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6 search results for: %22government plantation%22

1

Social Dynamism in Government Policy

A Wall Street Journal editorial has gotten some attention with the headline, “School Choice Saves Money“:

Using data from a crime and graduation study by Corey DeAngelis and Patrick Wolf at the University of Arkansas, the Milwaukee study finds that through 2035 Wisconsin will receive a $473 million benefit from higher graduation rates by choice students. More education translates into higher incomes, more tax revenue and a lower likelihood of reliance on government welfare or other payments. Meanwhile, greater economic opportunity also prevents young adults from turning to crime, which the study estimates will save Wisconsin $1.7 million from fewer misdemeanors and $24 million from fewer felonies over the same 20 years.

Some years back the RI Center for Freedom & Prosperity had a victory, in our view, pushing dynamic scoring into the legislative debate with our proposal to eliminate the state sales tax.  Dynamic scoring means that one considers the economic effects of a policy and subtracts the increased tax revenue from the policy’s “static” (“sticker,” or first-order) cost.  The above paragraph reminds us that there is a social dynamism, too, reducing the need for government services as well as increasing the tax take from a healthier economy.

Obviously, this has perverse relevance to Rhode Island’s “government plantation,” which might gain back some lost tax revenue but lose clients and political leverage over them.

But imagine if we had policies that kept kids engaged in good schools (through school choice) and gave them opportunities for more entry-level jobs (through a lower minimum wage and reduced licensing requirements). It might just reduce the cost of paying government to mitigate social problems, create an environment of entrepreneurship, and turn our state around.

Of course, it would require us to shift away from the government plantation, so it won’t happen.

2

Census Numbers and Replacement Rhode Islanders

New U.S. Census estimates of states’ populations are out, and Rhode Island just like last year, experienced a small increase in population.  And once again the details of the numbers give reason for concern.

For the second year in a row, total population increased by a smaller number.  That is, 2014’s increase was 1,447, 2015’s was 1,127, and 2016’s is 819.  The natural population increase resulting from having more births than deaths was the smallest since 2010.

Of more concern, though, is that more Rhode Islanders continue to leave for other states than to head in the other direction, but those departures are over-compensated with immigration from other countries.  This year, we lost 3,784 Rhode Islanders to other states but gained 4,203 from other countries.  (Illegal immigrants would be included in these numbers.)  According to the Census, Rhode Island lost 28,565 residents to other states but imported 25,406 residents from other countries.

RI-compofpopchange-2010-2016b

Putting aside the fact that people who arrived from other countries may have later left for other states, Rhode Island has, roughly speaking, swapped out 2.4% of its population for people from other countries.  One needn’t be xenophobic to worry that this trend might not be ideal.

As the Rhode Island Family Prosperity Index report suggests, the Ocean State’s policy decisions are pushing our neighbors to leave.  Meanwhile, the government plantation model of the state’s major industry (government) creates incentive for elected officials and bureaucrats to seek to import clients who’ll require their services (and provide them votes).

3

Family Prosperity: A Needed Change for Rhode Island

The RI Center for Freedom & Prosperity today issued the Ocean State’s iteration of the American Conservative Union’s Family Prosperity Index report, making Rhode Island the second state explored in detail.  An associated Web site for the state is also up now.

The index incorporates a broad variety of demographic and economic data to compare how well states are performing for the families who live within their borders, and not surprisingly, Rhode Island ranks an abysmal 48th.  From the report:

… the FPI research suggests that economic hardship can often lead to adverse personal or social consequences, and vice versa. The issue of drug abuse, which has long been a concern for families and for the business community in Rhode Island, provides a clear example of this linkage. As we will discuss later, Rhode Island ranks worst in the nation in terms of illicit drug use. To its credit, in 2016, Rhode Island took action to address this disturbing trend.

With the Ocean State ranking nationally in the bottom 10 on the FPI Economics index, as well as the entrepreneurship and unemployment sub-indexes, it isn’t a surprise that the associated personal fnancial distress has an impact on its residents’ personal behavior.

An introductory report is obviously just a starting point, and the initiative’s data for the whole country is online already in interactive format.  We’ve already been making use of it, in this space, noting for example evidence that Rhode Island’s economic and civic reality is actually spurring two conflicting reactions among its people: one to retrench toward healthy behavior and one to compensate for difficulties with unhealthy behavior.  Unfortunately, our elected officials seem more inclined to implement policies that favor the unhealthy behavior and impede the healthy (arguably to fertilize the government plantation).

To help make the case that Rhode Island needs a new direction, the Rhode Island site is encouraging Rhode Islanders to tell their own stories, whether negative or positive, and is hosting a leadership forum in cooperation with the Hassenfeld Institute for Public Leadership at Bryant University on January 17 (RSVP at the link).

4

ObamaCare Repeal Plan Exposes Government Plantation

Even if he fails in office, President-elect Donald Trump — merely by promising to behave as if it’s possible for the people to push back against the government-expansionist march — will do much to expose the workings of the government plantation.  Consider comments from Democrat Governor Gina Raimondo in an article by Lynn Arditi of the Providence Journal:

Gov. Gina Raimondo said Tuesday during a meeting at The Providence Journal that she “loses sleep” over the prospect of a hasty unrolling of the Affordable Care Act and its Medicaid payment system. “It could be devastating for us,” she said.

Such a change would mostly be “devastating” if it portends a new pattern in which the federal government stops paying state governments to provide services. That is increasingly the business model of Rhode Island’s true major industry, government.

The Beast needs customers for its services, and it needs a mechanism to make other people pay the bill.  The federal government is critical in that transaction because it’s able to take money in so many ways and without people’s having a clear view of what it’s paying for or a straightforward way to decline the bill year after year.

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