters recounts how Congress passed a tax on the top 0.1% in 1894, only to be slapped down by a Supreme Court “which struck it down in a 5-4 decision.” After the 16th Amendment effectively repealed that Supreme Court decision, Congress had the novel idea of actually helping pay for a war (WWI) with revenue from those best able to fund it. As Winters notes, “the highest rate [leapt] from 7 percent in 1915 to 77 percent in 1918,” and “the number of brackets went from seven to 56 over the same period.” This provoked direct action from the wealthiest “through tax avoidance and outright evasion.” At this point, Winters writes,
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November 26, 2011 at 10:14 am Posted in: Constitutional Law, First Amendment, Law and Inequality, Tax Print This Post One Comment

New York Times Financial Advice: Be an Unpaid Intern Through Your 20s (Then Work till You’re 100)

posted by Frank Pasquale

Jason Mazzone has already addressed the main shortcomings of the latest N.Y. Times article by David Segal on law schools. I’d like to situate it as part of a neo-liberal ideology developing at the Times and other scriveners for the powerful.

If you pair the basic message of Segal’s piece (“law students and professors aren’t doing enough to raise corporate profits”) with that of Ed Glaeser’s anti-retirement musings in the same pages (“work into your 90s”), the ideology starts to emerge. Labor economist Mark Price pithily suggested it:

Law schools couldn’t possibly teach the wide range of firm specific skills that law firms need . . . . And yet you have a writer [pushing] propaganda that the big law firms are tired of paying for on the job training.

On the other hand it is at least comforting to know that law firms are not that different from firms in Manufacturing or Health Care[;] that is[,] they would prefer that somebody else pay for the skills that make them profitable.

This is a classic problem of uneven bargaining power familiar since the 1920s.* Why are wages falling while productivity is rising? Because firms realize they can fire current workers, shift their duties (unpaid) to frightened current employees, and reap the profits of having one person do the work of many. It’s another form of “shadow work” that contributes to the time bind so many Americans find themselves in. When 65% of economic gains go to the top 1% of the population, it’s not too hard to discern this dynamic.
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November 20, 2011 at 1:40 pm Posted in: Law and Inequality, Law School, Teaching, Technology Print This Post 21 Comments

The Conservatism of Occupy Wall Street

posted by Frank Pasquale

Occupy Wall Street has continued to hold Liberty Plaza, and has inspired hundreds of other protests. It’s usually interpreted as a leftish populist complement to the Tea Party, ala this diagram:

Some have praised OWS and the Tea Party for challenging ossified and corrupt institutions. Others dismiss the two groups as mere “primal screams,” uninformed by a realistic sense of policy.

I’d like to step beyond the rival narratives of “what does OWS do for the left” and “how does OWS relate to the Tea Party.” These are important questions, but I think they miss a deeper feature of the movement: its conservatism. Sure, Bill O’Reilly and Rush Limbaugh are portraying the protesters as druggies, socialists, and hippies. But millionaire media moguls do not define modern conservatism; principles do. Some of the most appealing ideals of modern conservatism have found a home in the OWS movement. Gregory Djerejian has put it well:

While I will readily confess I find it odd as something of a Burkean that I am sympathetic to these protesters, they are not looking to trot out the guillotines, in the main (although I did spot a “Behead the Fed” sign!), but rather, they have smelled the radicalism of the blows dealt the integrity of a representative democratic system poised by the almost unfettered oligarch-like behavior among too many elites wholly disconnected from, yes, the 99% they speak of. They are acting to secure conservative aims of re-balancing a society that is becoming dangerously unmoored and increasingly bent asunder.

In the rest of the post, I’ll explain the conservative values behind OWS and the larger wave of economic discontent it reflects.
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October 27, 2011 at 10:37 am Posted in: Economic Analysis of Law, Financial Institutions, Law and Inequality Print This Post 7 Comments

The Moral Authority of Occupy Wall Street

posted by Frank Pasquale

The Occupy Wall Street protests continue to grow, and to gain support from public intellectuals. Joe Stiglitz, Anne Marie Slaughter, and Paul Krugman are the latest luminaries to praise the cause. The movement has also provoked derision. Let’s consider the latest Norquist/Limbaugh memes as the protest nears the one-month mark:

1) “They’re just spoiled hippies who can’t get a job.” A quick glance at the “We are the 99%” tumblr could easily dispel this notion. The economic suffering in this country is deep and broad. As one news story put it, “one in three Americans would be unable to make their mortgage or rent payment beyond one month if they lost their job.” Even if the most down-and-out people are too poor or busy to get to Wall Street (or the hundreds of other actions now taking place), many of them think of the OWS crowd as speaking for them.

There is so much needless suffering going on now, and so much wealth accumulating at the very top. It is hard to understand how critics dismiss the protesters so cavalierly. I used to find the Biblical passage about God hardening Pharaoh’s heart one of the more mysterious parts of the Book of Exodus; now I feel like I’m witnessing it firsthand.
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October 8, 2011 at 11:13 am Posted in: Corruption, Current Events, Financial Institutions, Law and Inequality, Political Economy, Politics, Sociology of Law Print This Post 23 Comments

Inspirational Healthcare In(ter)ventions

posted by Frank Pasquale

The New York Times has an excellent section on “low-cost innovations that can save thousands of lives.” A conversation today focuses on Dr. Paul Polak, a 78-year-old former psychiatrist.

[Dr. Polak] has focused on creating devices that will improve the lives of 2.6 billion people living on less than $2 a day. But, he insists, they must be so cheap and effective that the poor will actually buy them, since charity disappears when donors find new causes.

His greatest success has been a treadle pump that lets farmers raise groundwater in the dry season, when crops fetch more money. He has sold more than two million, he said. He also helped develop a $25 artificial knee and a $400 hospital lamp to save newborns with life-threatening jaundice.

Dr. Polak’s work reminded me of an inspirational conference in Boston, organized by Kevin Outterson, the Ewing Marion Kauffman Foundation, the Rhode Island College of Pharmacy, Universities Allied for Essential Medicines & Mind the Health Gap. Una Ryan, President & Chief Executive Officer of Diagnostics for All, gave a powerful presentation on her company’s quest to bring tests to individuals for pennies. Developments like these indicate that conditions for the world’s poorest can actually improve.

September 27, 2011 at 10:46 pm Posted in: Health Law, Law and Inequality Print This Post 3 Comments

Revolt of the Elites

posted by Frank Pasquale

Bernard Harcourt has analyzed new forms of radicalism adopted by the most and least privileged. Umair Haque at the Harvard Business Review has also identified dispositions shared by street looters and certain elites. As the chief political commentator at London’s Daily Telegraph has observed, “The moral decay of our society is as bad at the top as the bottom.” Yet there are very different consequences for each group’s transgressions.

The more disruptive the disenfranchised become, the more they provoke harsh responses from authorities, thus worsening their already marginal position. By contrast, finance and government elites have positioned themselves to gain from whatever risks they shift onto society at large, via bailouts, emergency powers, and the revolving door. As Ross Douthat observed, “The economic crisis is producing consolidation rather than revolution, the entrenchment of authority rather than its diffusion, and the concentration of power in the hands of the same elite that presided over the disasters in the first place.”
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September 4, 2011 at 10:04 am Posted in: Financial Institutions, First Amendment, Law and Inequality, Politics, Privacy, Privacy (Law Enforcement), Privacy (National Security) Print This Post 46 Comments

Assessing Medicaid Managed Care

posted by Frank Pasquale

The Washington Post has featured two interesting pieces recently on Medicaid managed care. Christopher Weaver reported on a battle between providers and insurers in Texas. Noting that “federal health law calls for a huge expansion of the Medicaid program in 2014,” Weaver shows how eager insurers are to enroll poor individuals in their plans. Each enrollee would “yield on average $7 a month profit,” according to recent calculations. Cost-cutting legislators see potential fiscal gains, too, once the market starts working its magic.

There’s only one problem with those projections: it turns out that “moving Medicaid recipients into managed care ‘did not lead to lower Medicaid spending during the 1991 to 2003 period,’” according to a report published by the National Bureau of Economic Research this month. Sarah Kliff is surprised to find that this is “the first national look at whether Medicaid managed care has actually done a key thing that states want it to do.”
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August 29, 2011 at 3:31 pm Posted in: Empirical Analysis of Law, Health Law, Law and Inequality Print This Post No Comments

From Safety Net to Dragnet

posted by Frank Pasquale

The fourth Class Crits conference will be held in DC in about a month. Titled “Criminalizing Economic Inequality,” it focuses on the US’s “increasing reliance on the criminal justice system to make and enforce economic policy.” A few recent items highlight the conference’s timeliness:

1) Barbara Ehrenreich on “How America Turned Poverty Into a Crime:” It’s hard to believe that Ehrenreich’s Nickeled and Dimed came out 10 years ago. As she’s written in the book’s re-issue, things have only gotten worse for the struggling families whose plight she chronicled in the book. Ehrenreich describes how officials at public assistance programs treat many beneficiaries with contempt. One needy mom named Kristen says caseworkers “treat you like a bum. They act like every dollar you get is coming out of their own paychecks.”

Nationally, according to Kaaryn Gustafson of the University of Connecticut Law School, “applying for welfare is a lot like being booked by the police.” There may be a mug shot, fingerprinting, and lengthy interrogations as to one’s children’s true paternity. The ostensible goal is to prevent welfare fraud, but the psychological impact is to turn poverty itself into a kind of crime. Read the rest of this post »

August 19, 2011 at 10:17 pm Posted in: Criminal Law, Culture, Current Events, Immigration, Law and Inequality, Privacy Print This Post One Comment

Inequality: Facts and Values

posted by Frank Pasquale

There were a number of interesting comments on my last post. I want to address some of the critical ones.

To recap, my post argued the following points:

1) Some people are doing extremely well in today’s economy, a large number are worried or struggling, and a growing class is experiencing desperate privation. This situation demands some legitimating explanation.
2) It is hard to demonstrate factually that the top 0.1%, which has seen a near 400% increase in its income since 1980, has become four times more valuable to the economy since 1980.
3) So defenders of this vast inequality argue that those in the middle and lower classes deserve to work harder and to make do with less.

Let’s take criticism of each step of the argument in turn. Read the rest of this post »

August 14, 2011 at 10:19 pm Posted in: Law and Inequality Print This Post 7 Comments

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