Power & Market
Governor Rick Scott of Florida has called on the FBI director, Christopher Wray, to resign after it was revealed the FBI failed ot follow up on leads related to this week's school shooter. The FBI also failed to even follow its own protocol in terms of forwarding information to the local field office:
Robert Lasky, FBI Special Agent in Charge of the Miami field office, said agents in the Miami field office were never notified about the tip.
"The FBI has determined that protocol was not followed. The information was not provided to the Miami field office and no further investigation was conducted at that time," Lasky said Friday at a news conference. "We will conduct an in-depth review of our internal procedures for responding to information that is provided by the public."
The FBI was also notified about a comment on a YouTube video posted by a "Nikolas Cruz" last year.
"The comment simply said, 'I'm going to be a professional school shooter,'" Lasky said Thursday. "No other information was included with that comment, which would indicate a time, location or true identity of the person who made that comment."
Lasky said the FBI was unable to identify who made the remark.
A statement released Friday by the FBI said that the most recent tip should've been investigated thoroughly and forwarded to the Miami field office because it was a potential threat to life.
"We are still investigating the facts," FBI Director Christopher Wray said. "I am committed to getting to the bottom of what happened in this particular matter, as well as reviewing our processes for responding to information that we receive from the public. It's up to all Americans to be vigilant, and when members of the public contact us with concerns, we must act properly and quickly."
No doubt the FBI will "get to the bottom" of this just as it gotten to the bottom of how it failed to notice anything was amiss in the lead-up to 9/11. Perhaps the FBI will receive another big budget increase, as tends to happen after the FBI botches a major investigation.
A star high school basketball player was incidentally mentioned in an FBI probe because he was allegedly paid $15, 000 for “committing” to play for the University of Arizona. The student has recently committed to another university but may be ineligible to play college basketball next year.
A study in 2011 estimated that the average college basketball player at a university in the top tier (FBS) of Division 1 athletics earned approximately $120, 000 including grants-in-aid to fund tuition, room and board, etc, coaching services, media and public relation services, free tickets, and other valuable services. Another study in 2017 suggests that the average Division 1 player is worth $170,098 to their employing institutions. However players on elite teams such as the Louisville, Duke, and Kentucky would be worth $1.72 million, $1.16 million and $1.02 million, respectively, on a free market.
This raises a very serious question about college athletics—but not the one that you would expect. Why is it that Federal police operate as an investigative and enforcement arm for the National Collegiate Athletic Association, the multi-billion dollar college athletics cartel whose main purpose is to ruthlessly suppress the wages of college athletes far below the additional revenue that they generate for the colleges and universities that employ them?
Last month, I noted how Colorado's Congressional delegation was incensed at Jeff Sessions' posturing on the drug war and his efforts to override Colorado's constitutional measures against marijuana prohibition in the state.
Both Republicans and Democrats from Colorado condemned Sessions, and this should surprise no one. Marijuana legalization would never have passed in the first place without significant amounts — even majority support — from a number of Republican counties.
Even rural Colorado is far from the sort of Bible Belt politics that impels Jeff Sessions to blithely call for federal meddling in the daily lives of private citizens. More inclined toward libertarian leave-me-alone politics, Colorado Republicans are (slightly) less likely to go running to the federal government to manage their personal habits than in some other parts of the country.
On the matter of marijuana, rejecting federal marijuana prohibitions has now become widespread in Colorado in both parties where a good economy and relatively low crime rates are not exactly driving voters to call for a repeal of the the legalization measures a majority of them voted for in 2012.
So, it's not shocking to see yet another Colorado legislator join the anti-Sessions pile-on. The latest addition is this op-ed by Colorado Springs Republican Owen Hill who writes:
I have taken oaths to uphold the constitution as both a commissioned military officer and a state senator. Our state constitution clearly provides that marijuana, both recreational and medical, is legal by a popular vote of the citizens of Colorado. The US constitution also clearly states in the 10th amendment that any powers not expressly granted to the federal government are reserved to the states.
While some will wrongly argue that the supremacy clause or the commerce clause give the federal government the authority to meddle in our local issues, I side with conservative Supreme Court Justice Clarence Thomas: That if Congress can regulate this under the Commerce Clause, then it can regulate virtually anything — and the federal government is no longer one of limited and enumerated powers.
He goes on to say: “Whether Congress aims at the possession of drugs, guns, or any number of other items, it may continue to appropria[te] state police powers under the guise of regulating commerce.”
There are a couple of things to note here. Hill is from Colorado Springs which is the most right-wing part of Colorado, and is home to mega churches and military bases. It's about as Republican as you can get. Given the tone of his op-ed, however, it's clear Hill doesn't exactly fear blowback from his strident opposition to Sessions.
Secondly, Hill's defense of state autonomy using the Tenth Amendment is especially laudable and is the sort of thing we should routinely hear from state legislators.
Hill is right, of course, that there is nothing at all in the US Constitution autorizing federal control of substances like marijuana. It's simply not in there, and any claim of federal "supremacy" in this matter conveniently ignores the Bill if Rights.
For pragmatic reasons, Hill supports federal legislation making it clear that the federal government will leave states alone when they legalize marijuana. It is also clear from his argument, however, that such federal legislation isn't actually necessary. Federal prohibitions on drugs that void valid state laws are simply unconstitutional, whether there's any federal statute recognizing this fact, or not.
Nicolai Foss and I have written a paper criticizing currently fashionable "stakeholder" approaches to the firm and the idea that managers should pursue "corporate social responsibility." BlackRock CEO Larry Fink, who manages $6 trillion in corporate assets, made a splash last month by insisting that corporate executives focus not on shareholders, but on a broader segment of society: "Companies must ask themselves: What role do we play in the community? How are we managing our impact on the environment? Are we working to create a diverse workforce? Are we adapting to technological change? Are we providing the retraining and opportunities that our employees and our business will need to adjust to an increasingly automated world? Are we using behavioral finance and other tools to prepare workers for retirement, so that they invest in a way that that will help them achieve their goals?"
Foss and I argue that this view ignores the basic function of ownership, which is to exercise responsibility for productive resources. Building on Mises's judgment-based view of entrepreneurship, we argue that corporations should be run in the interests of owners -- and that not everyone affected by a company's actions, let alone society at large, is an owner. Here is the abstract:
We argue that the stakeholder and CSR literatures can benefit from more systematic thinking about ownership. We discuss general notions of ownership in economics and law and the entrepreneurial notion of ownership we have developed in prior work. On this basis, we argue that stakeholder theory needs to deal more systematically with ownership as an economic function that can be exercised with greater or lesser ability, may be complementary to other economic functions, and works better when assigned to homogeneous groups. Some stakeholder groups are likely to lack what we call “ownership competence,” even if they have made relationship-specific investments, in part because of diverse interests. We also discuss CSR from the perspective of ownership and support Friedman’s original position, but with a twist. The point of Fried-man’s paper is not that firms “should” maximize profits, but that managerial pursuit of “socially responsible” activities in a discretionary way imposes costs on owners. We suggest this problem is exacerbated with entrepreneurial managers who can devise new ways to disguise self-interested actions as CSR initiatives.
The paper is titled "Stakeholders and Corporate Social Responsibility: An Ownership Perspective" and is forthcoming in Advances in Strategic Management. A manuscript copy can be downloaded at SSRN.
In Liberalism (p.115), Mises argued that "the state, the government, the laws must not in any way concern themselves with schooling or education, [which] must be left entirely to parents and to private associations and institutions."
The Private Academy project, founded under the umbrella of the Romanian Mises Institute in 2015, started out to do just this: to offer an alternative to the decades of nationalized higher education from which learning needed to be reclaimed and repaired.
The purely private endeavor started small, with seminars on Austrian economics, and is now growing to encompass philosophy, literature, politics, religion, and the arts, in an effort to recover the "lost tools of learning". You can find out more about the project here, and visit the website here.
This a great undertaking, and a difficult one. But I hope to see many more like it in all the corners of the world.