• Science-Based • Professors Troubled School Research C A R O L I N A Over First Amendment Debating Smart Growth ‘FDR’s Folly’

Volume 13, Number 2 A Monthly Journal of News, February 2004 Analysis, and Opinion from JOURNAL the John Locke Foundation www.CarolinaJournal.com www.JohnLocke.org

Economic Development Goes Haywire in Northeast

east Partnership of the impending visit. Recruited company Roberson’s introduction of Basnight and fell victim to turf war the partnership into the process made the AEDC’s involvement, despite the lead between N.C. agencies Roberson gave it, short-lived. Looking for money

By PAUL CHESSER At the July 10 meeting, CropTech ex- Associate Editor pressed the need for a $3.5 million “bridge” RALEIGH investment to get it to a larger “institutional tate officials botched the recruitment round” of investing, in which it hoped to of a biotechnology company because raise $10 million to $15 million. The need for S of a power struggle between the De- seed money to attract private investment partment of Commerce and an economic was a theme to which CropTech would development agency in northeast North repeatedly return throughout the negotia- Carolina, officials of the company say. tions. Documents also show that rather than On July 12 Prince e-mailed Watson in helping the company, CropTech Corp., in an effort to learn more about CropTech’s their negotiations, North Carolina’s North- meeting with Basnight. east Partnership continued a practice of CropTech Corp. planned to extract proteins from tobacco plants for pharmaceutical use. “The company reps make it pretty clear seeking equity in the companies it recruits that [Basnight] is key to the project and they instead of providing services it is supposed in Martin County. And in a series of articles duce human proteins. will go wherever the money is made avail- to offer for free. in The Daily Advance of Elizabeth City last CropTech already had contacted Dr. able,” Prince wrote. “They seemed to think In the process of trying to entice May, officials of DataCraft Solutions al- Charles Hamner of the N.C. Biotechnology that some ‘hopeful’ comments were made CropTech, state agencies and local agencies leged that partnership representatives tried Center, a nonprofit organization established to them during their meeting.” in northeast North Carolina actually con- to get a 15 percent stake in their company in by the state to develop economic opportu- Roberson invited representatives of sev- tributed to the insolvency and demise of the exchange for services from their side busi- nities in the biosciences. Hamner had a eral government-created nonprofit organi- company, a former company executive said. ness. The DataCraft executives claimed they track record of success in judging the viabil- zations, all with public money to use for (See story, Page 3). were told that Watson owned 50 percent of ity of technology companies, and he be- economic development incentives, to a fol- Documents obtained by Carolina Jour- the side business and would “close deals” came a cheerleader for a CropTech move to low-up meeting scheduled Aug. 2. That nal and interviews with many officials in- for DataCraft — which would have been a North Carolina. meeting included Basnight, his director of volved in negotiations between CropTech violation of Watson’s contract with the part- “I was enthusiastic about CropTech special projects, Rolf Blizzard, and Watson. and the state show that an economic incen- nership. because I thought it had the potential to According to records of the Northeast tive deal hinged on CropTech receiving $3 Senate President Pro Tem Marc provide NC farmers the opportunity to raise Partnership, “Senator Basnight want[ed] million from the N.C. Tobacco Trust Fund. Basnight, D-Dare, appears to wield strong up to 15 to 20 thousand acres of a new crop,” this project very much.” Blizzard’s notes The deal fell apart because government of- influence over the Northeast Partnership, he told CJ via e-mail. from the meeting state that the N.C. Bio- ficials perpetually postponed closing dates sometimes determining whether and how Richard Roberson of the state Depart- technology Center offered a $250,000 loan, on agreements and imposed numerous businesses get state incentives. Evidence ment of Commerce introduced the and that Watson would work to get $1 other delays, forcing CropTech to expend from the CropTech case bears out this influ- CropTech project to the Albemarle Eco- million in venture capital and $50,000 in its limited capital, company officials said. ence. Officials representing Basnight and nomic Develop- local government North Carolina’s Northeast Partner- the Northeast Partnership did not respond ment Commission funds for CropTech. ship, chief negotiator with CropTech and to phone messages and questions submit- — a regional agency Inside: Blizzard would se- led by Executive Director Rick Watson, pro- ted by electronic mail. representing the cure $3 million from posed that the company give ownership governments of Why CropTech Persisted - P.3 the Tobacco Trust equity to the partnership in exchange for CropTech’s first visit Camden and Pas- A View of the Northeast - P. 4 Fund, $250,000 from helping CropTech get financial incentives. quotank counties the Governor’s The partnership would put up little, if any, In mid-2001 Blacksburg, Va.-based and Elizabeth City Payback for the Deal? - P. 5 Competitive Fund, of its own money in exchange for a signifi- CropTech looked to North Carolina and — in late June 2001. and $200,000 from cant ownership stake. The company rejected South Carolina hoping to find incentives CropTech wanted the N.C. Rural Eco- the proposal. The state’s seven regional eco- that would enable it to build research and funding to build facilities and “to go com- nomic Development Center. The goal was nomic development agencies were created production facilities, and to operate for a mercial” with its products, and Roberson to get $5 million in cash for CropTech. to provide free assistance to businesses look- few years. CropTech specialized in the “de- believed Elizabeth City was a good fit. At that point Commerce’s “involvement ing to relocate to North Carolina. velopment and commercialization of the Roberson informed AEDC that com- declined a lot,” a department official said. The Northeast Partnership attempted use of genetically engineered plants to pro- pany officials would visit Raleigh on July 10 While Basnight’s soldiers took charge, to work similar deals in the past. In March duce high-value proteins and biochemi- and July 11 to meet with Basnight, and that frustration over turf surfaced. In a tele- 2003 CJ reported that Watson and others cals.” CropTech officials wanted to raise the group would also visit sites in Elizabeth sought a personal stake in an ethanol plant mass quantities of “transgenic” tobacco, City. Before the meetings, Bill Prince of that a Raleigh businessman wanted to build which would be genetically altered to pro- AEDC notified Vann Rogerson of the North- Continued as “Commerce,” Page 3

$1 Billion for Triangle Rail? The John Locke Foundation NONPROFIT ORG. Contents 200 W. Morgan St., # 200 U.S. POSTAGE Good Investment 27% Raleigh, NC 27601 PAID Not Good Investment 59% RALEIGH NC PERMIT NO. 1766 Not Sure 14% Calendar 2 State Government 3 Education 6 Higher Education 10 Local Government 14 Books & the Arts 18 Opinion 20 % of Wake County Voters in January 2004 JLF Poll Parting Shot 24 C A R O L I N A Contents

ON THE COVER • Lindalyn Kakadelis writes that nowadays • In an effort to obtain federal funding, the JOURNAL proficiency is relative, which leaves parents Triangle Transit Administration has made • Negotiations with a now-defunct com- and citizens confused about the reliability significant reductions in its proposed pany in 2001-02 revealed fissures in North of how well public school students achieve. Durham-to-Raleigh light-rail line. Page 16 Carolina’s economic development struc- Page 7 ture, which apparently are harming the THE LEARNING CURVE state’s ability to lure business. Page 1 • Education Week’s “Quality Counts” report Richard Wagner considers the problems of fairly assessing • George Leef reviews the book FDR’s Folly: Editor NORTH CAROLINA special education students under the fed- How Roosevelt and His New Deal Prolonged eral No Child Left Behind law. Page 8 the Great Depression, by Jim Powell. • CropTech Corp. negotiated a relocation Page 18 Paul Chesser, Michael Lowrey package to come to North Carolina through HIGHER EDUCATION Donna Martinez Associate Editors State Sen. Marc Basnight because company • Reviews of the books The Ideas That Con- officials “were told there was no one more • CJ looks at a Duke University course, quered the World: Peace, Democracy, and Free powerful in the state of North Carolina than “Womens Studies 161S: Money, Sex, and Markets in the Twenty-first Century by Karen Palasek, Jon Sanders Senator Basnight.” Page 3 Power,” which was included by the Young Michael Mandelbaum, and Outgunned: Up Assistant Editors America’s Foundation in its annual report Against the NRA by Peter Harry Brown and • The fragmentation of leadership and re- on silly college courses. Page 12 Daniel G. Abel. Page 19 sponsibilities has diminished the effective- Chad Adams, Andrew Cline, ness of North Carolina’s publicly funded • Last fall, several universities shut down OPINION Roy Cordato, Charles Davenport, economic development agencies, according “affirmative action bake sales,” held by stu- Ian Drake,Tom Fetzer, Nat Fullwood, John Gizzi, to a private developer who once had deal- dents protesting race-preferential admis- • Michael Lowrey writes that while the re- David Hartgen, Summer Hood, ings in northeast North Carolina. Page 4 sions policies. Page 12 cording industry blames all of its problems Lindalyn Kakadelis, George Leef, on people downloading free music, the real Kathleen Keener, Kathryn Parker, • North Carolina’s Northeast Partnership, • Stephen Balch writes that the last third of problem is that the industry’s economic Marc Rotterman, R.E. Smith Jr., created by the state and able to use free le- the 20th century witnessed the rise and tri- model is broken. Page 20 Jack Sommer,John Staddon, gal counsel from the attorney general, keeps umph of the postmodern, or better yet, the George Stephens, Jeff Taylor, its own lawyer, whom it sometimes pays at New Age University, whose core mission • An editorial on proposed federal legisla- Michael Walden, Karen Welsh a rate of $250 per hour. Page 5 was to bring America into a new age based tion that would revolutionize how gas taxes Contributing Editors on substantially altered principles and so- are utilized. Page 20 EDUCATION cial forms. Page 13 Jenna Ashley, Paul Messino, • Editorials on the idea of a new state con- Andrew Symons • No Child Left Behind requires that school LOCAL GOVERNMENT stitution, and on Fayetteville’s failed Festi- Editorial Interns improvement programs be grounded in val of Flight. Page 21 “scientifically based research,” so the U.S. • Rail transit systems proposed for three Department of Education issued a docu- North Carolina metropolitan areas are des- PARTING SHOT ment to clarify what that means. Page 6 tined to fail, experts said at the Center for Local Innovation conference. Page 14 • CJ parody: Having learned that laziness • Gov. Mike Easley proclaimed January Na- is in reality a neurological disorder, a Uni- John Hood Publisher tional Mentoring Month, and he is encour- • Chad Adams writes that lately, Gov. Mike versity of North Carolina at Chapel Hill aging support of state-sponsored mentor Easley makes him feel like he’s been hit by researcher’s discovery of “output failure” Don Carrington screening, training, and assignment pro- a grifter working the old Three Card Monty. could save a generation from abusive lan- Associate Publisher grams. Page 7 Page 15 guage and work. Page 24 Calendar Published by The John Locke Foundation 200 W. Morgan St., # 200 Raleigh, N.C. 27601 (919) 828-3876 • Fax: 821-5117 Col. Gov. Bill Owens to Headline Locke’s 14th Anniversary www.JohnLocke.org

he John Locke Foundation will cel- and reforming the tort system. Bruce Babcock, Ferrell Blount, ebrate its 14th anniversary with a He was also a leading advocate of the John Carrington, Hap Chalmers, dinner March 10 at the North Ra- Colorado Taxpayers’ Bill of Rights (TA- Sandra Fearrington, Jim Fulghum, T leigh Hilton. Colorado Gov. Bill Owens will BOR), which caps government spending William Graham, John Hood, be the featured speaker for the evening. and requires that excess funds be returned Kevin Kennelly, Lee Kindberg, Robert Luddy, William Maready, Called “the best governor in America” to state taxpayers. J. Arthur Pope, Assad Meymandi, by National Review magazine, Owens was Owens, who holds a master’s degree in Tula Robbins, David Stover, sworn in as Colorado’s 40th governor in public administration from the Lyndon B. Jess Ward, Andy Wells, January 1999. He was re-elected in 2002 Johnson School of Public Affairs at the Uni- Art Zeidman with the greatest majority in Colorado his- versity of Texas, worked for 20 years in the Board of Directors tory, earning a broad mandate for his inno- private sector with the consulting staff of vative leadership. Deloitte and Touche, with the Gates Corpo- Owens pushed through the largest tax ration and as director of a trade association. relief package in state history, amounting The governor is an expert on Soviet affairs Carolina Journal is a monthly jour- nal of news, analysis, and commentary on to $1 billion in cuts in rates of sales, personal and writes and lectures often on Russia. state and local government and public policy income and capital gains taxes, and an elimi- The event also will feature remarks by issues in North Carolina. nation of the marriage penalty. As a result, John Locke Foundation President John he has won high marks for his fiscal leader- Hood, who will present the 2004 James K. ©2004 by The John Locke Foundation ship, earning the highest grade among the Polk and John William Pope awards to North Inc. All opinions expressed in bylined ar- nation’s governors from the Cato Institute. Carolinians who have demonstrated lead- Colorado Gov. Bill Owens ticles are those of the authors and do not His policies of low taxes and restrained ership in the public and private sectors, necessarily reflect the views of the editors of government spending were cited as an ex- accountability plan with five consecutive respectively. Carolina Journal or the staff and board of ample for other states in a lead editorial in years of full state funding for public educa- The cost of the anniversary and awards the Locke Foundation. The Wall Street Journal. tion. banquet is $50 per person. The reception Material published in Carolina Jour- He was recently touted as one of the Owens kept his commitment to trans- and registration will begin at 6 p.m., and nal may be reprinted provided the Locke major emerging leaders in American poli- form Colorado’s transportation system, dinner will be served at 7 p.m. Owens’s Foundation receives prior notice and ap- tics by The Economist magazine, and was which had been neglected for nearly a quar- speech and the awards program begins at 8 propriate credit is given. Submissions and identified as one of the country’s top 10 ter century. Through innovative policies, p.m. letters to the editor are welcome and should rising political stars by syndicated colum- he accelerated road and mass transit projects For more information or to preregister, be directed to the editor. nist Robert Novak. that would have taken half a century to call (919)828-3876 or send an e-mail mes- He is the chairman of the Republican complete — projects that will now be done sage to [email protected]. Readers of Carolina Journal who wish Governors’ Association. in a decade. He pushed for and signed into to receive daily and weekly updates from CJ editors and reporters on issues of interest to Keeping his promise to institute sweep- law the largest state commitment to trans- Shaftesbury Society North Carolinians should call 919-828- ing school reform in Colorado, Owens cre- portation, which will invest $15 billion over 3876 and request a free subscription to ated an education accountability system, the next two decades. Each Monday at noon, the John Locke Carolina Journal Weekly Report, deliv- including detailed, online school report Known as one of Colorado’s most effec- Foundation hosts the Shaftesbury Society, a ered each weekend by e-mail, or visit cards, that U.S. Education Secretary Rod tive policy makers before his election as group of civic-minded individuals who CarolinaJournal.com on the World Wide Paige has called “the envy of the nation.” governor, Owens served in the state House meet over lunch to discuss the issues of the Web. Those interested in education, higher His accountability system has been praised and Senate and as Colorado treasurer. He day. The meetings are conducted at the education, or local government should also as among the best in the nation by Education authored landmark legislation creating Locke offices in downtown Raleigh at 200 ask to receive new weekly e-letters covering Week magazine and The Heritage Founda- charter schools, toughening prison sen- W. Morgan St., Suite 200. Parking is avail- these issues. tion. He combined this model education tences, modernizing child abuse statutes able in nearby lots and decks. CJ C A R O L I N A February 2004 JOURNAL North Carolina 3 Commerce Cites ‘Chapter and Verse’ of Bungled Projects

Continued From Page 1 highly competitive has indicated that who didn’t want to be identified. “He’s able research grant pro- the Senator’s sup- to get meaningful accomplishments through phone call with an AEDC official, Roberson grams. Johnson said port for this project the system.” said “he was annoyed that [AEDC] had told the company held ex- remains intact,” “Mr. Blizzard was able to assemble all the CropTech management that they needed cellent growth po- Scott wrote. the funding agencies together in order to to talk with Rick Watson if they were going tential, but was just In response to negotiate a recruitment incentive package to do a project in the Northeast,” according beginning to “pur- the Northeast Part- attractive to CropTech,” said Peter Rascoe, to notes of the conversation. sue commercializa- nership’s commit- a lawyer for Edenton and Chowan County The AEDC official reminded Roberson tion activities.” ment letter, Crop- (where the company ended up trying to of a previous conversation they had, when Blizzard was the Tech President Rob- locate), in an e-mail to CJ. “Mr. Blizzard was the official said that if Roberson was going point man for the in Radin wrote Aug. also very concerned that the state’s and to meet with Basnight to ask for support deal. On Aug. 13 27 that he was Chowan County’s resources be protected.” and money, it was necessary for Watson to Cathy Scott (of the “strongly encour- In the meantime, Watson attempted to know about it. partnership) wrote aged” by the incen- co-opt some financial compensation for the According to notes of the phone con- to Johnson, asking tives package, and Northeast Partnership. A letter from Watson versation, “further discussion cleared up him to send his re- anticipated making to CropTech introduced a surprise require- [Roberson’s] ‘annoyance’ issue.” But the port to her and Wat- a final relocation de- ment: that the Northeast Partnership and notes also said, “Roberson has had negative son, because “we will cision the following the state would be considered “joint own- experiences in the past with the [Northeast need to send it on to week. But in reality ers of intellectual property developed and Partnership] taking over control of his our higher powers a deal was not close. patented in North Carolina facilities.” The projects,” and thought AEDC “had facili- first thing in the partnership, with no investment of its own tated this again.” a.m.” ‘Rolf Blizzard is money but simply by helping obtain incen- “Negativism abounds with Commerce That “higher the source’ tives from others, would also be included as and the [partnership] on control of projects,” power” was Bliz- “stockholders in the Corporation with all the notes read. “Keep this in mind.” zard, who received The Northeast associated rights.” A former CropTech official confirmed from Scott some Dr. Charles Hamner, former director of the Partnership, Bliz- the negative atmosphere between the Com- summary points North Carolina Biotechnology Center, zard, Roberson, and Where’s the proposal? merce Department and the Northeast Part- from Johnson’s 67- supported a deal with CropTech CropTech officials nership. page report. were to meet Sept. 7 By Sept. 19 CropTech was still waiting “[Commerce representatives] cited Meanwhile on Aug. 14 and Aug. 20 in Raleigh, and several documents showed for a proposal from the Northeast Partner- chapter and verse of Rick Watson screwing Scott e-mailed Roberson and Prince, who that Blizzard lined up the funding sources. ship, including the promised $5 million — up projects,” the official said. were wondering about the project, and ex- Roberson told Prince that “Rolf Blizzard is three months after the process began. The Northeast Partnership enlisted the plained that the Northeast Partnership the source.” On Sept. 27 Watson and Mike Scott of help of a University of Virginia professor, drafted a letter of intent to “exert its best “Thanks for all your leadership on this the Northeast Partnership, trying to secure Barry Johnson, to research CropTech’s tech- efforts” to find $10 million in financing for project,” Mike Scott, Cathy’s husband and $3 million of the $5 million it promised to nology, patents, and business model. His CropTech, through “its relationships with business partner, wrote to Blizzard. “Let us CropTech, made a presentation about the findings were largely favorable, emphasiz- state, federal, and private funding sources.” know how we can assist you.” ing that CropTech was able to secure more “Rolf Blizzard, on behalf of Senator “Obviously [Sen. Basnight’s] got power than $7.7 million in federal funding through Basnight, has reviewed this information and in the system,” said a Commerce official Continued as “Despite,” Page 4 CropTech Was Told There Was ‘No One More Powerful’ in N.C. Than Basnight

By PAUL CHESSER last stage,” the official said. “Every partici- “and Senator Basnight had the key to that The Tobacco Trust also viewed the deal Associate Editor pant in the deal had more than ample time resource. His key to opening that door was differently. “From the Commission’s point RALEIGH to review the proposed agreement. All the accommodating his interests — that’s what of view, it was being asked to invest public ropTech Corp., which negotiated participants, other than the Northeast Part- we were led to believe. money in a private enterprise where the with North Carolina for more than nership and [Edenton-Chowan Develop- “Rolf [Blizzard, Basnight’s director of private enterprise kept pursuing the Com- C a year in an effort to relocate to the ment Corporation], agreed in principle with special projects] was running the show, and mission with great vigor,” Upchurch said. state, instead decided to move to South those terms — in fact, most had signed off. he seemed like a highly competent fellow “The assurances we asked for in negotia- Carolina in May 2002. But officials knowl- Then suddenly Watson got involved and all and dedicated to the project, and obviously tions… were intended to protect the public edgeable about the company say that by those understandings were cast aside. had the mandate from the Senator.” money given to CropTech in the event the then the time spent dealing with North “We felt enormously frustrated and The former CropTech official said ulti- company either failed or succeeded. Carolina drained its limited finances, and even desperate, because we proceeded in mately those assumptions were wrong, as “In hindsight, the Commission’s insis- less than a year later it was bankrupt. good faith over many months. We were the Commerce Department and Attorney tence on assurances was wise. Our under- Why did CropTech give North Caro- really damaged by these people.” General’s Office “showed their power to standing is that CropTech eventually went lina so much time? One of the Northeast group partici- slow down and stymie the deal by inserting to South Carolina for more money and in- “Because the initial proposal and inter- pants viewed negotiations differently. themselves into the final review process.” centives than were ever on the table in actions were so encouraging,” said a former “From the ECDC’s perspective,” said But the deal was effectively killed by North Carolina and then filed for bank- company executive. “We persisted because Peter Rascoe, ECDC’s lawyer, in an e-mail, the sudden imposition of new conditions ruptcy a year later.” we were persuaded that the people involved “Rick Watson and the Northeast Partner- that were unacceptable to CropTech. The According to the former company offi- were serious and sincerely interested in ship spent untold hours in attempting to company official said one of those “last cial, Watson steered CropTech, for some seeing this deal get done. put this industry recruitment deal together.” minute” conditions, the performance bond, unknown reason, away from Elizabeth City, “We were astonished at the later stage, “We can say that the North Carolina was “absurd on its face.” to Edenton, as a condition for his help. But that the whole set of understandings that participants were very dedicated and pro- “CropTech was not a contractor en- he said the ECDC, with their conditions, led us to commit to a long period of negotia- fessional in this process,” said William gaged to construct a bridge or building that “were unpractical and overreaching in their tions suddenly went up in smoke. Upchurch, executive director of the Tobacco needed to be bonded to ensure completion demands.” Towards the end of the negotia- “Nobody complained about the struc- Trust Fund Commission. of the job,” the official wrote in an e-mail to tions CropTech contacted Elizabeth City ture and the basic terms of the proposed The former official said CropTech had CJ. “We were a highly promising biotech- development officials to see whether there deal until later on,” he said, “until we be- enlisted an investment bank to raise private nology company being courted to relocate… was still an opportunity there. came part of a political crossfire, which we funds, based upon the timetable and assur- because of its potential to attract new capi- “We wanted to go back to Elizabeth didn’t understand at the time.” ances the company believed were conveyed tal investment and new jobs. City and deal with reasonable people,” the The former CropTech official consid- by “responsible North Carolina officials.” “For an early-stage biotech company, a company official said. “But then [Watson] ered Rick Watson, president of North Why did the company negotiate performance bond was neither appropriate made it clear that that was not something Carolina’s Northeast Partnership and the through Senate President Pro Tem Marc nor available. We were concerned that the that would be allowed. most direct negotiator with the company, to Basnight, instead of Commerce? sudden imposition of this and other new “The whole thing reflected very poorly be a big source of the problems. “We were told there was no one more terms was evidence of incompetence in the on the state and its economic development. “He made himself the linchpin, but powerful in the state of North Carolina than best case, or in the worst case, a means of It couldn’t have been much worse. It re- seemed to have a personal agenda,” the Senator Basnight,” the official said. “No just driving us away and killing the deal.” vealed a very seamy and sordid political official said. “He seemed to have no interest one, not even the governor.” He said con- But Rascoe said CropTech was on board structure. That was quite a shame, because or capability to put anything together.” tacts in Commerce confirmed the claim, with some of those milestones. “It is our good people, particularly Commerce De- As negotiations progressed, not only which seemed unusual. “But as a practical knowledge that CropTech originally sug- partment people, were involved. did the financial terms change, but control matter we accepted what we were told were gested private investment goals,” Rascoe “The blow-up of the deal with North over the tobacco growing process did as the realities of dealmaking in that environ- wrote. “It is also our understanding that Carolina had a major impact on weakening well. Because CropTech’s goal was to pro- ment,” he said. “Who were we to know? CropTech agreed to a performance bond the company. We never really recovered duce pharmaceuticals, the company needed “It was understood that this was an requirement when suggested by a state from the loss of precious time, capital, and to control every part of that process. exceptional situation because of the involve- agency to protect the expenditure covenants opportunity involved. It was a major factor “Those terms were changed at the very ment of the Tobacco Trust,” the official said, of a proposed grant from that agency.” in our ultimate failure.” CJ February 2004 C A R O L I N A 4 North Carolina JOURNAL Despite Chronic Delays, CropTech Remained in Negotiations

Continued From Page 3 million in private investment by June 1. He said that demand was a “material change in company before the Tobacco Trust Fund previously agreed milestones.” Commission. Commission members agreed “The proposed change converts the to earmark the $3 million for the project. transaction into a $2 million matching grant Notes obtained from the Tobacco Trust for a $10 million equity raise,” Radin wrote. Commission indicate that Edenton, in “This scheme makes no economic sense… Chowan County, was immediately consid- since it requires [CropTech] to implement a ered the prime location for CropTech, over relocation program in exchange for $1 mil- Elizabeth City. lion, and then penalizes [CropTech] if, for According to a former CropTech offi- example, it succeeds in raising (only) $9.9 cial, Watson said that Edenton was the only million by June 1…or $10 million by June place CropTech could go if the company 2….” wanted help from the partnership. But that Radin also objected to changes in the was fine with CropTech, as long as the ECDC offer, which he said substantially money was there. scaled back and increased conditions “of Radin sent Blizzard commitment let- commitments previously set forth in writ- ters Oct. 31 for each contributor to the North ing by the ECDC.” Carolina incentive package, and stressed to “The ECDC required contingencies for Blizzard the need to close the deal within CropTech to raise private funds in order to two weeks. protect the ECDC’s equity offered to be “I would appreciate your OK,” Radin invested in this recruitment project,” Rascoe wrote, “before I distribute this package of told CJ in an e-mail. documents to each member of the NC As for the commitment letter submit- group.” On Nov. 5, according to Blizzard’s ted by the Northeast Partnership, Radin notes, he “advised Robin to forward along.” told Blizzard that CropTech found all 16 of Radin did so the following day. its enumerated conditions objectionable. By Nov. 10 CropTech was dealing ex- N.C. Secretary of Commerce Jim Fain “The proposed letter contains only best clusively with the Edenton-Chowan Devel- efforts commitments for possible equipment opment Corporation for a site. ECDC sent cific standards were not outlined in meet- plug in June 2002. financing arrangements that we believe, in CropTech a letter, approved by Blizzard, ing minutes. After further internal discussions, line with [Watson’s] speculation, are un- agreeing to the terms in Radin’s memoran- Following the Tobacco Trust’s approval, ECDC raised its private funding require- likely to materialize,” Radin wrote. dum. All the parties planned for a meeting Radin thanked Executive Director William ments for CropTech from $8 million to $10 Notes obtained from ECDC showed to close the deal Nov. 30 in Raleigh. Upchurch in an e-mail, but said, “I am sorry million by June 1, 2002. that, in the opinion of Hamner of the N.C. to have expressed some frustration with the The Northeast Partnership followed suit Biotechnology Center, forcing CropTech to Last-minute requests input of the [attorney general’s] attorney as and submitted an offer letter to CropTech raise $10 million after the Sept. 11, 2001 this stage relating to the [new] condition. that required the company get $10 million terror attacks was “unrealistic.” On Nov. 23 Mike Scott asked CropTech But I thought that the participation of Doug in private financing by June 1, 2002. for financial and ownership information Johnston [the special deputy attorney gen- Upchurch wrote to Blizzard Dec. 17 that the Standing firm for “funding entities” in order to complete eral who recommended the new conditions] Tobacco Trust was prepared to send proposals from the ECDC and the North- at our negotiating meeting would have pre- CropTech its own commitment letter. ECDC, the Northeast Partnership, and east Partnership. He also requested that vented any last minute hitches of this sort.” “I told CropTech we were on board,” the Tobacco Trust Commission all stood company officials meet the morning of Nov. Radin also expressed his disappoint- Upchurch wrote, “but they didn’t seem too firm on their proposal. 30 in Basnight’s conference room “to dis- ment the following day in a message to happy. They apparently are having heart- The deal stood still until after New cuss final proposals… by all partners.” Blizzard. burn over [the Northeast Partnership’s] and Year’s 2002, when N.C. group members The request alarmed Radin, who was “I am deeply distressed that the AG ECDC’s letters. I think they realize our in- began to speculate on CropTech’s plans. A adamant about closing the deal by the agreed attorney has thrown a bomb at the last formation will look very similar.” company official left a voicemail at the date. He told Mike Scott that all problems minute that effectively preempts the agree- Radin’s recourse was to seek “heart- Northeast Partnership, asking for a meet- needed to be resolved in time to sign the ment of the parties arrived at… with the burn” relief in a seven-page letter to Bliz- ing to work more on the deal. agreement on Nov. 30. benefit of [Doug Johnston’s] counsel. Again, zard. He outlined CropTech’s objections, “As I have discussed with [Blizzard]… I beg your intervention to enable the real- the most significant of which was the re- we would appreciate your assistance in ization of our shared goal,” he wrote. quirement by the Tobacco Trust to raise $10 Continued as “CropTech,” Page 5 arranging that planned closing on the after- Radin’s objections, while not specifi- noon of November 30th,” Radin wrote to cally clear, had to do with the issuance of Mike Scott. “In view of the central role the $3 million from the Tobacco Trust, which A View of Basnight and the Northeast Senator Basnight has played in lining up was to be paid in three $1 million incre- the various pieces of the incentive package ments. An earlier version of the agreement, By PAUL CHESSER In a March, 2003 Carolina Journal article and making CropTech’s relocation to North which Johnston said in an e-mail “looks Associate Editor about a Raleigh businessman’s efforts to Carolina feasible, a signing and closing at good,” called for the distribution of the RALEIGH build an ethanol plant in the Northeast, an his offices at that time in Raleigh would be money equally upon: ragmentation of leadership and re- intermediary identified Basnight, Owens, most appropriate…” 1. Execution of the letters of commit- sponsibilities has diminished the ef- and Basnight’s assistant Rolf Blizzard as the Radin added that timing was critical in ment between the parties, F fectiveness of North Carolina’s pub- powers over the Northeast Partnership. order to support CropTech’s planned insti- 2. A groundbreaking ceremony for the licly funded economic development agen- “Everyone knows they are the head of tutional round of financing. construction of the bioprocessing facility, cies, says a private developer who once had the Northeast Partners,” said former Wake “I believe that the key pieces of the 3. Receipt of a certificate of occupation dealings in the northeast area of the state. Forest Mayor Jim Perry in the story, who North Carolina package are now substan- from the local authority for the facility. He said the state Department of Com- was a go-between for businessman Bill tially resolved and that the relevant Com- On the later advice of Johnston, the merce was once one of the best, aggressive, Horton and Northeast interests. mitment Letters under the [Memorandum Tobacco Trust placed more stringent condi- and well-organized in the country. Perry also said Basnight’s name carries of Understanding] can be signed by No- tions upon CropTech for the money. In an e- The establishment of regional develop- great significance in financial circles. He vember 30, in order to complete the transac- mail to his other ECDC colleagues, lawyer ment agencies in the mid-1990s changed said when he meets with bank officials, tion,” Radin wrote to Mike Scott. Peter Rascoe confirmed the late changes. that, he said. “they know that I am there to speak for But the day before, Nov. 29, the signing “The Tobacco Trust Fund apparently “You no longer know who you are talk- Marc Basnight.” was delayed because Watson told Radin was not as willing to write a check for $3 ing to. Who is in charge?” he said. “You Northeast developers, the private de- that the ECDC and the Northeast Partner- mil(lion) as quickly as originally indicated,” need a strong leader. That was the Depart- veloper said, were often told to invite new ship needed until Dec. 5 “to finalize their Rascoe wrote. “They voted to give the ment of Commerce.” businesses in the area to public events hon- commitments.” Still, Radin was assured that money — but subject to several contingen- The developer said North Carolina’s oring Basnight, where they should be en- the “pieces will fall into place by that time.” cies.” Northeast Partnership, if asked for help, all couraged to “tell the Senator how apprecia- But Radin’s patience was tested again The new contingencies may have arisen too often took over a project and decided tive they were of his efforts.” the following day, when at the last minute from ECDC’s own letter of intent, that re- where in its 16-county region a business “Anything that’s ever happened out deputies of the Attorney General’s Office, quired CropTech to raise $8 million by June would locate. there,” the developer said, “if it was good, who reviewed earlier versions of the agree- 1, or its building lease with ECDC could be The developer said “that region is con- they will say it was because of Marc ments, recommended more special provi- terminated. That stipulation caused law- trolled by [Senate President Pro Tem Marc] Basnight.” sions. On Nov. 30 when the Tobacco Trust yers in the Attorney General’s Office to Basnight and by R.V. Owens (III).” Owens Anyone not in line with that plan had to Commission voted to grant the $3 million, consider advising the Tobacco Trust to re- is Basnight’s nephew, chief fund-raiser, and contend with “the redneck mafia,” the de- the board of directors added a stipulation vise conditions for its $3 million. a powerful influence in the Northeast. veloper said. that to receive the money, CropTech must CropTech was depending on the to- “Everybody has to stay in line and stay “It is that serious,” he said. “meet the standards utilized by the N.C. bacco money in order to raise the private in step,” the developer said, “or there are Basnight’s office did not respond to Department of Commerce for grants of simi- funding, but the lawyers worried that the negative ramifications held over their questions submitted by electronic mail or to lar magnitude and purpose…” Those spe- money could be lost if ECDC pulled the heads.” phone messages. CJ C A R O L I N A February 2004 JOURNAL North Carolina 5 CropTech Spurns N.C. In Favor of Speedy, Efficient South Carolina

Continued from Page 4 perience in underwriting economic devel- Pearson emphasized that the decision CropTech didn’t have to find money to opment investments and is available to pro- to grant the $3 million in incentives be- build a building. “(CropTech’s) other efforts must have vide assistance to you where we can,” Fain longed solely to the Tobacco Trust Com- Also included in the package was “mil- fallen through,” Watson wrote to Blizzard. wrote to Carter. mission. He also said that “a reasonable lions of dollars of incentives” from public “I think someone should call [CropTech] to A former CropTech official said he level of due diligence (was) completed.” and private sources, including $1.5 million hold firm on our offer, but tell them how thought Fain’s letter was an attempt to in- In a letter to CropTech April 10, Watson in grants, according to The Post and Courier bad we would love to have them here. sert the Commerce Department into the confirmed the Tobacco Trust’s reluctance of Charleston, S.C. “Can I, can I, please, please, let me call!” negotiations. A week after Fain wrote his to sign the agreement because of Fain’s On June 2 Cathy Scott informed ECDC Watson begged Blizzard. letter, Carter accepted his offer, and the concern about granting $3 million to an officials about a call among her, Blizzard By then CropTech, a former executive Commerce Department’s influence over the high-risk, speculative company. and Brooks of CropTech, which explained said, was weary of dealing with the North- Tobacco Trust increased. On April 16 the Tobacco Trust Com- why the company spurned North Carolina. east members of the negotiating team. Mike mission met and approved the grant for “It was what we all pretty much knew Scott informed Blizzard and Watson that A long, pregnant pause in talks CropTech, with the possibility of using the in the back of our minds — the delay of the the Biotechnology Center was working with Northeast Partnership as a “fiscal agent” to [agreement],” Scott wrote. “[Brooks] said CropTech to show them other areas in the The move began a long delay, as Bliz- administer the funds to the company. that what he felt should have taken days state, including Wilson County. zard and the Northeast Partnership waited However, the final agreement — not ended up taking months. “I hope [CropTech] understand(s) that for Fain to rubberstamp the Tobacco Trust received by CropTech until May 8 — again “He indicated South Carolina was able puts the whole package that we developed offer to CropTech. Upchurch informed proved distasteful to the company. Included to act quickly and coordinate a comparable in jeopardy,” Blizzard wrote to Scott. “They ECDC that he was waiting for a letter from in the deal was a demand for the company deal… (and) provided a developer that was need to understand that very clearly. We Fain “offering suggestions about continued to provide a five-year, $3 million perfor- very easy to work with. can count real well.” due diligence for the state.” Others in the mance bond (see story, page 3), which would “[Blizzard] offered to [Brooks] the main The N.C. agencies sent a letter to Sandy Northeast group stewed. be forfeited to the Northeast Partnership if reason (person) for the hold up in NC’s White, CropTech’s board chairman, on Jan. “I am running out of things to tell CropTech failed to meet any conditions in package, which I feel is above my pay grade 17 to restate their interest in the company, [CropTech],” Watson wrote to Blizzard on the agreement. Also objectionable to to report here.” but did not change their offer. Feb. 21. “Any ideas, besides the truth?” CropTech was that it would need to raise $5 According to a former CropTech offi- White responded five days later with a “I have absolutely no problem with the million in private funds by Jan. 1, 2003, to cial, after dealing with so many agencies in pared-down modifica- truth,” Blizzard re- receive the third $1 million installment. North Carolina’s fragmented economic de- tion to the original pro- sponded. The performance bond appeared to be velopment, “going to South Carolina was posal, which would elimi- “I am running out of “You always tell the another opportunity for Watson to fill like a breath of fresh air.” nate ECDC and the truth,” Watson replied. “I Northeast Partnership coffers while mak- Construction on the building began in Northeast Partnership things to tell [Crop am the salesman and I ing only a minimal investment ($50,000 over South Carolina, but by March 2003 from any financial inter- Tech]. Any ideas, be- have to soft pedal the two years, if incentives were reached). If CropTech filed for bankruptcy protection est in the deal. Only the truth. I plan to tell CropTech missed any milestones in the and ended operations. Biotechnology Center’s sides the truth?” — [CropTech] for a draft overall agreement, a bond insurer would “It wasn’t a fundamentally flawed con- and Governor’s Competi- RickWatson, president approval we feel good need to cough up the insurance money to cept,” Bob Faith, South Carolina’s commerce tive Fund grants would of N.E. Partnership about the middle of next the partnership, which was the “fiscal agent” secretary, said to The Post and Courier last remain in the mix, and week. Is that OK?” for the deal. No documents provided to CJ year. “[CropTech] ran out of capital and it’s the Tobacco Trust would “I hear ya, although I showed that bond funds would revert to a tough venture capital market out there.” ante up only $1 million for CropTech. In am not satisfied with that,” Blizzard an- any other funding agencies. For one North Carolina lawmaker, the exchange, the company would build its own swered. “Where the crap is the Fain letter?” CropTech episode illustrated the state’s building in Edenton —- with a land gift Watson then told CropTech that Fain’s CropTech goes to South Carolina flawed economic development policy. from the town —- without other financial letter “was the hold up,” and that he and “The bottom line is these incentives, assistance from ECDC. Blizzard would “push him in person” on an On May 30, 2002, CropTech announced where everybody says we have to do it, well Blizzard, the Northeast Partnership, unrelated trip the following Monday. it would relocate to Charleston, S.C. that isn’t necessarily so,” said state Rep. ECDC, the Tobacco Trust, and CropTech Fain finally approved the due diligence South Carolina gave CropTech a site John Rhodes, R-Mecklenburg. officials planned to meet Jan. 30 in Raleigh. efforts and funding milestones, but Watson where public money would provide infra- “I believe we should be the state that If the new financial terms White proposed had to stall CropTech into mid-March, as he structure to a privately constructed build- draws the line in the sand. It’s selling our were agreed upon, state and local taxpayers waited for the Attorney General’s office to ing, which the company would lease from a state short. Let everyone else continue to would pay $3.4 million less than what was produce a final “memorandum of under- developer. That arrangement meant sell their state out.” CJ offered by the North Carolina group in the standing” between all the parties. original deal. J. D. Brooks of CropTech pressed for an update March 8, and Watson turned to Incentives kept in deal Blizzard for help. The Northeast’s Cost of Making Deals “Rolf, are you mad at me? If you and Despite CropTech’s willingness to take R.V. do not call, I get worried,” Watson By PAUL CHESSER Watson, prior to CropTech’s South fewer incentives, the North Carolina group wrote. “Do you have any answers?” Associate Editor Carolina announcement, asked the Tobacco kept most of the funding intact. White’s “R.V.” is likely R.V. Owens III, RALEIGH Trust Fund if it would pay some of the scaled-back proposal was ignored, as the Basnight’s nephew and chief fund-raiser, n early May 2002 Ernie Pearson, the partnership’s expenses of $17,500 related to Northeast Partnership kept its $50,000 in and a powerful influence in the Northeast. N.C. Northeast Partnership lawyer, in- the failed deal. The commission voted June equipment financing in the deal. Also, the By March 22, CropTech was still wait- Iformed Rick Watson about legal ex- 11 to pay the partnership $8,750. Tobacco Trust Fund incentives offer re- ing to hear about a firm proposal. penses from the CropTech deal. The part- But the Northeast Partnership on July mained at $3 million, with slightly adjusted By the end of the month the patience of nership, a public agency established by the 25 invoiced the Tobacco Trust Commission milestones. ECDC withdrew its offer to con- the Northeast group wore thin. A letter state that should have the free services of for $28,597.75. Included as supporting docu- struct a building for CropTech. from Chowan County Manager Cliff the attorney general at its disposal, paid mentation for the bill was the unitemized On Feb. 7 Dept. of Commerce Secretary Copeland to the governor further illustrated $8,129.39 as of May 2, at which time Pearson invoice of $21,000 from Pearson’s law firm Jim Fain, who had not been involved in the the breach between Basnight’s Northeast billed the partnership another $1,785 “to for “anticipated future fees” related to CropTech discussions, wrote to Tobacco cronies and the Commerce Department. assist in overcoming concerns raised by CropTech. Little, if any, of those future Trust Chairman Billy Carter. “It has been a long frustrating process, Commerce Secretary Jim Fain and to final- services were needed, but Watson billed “CropTech has approached several but we feel that now we have put a package ize the [agreement].” the Tobacco Trust for them anyway. agencies or economic development entities together that will entice CropTech to relo- Pearson billed the partnership at $250 On June 12 William Upchurch, execu- seeking incentives and financial commit- cate to this state,” Copeland wrote to Easley per hour, and his partner Robert Jessup tive director of the Tobacco Trust, informed ments for their project,” Fain wrote. “As on March 27. “At this point, your interven- billed at $200 per hour. Watson that because Gov. Mike Easley was you explore the prospect of granting funds tion is needed because we feel that state Watson also requested that Pearson bill taking Tobacco Trust money to balance the for this project, I would urge you not to agencies are still reluctant to proceed with- the Northeast Partnership for future ser- budget, he was doubtful about future op- commit resources to the venture until you out your wholehearted endorsement.” vices related to CropTech, which the law- portunities to fund business projects. have completed a thorough due diligence An April 10 advisory letter from the yer acknowledged in a letter to Watson. Watson appealed to Sen. Marc Basnight’s process and satisfied yourselves… that the Northeast Partnership’s legal counsel, Ernie “You have also asked me to provide to assistant, Rolf Blizzard. venture is viable.” Pearson, to Watson further illustrated the you a flat fee invoice which would liberally “Rolf, this is about the only fund left The Northeast Partnership and Tobacco tug-of-war between Commerce and the cover all fees paid to date, plus anticipated (where) we can get money to close deals,” Trust had already looked extensively into partnership over influence of the Tobacco future fees,” Pearson wrote. “Attached is Watson wrote, “and they really have a lot of CropTech’s history, patents, and finances, Trust. Pearson had reviewed concerns raised that invoice.” confidence in you and our group. Can you which confirmed that the Commerce De- by Fain and his financial advisor, Stewart The unitemized invoice for “anticipated help?” partment had almost no involvement to Dickinson, in early February, which mostly future fees” was $21,000. “I can’t do anything about what the that point in negotiations. Fain also recom- questioned CropTech’s viability. Likewise Mike and Cathy Scott, con- governor does,” Blizzard answered. “Hav- mended that the Tobacco Trust commit “Many of the points they raised have sultants for Watson, billed the Northeast ing strong successes like CropTech would funds only if CropTech raised “substantial” been discussed fully and in my opinion Partnership $7,597.75 for work related to help to ameliorate things. Now we don’t private capital, another requirement that fully accommodated,” Pearson wrote. “The the CropTech deal. The Scotts charged $70 have that success and that leverage. Don’t was already in the deal. conclusion that this is an early stage com- per hour for 101 and a half-hours’ work, know that we have any further options at “The Department of Commerce has ex- pany is no surprise.” plus almost $500 for mileage. this point.” CJ Feburary 2004 C A R O L I N A 6 Education JOURNAL

NC News In Brief Room For Improvement, But Not Intuition Leaving some students behind Federal reform guidelines require that schools’ research be scientifically based

Recent reports in The Charlotte Observer indicate that at least some By KAREN PALASEK In 2003, 53 per- of the state’s public schoolchildren Assistant Editor cent of North Caro- might have been left behind. RALEIGH lina public schools The most recent analysis of state ince its reauthorization, the El- missed at least one end-of grade and end-of-course test ementary and Secondary Schools of their adequate scores indicate that the highest- Act, or No Child Left Behind law, yearly achievement achieving students are making “sub- S has required that school improvement pro- targets. A second stantially less year-to-year progress, grams be grounded in “scientifically based year of missed tar- on average, than low-scoring stu- research.” According to Lynn Olson of Edu- gets would put chil- dents” according to Department of cation Week, “Those words, or an approxi- dren in the transfer- Public Instruction Accountability mation, appear more than 100 times in the eligible category. Director Lou Fabrizio. reauthorization…” That means the clock Uneven progress by students So, the U.S. Department of Education is now ticking to- on state exams showed small per- and the Institute of Education Sciences is- ward mandatory centages of Level IV, or advanced sued a document, Identifying and Implement- change. Education students, achieving a full year’s ing Educational Practices Supported By Rigor- reforms and other worth of progress last year. In ous Evidence: A User Friendly Guide, to clarify interventions, such middle-school grades, only 6 per- what “scientifically supported research” as supplemental tu- cent of Level IV students advanced means in the education field. toring, are likely to by a full year’s equivalent of aca- The idea behind the guide is to help be part of the over- demic growth. schools determine which educational re- all accountability As a result, state education offi- forms have the research to back up effec- and school improve- cials will take a closer look at the tiveness claims. ment process. state’s testing system. The Institute of Education Sciences has But for many In addition to the lackluster also established the What Works Clearing- parents, transfer is not desirable, and may education program, or to other variables. progress by the top group of stu- house, a central source of evidence for what not even be possible unless enough seats Pilot programs that are well-designed dents, officials are being questioned actually works in education. can be had in non-failing schools. In the should give a reliable indication of their about whether the cutoff scores for 2003 Phi Delta Kappa/Gallup poll on pub- effectiveness, but they need not be perfect, a Level III–grade level–performance Effective reform lic attitudes toward public education, par- officials say. are high enough. ents expressed a strong desire to improve Programs with some flaws, such as less A substantial increase in the Effectiveness is increasingly the watch- the schools their children currently attend, well-matched participants, higher-than- grade-level pass rates across the word in education circles. The N.C. Depart- rather than to send them into an unknown desirable attrition rates, or small sample state is fueling inquiries. ment of Public Instruction reported in Janu- situation at a different school. size may still be acceptable, but come un- According to State Board of ary that for 2003, top students in the state’s The No Child Left Behind achievement der the “possibly effective” banner. This Education Chairman Howard Lee, public schools made far less progress than timetable directs schools to reach 100 per- means that schools and districts should the state will not be raising the cut- did their lower-achieving classmates. cent proficiency with every child by 2013- approach them with some reservation, and off scores for at least a few years. According to the Raleigh News & Ob- 14. In this race for quality, the luxury of trial- the Guide warns against overstating ex- Both Fabrizio and Charlotte Board server, State Board of Education Chairman and-error in finding programs that build pected success. of Education member John Tate ex- Howard Lee focused on the fact that over- achievement no longer exists. Using an Finally, scientifically based research pressed concerns about the stan- all pass rates on the state’s achievement analogy to pharmaceutical testing, the should report all of the program’s results, dards facing North Carolina stu- tests were up. “What I’m hearing is that Guide is intended to help determine which not just positive ones. In addition, research- dents. we’re all fairly comfortable with where we education “interventions” can pass both the ers need to publish the results of statistical are and we ought to let sleeping dogs lie well-designed and effectiveness tests. tests. Adjusting the passage rate for now,” Lee said. Statistical significance and the standard William Sanders of the SAS Institute, Robust design errors that arise in measuring outcomes It seems that an alternative stan- and co-director of the SAS in School Research give a good idea of whether the program is dard for “passing” a school under Project, noted at a John Locke Foundation The U.S. Department of Education’s effective. If so, it should be possible to rep- the federal No Child Left Behind event that students who are just under the User Friendly Guide provides a checklist for licate those results in more than one school law would have changed the 43 per- adequate yearly progress evaluating the research setting. cent pass rate for schools to 57 per- bar, are “worth more” to on education practices. cent in North Carolina. a school’s success under …students who are With reliable research to What we need According to the Observer, the No Child Left Behind just under the ad- back them up, school of- N.C. Department of Public Instruc- than the children who are ficials should be able to As Linda Darling-Hammond points tion might be able to make use of the already making adequate equate yearly progress choose program designs out in “Standards and Assessments: Where statistical confidence interval, into progress. bar are “worth more” that have a high likeli- We Are and What We Need,” at least 47 which results fall, to adjust its school They can make or hood of success. states have created standards for student passage rate. break the school’s ad- to a school’s success The Guide identifies learning, but “not all of these initiatives Under the alternative standard, equate yearly progress under NCLB… a “gold card” standard have accomplished the goals that early pro- about 220 more schools would have standing, and cause a for educational program ponents of standards-based reforms envi- met their adequate yearly progress school either to pass or to be labeled “needs design and research, starting with a ran- sioned.” targets. State education officials are improvement,” he said. domized-controlled trial to evaluate pro- The heaviest emphasis in accountabil- looking at the alternative as a way, The need to get as many of these “close” gram effectiveness. ity has been test-based, partly motivated by according to State Superintendent children as possible up to the adequate According to the Guide, trial programs No Child Left Behind, and partly, no doubt, Mike Ward, “to refine” the system, progress level directs schools’ attention and should start with well-matched candidates. motivated by states’ desires to avoid a low not to “ beat it.” resources away from high-achieving and Student demographics, the type of tests or last-place ranking when it comes to com- very low-achieving (those with no chance they will take, the time period for the trial parisons using nationally standardized Reassigning for diversity of making adequate progress) students, program, and methods of collecting data all tests. Sanders said. Sanders calls this the “shed can affect measured outcomes, and must be According to Darling-Hammond, how- The News & Observer of Raleigh effect,” and predicts that both groups will as uniform as possible. ever, schools now using “test-based ac- reports that Wake County schools lose out under No Child Left Behind man- Children participating in the research countability [that] emphasizes sanctions for will continue to assign students to dates. study should be assigned the control or the students and teachers have often produced schools to achieve socioeconomic The N&O report confirms that, for 2003, program group via random selection. This greater failure, rather than greater success, diversity. The 2004-05 plan might top students in the state have, indeed, lost helps eliminate unintentional bias in the for their most educationally vulnerable stu- reassign 10,000 students to differ- out. results. dents.” ent schools in the fall, said Ramsey Researchers have to be particularly Can North Carolina afford the type of Beavers, Wake County senior di- Analysis becoming more important wary of factors such as parent or student well-researched, well-documented reforms rector for growth management. motivation, the Guide says. These factors that the No Child Left Behind law requires? Meanwhile in Charlotte, The This type of critical analysis will be- can create significant differences among In many states, school officials complain Charlotte Observer reports that choice come increasingly important as North Caro- otherwise similar students. that NCLB imposes unfunded mandates in is a “misnomer” for school place- lina moves further into the NCLB process. A control, or comparison group, is key. terms of testing, ,transfers, and supplemen- ment there, and CMS is dropping According to state Accountability Director The results of pre-and-post tests alone don’t tal services. the term. Lou Fabrizio, some students “may not be generate adequate scientific research, offi- The answer is “yes,” according to Sen. Parents complained that they getting what they need” with current pro- cials say. Elizabeth Dole’s office, which reports that often did not receive their choice in grams and testing. So schools will be look- Without a comparison group, it’s im- North Carolina has more than $54 million the selection process. CJ ing for reforms that can deliver achievement possible to tell whether differences in test in federal funding, earmarked for No Child benefits to all students. scores and other measures are related to the Left Behind, that is uncommitted. CJ February 2004 C A R O L I N A JOURNAL Education 7

Agencies extend the Big Brother-Big Sister concept North Carolina Mentoring Program Designed Believable Scores To Connect Kids With Community Volunteers From Better Tests

By KAREN PALASEK cording to the National Mentoring Partnership, someone chuckle at all the barbecue restaurants boasting Assistant Editor can. Some of the “tools” in the mentor training kit include: the BEST barbecue in the county. If BEST truly RALEIGH • Personal Reflection page — looking for memories of Imeans BEST, how are all serving the BEST? For ave you ever had a mentor? Most of us associate significant adults; analyzing why they were interested in credibility you must know the criteria in judging, or this idea with something we experienced as chil- you; looking for qualities you want to imitate as a mentor. if it is simply someone’s opinion. It seems educrats dren. Take the Karate • One Role, Many “Hats” (professional, bureaucratic educators) have the same H problem with “proficiency.” Proficiency means Kid, for example, whose mentor page — imagination exercises had him painting fences “just where someone pretends to “what a student should know and be able to perform so” to ingrain an essential ka- take on different roles; imagine at each grade level.” rate movement into his inner the “hats” he will wear as a Nowadays, proficiency is being. Of course, the Kid mentor. relative. Parents and citizens thought he was just painting Since the two people about remain completely confused boring fences. Not so. In the to be paired in this planned re- regarding the reliability of critical “ah-ha” moment, he lationship are basically strang- how well public school stu- faces his opponent in combat, ers, there is an abundance of dents achieve. A school can and comprehension descends. “getting to know you” mate- be called a “school of excel- Or the other martial arts rial. Workbook pages direct the lence” while also “needing guy, “Grasshopper,” who be- exchange of specific personal improvement.” The Depart- came a Kung Fu master by learn- information, ask questions ment of Public Instruction ing to catch flies with chop- about feelings, mission state- reports 81 percent of fourth- Lindalyn sticks, and forever afterward ex- ments, agreements, use “rela- graders reading proficiently, Kakadelis perienced his teacher’s wisdom tionship checkup” guidelines, while the National Assess- in audiovisual playbacks dur- and the like. ment of Educational Progress ing times of crisis. Sample questions for the reports 33 percent. I experienced nothing quite child/mentee include an “If I A recent New York Times article compared two so mystical, but my first men- Could Be Anything” page, middle schools only a few miles apart. The North tor was my third-grade teacher, which asks the child what he Carolina school had 95 percent of students passing Mrs. Kay Sillaway. I spent third would want to be if he could both the reading and math tests, while the South grade, or all the important parts be a cartoon character, insect, Carolina school had more than 50 percent failing the of it, singing and marching to musical instrument, famous math, and 75 percent failing the reading test. original tunes by Sillaway, painting, celebrity, famous In the article, a widely respected national educa- along with the rest of my class. landmark, automobile, shoe, tion organization reported North Carolina setting For any 8-year-old with ants in bird, or animal. The worksheet some of the lowest student proficiency in the coun- his pants and a “can belto” vo- describes this exercise as one try. The spin from DPI always produces feelings of cal style, this was the class to that will, for the mentor, “pro- confidence, but when proficiency is scrutinized, the have. I had no idea I would re- voke some thoughts about feelings quickly dissipate. gard her as my most important what your mentee could be.” The State Board of Education spends incredible teacher, even later, when I be- Training, and screening amounts of time discussing testing issues. The tests came a music major and a Kay Weber Sillaway in 1998 through the appropriate agen- usually stay the same with the same proficiency teacher myself. cies, are mandatory compo- scores, but sometimes changes are made. Beginning When I discovered after 41 years that Sillaway had a nents of this type of community service. this year, the state will use a 95 percent confidence past of which I was completely unaware as an 8-year-old, interval in reporting percent proficient, meaning 65 I also had an “ah-ha“ moment. Sillaway spent her early Is planning better? percent is now 70 percent. Using this formula, 57 years as Kay Weber, big band vocalist and recording artist. percent of schools in the state would have made She was discovered at age 25 by Glenn Miller, and she even- People whom I would identify, on reflection, as men- average yearly progress, instead of the 47 percent tually joined the Dorsey Brothers and the Bob Crosby or- tors, never set out to be community volunteers in my life. reported in 2003. When all else fails — change the chestras. Had they been required to follow a state-sponsored train- formula! ing and screening program, the experiences might not have One solution to the testing-measurement mess Mentor “programs” happened. Institutionally designed “relationships,” such is to let the federal government develop one test, and as computer dates, have to be fleshed out tremendously if one definition of proficiency. God forbid! The only Gov. Mike Easley proclaimed January “National the effects are expected to last a lifetime. Perhaps that’s situation worse than now is getting the federal gov- Mentoring Month,” and he is encouraging support of state- not the expectation. They may be just “feel good” oppor- ernment more involved. sponsored mentor screening, train- tunities for all involved. The only good answer is to use an achievement ing, and assignment programs. Sillaway’s biggest encourage- test produced by a national testing company be- Through the North Carolina Com- ment to me in school was directed holden neither to Washington nor the state. This is mission on Volunteerism & Commu- at my writing efforts. In third grade, what we did before the early 1990s. Competition nity Service and the North Carolina all my “original” stories closely re- between testing companies will keep the quality Mentoring Partnership, the gov- sembled Nancy Drew mysteries in higher and the cost lower. Independent education ernor’s office recruits prospective content — and length. Her comment organizations can rate the achievement tests for mentors. Public service announce- on one writing assignment con- content and rigor. The state board officials could ments on television and radio fre- tained the request that “when you then determine what test they thought best, and set quently remind listeners of the ben- write your first book, please send me the proficiency scores. Parents and teachers would efits — volunteer opportunities for an autographed copy.” I took this as get a diagnostic assessment and also compare their them — that will also benefit chil- a compliment, though it may have students’ achievement with students nationally. dren. Kay Weber in the Dorsey Brothers Band. been a veiled complaint about length The state’s exit exam for high school should be The “Change the Outcome — — or originality. Nevertheless, I based on students’ plans after graduation. An SAT, Mentor,” and other campaigns have been sponsored in part dedicated my economics dissertation to her in 1989, not ACT, community college placement, or military exam by large corporations such as Pepsi and Duke Energy. Ac- knowing whether she was still alive. would fit the desires and needs of students. The state cording to the North Carolina Commission on It turns out she was, and when I spoke to her at age 94 would then determine minimum standards for a Volunteerism & Community Service website, mentoring — after 41 years — in January 2004, I was unsure whether diploma. is now heralded as a “prevention strategy,” and promoted she would have any idea who I was. She did. She had re- These suggestions are simple, based on com- in “all grants and funding involving youth.” Besides state peated one of my stories numerous times over the years, mon sense. However, the authority for changes in funding, the Volunteerism Commission has encouraged and told me she had been thinking of me “just that morn- DPI’s testing policies rest within a politically ap- business and faith-based partnerships for the training and ing.” We’ll keep in touch hereafter. pointed board or a majority of legislators. Either support of prospective mentor volunteers. Sillaway represents the best kind of mentor that a kid way, it’s politics. The National Mentoring Partnership describes a men- can have. There’s lots of enthusiasm, no planning. It’s what Quality barbecue is only important for folks tor as follows: “A mentor is an adult who, along with par- we in economics call a “spontaneous order process.” who like barbecue; the quality of student achieve- ents, provides young people with support, counsel, friend- While the current movement to promote mentorlike ment affects the future of our state. With the very ship, reinforcement, and constructive example.” Among relationships between caring adults and kids who could future of North Carolina’s students in the balance, the characteristics of mentors they list “good listeners,” use the attention is laudable, I wonder how many will be all North Carolinians need to care. CJ “people who care,” and “people who want to bring out turned off by the very institutional nature of it all. Will we strengths that are already there.” now need degrees or certificates in mentoring? This sounds right. But can someone really learn to do I hope not. Institutionally engineered friendships are Kakadelis is director of the NC Education Alliance. these things online, using the Learn to Mentor Toolkit? Ac- at best two-dimensional substitutes for the real thing. CJ February 2004 C A R O L I N A 8 Education JOURNAL

Around the Nation Educators concerned about fairness

No Child Left Behind Special Education Struggles With Accountability

States may be undercounting By KAREN PALASEK the number of failing schools un- Assistant Editor Percent of Students “Proficient” or Above on NC Grade-Level Tests der the federal No Child Left Be- RALEIGH hind law, The Washington Times re- n “Count Me In: Special Education in 100% 95% ports. Fear of consequences may 91% an Era of Standards,” Education Week’s 90% 87% 88% be fueling the numbers, U.S. Edu- “Quality Counts 2004” report consid- I 80% 74% cation Secretary Rod Paige says. ers the problems of fairly assessing special 71% 69% “There’s an expectation that education students under the federal No 70% there will be those that push the Child Left Behind law. 60% 50% envelope and try to game the sys- By 2013-14, the law directs that all stu- 50% 48% 46% tem,” Paige said. dents, special education included, achieve 40% More than half of states are academic proficiency. The issues facing spe- 30% 26% reporting fewer low-performing 21% cial education are twofold. First, schools 20% schools for 2003 than for the pre- will have to find a way to test at least 95 10% vious year, an unexpected trend, percent of special education students to ful- given the tighter achievement fill the requirements of the law. Bringing 100 0% 4th Gr. Reading 4th Gr. Math 8th Gr. Reading 8th Gr. Math 10th Gr. Reading 10th Gr. Math standards. percent of those students to academic pro- Source: Education Week At least five states are en- ficiency is the second challenge. General Education StudentsStudents with Disabilities“Quality Counts 2004” gaged in legal appeals over their As data from 2002-03 state-level tests low-performing numbers. The show, special education students are much appeals are part of what is pre- farther behind in achievement than are their venting the Education Depart- nondisabled counterparts. North Carolina pending on their Individualized Educa- “…each state’s [proficiency] rates were de- ment from finalizing its figures for is no exception, although some districts in tional Plan. termined by comparing the number of spe- the 2002-03 school year. Despite the state are making progress through ag- Whether on the NAEP or on North cial education students who scored at or some resistance, Paige said, “the gressive efforts to improve student skills, Carolina end-of-grade and end-of-course above the proficient level on state tests with culture is changing” in the U.S. and to move them out of special education tests, students classified as learning-dis- the total number of special education stu- education environment. entirely. abled have not been able to match the aca- dents enrolled in the tested grade. The same In Durham’s schools, a concerted effort demic scores of their nondisabled peers, procedure was used to calculate proficiency Zero tolerance to identify and correct reading difficulties however. rates for general education students.” in the early grades has reversed the trend The average composite level of profi- The significance of using the entire gen- Students who violate school in special ed. Instead of enrolling more kids ciency for fourth-, eighth- and 10th- grade eral or special ed population to calculate policies may face arrest rather every year, Durham’s literacy program has special education students in North Caro- percentages is clear. According to the report, than detention, even if the viola- reduced special education enrollment by lina was less than 44 percent at the end of this gives “a more complete picture of how tions are not illegal per se. 100 students each school year. the 2002-03 school year. the total student population performed, as According to the New York This fact has many educators worried opposed to how well a group of tested stu- Times, dress code violations, dis- Special education stats about the fairness of requiring virtually all dents performed.” The facts are sobering. ruptive behavior or language, and special ed students to be tested in the first In 30 of 39 states that supplied complete other noncriminal violations have According to Education Week, the range place, and to holding special education stu- proficiency data for the EdWeek study, the become the province of the juve- of possible disabilities is so wide that spe- dents to the same proficiency standards as gap between special and general education nile justice system rather than the cial education students are more different students in general education. students was 30 percentage points or more schools. than alike. Children with Flexibility can reduce in fourth-grade reading alone. Lucas County, Ohio, handled specific learning disabili- the potential for unfair In six of the 39 states, the reading pro- 1,727 school-related court cases ties make up the largest …students classified comparison, however. ficiency gap was more than 50 percentage last year, an increase of 490 over single category of stu- as learning disabled North Carolina is one of points. the previous year. The Lucas dents covered by the In- 26 states that count stu- Only five states reported fourth-grade County court intake officer, Fred dividuals with Disabili- have not been able to dents who take tests un- reading proficiency gaps of less than 30 per- Whitman, said that only two per- ties Education Act. Al- match the academic der nonstandard condi- centage points. cent of the cases involved serious most half of all special ed scores of their non-dis- tions in their No Child The story doesn’t improve in high or criminal offenses. “The vast ma- enrollments, or 48 per- Left Behind participation school. High school proficiency levels for jority involved unruly students,” cent, are due to SLD stu- abled peers… rates. In some cases, as general vs. special education revealed pro- Whitman said. dents. Speech and lan- with test modifications, ficiency gaps wider than 30 percentage Examples include two guage impairment affect another 19 percent, flexibility could alter what is being mea- points in 30 out of 36 states. middle-school boys who were ar- mental retardation 10 percent, and emo- sured on the test. rested in an Ohio school for turn- tional disturbance 8 percent of the special Most states, North Carolina included, Expectations ing out the lights in a girls‘ bath- ed population. count alternative assessments in their par- room and an 11-year-old girl for In addition to these, about 2 percent of ticipation measures. Only 18 states allow According to “Quality Counts,” only 4 hiding in the school to avoid class. kids are diagnosed with multiple disabili- any out-of-level testing (testing a grade percent of teachers think all of their special Other states report a similar trend, ties, 2 percent are autistic, and hearing im- level below the enrolled grade). North ed students can score in the proficient level and the offenses are no more pairment, orthopedic impairment, and de- Carolina counts its out-of-level testing in on state tests; 13 percent expect that none “criminal.” velopmental delay account for another 1 state participation rates. of those students will hit the proficient mark James Ray, administrative percent each. The final 7 percent fall into in 12 years. judge for Lucas County, said, the “other” catchall category. In all, nearly Proficiency If expectations drive outcomes, there is “We’re demonizing children.” But 6.6 million students are enrolled in special trouble ahead for No Child Left Behind. some parents are glad to see the education programs across the nation. To avoid the problem of comparing And as a matter of practice, accountability justice system take over where According to the National Center for apples and oranges, the “Put to the Test” standards in special education remain both they refuse to go. The mother of a Education Statistics, 14.2 percent of the 1.4 segment of EdWeek’s report states that difficult and unsettled issues. CJ high school girl who refused to million public schoolchildren in North cover her midriff-baring top with Carolina’s schools during 2002-03 had some a T-shirt “said she had not ob- type of learning disability. Another 4 per- jected to the decision to arrest her cent were of limited English proficiency. Teacher Expectations for State-Level Proficiency: General and Special E daughter,” according to the report. These percentages indicate that in 2002-03, North Carolina public schools served about 60% Source: EdWeek National Survey of New Jersey vs. home schools 255,000 special ed students under IDEA. 51% Public School 50% Teachers, 2003 Academic testing and medical Inclusion 40% examination requirements may be 36% required of home schools in New Before No Child Left Behind, many 30% 29% Jersey. A bill was introduced by special ed kids would have been excluded 26%

Loretta Weinberg in reaction to the from standardized testing, or held to sepa- 20% 15% Jackson family case that occurred rate or lower standards. Since 1998, when 13% 11% in Collingswood. Despite at least the National Assessment of Educational 10% 8% 4% 38 “incompetent” visits by child Progress began to allow accommodations 2% welfare officials over four years, for students with disabilities, national test- 0% the childrens’ physical condition ing has become more inclusive. And on All Proficient Most Proficient Half Are Proficient Few Proficient None Proficient was attributed to home schooling. state-level end-of-grade tests, disabled stu- From Townhall.com. CJ dents can receive alternative assessments, Expectations for General Ed Students Expectations for Special Ed Students W/Accomodat modifications, or test accommodation, de- February 2004 C A R O L I N A JOURNAL Education 9

Compensation varies with professional training, national study shows Professional Pay Standards: Too Low For High-Quality Teachers?

By BRIAN GWYN are hard to recognize at the hiring stage,” Contributing Editor Temin writes. He argues that raising teacher Nattional Mean Hourly Wages Minus Benefits: NC Professional SpecialtiesCompensation 2002 RALEIGH pay by small increments will do nothing for Survey 2002 n recent years, North Carolina has improving teacher quality; an unqualified 40 placed increasing emphasis on teacher candidate can easily slip through the cracks. 36.62 pay. Education officials and teachers A second problem, according to Temin, 34.27 I 32.42 32.60 argue that higher teacher compensation is is that teacher pay has not kept up with 30 needed to improve the quality of education demographic trends. Women have histori- 27.03 26.28 24.22 23.97 across the state. Citing concerns that teach- cally filled teaching positions, and 23.15 22.20 ers are underpaid relative to other profes- policymakers have not acknowledged the 20 17.89 sionals, the National Education Associa- attractive new opportunities open to 15.62 tion and the American Federation of Teach- women. In this sense, Temin writes, teacher ers have steadfastly worked to increase salary is too low to make teaching a viable 10 monetary as well as nonmonetary compen- option for many modern women. When sation for their members. nonteaching opportunities were few, mar- Two education experts recently squared kets responded with low wages, he says. 0 off on this subject in EducationNext’s “Are Third, Temin discusses how govern- Raleigh/Triangle Greensboro/Triad Charlotte/Gastonia/Rock Hill SC Teachers Underpaid: New Facts on an Old ment policies have made teaching even less All Specialties Engineers Teachers Authors/Athletes/Others Debate.” The results are predictable: The desirable than it would otherwise be. Test- answer depends on what is counted in the ing, extra duties, and undermining teacher compensation package. authority in the classroom have caused good The debate, between MIT Professor of teachers to leave the profession. tics, which shows that teachers actually earn education reform in North Carolina in re- Economics Peter Temin and Ohio Univer- Reform measures such as testing have slightly more than other professionals. The cent years. The N.C. Excellent Schools Act sity Economics Professor Richard Vedder, been designed to boost teacher quality, but data, however, are calculated by hour and boosted teacher compensation in many brings out the strong as well as the weak stricter controls on teachers mean “less tan- may not include the extra time spent by ways, including higher starting pay, lon- points in this ongoing controversy. At the gible and more creative parts of teaching teachers outside the classroom. Still, the gevity pay, and incentives for seeking na- bottom line remains the question: Is in- are discounted relative to the basic mechan- data exclude fringe benefits such as health tional certification or advanced degrees. creasing teacher pay the best way to raise ics of teaching.” New restrictions, accord- insurance or retirement plans, which can be According to the state’s pay scale, a the quality of education? Next, and not least ing to Temin, have taken away the intrinsic substantial for teachers. Adding these fac- certified teacher who has 12 years of expe- important, how do we properly measure rewards without increasing the main ex- tors into the equation help give a better rience and a bachelor’s degree earns $35,110, teacher “pay?” trinsic one — pay. picture of teacher compensation, as the Rank- excluding local supplements and fringe ben- According to the NC Education Alli- ing Teacher Pay 2002 report demonstrated. efits. The teacher would earn $38,620 with a ance Ranking Teacher Pay 2002 report, after Comparable worth master’s degree. adjusting for cost of living, North Carolina Teacher-Pay Inequities Since boosting pay, North Carolina’s ranked 13th in the nation in teacher compen- In “Comparable Worth,” Vedder re- scores in both reading and mathematics sation. North Carolina, however, has yet to sponds to Temin by saying that the goal Vedder concedes that three types of have improved slightly on the National meet the No Child Left Behind teacher- should be overall effectiveness in educa- teachers may, in fact, be underpaid. “Three Assessment of Educational Progress. quality requirements. tion, rather than boosting groups of public school At first glance, Vedder’s argument that In a market economy, monetary teachers’ salaries. If pol- teachers can make a good teachers are paid above the level of other “worth” must be tied to effectiveness, the icymakers only look at …the data excludes claim for not being typi- professionals seems untrue in North Caro- authors of the EdNext point-counterpoint pay increases as ways to cally paid above-market lina. Vedder noted that professionals state- discussion argue. Thus engineers, math- boost student achieve- fringe benefits such as compensation: unusually wide earn an average of $27.49 per hour, computer professionals, and others whose ment they might be dis- health insurance or re- effective teachers, teach- while a teacher who has 12 years of experi- work requires a minimum of a master’s counting other methods ers in specific geographic ence and a bachelor’s or master’s degree degree, for example, may well command that could prove just as tirement plans that can areas, and teachers with earns $22.80 or $25.08, respectively. He ar- higher dollar pay than elementary-school effective (or more so). be substantial for specialties that are in gues that omitting benefits and tenure un- teachers who have a bachelor’s degree alone. Vedder writes, “For in- teachers. great demand,” Vedder derstates the total value of teacher compen- stance, say a school dis- writes. sation, however. Low pay, low quality trict could raise its aver- Vedder concludes What can North Carolina do to address age test scores by one point by spending an that if pay were redistributed according to the teacher quality and teacher pay ques- In “Low Pay, Low Quality” Temin extra $1 million on teachers’ salaries. But demand, much of the criticism would sub- tion? Temin suggests money should be ear- points out three main problems that face what if the school district would induce a side. Schools receive overwhelming num- marked for merit pay, at the discretion of policymakers when deciding teacher com- two-point increase in scores by spending bers of applications for social studies and districts. Vedder argues that schools should pensation. First, how do you measure the the same amount on nonprofessionals to English positions, but too few in science, reward teachers who take on larger class- quality of a teacher? “Many of the attributes tutor struggling students?” math, and special education. Vedder thinks rooms by giving the teachers extra pay. that make for a good teacher are outside the Taking a step further, Vedder argues the problem would be solved if school Both authors agree that the relationship regime for testing or licensing teachers. A that teachers are not underpaid; rather, the boards could pay more for the positions needs more study, rather than a purely high-quality teacher is one who can ener- distribution of pay is what is suspect. He they need and less for the positions that knee-jerk response. In the end, high-quality gize and motivate students in addition to references data from the National Compen- have too many applicants. education for the nation’s schoolchildren is imparting information — “qualities that sation Survey of the Bureau of Labor Statis- Pay increases have been a focal point of what matters most to both experts. CJ

CarolinaJournal.com is Your Daily Launching Pad to the Best North Carolina News, Analysis, & Opinion

Your Home on the Web for North Carolina Public Policy ¥ Reports and columns on the legislature, politics, culture, and local government from Carolina Journal editors and reporters. The John Locke Foundation’s brand new, completely redesigned home page is your best source of research, analysis, and information on the critical public ¥ Carolina Journal Publisher John Hood’s exclusive “Daily Journal.” policy issues facing North Carolina state and local governments. ¥ Timely links to important stories and editorials from the state’s major A fully searchable, comprehensive database of reports, studies, briefing newspapers, magazines, and other media organizations. papers, datasets, press releases, events notifications, and articles can provide an excellent starting place for those drafting legislation, researching policy ¥ Instant access to state & national columnists, wire reports, and the issues, preparing news stories, planning political or lobbying campaigns, or John Locke Foundation’s other public policy web sites. seeking information with which to be an informed voter and citizen. See what one Raleigh paper called “Matt Drudge with Class” February 2004 C A R O L I N A 10 Higher Education JOURNAL

Bats in the Belltower Patriot Act, Ignorance of First Amendment “He’s a racist!” they reasoned

The letters section in the Duke Threaten Freedom on Campus, Reports Say University Chronicle of Dec. 3, 2003, was filled with reactions to a letter the By JON SANDERS bers, administrators, and governing boards by the First Amendment, about one-fifth, previous day. The letter, written by Assistant Editor have dealt with challenges to academic free- or 21 percent, of administrators and almost Paul Musselwhite, responded to recent RALEIGH dom.” It discusses the cases of University one-third, or 30 percent, of students named editorials in the Chronicle denouncing wo recent reports sound warnings of New Mexico Professor Richard Berthold religion. When asked to name which free- various student factions and Duke stu- about freedom on university (who joked in class that “Anyone who can dom the First Amendment mentioned first, dents in general for self-segregation; campuses. A report by the Ameri- blow up the Pentagon gets my vote”), Or- only 6 percent of administrators and just 2 i.e., racism. Musselwhite suggested T can Association of University Professors ange Coast College Professor Kenneth percent of students correctly answered the their concern over race consciousness centers on threats to academic freedom Hearlson (falsely accused by Muslim stu- freedom of religion. by students focused “only on fraterni- since the terrorist attacks of Sept. 11, 2001. dents of calling them “terrorists” and “Na- Even knowing about the First Amend- ties and other campus social institu- A report by the Foundation for Individual zis”), and some others. The report de- ment protection of this right, only 74 per- tions [for] causing structural segrega- Rights in Education demonstrates college nounced as “disturbing” the University of cent of students and 87 percent of adminis- tion,” but they ignored “many other students’ and administrators’ lack of South Florida’s dis- trators stated that it large factors.” knowledge of the First Amendment protec- missing of Profes- is “essential” that “Affirmative action is the elephant tion of religious liberty. sor Sami Al-Arian, students on their in the room,” Musselwhite wrote. “Af- who was arrested campus have this firmative action at peer institutions re- Raising ‘troubling questions’ with several others right. Concerning sults in admitting African-Americans for having “raised the free exercise of that have SATs that are about 200 The AAUP report was prepared by a funds and pro- religion (and points lower than their non affirmative special committee tasked with “assessing vided material sup- speech, also), a ma- action peers. Having a group of clearly risks to academic freedom and free inquiry port for terrorist or- jority (55 percent) of identifiable students that are part of an posed by the nation’s response to the at- ganizations.” students would al- educational cohort that is considerably tacks on the World Trade Center and the Two universi- low religious indi- lower than the general population of Pentagon.” A key portion of the report looks ties in North Caro- viduals to spread the school is bound to lead to ghettos, at provisions of the USA Patriot Act, which lina merited men- their religious be- socially and academically.” the report states “gravely threatens aca- tion in the AAUP liefs only if they did “While it would be sad for stu- demic freedom.” In general, the report report. UNC- not give offense in dents to make judgments based on states, “The speed with which the law was Chapel Hill was discussed owing to the doing so, while just 32 percent favored al- physical attributes, it is easy to do. introduced and passed [in October 2001], controversy and lawsuit over its assignment lowing students to spread their religious be- Designing structures that encourage the lack of deliberation surrounding its en- of Michael Sells’ Approaching the Qu’ran: The liefs by whatever legal means they choose. interaction based on nonracial factors actment, and the directions it provides for Early Revelations, but the report noted that Administrators were evenly divided, with involves making interaction as easy as law-enforcement agencies have raised trou- “the UNC administration held firm.” 41 percent favoring not giving offense and possible. Making academic excellence, bling questions about its effects on privacy, N.C. State also was mentioned in the 41 percent favoring whatever legal means as opposed to academic competence, civil liberties, and academic freedom.” report under a section highlighting “intense chosen. a universal standard will encourage According to the report, provisions in community response, even expressions of Surprisingly, even though the free ex- beneficial interaction,” he wrote. the Patriot Act that affect academe include: outrage,” to visiting speakers. The report ercise of religion is the first protected right “The end of affirmative action granting exceptions to the Family Educa- states that “talk-show host Phil Donahue in the Bill of Rights, almost one-fourth, or would allow students to interact with tional Rights and Privacy Act (1974) to al- managed to finish his commencement ad- 24 percent, of administrators believe they each other as true peers, and thus in- low senior officials in the U.S. Department dress at North Carolina State University, have the legal right to prohibit a student crease the chances for racial mixing,” of Justice with a court order to collect edu- despite boos, catcalls, and the visible depar- religious group from actively trying to con- Musselwhite wrote. “Try ending insti- cational records related to an investigation ture of some graduates.” (The report’s pau- vert students to its religion — even though tutionalized discrimination before kill- or prosecution of a suspected terrorist; al- city of description does not inform readers half that number, or 12 percent, think they ing frats and selective living groups.” tering the Electronics Communications Pri- that the boos began after, as reported by have the legal right to prohibit a nonreli- So how did the scholars at the vacy Act (1986) to eliminate the wiretap stat- Baker Mitchell for CarolinaJournal.com, gious student group from actively recruit- highly selective Duke react to ute for voice communications stored with Donahue had “harangued parents for their ing members. Musselwhite’s letter? With personal third-party providers (such as presumably role in trampling the United States Consti- Freedom of (voluntary) association is attacks, of course. From the letters of university voice-mailboxes), requiring in- tution and said that the graduates must another First Amendment right, but admin- Dec. 3, some Duke students reasoned stead a search warrant, which is easier to protect this sacred document by becoming istrators were found to be inconsistent in that Musselwhite: obtain than approval of a wiretap permit; liberal.”) their views on its application. Less that one- • is “ignorant” (two out of three and amending the Foreign Intelligence Sur- The AAUP also discusses the threat fifth, or 19 percent, of public-college admin- letter writers agree) veillance Act (1978) to “eliminate the spe- presented by “private groups, parading istrators knew that U.S. law (most recently • has a “veiled desire [that] Duke cific categories of information” covered and under the banner of patriotism or acting to upheld in the 2000 U.S. Supreme Court case must accept fewer minority — specifi- extends its coverage to “any ‘person,’ a des- further a specific cause, [that] have been of Boy Scouts of America v. Dale) permit- cally black — applicants” (not so veiled ignation that can encompass academic li- monitoring academic activities and have ted a religious group that believes homo- that this intellect didn’t detect it!) braries, university bookstores, and Internet denounced professorial departures from sexual behavior is sinful is permitted to • aims to “wip[e] out any traces of service providers.” what these groups view as acceptable.” exclude homosexuals from joining their minority presence on this campus” The report was also cautionary over the Nevertheless, the report says, “As private group. Nevertheless, 34 percent of public- • is afflicted with “xenophobia” Public Health Security and Bioterrorism entities, these groups are protected by the college administrators believed they have • has “issues with race, more spe- Preparedness and Response Act of 2002, First Amendment from state censorship or the right to compel students to attend di- cifically African Americans” which places security strictures over “ev- sanction as long as they stay within lawful versity training or sensitivity training to • is himself responsible for the self- ery laboratory in the nation that works with bounds. They are sheltered by the same value all sexual preferences regardless of segregation at Duke, because “the tact- ‘select’ biological agents.” The report also freedom of expression that we seek for our- their personal beliefs. less expression of opinions such as his lists several problems and concerns with the selves, and they are equally subject to pub- “If the American experiment in liberty have impacted Duke’s racial climate,” Student Exchange Visitor Information Sys- lic rebuke.” is to survive, citizens must both keep alive and therefore, “in order to avoid con- tem, “a Web-based system to track foreign The AAUP report also says, “Insofar as and cherish the free exchange of ideas, val- tact with individuals who are equally students and scholars,” and the more rig- a particular professor might be thrust into ues, and convictions. These survey results as ignorant and uninformed as orous screening requirements for foreign- the rough and tumble of the public arena, are disheartening, but unfortunately they Musselwhite, some blacks just choose ers from countries designated as support- the law demands, as a prominent legal are not surprising,” said FIRE President to align themselves with those like ers of terrorism (Cuba, Iran, North Korea, scholar once put it, a certain toughening of Alan Charles Kors. “Freedom of speech and them.” Syria, and others) or as sensitive (Russia, the mental hide. Such is the price of free freedom to worship are undergoing a China, and India). speech.” frightening and powerful assault.” Doggone, it’s not just at UNC! Furthermore, the report questions the Kors said he hoped the survey results overall effectiveness of restrictions on “sen- Congress shall make no law… would serve as wakeup call for people con- Here is part of the course descrip- sitive” information and research and also cerned with religious liberty on campus. tion for Franklin & Marshall College’s regulations on exports. It acknowledges Concerning the understanding of reli- “This survey confirms what students of “Mind, Self, and Spirit 118”: that the “classification system [for informa- gious liberty on campus, the Center for Sur- faith have long perceived — that their fel- “Does your dog think? Does your tion] and export regulations are suitable for vey Research and Analysis at the Univer- low students and the administrators either dog have emotions? Is your dog con- restricting the release of information that sity of Connecticut conducted surveys for misunderstand or minimize the extent and scious? … Is thinking having symbols could result in sudden and drastic gains by FIRE between December 2002 and April importance of their First Amendment and images in your head? … What are terrorists.” It says, however, “The challenge 2003. The surveys involved 1,037 students rights,” said David A. French, author of the emotions? … Finally, what is con- is to restrain the dissemination of only that representing 339 colleges and universities Guide to Religious Liberty on Campus, recently sciousness? Can you define it? Are you research which, if disclosed, could harm (margin of error is ± 2.8 percent) and 306 published by FIRE. “It is ironic that admin- even sure you have it? All of these national security.” administrators from 306 colleges and uni- istrators who are so eager to encourage ‘tol- questions will be explored over the Finally, the report discusses “issues that versities (margin of error is ±5.6 percent). erance’ and ‘diversity’ know so little about course of the semester…” CJ have arisen within the academic commu- Among the survey’s findings were that, the fundamental freedoms that make true nity and the ways in which faculty mem- when asked to name a freedom protected diversity and tolerance possible.” CJ February 2004 C A R O L I N A JOURNAL Higher Education 11

UNC-CH Opens Semester Abroad Program Of NCSU Orientation, With the University of Havana in Cuba Racial Identification

By JON SANDERS criminals and many convicted on vague charges such as our first step towards academic success at NC Assistant Editor ‘disseminating enemy propaganda’ or ‘dangerousness.’” State University begins with your orientation RALEIGH Cuba receives the lowest scores that Freedom House to the university. The University requires all his semester the College of Arts & Sciences at the gives for political rights and civil liberties. Y first-year students to attend New Student Orientation, University of North Carolina at Chapel Hill “In Cuba it is a crime to criticize Fidel Castro and his during which you will be introduced to the academic Tbegan a semester abroad program in Cuba. The uni- functionaries, criticize communism, associate conscien- opportunities available to you. As part of your orien- versity teamed with the University of Havana. tiously, establish independent media, or leave Cuba with- tation we invite you to attend the White Folks Sym- The study abroad was made possible when the U.S. out permission,” said Myles Kantor, a columnist for posium. Faculty and staff Department of the Treasury renewed UNC-CH’s site li- FrontPage Magazine and editor-at-large for Pureplay Press, members, as well as the cense governing travel to Cuba. UNC-CH’s previous li- which publishes books about Cuban history and culture. Symposium Counselors cense preceded federal restrictions put in place after the Kantor said the Castro regime’s totalitarian orthodoxy will be on hand to assist you Sept. 11 terrorist attacks. brings to mind Frederick Douglass’ observation that “Lib- and to answer your ques- Eight UNC-CH undergraduate students and a gradu- erty is meaningless where the right to utter one’s thoughts tions about NC State’s aca- ate student will participate. The undergraduates will at- and opinions has ceased to exist. That, of all rights, is the demic programs and cam- tend courses in Cuban history, culture and international dread of tyrants.” pus activities. relations, and Spanish language, and grammar. They will “Through your involve- be taught in English by Havana faculty. What’s next after Castro dies? ment in the White Folks The program also seeks to have UNC-CH professors Symposium, you will gain meet with the Cuban leaders. The meetings would focus UNC-CH officials, however, point to Cuba as a nation valuable insight into cam- on furthering relations between North Carolina and Cuba, “on the brink of transition” because Castro is 77 years old pus life from the perspective to include agriculture and other kinds of trade between and in failing health. “Cuba is right next door to us,” said of White faculty, staff and the state and the dictatorship. Evelyne Huber, who is a Morehead Alumni professor of students. You will have the Jon Sanders Only a handful of American universities have part- political science and also director of the Institute of Latin opportunity to enhance nerships in Havana. Robert Miles, UNC-CH’s study abroad American Studies. “Whether there is going to be a peace- your knowledge of self, de- executive director, negotiated UNC-CH’s agreement with ful transition or a violent transition there [after Castro’s velop transitional strategies for academic success and Havana, which includes, according to the Arts & Sciences death] is of great importance to us.” begin building your personal network of support. This online Showcase of the program, contributing “something “Understanding the people with whom you want to orientation is an introduction to a variety of exciting academic to the University of Havana in return.” The Cuba have expanded economic ties and cultural ties is very im- academic and cultural experiences, which will chal- program is “a program of activities that includes the study portant,” said Louis Perez, citing UNC-CH’s “very strong” lenge your minds. It’s a chance to learn about NC State abroad program alongside a number of other academic col- library collection of Cuban newspapers, magazines, and University’s diverse academic disciplines, offerings laborations.” books. The Carlyle Sitterson professor of history also said, which push you beyond the ordinary by encouraging The program receives, upon the approval of Richard “We want to be in a position to have already established participation in independent study, major research Soloway, interim dean of the College of Arts and Sciences, collaborative relationships on many different fronts, so that projects, special seminars, scholars programs and fo- private funding from the Arts and Sciences Foundation. when relations improve (between the Cuban and U.S. gov- rums. It is also a sampling of State’s cultural and so- ernments), our students, the academic community, and the cial opportunities. A head start — or legitimizing a brutal regime? larger public of North Carolina will have a sort of head “The opportunity is at hand to absorb all the in- start.” gredients, which have made NC State University one Fidel Castro seized power in Cuba in 1959 by over- Kantor said the program implies legitimizing the of the nation’s premiere institutions. Seize the moment throwing the dictator Fulgencio Batista. Under Castro, present Cuban regime. “Given this systematic violence and join us! The faculty, staff and students are anx- Cuba became a one-party state dominated by the Cuban perpetrated against Cubans — specific atrocities includ- ious to meet you and welcome you to NC State Uni- Communist Party, but Castro himself oversees every po- ing the mass imprisonment of human rights activists last versity. See you in July! litical appointment and outlets of political power in the year and the expulsion of university students who signed “Warmest regards, country. the Varela Project — the legitimizing implications of UNC- “Dr. Justin Ordic, Director, White Student Affairs” “Under Castro, the cycles of repression have ebbed and Chapel Hill’s Cuba program are problematic, to say the flowed depending on the regime’s need to keep at bay the least,” he said. “Instead of solidarity for Cuba’s indepen- White Symposium history and purpose social forces set into motion by his severe post-Cold War dent intellectuals, UNC pursues collaborations (to use economic reforms,” reports Freedom House Miles’s word) with the regime that persecutes these he- “The White Folks Symposium is a summer edu- (www.freedomhouse.org). “There are some 320 prisoners roes and crushes the academic freedom UNC would no cational and transitional experience sponsored by the of conscience in Cuba, most held in cells with common doubt profess to cherish.” CJ Office of Multicultural Student Affairs and the Office of White Student Affairs. Its purpose is to foster a sense of community for incoming first-year White students and to provide them with information about campus UNC-CH Sophomore Reports He Did Just Fine support, personnel, coping strategies and White heri- tage and contributions as a basis for helping ensure their academic, social and emotional success at NC After a Summer Experiencing ‘Nickel & Dimed’ State. The Symposium began in 1983 as a response to concerns about the retention and successful advance- By JON SANDERS As Pulley explained in a December 2003 followup piece ment of White students… Today the Symposium is Assistant Editor in Carolina Review, he worked 14 weeks as a lab technician. an institutionalize retention and advancement effort RALEIGH Although that job “could be considered specialized,” he of the University and is specifically designed to ast summer, as the University of North Carolina at writes that his brother “makes more money per hour as a achieve the following objectives: Chapel Hill was assigning Barbara Ehrenreich’s pizza delivery boy” so he doesn’t think working as a lab “1. To maximize the academic success of White L Nickel and Dimed: On (Not) Getting By in America, technician “gave me too much of an advantage on the in- students. UNC-CH sophomore Matthew Pulley was experiencing, come level.” “2. To encourage multiculturalism. for the first time, living on his own, with only a small in- Overall, Pulley reports that he earned $2,854. From that “3. To facilitate the enhancement of strong White come to sustain him. he paid out $1,200 in rent for his one-bedroom, one-bath cultural identity and positive self-esteem. Rather than feeling lied to about the American Dream, apartment in Carrboro, $550 for food, $420 for his car, $150 “4. To coordinate activities which enable White Pulley left his experience puzzled about Ehrenreich’s pub- in utilities, and $450 in tuition and books. This left him students to get to know each other. lished difficulties. In fact, as he writes in the October 2003 with $84 left over. He writes that “I had more than enough “5. To educate White students and parents/rela- Carolina Review, he has “a hard time seeing how to get by,” and also that he could have chosen to save more tives about the availability and appropriate use of [Ehrenreich] could have failed, other than the fact that she by adding a roommate. various campus resources and support services. set herself up for failure from the start.” He did have some advantages, however. For one, he “6. To provide opportunities for interaction with Pulley writes that he “unknowingly participated” in had a $30 membership to Sam’s Club that his parents had White faculty, staff and upper-class students. the Ehrenreich experiment in that over the summer, he “got purchased. Also, he had a “willingness to eat Cheerios and “7. To provide information about our rich White a job, found an apartment, and at age 19, lived indepen- PB&J” and not “eat every meal in a restaurant,” because heritage and the valuable contributions we’ve contrib- dent of my parents for the first time.” “Food is not at all expensive if you’re actually willing to uted…” Like Ehrenreich, he writes, his experience lasted about cook for yourself and brown bag your own lunch.” three months, but unlike her, “I had neither a significant Pulley found that “even living on my own as a part- OK, there is no “White Folks Symposium” at N.C. savings nor a ‘permanent home’ to fall back on… failure time worker, earning less than the average $243 per week State. (Thank goodness!) But N.C. State does have a Na- was NOT an option for me.” Ehrenreich boasted, and living in housing considerably tive American Symposium and an African American Sym- Also unlike Ehrenreich, he writes he “could not afford over the 30 percent of my income that is claimed ‘afford- posium, from which all of the text to this article (except for to take the lowest paying job offered to me.” He had com- able,’ I managed to get by AND put myself through sum- “White,” “White Folks”, and the director’s name) was taken. pleted only one year of college, as opposed to Ehrenreich’s mer school.” The texts for the two real symposia are identical save for the three. And as he was also attending UNC-CH part-time To him this was instructive. “This is part of the Ameri- use of “African” or “Native.” For some reason, it seems to during the summer, he had to pay for tuition and books — can Dream, putting in long hours and hard work for a read differently with this substitution. Why? CJ a large expense not faced by Ehrenreich. chance for a better tomorrow.” CJ February 2004 C A R O L I N A 12 Higher Education JOURNAL

Course of the Month Colleges Shut Down Bake Sales They’re Living in a Materialist World That Protest Racial Preferences

By JON SANDERS On Sept. 25, the University of Califor- — of Bearded, 19th Century Germans Assistant Editor nia, Irvine ended the College Republicans’ RALEIGH protest on the ground that the sale was “ra- his month’s selection is another ‘Gender’ philosophy and history of sci- his past fall, several universities shut cially discriminatory.” Duke University course selected ence, they are presented as something down “affirmative action bake On Oct. 8, the University of Washing- Tby Young America’s Foundation new when in fact they constitute strik- Tsales,” held by students protesting ton stopped the UW College Republicans’ for inclusion in its annual report on silly ingly comprehensive replications of race-preferential admissions policies. protest after counterprotesters tore down college courses, “Comedy & Tragedy: Marxist theories… Feminist theory In an affirmative action bake sale, their signs, threw their wares to the ground, College Course Descriptions and What merely replaces the notion of class with baked goods have prominently advertised and threw a box of cookies in a conserva- They Tell Us About Higher Education that of sex (or ‘gender,’ as puritan femi- different prices according to the races of the tive student’s face Today.” nists prefer)… [Their] writings some- buyers. The protest is intended to promote On Oct. 31, Northwestern University times mimic quite accurately the mate- campus debate about the fairness in dis- ordered the Objectivist Club’s protest at the WOMEN’S STUDIES 161S: MONEY, SEX rialist positions of Lysenko and Stalin criminating according to race, as race-pref- Norris Center shut down because, Director AND POWER on the politically conditioned nature of erential admissions policies do. J. William Johnston said, it was “discrimi- Capitalism as a historical force in its re- science.” Bake sale protests are not new on col- natory and not permissible legally nor jus- lation to gender and race structures. The in- In sum, Fernández-Morera writes, lege campuses. Feminists, for example, use tifiable morally.” tellectual history provided by Marxist cri- “With their contemporary makeup re- them to promote debate over the “wage On Nov. 8, The College of William and tiques of capital for the development of a dis- moved, the fundamentals of the non- gap” between working men and women. Mary’s assistant vice president for student tinct body of feminist materialist thought, individualist version of feminism and Shutting down such protests, however, affairs, Mark Constantine, closed the Sons including dual systems theory, ideology cri- ‘women studies’ turn out to be those is new. The shutdowns violate free speech, of Liberty’s protest by ordering all signs re- tique, poststructuralist understandings of developed by bearded, middle-class, said Thor Halvorssen, CEO of the Founda- moved because they were “violating cam- language and culture, and the rise of global- white paterfamilias in nineteenth-cen- tion for Individual Rights in Education. pus policy.” ization as the latest economic context in tury Germany.” “Parody and political satire are not il- Not all universities shut down such which to think about gender, material life and legal in this country,” Halvorssen said. protests, however. Officials at the Univer- power. Update on last month’s pick “College administrators appear to be un- sity of Texas-Austin and Texas A&M Uni- der the mistaken impression that protest- versity allowed bake sales on those cam- Ah, yes, the ever-present reductio ad Last month CM left open the possi- ing affirmative action is not covered by the puses to take place. So did Indiana Univer- marxiam: Professor Y posits Topic X, stu- bility that the UNC-Chapel Hill Ger- First Amendment of the U.S. Constitution.” sity. At Indiana, the associate dean of stu- dents discuss Topic X, Professor Y steers man Languages course “Canine Cul- On Sept. 24, Southern Methodist Uni- dents, Damon Sims, told the Indianapolis discussion into the same, old, tired wa- tural Studies” was an elaborate hoax. versity shut down the Young Conservatives Star that the issue was a “freedom-of-speech ters of “gender, material life and power” Now CM is pleased to report that it isn’t. of Texas’ protest only 45 minutes after it issue,” and “one of the more significant so- — and that’s only because Professor Y As the professor of the course, Alice began. Dean of Student Affairs Jim Caswell cial and political issues of our time.” Sims teaches women’s studies as opposed to Kuzniar, writes on her departmental told ABC News that university policy for- also said, “It is exactly the kind of dialogue an ethnic studies discipline (in which web page (www.unc.edu/depts/ bids harassment. “Some folks felt harassed that should be encouraged on college cam- case, of course, he would steer the dis- german/personnel/kuzniar-p.html): by this discriminatory menu,” he said. puses.” CJ cussion into the old, tired waters of rac- ism &c.). Most recently, my teaching and re- The contrast presented in this course search have taken a new turn! I taught a description is interesting, though not first year seminar entitled “Canine Cul- unusual. Marxist critiques of capital tural Studies.” Those who know me per- leave an intellectual history, although sonally also know of my passion for whip- capitalism is a force that relates to gender pets. For this class, in which we studied art, and race structures. (Structures? What film, and literature on dogs, I also organized about our “poststructuralist an exhibition at the Ackland understandings”?) Art Museum and took my stu- Beyond this “force” of dents to the American Kennel capitalism, CM wonders why Club headquarters in Raleigh anyone is interested in Marx- NC, where they could discuss For more than 12 years, Carolina Journal has provided its ist critiques of anything. The canine legislation, breeding past century alone finds practices, and other hotly de- thousands of readers each month with in-depth reporting, more than 100 million graves bated issues with the directors informed analysis, and incisive commentary about the most owing to the force of Marxist of various departments at the pressing state and local issues in North Carolina. With a and materialist thought and AKC. I realized, though, that, particular emphasis on state government, politics, the General tyranny that it enabled to despite all the exposure my Assembly, education, and local government, Carolina Journal breed. Yet this “intellectual students had to pets and de- history” is given a bone-chill- spite all their enthusiasm for has offered unique insights and ideas to the policy debate. ing pass by the savants in dogs, their vocabulary for dis- academe. Anyone would rightly scoff at cussing them was strictly circumscribed. Now Carolina Journal is taking its trademark blend of news, a course description that promised “the Their writing was journalistic and would analysis, and commentary to the airwaves with a new program intellectual history provided by Nazi cri- not allow them to explore the complexities — Carolina Journal Radio. tiques &c.” At least today’s Marxists al- in the works of Franz Kafka, Virginia Woolf, low themselves the luxury of joining the or J.M. Coetzee. I decided then that it was rest of civilization in denouncing the Na- imperative to write about the difficulties of A weekly, one-hour newsmagazine, Carolina Journal Radio tional Socialists (Nazis), but one wonders expressing the ineffable communication is hosted by John Hood, publisher of Carolina Journal, and whether that’s merely owing to sibling between dogs and humans-and to see how features a diverse mix of guests and topics. Education reform, rivalry — the Nazis edged out the Com- the literary and visual arts explore this di- tax policy, the state legislature, affirmative action, air pollution, munists in Germany just as the Bolshe- lemma. viks edged out the Mensheviks in Rus- In my forthcoming book Melan- freedom of the press and the courts — these are just a few of sia — but they’re all socialist, collectivist cholia’s Dog, inspired by debates in ani- the subjects that Carolina Journal Radio has tackled since systems rooted in Marxism and leading mal rights philosophy, I will devote chap- the program began production in May. to slaughter, terror, privation, and de- ters to how various artists address the is- spair. sues of muteness, intimacy, shame, and Currently broadcast each weekend on 16 commercial radio The ideas expressed in the above death with respect to dogs. course description are quite old and stations – from the mountains to the coast – Carolina Journal tired, as Darío Fernández-Morera shows Kuzniar earlier states that “My on- Radio is a one-of-a-kind program that seeks to inform and in American Academia and the Survival of going captivation with ‘Nekromantik’ elevate the discussion of North Carolina most critical issues, Marxist Ideas (Praeger 1996): has even taken the form of a graduate and to do so in a fair, entertaining, and thought-provoking way. “Seemingly unaware that what they course on ‘The Undead’” (CM is sad to say has already been said many times, note that it missed the opportunity to and possibly said better, by socialist pro- honor that course). Other courses fessors in Europe and elsewhere, Ameri- Kuzniar has taught include “The New can feminist professors continue to reit- Queer Cinema,” “German Cinema: An erate materialist teaching dating back to (Inter-)national Film History,” and For more information or to find an affiliate of Carolina Journal Marx and taught for generations in the “Postmodernist Aesthetics: Handke Radio in your community, visit www.CarolinaJournal.com. socialists countries. Under the guise of a and Wenders.” CJ C A R O L I N A February 2004 JOURNAL Higher Education 13

At odds with American core principles Adrift of Scientific Principles, Universities Pursue Social Re-engineering

By STEPHEN H. BALCH called the exo- and rather than passion,’ 5.) They poison the well of civic self- Special to Carolina Journal the esoteric. The and conceived of respect, through a heavy and constant em- RALEIGH former, constituting scholarship as ‘dis- phasis on America’s collective and perva- he last third of the 20th century wit- its public face, pre- Issues in passionate’ and con- sive sins. nessed the rise and triumph of the sents higher educa- cerned only with the In fact, preoccupation with pervasive T post-modern or, better yet, the tion as a ladder of Higher ‘logic of facts.’ The cultural sin is in ultimate tension with a “New Age University,” whose core mission career mobility, of- revised version basic assumption of representative govern- involves bringing America into a new age fering great gains drops the require- ment — that the people are sufficiently vir- based on substantially altered principles for no more intellec- Education ment of objectivity, tuous to govern themselves. and social forms. To say that this New Age tual effort than ev- and accepts as legiti- If there is ever going to be an effective University faces America’s political and ery man (and mate any presenta- recovery of the ideal of the university as a cultural establishment in an adversarial woman) is able to tion of material that temple of science, that ideal is going to have stance would, however, be to overstate the provide (though the ‘competent’ to be somewhat rethought. case, since many of the nation’s leaders al- generally at considerable, if highly subsi- teacher chooses.” First, the concept of the scientific uni- ready take their philosophic bearings from dized, cost). With this exoteric goal in view, The battle over political correctness has versity must be strengthened by a more its beacon light. Nonetheless, a great re- professional training is emphasized, while largely pitted the earlier ideals of the “sci- clearly delineated moral component, the siduum of regressive institutions, ideals, other standards and expectations are low- entific university” against those of the New absence of which has constituted its most attitudes, and habits, remains to be recon- ered to accommodate widened demand. Age model. Its outcome is critical because conspicuous institutional weakness. No structed, and the New Age University ap- The university’s esoteric objective lies the core principles of the New Age Univer- great institution can long survive emptied proaches its redemptive work with formi- in its mission of social change, emphasiz- sity are not only at odds with those of the of moral content; human nature abhors dable energy and ambition. ing group rights, entitlements, differential scientific, but also with many of America’s moral vacuums, and if one set of moral The watch-phrases of the university in standards, attacks on tradition, and the dis- ideals of republican government: purposes evaporates, another will seep in. its preceding “scientific phase” had been couragement, freezing out, or punishment, 1.) New Age ideals erode the concept Second, those who seek to revive the progress, meritocracy, academic freedom, of dissenting views. Right reason is gener- of individual rights, autonomy, and scientific ideal will have to understand its reasoned debate, and protected dissent. In ally subordinated to right sentiment. meritocracy via diversity and group rights. practical limitations in the humanities and contrast, the watch-phrases of the New Age Indeed, the Supreme Court’s decision 2.) They seek to supplant the concept social sciences. This, in turn, will entail a university are diversity, multiculturalism, in favor of using race as a factor in univer- of tolerance with “the affirmation of differ- re-examination of the modes of academic sensitivity, the affirmation of difference, and sity admissions, provoked the American ence”, a euphemism for forced approval governance most appropriate to these race, gender, and class. As to science itself, Association of Colleges and Universities and coerced conscience. fields, and the issue of why the established it is ambivalent, still capitalizing on and 26 other higher-education organization 3.) By sanctifying relativism they deny ones have failed to maintain norms of rigor, science’s remaining prestige, but increas- to publish an unusually clear statement of the possibility of moral judgment and criti- dispassion, and fair-dealing at anything like ingly hostile to its intellectual rigors, New Age Mission on the opinion page of cal thinking. the levels commonplace in the natural sci- dispassion, and even results. The New York Times. “Every student”, it pi- 4.) They undermine the notion of fair- ences. Finding more suitable forms of gov- In the New Age University, governance ously announced, “should learn about the ness and rule of law, by encouraging the ernance will require a serious and imagi- is increasingly in the hands of “progressive” struggles for full inclusion in our democ- ideologically partisan enforcement of cam- native rethinking of the constitution of aca- cadres of faculty and administrators, ideo- racy, that have been a crucial part of the pus regulations. deme. CJ logically vetted and advanced, and backed nation’s history. Such study will help all by external and internal constituencies em- students gain the intercultural and civic powered by ethnicity, gender, and most knowledge and capacities that are needed importantly, unimpeachably progressive in a diverse democracy, and a deep knowl- thought. Faculty autonomy, though still an edge of the continuing struggles — in this honored principle, is, when in conflict with nation and the world — to achieve equity the new orthodoxy, regularly trumped — and justice for all.” though given the close attention to who gets Another straw in the wind was the 43- hired and tenured, these conflict are becom- 3 vote of the Academic Senate of the Uni- ing less frequent. Student life is also more versity of California, taken at the request heavily policed, with autonomous centers of UC President Richard Atkinson, to re- of student activity distrusted and often move from the system’s academic-freedom curbed. Some of this, of course, revives policy provisions that cautioned professors practices, though with very different ends, against making their teaching a “platform A Daily Web Site Providing a State Perspective of the old-time denominational college. for propaganda” or attempting to “convert” The New Age University is egalitarian students. As the National Association of on 9/11 and the Current International Crisis rather than meritocratic. Now involved in Scholars’ newsletter put it, “The former From the John Locke Foundation the education of nearly 50 percent of the code of faulty conduct, which was drafted adult population, and aiming at more, it has in 1934, associated academic freedom with sorted its purposes into what might be scholarship that gives ‘play to intellect Recent Articles and Columns Spotlighted on NCAtWar.com Include:

• Military historian Victor Davis Hanson discusses why the U.S. prevailed so rapidly in the Iraq War—and why this bodes ill for other terror states.

• North Carolina’s economy lags behind the national recovery, in part because of the impact of wartime deployments retail sales in military-base communities.

• Dr. Andrew Taylor, NCSU political scientist, on the likely impact of the war on North Carolina politics.

• 82nd Airborne soldiers from Fort Bragg play key roles in campaigns against the Ba’athist terrorists in Iraq and elements of the former Taliban in Afghanistan.

• Gov. William Yarborough, former head of Special Warfare Center at Fort Bragg, distinguishes terrorism from legitimate armed resistance.

• Locke Foundation President John Hood discusses the military history of other, more ill-fated incursions up the Tigris and Euphrates rivers to Baghdad.

• Moderate Muslim clerics preach peace in Durham and Greensboro while a former Black Panther leader calls First Lady Laura Bush a murderer at Duke.

For the latest news, analysis, and commentary on the war on terrorism, visit what National Review once named its “Cool Web Site of the Day” located at www.NorthCarolinaAtWar.com — or www.NCAtWar.com. February 2004 C A R O L I N A 14 Local Government JOURNAL

Town and Country Rail Transit Destined to Fail, Experts Say Vote on convention center North Carolina’s low population density and lifestyle are not suitable Voters in Raleigh and Wake County are overwhelmingly in favor By DONNA MARTINEZ of holding a referendum on a proposal Associate Editor from city and county officials to build RESEARCH TRIANGLE PARK a new convention center in downtown ail transit systems proposed for Raleigh, a public opinion poll by the three North Carolina metropolitan Center for Local Innovation says. areas are destined to fail because Eighty-six percent of the respon- R they conflict with the state’s demographic dents favored a public vote on the con- trends, high auto usage, complex driving vention-center project, while 11 percent patterns, and low transit ridership, experts were against a public vote, and 3 per- said at a recent Center for Local Innovation cent were not sure. By almost as large conference. a majority — 75 percent to 18 percent To have any chance of reducing road — Wake voters said they opposed giv- congestion and improving mobility, rail ing a proposed $23 million subsidy to requires high-density population — and a new for-profit hotel downtown to the problem is the state doesn’t have it, Ted make the convention center viable. Balaker of the Reason Public Policy Insti- CLI, a special project of the Raleigh- tute told the audience at the Innovate 2004 based John Locke Foundation, com- conference. missioned the survey of 400 recent Wake County voters. Balaker: Densities matter On whether to build the conven- Carolina Journal photo by Richard Wagner tion center itself, poll respondents were For example, Portland, Ore., often cited more closely split when asked an ini- by “smart growth” advocates as having a Chad Adams, director of the CLI, (far left) conducts a session with Balaker and Rubin (right). tial question: 45 percent opposed the successful rail system, is home to 3,300 project, 34 percent favored it, and fully people per square mile, or nearly twice the jerk reaction of smart-growth advocates to It isn’t that people hate transit, Cox 20 percent were undecided. But when density of Charlotte. The density of other propose rail systems. Any rail plan must said. It’s that it isn’t competitive with the told that the project’s proponents ex- major cities is much greater than North produce a quantifiable benefit and be built car. To make sense for a rider, transit must pected to spend $743 million over the Carolina’s metro areas as well. Los Angeles only if it’s the best solution. Appropriate or be convenient, fast and frequent, and get next 30 years to build, market, and has 7,000 people per square mile, San Fran- not, the projects are notorious for cost in- people within a quarter mile of their desti- operate the facility, a majority (55 per- cisco has 6,000, and New York has 5,300. creases, construction delays, and lower- nation on either end. “I don’t care how bad cent) said it would not be a “good in- In Charlotte, where there are 1,700 than-expected ridership. traffic gets, you’re not going to get out of vestment of tax dollars,” while only 29 people per square mile, the cost of the pro- In 1980, Los Angeles County voters your car onto transit that doesn’t take you percent said it would be, and 16 per- posal to build less than 10 miles of rail is passed a plan for 11 rail lines funded by a where you want to go,” he said. cent were undecided. estimated at $371 million. Yet, Balaker said, half-cent sales tax. In 1990, one line was North Carolina’s lifestyle profile doesn’t There were no significant differ- proponents concede it will reduce auto traf- open but planners determined funding was support rail because the state’s dispersed ences in opinion between those respon- fic by just one-tenth of 1 percent, concen- insufficient, so voters approved another pattern of living follows the European trend dents residing within the city and those trate traffic around rail stations, and create half-cent tax. By 2003, only four lines were of people moving farther from cities, Cox residing in the rest of the county. Self- new congestion. In the Triangle, estimates open, with others in various stages of devel- said. Among the 15 largest states, North identified conservatives were more on the reduction of congestion are slightly opment. Officials still need more money Carolina is the only one that has no urban likely to say the convention center better but still minuscule — and are considering propos- center with more than one million people. would not be a good public investment perhaps 1 percent. The pro- ing a third half-cent sales “The point is, you’re developing an almost (63 percent, vs. 22 percent saying it posal for 35 miles of light tax. Even if passed, it won’t rural style, or a combination rural-urban would be) than were self-identified rail and 16 stations requires be enough to complete all style of living that we didn’t do before 1950 moderates (45 percent vs. 34 percent) an investment of $844 mil- 11 lines. because we couldn’t do it before 1950,” he or liberals (47 percent vs. 39 percent). lion to serve 1,800 people The logic planners typi- said. But in all three cases, at least a plural- per square mile. In the Triad, cally use to compare rail ca- ity of respondents expressed a skepti- four possible rail corridors pacity with freeway capac- Hartgen: Roads follow growth cal view when told of the project’s are being considered to ity is equally flawed, Rubin long-term costs. serve fewer people. If all said. Capacity comparisons As the state’s population has grown — Interestingly, there was roughly four are built for rail, he said, look only at passenger miles 21 percent in the last decade, twice the the same level of public support for a capital costs would top $2 and do not acknowledge national average — traffic across county referendum among supporters of the billion. freight that moves over borders has increased as well. Today a full convention center (84 percent), oppo- While the rail propos- highways and that rail can- 60 percent of work-related vehicle travel nents (89 percent), and undecided vot- als would remove few cars not accommodate. These reflects this pattern, according to confer- ers (85 percent). from the roads, Balaker said, “ton miles” are key elements ence speaker Dr. David Hartgen, a UNC- it won’t matter to support- of traffic and should be con- Charlotte professor in the Department of Lawsuits filed on Navy field ers once the systems are sidered when evaluating the Geography and Earth Sciences and a na- Wendell Cox built. They will do what oth- productivity of transporta- tionally known transportation expert. Two lawsuits filed Jan. 9 asked a ers have done: say that relief of congestion tion options. “It does nothing, nothing for Smart growth proponents routinely federal court to block the Navy from wasn’t a goal anyway and that rail is in- you,” he said of rail transit’s inability to assert that building roads rather than rail building a practice landing field near creasing social identity and interaction. move freight. creates sprawling growth, which they con- a national wildlife refuge and expand- Those claims can’t be quantified, he said, sider a problem. However, Hartgen’s re- ing airspace for practice flights over and rail supporters are able to avoid an- Cox: Transit usually ineffective search on about 3,000 road construction other eastern North Carolina refuges, swering hard questions and accountability projects conducted during the 1990s dis- The Charlotte Observer reports. to taxpayers. If urban planners were more diligent, proved their premise. He found that the The suits were filed by Washing- they would understand the fallacy of many opposite is true: Growth occurred before ton and Beaufort counties, where the Rubin: illogical city planners purported rail benefits, said Wendell Cox, a roads did. By overlaying road projects with airfield would be built, and by three transportation analyst who studies transit census tract data, Hartgen determined most environmental groups. They follow This convoluted thinking is practiced projects around the world. Transit must be of the state’s population growth took place months of growing protests from local by many transportation planners, said con- effective at more than getting people to in areas that didn’t have major road im- farmers, wildlife agencies, and Gov. ference panelist Thomas Rubin, a former downtowns or it can never compete with provements. Indeed, about half of the Mike Easley. controller-treasurer of the Southern Cali- the car. In the United States, he said, aver- growth was in areas with no major im- The suits claim the Navy failed to fornia Rapid Transit District. Rubin de- age downtown employment is about 4 per- provements. Local factors such as zoning take the “hard look” required by fed- scribed the illogical analysis of planners cent to 6 percent of an area’s work force. laws and prior density were the drivers of eral law at the field’s environmental who tell themselves that things are going to That leaves at least 94 percent of workers an area’s growth. impact and any alternative sites. get worse if they don’t do something, that who use cars to get to and from work. Hartgen is working on a new study Opponents say the noise of F/A- rail transit is something, and that rail is an It’s no surprise to Cox that there are few about the condition of North Carolina’s 18 Super Hornets will disrupt the more acceptable solution even when research in- places where transit’s market share is in- roads. Preliminary statistics show they have than 100,000 snow geese, tundra dicates otherwise. creasing. In the United States, 1.9 percent of deteriorated and are becoming a serious swans, and other waterfowl that spend “Bus and rail are neither good nor bad trips are on transit, driven largely by high problem that must be addressed soon. “The winters five miles away at Pocosin in and of themselves,” he said. “They are usage in New York City, where transit ac- data I’m looking at show that we’re just not Lakes National Wildlife Refuge. To tools. If you are driving a nail, a hammer is counts for 9 percent of trips. In Charlotte spending money that we do have on road practice aircraft carrier landings, the an excellent tool. If you are trying to drive in and the Triangle, only one out of every 200 repairs and so, relative to other states, we’re jets would perform 32,000 touch-and- a screw, no. And when the only tool you trips is on transit. This one-half of 1 percent losing ground,” he said. The effect, he con- goes a year at the new airfield. CJ have is a hammer, all your problems begin ridership is much lower than the national cluded, will be to make the state less com- to look a lot like nails,” he said of the knee- average. petitive by reducing its accessibility. CJ February 2004 C A R O L I N A JOURNAL Local Government 15

Speaker tells of land grab in South Carolina Governor Deals Landowners Fenced In by ‘Smart Growth’ A Fool’s Hand By DONNA MARTINEZ Associate Editor don’t know about you, but lately I feel as though RESEARCH TRIANGLE PARK I’ve been hit by a serious grifter working the old ay McClanahan wishes she could scan the horizon Three Card Monty. You know the game. The around her South Carolina farm and blissfully I victim watches the cards move about, impressed with K enjoy the green pastures and beautiful horses his own easy ability to win. Then, when the stakes frolicking in the golden sunshine. Now, she says, her increase, the victim is left without his cash, scratching farmland is surrounded by storm clouds generated by his head wondering how it all went down. “smart growth” advocates and government bureaucrats. This is the game Gov. Mike Easley is playing with Under the guise of preserving open space, the Richland us. Two years ago, with North Carolina’s budget on County Council’s 2020 Town and Country Comprehensive the verge of collapse under the weight of a seemingly Land Use Vision Plan uses rural down-zoning to deny endless spate of programs, Easley and other state infrastructure to the 330-square-mile area outside the new officials opted to keep hun- urban growth boundary. It also imposes large-lot zoning, dreds of millions of dollars buffer zones around water, and other restrictive rules on owed to localities. To make the area now called the Congaree Preserve. up for this egregious act, the McClanahan and others who live in the area, many of state kindly “let” them pass a them senior citizens, fear the land their families have sales tax to make up the dif- owned for generations will be rendered worthless to buy- ference. But this is old news. ers or legally manipulated away from them altogether. For Now we hear that two many the property is their only significant asset and is used counties, Durham and as collateral for loans. Some give parcels to their children. Forsyth, are in need of jobs… Others sell a few acres at a time to developers. and the state is suddenly try- “Preservation zoning of our land will mean that either ing to help with your money. Chad Adams the property can’t be subdivided at all or will mandate that Easley says he wants to pro- the lots be so large that the average rural property owner vide new jobs for all of North won’t even have enough land to divide among his children, Carolina, but instead, he played the Ace of Diamonds so that a judge has to order that it be sold in order to probate to “buy” the jobs with incentives for two large and his estate,” she said. successful companies. Some of those jobs will cost the The council’s action has permanently altered Carolina Journal photo by Richard Wagner taxpayers more than $120,000 per job — and some are McClanahan’s life. Before the upheaval, she and her hus- Kay McClanahan speaks at the conference’s luncheon. merely a partial replacement from jobs eliminated in band, Bill, planned to retire to their horse farm outside another part of the state. Columbia. Their dream of peaceful days at Homestead In normal times, this might be called the Ace of Farms was shattered when they learned their property tions on personal freedom and property rights. Spades — creative governance. But see whether we rights had been quietly but severely diminished. Since population continues to grow and planners have can stay focused on the game. Rather than give up, the McClanahans got angry and resisted all but minor expansion of the boundary, the 24 By now folks in the rest of the state, especially the vocal. In 2000, Kay retired from a distinguished career in cities and three counties in the area rezoned to limit the rural counties, must be scratching their heads. Just the criminal justice system, where she was twice named types and size of homes that can be constructed. For ex- when they are starting to understand how North South Carolina Law Enforcement officer of the year. She ample, if a home burns down, an apartment or row house Carolina is still growing its budget at stubbornly high and Bill now spend their time fighting the final implemen- that meets new, higher density requirements must be built rates, they must now try to figure out why Easley is so tation of the zoning code that will affect the area she in its place. Multistory apartment buildings are constructed fixated on urban areas — at a time the rest of the state describes as the largest landmass on the East Coast that is in single-family neighborhoods. is reeling from the economic devastation within the still primarily owned by African-Americans. “They wanted to see four or five-story apartment build- furniture, textile, and agriculture industries. It makes ings, so we’re seeing these big behemoths mushrooming no sense. Why do economic incentives go to the most Segregation by economic status up all over the Portland area,” he said. economically stable areas of the state? If a single-family house is planned, it must go up on a The card, my friends, is what Easley hopes is the McClanahan doesn’t think that statistic is coincidental very small lot. While the average lot size was 9,000 square Ace of (good) Hearts — re-election. Without geo- to the council’s activities. She makes the serious charge that feet in 1990, planners are trying to decrease the average to graphic representation at any level of state govern- the plan was intentionally written to restrict minority 6,000 square feet. That goal has led to the creation of the ment, the best bang for literally your buck comes when growth in the area, where many minorities are “land-rich “skinny house,” a home that’s 15 feet wide and increas- good news happens in large population centers. and money-poor.” She denounced the county’s plan to ingly is being wedged into neighborhoods all over Port- Had the governor launched an initiative in Stokes create seven densely populated villages throughout the land. It’s not uncommon, O’Toole said, for a developer to or Columbus counties, the political benefits would not green space and said the plan will create segregation by buy a house on a 100-by-100-foot lot, tear it down, and be there, despite the fact that these counties and count- economic status. Based on the county’s map, she concludes rebuild four skinny houses in its place. less others could use the help. the remotely located communities featuring high-density Many of the high-density developments are taxpayer- How can we put a stop to this game? Perhaps one housing will become “a place for the poor and the dis- subsidized through grants, tax breaks, or fee waivers, he way is a constitutional amendment to provide citizens placed not-so-poor to be hidden away after their land is said. Then, residents aren’t pleased with the results. The with a Senate balanced by geography, not population. taken from them.” multiple-level apartments and skinny houses have some of Stokes, Columbus and other rural areas deserve greater She’s not alone in her concern. Last November, The the highest vacancy rates in the city. representation, in the same way that Rhode Island and Wall Street Journal published an editorial that criticized the The argument used by Portland’s smart-growth advo- California are equally represented in the U.S. Senate. Richland County plan, noting that many of the affected cates to justify the growth boundary is that U.S. farmland Two counties, one state senator, is a simple way to families have owned the land since the end of the Civil War. is in short supply and therefore needs protection. That is provide balance at the state level, preserving county “They’ve had to fight for it through Jim Crow, segregation absurd, said conference panelist John Charles of the Cas- integrity and giving small counties a seat at the state and now, apparently through smart growth,” the editorial cade Policy Institute. Prescriptive zoning is really about table of governance. said. power and control. Instead, he advocates performance- Much more challenging is the need to revise our It is ironic to McClanahan that Richland County land- based zoning that acknowledges the free market’s ability to tax system to provide true incentives to attract and owners, people she believes have been good stewards of determine where things should go, and at what density retain jobs. It is far easier, cheaper, and more market- the land, are now targets of those who call themselves and lot size. sound to attract business by making overall taxes preservation advocates. She advises property owners to be Private-sector zoning imposed by communities through lower, rather than just sharpshooting with tax breaks. wary of appeals for preservation areas, open space, buffer deed restrictions and covenants is also preferable to sweep- These are two ideas worthy of considerable de- zones and the like, and to closely monitor local government ing growth boundaries because it affects only the people bate. However, recent sessions of the General Assem- activities for regulations that can be passed with little who opt in. “While there are horror stories with commu- bly point to signs that debate is not a worthy endeavor. fanfare but which have devastating, permanent implica- nity associations, and it’s not a perfect world, it’s a very Power, political back-scratching, fast-tracked subsi- tions for property rights. market-based approach,” he said. dies, and “trust” between the co-speakers tend to “At home, radical environmentalists and government There is a glimmer of hope in turning the tide against make us forget which card we should be watching. So, are joining forces to use smart growth to take property coercive smart-growth policies like the rural down-zoning while the entertainment value is impressive, and cards away from rural landowners, without conscience or com- occurring in South Carolina and Portland, which Charles are flashing about, we must be on the lookout for the pensation. And we are not alone,” she said. described as reflecting an antihumanity view of the world Ace of Clubs — where we are hit over the head with Just ask residents of Portland, Ore. The area has been in an attempt to cram people into dense cities. ever more tax money going to Raleigh and ever less to notorious for its land use restrictions since implementing “The backlash against this elitism is beginning to be the necessity of running businesses in every county of an urban growth boundary in 1979 as part of its far- seen in the political arena,” he said, describing develop- this state. And you can take that to the bank. CJ reaching attempt to create a utopian society in which ments in Loudoun County, Virginia, the second-fastest people live, work, and recreate in tightly compacted areas. growing county in the country and an area with restrictive Randal O’Toole, director of The American Dream Coali- zoning ordinances. Chad Adams is a Lee County commissioner, a fellow of the tion and the Oregon-based Thoreau Institute, told the Most of the county’s smart-growth advocates who North Carolina Institute of Political Leadership, and the audience that Portland’s massive rezoning actions, called were voted into office in 1999 were recently defeated at the director of the Center for Local Innovation. “densification” by planners, have imposed serious limita- ballot box. CJ February 2004 C A R O L I N A 16 Local Government JOURNAL

Local Innovation Bulletin Board From Cherokee to Currituck TTA Scales Back Its Rail Plans Wind Farms Generate Heat In Effort to Get Federal Dollars ome environmental groups in state minimum and $5.60 above the California are opposing permits nation’s minimum. By MICHAEL LOWREY cameras have been responsible for only a for wind turbines at wind farms But some nonprofits can’t afford to S Associate Editor few arrests — 42 in total, or about 1.3 per in the state because of the death toll from pay the increase. For example, the Berke- CHARLOTTE month — and crime has grown in the area the whirling blades of the turbines. ley Food and Housing Project, Berkeley’s n an effort to obtain federal funding, since they were installed. In particular, auto Threatened and migratory bird species largest homeless services organization, the Triangle Transit Administration has thefts and theft from vehicles both have are among the victims. Scientists esti- estimates it would cost about $30,000 — made significant reductions in its pro- risen substantially compared with 2001. mate as many as 44,000 birds have been money the group doesn’t have — to bring I posed Durham-to-Raleigh light-rail line. Both are often difficult to detect from a killed over the past two decades by wind employees’ salaries up to compliance. Whether the cuts are enough to assure fed- video camera. turbines in the Altamont Pass, east of After already trimming its budget eral funding that would allow construction “It’s a question of priorities and effi- San Francisco. last spring, the group found itself facing to begin this year remains to be seen. ciency,” Charlotte defense attorney James The victims include kestrels and red- $100,000 in unanticipated costs because The TTA had been planning to build a Gronquist said to the newspaper. “Is it more tailed hawks. The area is also home to of the hike in insurance premiums and 35-mile-long system at a cost of $749.4 mil- critical to have eyes in the sky, or to hire the largest resident population of golden wages. The project might have to make lion. The design was thought to have satis- more officers to do the community policing eagles in the lower 48 states, and an cuts to permanent staff, which would fied the Federal Transit Administration’s they talk so much about?” average of 50 golden eagles are killed lead to reduced services. standard for funding of a cost of no more each year. Another difficulty in lifting the mini- than $25 per new rider. The federal govern- Asheville road widening challenged There are 7,000 wind turbines at the mum wage is that the project cannot ment will pay for about half of the line’s Altamont wind farm, built in the early afford to raise other workers’ salaries cost. A group of Asheville residents is ask- 1980s when little was known about the accordingly in order to offer incentives Recently, however, the FTA changed ing that the City Council oppose state plans migration patterns of birds in nearby for staying longer, pursuing education, how it calculates the cost per new rider. The to widen a portion of Interstate 240, the areas. or doing a good job. People who just TTA proposal came in at $26.34. The TTA Citizen-Times of Asheville reports. The re- There are wind farms in 29 states, started could be making as much as redesigned its system to a cost of $708.5 quest is the latest in a long-running dispute and they provide about 1 percent of the people who have worked for several million. Changes include relocation of the on upgrading I-26 through Asheville. nation’s energy, but that could increase years. end station in Raleigh, thereby reducing the In recent years, I-26 has been extended to 6 percent by 2020, according to the Reported in the Daily Californian. length of the line by 1,000 feet and eliminat- from its traditional terminus in Asheville to American Wind Energy Association. The ing the need for several bridges. The line’s Johnson City, Tenn. While newly completed bird deaths have led some environmen- Arena subsidies put cities at risk rail yard and shops will be scaled back and portions of the road meet the latest design tal groups that support wind power to the track design made less complex. The standards, several older stretches are anti- oppose permits for the Altamont site. Municipalities across the country are TTA also will reduce the number of rail cars quated. This includes I-240, which will even- In North Carolina, wind energy being conned into paying for the con- it is buying from 36 to 32. tually become part of I- plants exist or have been proposed for struction of fancy new stadiums and dish- After the cuts, the TTA’s 26. both the mountains and along the coast. ing out tax breaks, only to remain fearful proposal comes in at The TTA has rede- The state has recog- Future wind farms on the coast could be that someday their lucrative investment $24.48 per new rider. nized the problem since on the Outer Banks or offshore. will be lured away by the adjacent mu- “The easy story here signed its system to at least 1989, when fund- The controversy over bird kills has nicipality. is they (FTA) are making cost costs by $40.9 ing for an Asheville con- “delayed and even significantly contrib- Major league baseball has success- the criteria tougher and million. Changes in- nector project was in- uted to blocking the development of fully been able to claim it is suffering tougher to meet as they cluded in North some wind plants in the U.S.,” according terribly and needs public funding to stay try to cull projects,” Joe clude relocation of the Carolina’s Highway to a 2001 report commissioned by the afloat. These claims have resulted in sig- Huegy, TTA’s senior end station in Raleigh. Trust Fund program. Lo- National Wind Coordinating Commit- nificant handouts to the industry. transportation engineer, cal opposition has pre- tee, an industry advocacy group. For During the 20th century, more than said to the Triangle Busi- vented any real progress instance, Sen. Edward M. Kennedy, D- $20 billion has been spent on major league ness Journal. from occurring. Mass., is opposing a proposed 28-acre ballparks, stadiums, and arenas. At a Merely meeting the cost-per-rider cri- In this latest round, opponents contend offshore wind farm off Cape Cod be- minimum, $14.7 billion in government teria does not guarantee the TTA federal that the state’s proposal to widen I-240/ cause of environmen- subsidies have gone to funding in the upcoming fiscal year. Other future I-26 to eight lanes is excessive and tal concerns. the four major league cities also are competing for scarce federal will increase dependence on the car. In June Companies can be Scientists estimate as sports, including more dollars. Should the TTA not receive fund- 2002, the city accepted a N.C. department of fined for every pro- than $5.2 billion since many as 44,000 birds ing, construction of the line would be de- Transportation recommendation on the tected bird that is 1989. layed by at least a year. widening. killed by the wind tur- have been killed over Charlotte is build- The FTA will release its ranking of “It’s almost hard to imagine the kind of bines. But a citation has the past two decades ing a $200 million projects and funding recommendations this swath that highway is going to cut through yet to be issued at arena for the National month. this community,” said Doug Ruley of the Altamont. by wind turbines in the Basketball Associa- Southern Environmental Law Center at a Reported in the Altamont Pass. tion’s Bobcats, an ex- Charlotte eyes more cameras rally of opponents. Washington Post. pansion team that will begin play next season. The Charlotte-Mecklenburg Police De- Greensboro’s alleys remain Berkeley’s living wage The city had previously built an arena in partment has received a federal grant to the late 1980s to attract an NBA team. expand the use of uptown Charlotte secu- In a rarity in modern cities, alleys still Social justice, equality, and a higher The original Charlotte team, the Hor- rity cameras. While the police are excited exist in several older Greensboro neighbor- standard of living: Those were the ideals nets, moved in 2002 to New Orleans after about the extra dollars, critics question the hoods. And with the narrow, often un- of the Berkeley, Calif., living-wage ordi- deciding that the late 1980s facility was program’s effectiveness. paved, streets comes considerable confu- nance. But the law, designed to bring not modern enough to meet the team’s In April 2001, the police department sion. “economic justice” to the city’s workers, needs. installed 12 videocameras at 10 locations in “One of the big misconceptions is that is leaving some nonprofits in a bind, These numbers exclude the billions uptown Charlotte. The cameras are oper- alleys are public rights of way,” Greensboro squeezed between the rising demand for of dollars in subsidies provided through ated from a centralized location, and an city planner Mike Cowhig said to the News services in a tough economy and swell- the use of tax-free municipal bonds, in- operator selects where to point the cameras. & Record of Greensboro. “They are private ing costs that could lead to cuts in staff- terest paid on debt, lost property, and Funding limitations have kept police from rights of way, created by those who devel- ing or programs. other tax revenues not paid on facilities, staffing the cameras full-time. oped the neighborhood.” Berkeley’s living-wage law requires taxpayer dollars placed at risk of being The cameras are typically active during With the developers long gone, alley employers who hold large city contracts lost if the venture fails, and the billions of workdays, during special events such as ownership is a sort of no-man’s land, or lease city-owned property, including dollars spent by taxpayers on minor Carolina Panthers football games, and on Cowhig said. The city will not perform nonprofits, to provide a higher mini- league facilities. weekend nights. Police plan to use the extra maintenance work, such as removal of mum wage and health benefits to their Therefore, tax-funded entities should funding to train more camera operators fallen tree, in alleys. employees: immediately begin selling off all their and, perhaps, add cameras. When alleys are created today, neigh- In July, the Berkeley City Council sports venues. Private owners are far Aside from scanning for street crime, borhood associations typically are respon- voted to increase the city’s living wage more likely to upgrade facilities, seek the cameras are used also for homeland sible for maintaining them. Most of the al- from $9.75 to $10.76 an hour (an 11 per- creative revenue-generating schemes, security, criminal intelligence, and to check leys in Greensboro predate homeowners cent increase) to reflect inflation; this and stay in their host cities. In addition, for aggressive panhandling. associations. was the first increase since the living- sale of stadiums and arenas would bring “An officer in the control room can Some alleys are maintained by home- wage ordinance was enacted in August some much-needed revenue for cash- cover the territory of 15 to 20 officers on the owner donations and labor. Other alleys are 2000. Berkeley’s new minimum wage strapped cities and counties. street,” CMPD Capt. Terry Sult said to The disused and overrun. In some places, neigh- puts some of its workers $4 above the Reported in Reason. CJ Charlotte Observer. boring landowners have made use of the The program is not without critics. The land, which is legal if no one objects. CJ C A R O L I N A February 2004 JOURNAL CJ Interview 17 Chad Adams: Director of Local Innovation, Commissioner

By PAUL CHESSER latter. We have one Democrat that tends to certainly mass transit’s an issue, and issues So in Wake County that budget num- Associate Editor vote for our leadership. Obviously, I around “smart growth” because people are ber is somewhere around 8 percent of their RALEIGH wouldn’t be vice chairman and we pushing for both of those in all the large entire budget, but that number is far higher had Adams recently was named the wouldn’t have the chairmanship without communities. in a county like Columbus or Robeson or director of the Center for Local In- that Democratic vote. Here in the Triangle folks are pushing Hertford or Bertie, any of the more rural Cnovation at the John Locke Foun- But for the most part, we’ve been bat- for — not we, but people are certainly push- counties. The more rural the county, the dation. Also a commissioner in Lee County, tling, not so much always against the people ing for the light-rail initiative. But when we higher percentage of that budget is dedi- Adams offered his perspective on local-gov- on our board, but battling to cut spending look at the facts on that, when we look at the cated to Medicaid. And they don’t have any ernment issues in an interview with Caro- and find more creative ways to provide re- amount of money that’s going to have to be say-so over that. I certainly have always lina Journal. quired services. We’ve been able to, even spent, there certainly is some accountabil- been hopeful that the state would assume with roughly 80 percent of our budget un- ity that the elected officials need to be aware the state’s responsibility on that. The state CJ: Chad, why don’t you begin by telling us your der the control of federal and state man- of. It sounds like forward momentum is and federal government should pay for it. background and where you’re from. dates. And regardless, we end up spend- happening with smart growth and these It’s a state and federal program. When the ing more property tax money to fund these light-rail issues without any critical analy- reimbursements were taken, I fully expected Adams: I was raised throughout the South- things — the rest of the counties and cities sis and tough questions. We are interested them to assume the control for Medicaid. So east. My father was with Blue Bell, makers do as well. We’ve been able to find ways to in that and will continue to be vigilant on when they left Medicaid on the counties of the Wrangler brand headquartered in conserve money and make some cuts and those issues. and took the reimbursements, it was a hor- Greensboro. I was raised in Virginia, Mis- consolidate services. A good example was Outside of those metro areas there are a rendous situation. sissippi, Puerto Rico, Texas, Tennessee, and consolidating with the City of Sanford in lot issues as well. A lot of small counties and eventually North Carolina. As both of my planning and inspections and doing things cities are dealing with growth issues. They’re CJ: What recourse did Lee County have? parents were from North Carolina, we even- like that to find ways to creatively provide looking at county zoning, they’re looking at tually moved back here. I then went to a high level of service at a lower cost. If we unified-development ordinances, city sewer Adams: This is where things get rather bi- UNCW and moved to our family farm in can do that and be proactive in other areas, and water issues certainly, and privatization zarre. Groups like the NC League of Mu- Sanford when I graduated in 1989. So I lived I think everyone benefits. possibilities. What are they doing to be nicipalities and the NC Association of in Sanford and commuted to the Triangle creative in solving a lot of the problems? County Commissioners asked the state to for about seven-and-a-half years. CJ: When you say working with Sanford, are Then there’s the big, 800-pound gorilla that’s let us have permission to raise our sales tax you talking about even merging? out there in my mind, Medicaid. We’re one by one-half cent. So instead of the legisla- CJ: What were your doing in the Research Tri- of just a handful of states in the entire nation ture raising money to cover their problems, angle? Adams: We did merge those departments; that fund Medicaid at the local level. And they passed the buck down to us. Counties we were able to get the Planning & Inspec- you can say, “Well, it’s only 5.7 percent.” fell in line and did it including ours. Adams: I worked for a company called tions combined. We also moved the inspec- Well, 5.7 percent of the entire expenditure Other counties had to raise property Family Health International for a while. I tions part of the Health Department into the in some counties equals 15 to 20 percent of taxes, and you’ll see in the report we just was a graphic designer and coordinator for same building. So instead of citizens having their budgets and encompasses over 30 per- produced, By the Numbers 2004, a slow trend them and started going to graduate school to drive all over town they can now go to cent of their population. upward at the local level. It’s worse in some at NCSU in their university administration one location, get their permits, and move communities than others, but certainly the program. Later, I worked as a technology forward. In this way we were able to im- CJ: So when you say 5.7 percent of what? trend is that the local tax burden is increas- consultant for TenPlus Systems eventually prove the service at a lower cost. Only time ing faster than services or population starting my own company in Sanford. By will determine what the overall savings Adams: Let’s say that the county incurs growth. But certainly the mandates are hurt- 1998 I had become very active in the Jaycees will be, but this was “proactive” rather than $100 in Medicaid charges through a hospi- ing the cities and counties the worst. and the community. Some folks approached “reactive” government. But again, we have tal; $5.70 of that has to be funded by prop- One more thing: Lee County joined the me and asked me to run for office, so I did. to be ever vigilant to try to save that money. erty taxes from the county or sales tax. It has lawsuit against the state for the stealing of In 1998 I ran for county commission and There are many elected officials today to be derived from local reimbursements. the reimbursements. CJ won. In 2002 I was re-elected and have that perceive government money as their served for the past two years as vice chair- money, and it’s not. It’s actually money that man. we took away from somebody who earned it. And if more elected officials had that CJ: What was your motivation to run for county perception about what tax money actually commissioner? is, I think they would all make far better, more conservative decisions. Adams: Actually, even in college as the managing editor of UNCW’s newspaper, CJ: So that’s somewhat of a unique phenomenon The Seahawk, I always had an interest in in that you’ve merged those services with community issues. I can recall pushing for Sanford and the county. How does the account- change, trying to get more instructors in the ability work out with your arrangement? English Department or for the university to explain policies from time to time. And so Adams: That’s a great question, and I think when I got into the Jaycees my desire to one of the things we addressed well. We effect change eventually afforded me the created what we call an inter-local group, opportunity to lead the local organization. where we have representatives from our What I had continually seen was a lot of county commission and from the city coun- apathy amongst my generation. I’m 36 now, cil to address issues that might come up. so from ages 20 to 40 there’s a tremendous The Planning Department is run by a amount of apathy out there with young city employee who oversees the entire de- people not getting involved, not tuning in. partment, including county employees. And As a result of this I was noticing that we the county commission doesn’t per se hire seemed to be surrendering freedoms and that planner, so then you could say, “If I’m people didn’t really seem to care. a citizen of the county and I don’t like the In the Jaycee organization, while presi- planning director, I have no elected repre- dent, we were able to take that group from sentation.” But you do, because those county 36 members to 116 members in one year. commissioners can go into that inter-local We were one of the fastest-growing Jaycee group and say, “Here are some problems organizations in the nation. We tripled our we’re having.” It’s in their best interests, membership in one year, which no other also, to make sure we keep the harmony. chapter in the state had done in quite some Because this only works insofar as these time. And we were able to get very active. groups will work together. And there are That activity was directly related to folks exit clauses for the city or county so that getting involved and understanding what either can separate if the deal isn’t working. was happening in their community. But right now it seems to be working, it seems to be functional, efficient and we’re CJ: So how would you characterize your stay so moving forward in our county. far on the Lee County Commission? Are you more of a group of like-minded folks generally , CJ: I’m sure you got to talk to a lot of local gov- or do you have to try to work real hard to build ernment folks, not only there but on the phone. consensus, or are you a voice crying in the What’s your perception on what’s the hot issue wilderness? or a couple of issues that were thrown at you?

Adams: It’s been very fascinating. We have Adams: In the large metro areas, when you a 4-3 split. We have four Democrats and talk about Charlotte, the Triad, and the three Republicans, of which I’m one of the Triangle, which are huge population areas, February 2004 C A R O L I N A 18 Learning Curve JOURNAL

From the Liberty Library Book review

• An End to Evil: How to Win the FDR’s Folly: Federal Failure at Economic ‘Fixes’ War on Terror charts the agenda for what’s next in the war on terrorism, • Jim Powell: FDR’s Folly; Crown Forum, step toward his goal of getting Americans as articulated by David Frum, former 2003, 324 pp., $27.95 out of the habit of insisting on real money presidential speechwriter and best- by pushing a bill through Congress outlaw- selling author of The Right Man, and By GEORGE C. LEEF ing gold clauses in contracts. There was no Richard Perle, former assistant sec- Contributing Editor constitutional warrant for either the gold retary of defense and one of the most RALEIGH seizure or the prohibition of gold clauses in influential foreign-policy leaders in magine, if you will, this scene. A group contracts, but the Constitution meant noth- Washington. The world is an unsafe of presidential candidates is having a ing to FDR. place for Americans, and the U.S. I “debate” and the moderator asks, Another theme of the book is how New government is not prepared to de- “What are your plans for the economy?” Deal policies often hurt the poor. That was fend its people, Frum and Perle After several long-winded speeches, the the case for many poor sharecroppers, for write. The authors provide a detailed final candidate answers as follows: “I have example. Under the Agricultural Adjust- account of America’s vulnerabilities: no plan for the economy. That is so for two ment Act, farmers were told how much a military whose leaders resist reasons. First, the federal government has they could plant. While the federal govern- change, intelligence agencies mired no authority to take any steps to ‘manage’ ment then paid land-owners for not grow- in bureaucracy, and diplomats who or ‘stimulate’ or ‘fix’ the economy. My op- ing crops (in furtherance of the idiotic no- put friendly relations with their for- ponents, and indeed most politicians over tion that high farm prices would trigger the eign colleagues ahead of the nation’s the last 75 years or more, believe that the return of prosperity), sharecroppers re- interests. See www.randomhouse. Constitution gives them almost limitless ceived nothing and their incomes fell pre- com for more information. power to enact laws enabling government cipitously. Other New Deal policies that officials to control the nation’s economy. hurt the poor were pro-union labor legisla- • The application of economics But in fact, that document, which as presi- tion that made it easier for racially discrimi- to major contemporary real-world dent I would be sworn to uphold, confers natory unions to stifle competition from problems — housing, medical care, no such power. black and other minority workers, and discrimination, the economic devel- “Secondly, governmental economic FDR’s fondness for business cartels that opment of nations — is the theme of planning and regulation are counterpro- New Deal was a series of authoritarian prevented price cutting. The “little guy” for Applied Economics, Thomas Sowell’s ductive. Politicians love to foster the illu- measures that succeeded only in upsetting whom FDR’s heart supposedly bled was latest book. As distinguished from sion that they know how to improve the the natural economic order and making life hurt badly by the New Deal’s economic the jargon of economists, Sowell’s functioning of our economy, but that is a worse for Americans. “fixes.” book analyzes these and other issues completely mistaken idea. The history of A recurring theme in the book is that in plain language. It examines eco- governmental efforts to improve the FDR and his “Brain Trust” were not just The New Deal’s lessons nomic policies, not simply their im- economy is a history of waste, inefficiency, economic bunglers who didn’t understand mediate effects, but also their later and destruction. Therefore, if I were elected what they were doing. Rather, they were The author draws a list of key lessons repercussions, which often are differ- president, my only economic ‘plan’ would committed enemies of laissez-faire capital- from the New Deal that contemporary poli- ent and longer- lasting. Sowell, who be to repeal as many of the foolish and ism, bound and determined to replace our ticians ought to heed (but undoubtedly draws examples from experiences illegitimate laws we currently have in place, traditions of private property and freedom won’t): government “jobs programs” must around the world, also focuses on the reduce taxes, and give the people their free- with all-embracing government planning be avoided because they can’t create useful interplay of politics and economics. dom back.” and regulation. FDR himself set the tone. employment; that “soak the rich” taxation He shows how similar incentives Powell quotes his first inaugural address: will backfire by driving away investment and constraints tend to produce simi- Our foolish politicians “Rulers of the exchange of mankind’s goods funds; that deposit insurance should be left lar outcomes among disparate have failed, through their own stubborn- up to the free market; that government must peoples and cultures. Learn more at Of course, that scene is just a fantasy. It ness and their own incompetence, have not interfere with the free movement of www. basicbooks.com. is inconceivable that any major party candi- admitted their failures and abdicated. Prac- prices; that government support for labor date for the presidency (or other political tices of the unscrupulous money changers monopolies should be ended; that trade • In Breaking the Real Axis of Evil: office) would say such a thing. Having an stand indicted in the court restrictions must be How to Oust the World's Last Dicta- economic plan is now obligatory for politi- of public opinion, rejected ended, and more. It’s all tors by 2025, ambassador Mark cians. One would have to look back as far as by the hearts and minds eminently sound advice, Palmer argues what diplomats and Calvin Coolidge to find a candidate who of men… The money The New Deal was a drawn from the sad his- political leaders dare not speak: that was happy to spare the American people changers have fled from major erosion of tory of the damage done global peace will not be achieved from the vain notion that his commands their high seats in the American freedom, by one of our “great” until democracies replace the could improve their lives. temple of our civiliza- presidents. world’s remaining dictatorships. We have suffered enormously at the tion.” Most of FDR’s lieu- and to this day we live What Powell has Under the dictators, millions of hands of sanctimonious, meddlesome poli- tenants held similarly an- with nearly all of its dic- given us is not so much a people have been killed, a tidal wave ticians, but the clear champion in that re- ticapitalist views, and the “revisionist” history of of refugees has swept across the gard is Franklin D. Roosevelt, president Depression gave them all tatorial measures. the New Deal as one that planet, and nations have been driven from 1933 until his death in 1945. Usually the chance to indulge in is not distorted by the into poverty, famine, and despair. ranked among the “great” presidents, FDR their wishes to restructure common historian’s Drawing on more than 25 years of was a disaster of monumental proportions. the United States along socialist lines. The lenses of the idolatry of power. Most histo- diplomatic experience, Palmer wants Recently, a number of books have chal- fact that their plans would bring suffering rians are so eager to depict Roosevelt as an to embrace a vision of a world made lenged the myth of his supposedly brilliant and ruin to millions didn’t matter. After all, inspiring leader that they gloss over or at- safe by democracy. This is the story leadership. Among them is Jim Powell’s to make an omelet, you have to break some tempt to explain away the facts that the of the last 46 dictators, the strategy devastating FDR’s Folly. eggs, as Stalin once said. New Deal was immensely damaging to and tactics to oust them, and the Historian Powell here makes a compre- America’s economic recovery. FDR’s Folly need to empower the people of ev- hensive assessment of the “New Deal” poli- FDR’s seizure of gold puts those facts at center stage. Moreover, ery nation to control their own des- cies of FDR that have long been credited by Powell emphasizes that Roosevelt did much tinies. More at www. rowman big government partisans as having res- Among Powell’s chapters, a personal more than just retard our economic recov- littlefield.com. cued the U.S. from the Great Depression. favorite of mine is the one devoted to FDR’s ery — he launched a furious attack upon the He argues convincingly that, far from res- seizure of gold. I remember my grandfather freedom of people to go about their lives • Social activist and media com- cuing the country, the New Deal had pre- telling me about his disgust over that action without having to obey orders from gov- mentator Star Parker, in Uncle Sam’s cisely the opposite effect. FDR’s great plans and was eager to learn more about it. On ernment officials. The New Deal was a major Plantation: How the Welfare Bureau- for fixing the economy turned an economic April 5, 1933, FDR issued Executive Order erosion of American freedom, and to this cracy Enslaves America’s Poor and downturn that probably would have lasted 6012, which expropriated all privately held day we live with nearly all of its dictatorial What We Can Do About It, uses her just a year or two into a full decade of gold, with penalties up to 10 years in prison measures. Bravo to Jim Powell for showing own story to teach readers a five-step misery, and gave us a legacy of subservi- for noncompliance. But why take such a that FDR’s presidency left America both plan for breaking free from the sla- ence to imperious federal officials that re- flagrantly unconstitutional step? Powell ex- poorer and less free. very of entitlement and grabbing mains with us to this day. plains that one of FDR’s bugaboos was his I cannot imagine that any objective in- hold of the unlimited potential that notion that gold hoarding was responsible dividual could, after reading Powell’s book, comes with faith, personal initiative, Scan of chapters says it all for the banking crisis facing the nation. He view Roosevelt as anything other than a and entrepreneurialism. Parker says used his May 7, 1933 “fireside chat” to knave who managed to capitalize on the America has two economic systems: The 19 chapters of FDR’s Folly are all explain (as Powell puts it) “if Americans nation’s distress. If we could get politicians capitalism for the rich and socialism titled as questions, for example, “Why Did were free to buy gold, there soon wouldn’t to read FDR’s Folly, perhaps we would some for the poor, which keeps the poor FDR Seize Everybody’s Gold?” “Why Did be any left; and therefore in the interest of day hear one give that opening fantasy enslaved to poverty while the rich the New Dealers Make Everything Cost fairness, he denied it to everybody.” answer with which I began this review. But get richer. Published by WorldNet- More in the Depression?” and “How Did Now, the “running out of gold” idea even if it’s too much to hope that politicians Daily books, learn more at www. New Deal Labor Laws Throw People Out of was obvious nonsense, but FDR was adept will enlighten themselves on the history of wnd books.com. CJ Work?” Just scanning the chapter titles gives at concocting deceptive rationales for his economic bungling, at least readers of Free- the reader a good précis of the book – the policies. Just a month later, he took a further dom Daily should. CJ February 2004 C A R O L I N A JOURNAL Learning Curve 19

Book Review Ideas That Conquered World: A Hasty, Slanted View of History

• Michael Mandelbaum: The Ideas That Con- fensive,” what war cannot? cation by the majority of voters. While Man- quered the World: Peace, Democracy, and Free Nor does Mandelbaum offer any argu- delbaum asserts that modern social democ- Markets in the Twenty-first Century; Public ment as to why democracy is inherently lib- racies establish zones that are “off limits to Affairs; 200; 512 pp; $30 eral. He asserts that democracy involves the exercise of government power,” he gives “restraints on the exercise of power by gov- no indication as to what the boundaries of By GENE CALLAHAN ernments,” but he does not explain how or such “zones” might be. He tries to calm the Guest Contributor why that is so. If democracy simply means fears of classical liberals by contending: “In BROOKLYN, NY that a government should perform only the twentieth century… liberty and politi- he wonderful thing about Hegel- those actions that are approved by the ma- cal equality proved to be compatible in Brit- ianism as a “theory” of history is jority of its citizens, as Mandelbaum im- ain and the United States and throughout T that it can be shaped to suit almost plies, then it limits government only to do- the Western core.” However, many classi- any particular political agenda one wishes. ing whatever the majority approves, how- cal liberals might contend that mass democ- If you can formulate a thesis and antithesis ever illiberal it might be. racy has led to precisely the diminution of so that your political program emerges as liberty that they predicted it would. the synthesis of the two, then you can read Author’s not-so-free free markets all of history backward — a story inevita- ‘Working’ knowledge of markets? bly leading to its stirring climax: the tri- Mandelbaum’s version of “free mar- umph of your ideology. kets” is a sadly attenuated version of the While purportedly a supporter of free classical liberal policy of laissez faire. Rather markets, Mandelbaum does not seem to ‘The liberal theory of history’ than recognizing that free markets are what realize the fundamental flaw of socialism: occur when coercion and central planning the absence of any means by which to cal- The Ideas That Conquered the World is are absent, he believes that free markets culate economic success. He contends that such a reading of the past, intended to sup- must be “constructed” and “maintained,” while the command economy was “not nec- port what the author, who teaches foreign and that such construction and mainte- essarily superior to the market, [it] did policy at Johns Hopkins University and is defense but not for attack.” Such a policy nance are “far more difficult than had been work.” As evidence he cites the facts that a senior fellow at the Council on Foreign has been adopted fully, he says, “only [by] imagined for most of the modern era.” He in socialist regimes “people migrated in Relations, calls “the liberal theory of his- the countries of Europe and North holds that the “status and power” of the large numbers from the countryside to the tory.” However, it is not so much a “theory America.” World Bank and the IMF are evidence of cities” and “governments built, owned, and of history” as a riffling through the last cen- Does Mandelbaum really believe that the triumph of “laissez faire capitalism,” managed huge industrial complexes.” It is tury or two to discover events that lend the military forces of the United States cur- despite the fact that the existence of the two hard to imagine why these are indicators support to Wilsonian social democracy. rently are configured only for defense? institutions springs entirely from a per- of an economy “working.” Mandelbaum presents a “triad” of policies Since World War II, no foreign government ceived need for centrally planned interven- The Ideas That Conquered the World is a fundamental to his vision of liberalism: de- has attacked American territory, yet the tion into the market economy. salient example of the tendency to herald mocracy, free markets, and disarmament- United States has intervened militarily in Mandelbaum says “the rise of the wel- whatever trends are currently ascendant, collective security. other countries more than 60 times. One fare state… made popular sovereignty while ignoring any analysis of whether such However, he does not coherently ar- might applaud those interventions as nec- through universal suffrage compatible with trends are sustainable in the long run. CJ ticulate the meaning of any one of his triad’s essary for the good of the liberal world or- the protection of private property by giv- elements. For instance, Mandelbaum as- der, but to call all of them “defensive” seems ing every citizen property in the form of an serts that the “liberal” approach to interna- so to stretch the application of that word as entitlement to benefits from the state.” In Gene Callahan is the author of Economics for tional relations is the “configuration of all… to render it meaningless. If the U.S. inva- other words, “private property” is “pro- Real People and an adjunct scholar of the military forces so that they are suitable for sion of Panama in 1989 can be called “de- tected” by being subject to arbitrary confis- Ludwig von Mises Institute.

Book Review Outgunned: Authors Fire Blanks in Their Account of Liability Suits

• Peter Harry Brown and Daniel G. Abel: But at least four other lawsuits failed on burns on 80 percent of his body. about firearms laws — where, one would Outgunned: Up Against the NRA; The Free their own merits. Even in gun-hostile juris- To those with knowledge of the subject, presume, a lawyer would be in his element. Press; 2003; 338 pp. dictions, such as New York and California, the grossness of the errors is astonishing — “The Assault Weapons Ban prohibits deal- the courts ruled in favor of gun makers, and because Outgunned lacks footnotes, it is ers from selling guns like Uzis and Tec-9s to By CLAYTON CRAMER because the negligent marketing legal theory impossible to determine on which sources anyone.” Not true. The 1994 federal assault Guest Contributor is too silly to be taken seriously. the authors carelessly relied. Some of these weapons law, which actually prohibits new BOISE, ID Just because Brown and Abel are anti- errors are minor, and simply show the au- manufacture and importation, and is not a love a book with a happy ending — gun doesn’t discredit thors’ firearms ignorance, ban, does not apply to “the possession or and in spite of the hopes of the authors, Outgunned. To the extent such as several references transfer of any semiautomatic assault Ithis is such a book. Outgunned that Outgunned chronicles Substitute “automo- to “Glock service revolv- weapon otherwise lawfully possessed un- chronicles the product liability lawsuits by how these lawsuits were ers.” Glock has never der Federal law on the date of the enact- city, county, and state governments, alleg- pursued, and the person- bile” and “drunk driv- made a revolver. ment of this subsection.” ing that gun manufacturers negligently alities of the participants, ing accident” into this Another example: In The lawyers threatened Smith & marketed their products, leading to crimi- this could be a valuable discussing the stockbro- Wesson with lawsuits to get them to accept nal misuse. An interesting twist is that one book. Unfortunately, Out- theory and the reason ker murders by Mark O. a “Code of Conduct” that required makers of the authors, Abel, is one of the lawyers gunned is so awash in for failure of these suits Barton in Atlanta in 1999, to not sell guns that could be “quickly con- who worked with Wendell Gauthier, the gross factual errors that it becomes obvious. we are informed that his verted” into machine guns. That was al- mastermind between these gun marketing is hard to take it seriously pistols, “a Glock 9mm ready federal law, and has been for many negligence lawsuits (and the far more suc- — and easy to understand and a Colt .45… were years. Any weapon that “can be readily cessful tobacco lawsuits). why Gauthier and Abel’s team has lost equipped to kill with cartridges that could restored to shoot, automatically more than The guns in question worked as de- nearly all these lawsuits so far, either at discharge seven bullets without reloading.” one shot, without manual reloading” is al- signed and advertised; these are not defec- trial, or on appeal. Magazines can hold seven bullets without ready a machine gun under existing federal tive guns. The theory is that because a small reloading. With very rare exceptions, a pis- law. How many hours did they bill their percentage of guns are unlawfully trans- Sloppiness and sleaziness tol cartridge holds one bullet. taxpayer clients for drafting that provision? ferred by a retailer, or more commonly, by Legal arguments are supposed to be a a retail customer — three, four, five, or more Let me emphasize — errors, not inten- A fourth branch of government? series of logical arguments based on facts, steps removed from the maker — the maker tional deception. Brown and Abel seem to leading to conclusions. When the facts are should therefore be held responsible for its be honestly trying to portray what hap- Is this nitpicking? No, because Brown so often wrong, it’s hard to take seriously criminal misuse. Substitute “automobile” pened — often providing a surprisingly and Abel tell us in a number of places that the conclusions — or those making the ar- and “drunk driving accident” into this sleazy portrait of their side. They describe what they are doing with these lawsuits is guments. CJ theory, and the reason for the failure of these how Wendell Gauthier, the lead lawyer in acting “as a de facto fourth branch of gov- lawsuits becomes obvious. these lawsuits, faked a heart attack to a ernment, achieving by litigation what had One might get the impression from judge in order to move his closing argu- failed legislatively.” If you don’t under- Clayton E. Cramer has written books about Outgunned’s title that the political muscle of ment from Friday afternoon to Monday stand these basic technical details, how can weapons regulation in America, black history, the NRA defeated these lawsuits. It’s true morning — just before the jury would start your extraconstitutional “fourth branch of and the Civil War. His most recent book was that four lawsuits were dismissed because deliberations. Brown and Abel describe one government” come up with sensible laws? Concealed Weapon Laws of the Early Re- of legislative passage of laws shielding gun of their fellow lawyers who went into an More important than these careless er- public: Dueling, Southern Violence, and makers from such lawsuits played a part. intensive care unit to sign up a client with rors about firearms are the careless errors Moral Reform. February 2004 C A R O L I N A 20 Opinion JOURNAL

Recording Industry To Face the Music

ast year was not a good year for the music industry — sales were down. The previous L two years were even worse, with even bigger declines in sales. The recording industry, of course, blames all of its problems on people downloading music instead of buying it. They miss the point: The music industry’s eco- nomic model is broken. The way the industry oper- ates simply does not work for customers, artists, or even the record labels themselves. This is not a new develop- ment, it’s just that advances in technology — affordable high-speed Internet access and CD burners — have made it very obvious. The underlying issue is who de- termines what music is avail- able, at what price, and how: Is it consumers and artists or Michael a static industry blob? Lowrey From the listener’s stand- point, music has become pricey. List prices of $17.99 or even $18.98 are com- mon. Even on sale, the latest releases still go for $14. With the single gone, consumers are forced to buy the nonprofit Heritage Foundation’s Backgrounder, is the man- entire album just to hear the one song they are inter- Editorials dated diversion of as much as 40 percent of federal fuels-tax ested in. And at nearly $20 a pop, few people are revenues to nongeneral purpose highway projects that willing to experiment in the music they buy. benefit small but influential fractions of the population. Musicians, in turn, feel underpaid. The amount Members of Congress inserted into the 1998 legislation, the artists receive varies based upon the specifics of their BETTER GAS TAX Transportation Equity Act, many of the thousands of pork- contract. While royalty rates of about 15 percent are barrel projects that waste billions of dollars. common, after various discounts and allowances that U.S. bill offers states a golden opportunity The largest diversion of all is the federal transit pro- go to the label are figured in, artists might get 9 gram that shifts a disproportionate share of the federal percent of the gross (say $1.50 per CD sold). The transportation money (20 percent) from roads to transit artists are also responsible for the costs of recording ome of North Carolina’s, and other states’, highway systems that carry only a small portion (1.8 percent) of the the album, and some or all (depending on their headaches could be soothed relatively quickly if traveling public. In North Carolina, Gov. Mike Easley contract) of any videos produced to support the S revolutionary legislation recently introduced in began diverting some state highway funding to mass- record. An artist’s manager and lawyer also get a Congress were to become law. transit projects in 2003. share of receipts. Finally, if a band is involved, what- The name of the bill, sponsored by Rep. Jeff Flake, R- Under current law, 2.86 cents of the federal tax goes ever is left gets divided up. Ariz., is the Transportation Empowerment Act (H.R. 3113). into the Mass Transit Account — which means that motor- The New York Daily News recently ran an article It would reverse an unfair funding formula whereby the ists across the nation provide the same subsidy for transit calculating what a hypothetical four-piece band whose federal government collects 18.4 cents a gallon on gasoline even though the availability and usage of transit services album went gold (sold 500,000 copies) would earn. and other fuels and then distributes the accumulated rev- vary dramatically from place to place and are largely Though generating $8.5 million in sales, each band enue each year to the states as Washington sees fit. States concentrated in just a few major metropolitan areas, Utt member would get about $40,000 under standard also tack their own fuel taxes atop the federal levy. North says. Seventy-four percent of transit ridership occurs within industry contracts. In 2002, of the many thousands of Carolina adds a tax of 24.3 cents a gallon. seven metropolitan areas — New York, Chicago, Philadel- albums released, only 128 went gold. The problem is that there is wide disparity, geographi- phia, Boston, San Francisco, Los Angeles, and Washington, The situation is little better for major labels. Their cally, in the distribution of the revenue. Southern and D.C. New York alone accounts for 42 percent of America’s own cost structure is such that unless an artist sells Western states, year after year, generally receive much less total transit ridership. very well, the label loses money, too. than the amount they pay in fuel taxes to the federal Despite this concentration of transit ridership in a government. On the other hand, states in the northeast and handful of places, all motorists share equally in the costs. The non-solution central U.S. generally get much more than what they pay. Motorists in Oklahoma, for example, ship nearly 20 percent Then, too, the nation’s transporta- of their federal fuel taxes to the Mass The recording industry’s very public answer to tion problems have become increasingly Transit Account in Washington, D.C., its problems is to crack down on people sharing local and regional in nature. In North Southern and Western yet transit ridership in Oklahoma ac- music via the Internet. While copyright infringement Carolina, a rapidly deteriorating Inter- counts for only 0.04 percent of the trips is a serious issue, stamping out file-sharing won’t state 95 and the decay of other major states… generally re- taken in the state, compared to Mary- solve what ails the industry. Basic economic theory highways and bridges quickly come to ceive much less than land, where 6.9 percent of commuter trips teaches that as price increases people buy less of a mind. Federal officials have little to offer the amount they pay in are by some form of mass transit. product. Or to put it another way, only some of the in the way of effective solutions to the Bus systems in North Carolina’s people that download the latest Pink album would crumbling of the states’ infrastructure. fuel taxes to the fed- major metropolitan areas continue to at- otherwise have bought it in stores. Flake’s bill would allow states to col- eral government. tract low ridership. In the Charlotte area, Regardless of the industry’s momentary success lect all of the taxes and keep their full for example, only about 3 percent of trav- in fighting file-sharing, the cat is out of the bag. The portion of the revenue. Then the states elers use mass transit, according to the public is now aware of the low costs of manufactur- could spend the revenue on transportation priorities of 2000 Census. Given the state’s relatively low population ing CDs and the high prices being charged for them. their own choosing — not Washington’s. Billions of dol- density, this is unlikely to change, even after planned light- The incentive remains for someone to find a legal lars, and a healthy measure of independence, are at stake. rail projects are constructed in the Triangle and the Char- means to change the industry using the Internet. North Carolina alone stands to gain at least $300 mil- lotte metropolitan areas. Apple’s iTunes is one exciting recent development, lion a year, based on an annual average the state paid in Flake’s proposal would allow each state to adjust its offering 500,000 songs for legal downloading at 99¢ federal gas taxes from 1995 to 2000. That’s because North spending patterns and subsidies to conform more closely each. Entire albums go for $9.99. Carolina gets back only 64 cents of every dollar paid to the to the prevailing ridership preferences of its taxpaying The Internet creates the potential for something feds, according to N.C. State University economist Michael citizens. In North Carolina, ever-worsening congestion on even more revolutionary, the possibility of direct Walden. Other fast-growing states in the South — Ala- major highways dictates that the money go toward con- marketing by artists to listeners. Given the limited bama, Mississippi, Georgia, Virginia, Florida, Tennessee, struction of new roads, not toward mass transit. income stream artists currently enjoy, it would not South Carolina, Kentucky, Texas, and Louisiana — also are The expiration of TEA-21 on Sept. 30, 2003, presents take much for many of them to jump ship. “donor” states. Congress with a once-in-a-decade opportunity to reform Whatever the outcome, the fallout will reach far States in the Northeast, many of which rely heavily on the federal highway and transit program in a way that beyond the world of music. Other copyright depen- transit, make a killing off the current federal apportion- would give greater responsibility and decision-making to dent industries will face closely related issues in ment. New Jersey, Rhode Island, Connecticut, New York, the states and metropolitan areas. The Transportation coming years. And if technology and entrepreneur- and Massachusetts all receive $1.50 to $2.80 in federal Empowerment Act — which would give motorists greater ship can transform the music industry, a powerful transit spending for every dollar they pay in federal gas mobility without increasing taxes — is a good place to start. model for change will exist that might be applied to taxes, Walden reported. By then, hopefully, North Carolina’s leaders will gain other stagnant sectors, such as education. CJ Another major problem with the existing federal pro- the wisdom to put gas-tax money to work on the state’s gram, according to Dr. Ronald D. Utt, writing for the highways, where the money belongs. CJ February 2004 C A R O L I N A JOURNAL Opinion 21

rate in its statistical reports, at least since the mid-1990s. A sister organization, the North Carolina Education Alliance, DROPOUT-GATE has used the data frequently, including in an annual re- port card on the state’s school systems. Bush’s Good Start State superintendent’s excuse really isn’t Perhaps the state’s measure was relatively crude, but it was certainly superior to inventing a useless “gradua- tion rate” measure that could only serve to obscure the real On Immigration or a group that has gotten used to receiving — and dropout problem. broadcasting — good news about its public schools At this point, it appears that someone in DPI either onservatives and liberals, Republican and Fover the past few years, North Carolina politicians made an egregious error or tried to fool parents, taxpay- Democrats, business and labor — they all reacted to a recent critical report with a dismaying combi- ers, and the federal government. A better explanation is have something to say, mostly negative, nation of confusion and obfuscation. needed, to put it mildly. C about President Bush’s immigration-reform plan. The issue was North Carolina’s “graduation rate.” It’s This should serve to rebut one allegation: that the one of the statistics that states must report to the federal president’s motivation was political pandering. If government under the No Child Left Behind Act. Bush wanted to pander, he would have pitched a Educators, reformers, and politicians have been talk- punitive policy. And if he wanted to be safe, he ing about ways to assess high-school completion rates for WEIGHTY FREEDOM wouldn’t have waded into the issue at all. some time. The mostly widely used statistic in the past, Instead, Bush wants to increase legal immigra- the “dropout rate,” fails to communicate useful informa- New data show taxpayers shoulder the load tion, toughen border control, and allow currently tion. A dropout rate is simply the percentage of students undocumented aliens to apply for three-year work known to school officials in any given year to have ended visas. I don’t agree with everything in the plan, but prematurely their high-school career. These rates can seem ave you been eating right? Getting enough ex- it does strive for the appropriate, nuanced position awfully low, in the middle to low single-digits, but the ercise? How far away are you from your ideal about a topic often suffused with demagoguery. appearance is deceiving. Hweight? You may think that we have no business One reason for all the sniping is that the immi- For example, if 6 percent of a given class drops out in asking you such personal questions, but privacy is no gration debate has 2003, that may not sound dire. But if this rate occurs in longer a legitimate excuse. And you can blame the so-called spawned two distinct, each of the four years, then only 78 percent of the original “progressive” legislation of the 1960s that forces us poten- vocal, and mutually an- class would graduate. tially to pay for your health-care costs. tagonistic camps, neither More problematic has been the practice of some schools According to a new study by researchers at the North of which will ever be to report dropout rates not simply for grades nine to 12 Carolina-based RTI International and the Centers for Dis- mollified by nuance or but for grades seven to 12, arguing that there were some ease Control and Prevention, U.S. taxpayers are compelled middle courses. First students who were old enough legally to drop out while to fork over $39 billion a year, or about $175 per person, to you have the draw- still in middle school. The real reason for adopting this al- finance treatment for obesity-related illnesses through bridge-cranks. This ternative was to mask further what was really going on by Medicare and Medicaid. This startling number is even more group comprises such increasing the size of the denominator far more than the so when compared against the total estimated cost to treat different elements as John Hood numerator. obsesity each year: $75 billion. In other words, most of the unions, cultural elitists, medical costs associated with people eating too much or nativists, a few out-and-out racists, and anti-growth Other ways to measure school completion exercising too little are borne not by the patients or their environmental extremists, though I should add that families but by innocent taxpaying bystanders. just because they have come to the same conclu- Understanding the drawbacks of the dropout rate, That leads to this disquieting conclusion: What you sion does not mean that they all share base motives. many schools had developed alternative measurements. do in the privacy of your own homes regarding diet and Their position is that the country simply has The primary one was the graduation rate, also sometimes exercise is now very much our business, as our habits are too many immigrants. For some, the issue is pro- called the retention rate or the completion rate. The sim- now yours. tecting jobs. For others, it is protecting the nation’s plified version merely divided the number of students in Sure, the government officials who say these data prove culture or politics from “invasion.” They want the 12th grade by the number of students in the entering fresh- the need for “public investment” in anti-obesity programs drawbridge into the American castle to be cranked man class four years earlier. While crude, the resulting make the whole endeavor seem reasonable, compassion- up — typically favoring much more spending on percentage more or less reflected the share of students ate, and noble. But that doesn't change the fact that in a border control, aggressively punishing employers moving through high school successfully. supposedly free society, there is now a coherent if terrify- who hire illegals, and generally trying to ratchet But complications arose. What about students who ing rationale for coercive government to “help” you count down the rate of immigration. Their economic ra- transferred from one school or district to another, or who your calories and burn your carbs. tionale is incoherent. If immigrants are willing to dropped out for a while and then returned? What about take jobs at lower wages, the economy benefits. Sav- school systems experiencing large inflows or outflows of And then come the lawyers ings on labor will accrue either to the benefit of con- school-aged population for reasons unrelated to education, sumers paying lower prices or to business owners such as rapid immigration? Moreover, since we all know that it is rather difficult and investors receiving higher returns. Consumers Responding to these concerns, researchers devised to give up the fatty foods we enjoy and make ourselves armed with additional purchasing power will buy ways to adjust numbers and include more data. One ob- spin the treadmill for half an hour after a hard day’s work, other goods and services, thus boosting the demand jection — that the graduation rate was an unfair measure- couldn't it logically be said that obesity is the result of ad- for domestic labor in other sectors. ment because it implied students who failed to graduate dictive behaviors? Don’t nefarious fast-food corporations There is nothing conservative about interfering in four years would never graduate — sounded plausible manipulate us through deceptive advertising and preda- with free enterprise or trying to “prove” whether but was really beside the point. Students who fail a grade tory pricing to eat too much of the wrong things, just so the economy “needs” to import workers, a ques- and then go on to graduate in five or more years will still they can greedily reap their ill-gotten profits? tion that markets will answer on their own. Nor do make their statistical presence felt, albeit in a different It's not too far a journey from Big Tobacco to Big Mac. I find the enforcement measures many of them es- year’s graduation rate. This won’t distort the trend over There are already serious proposals to impose excise taxes pouse to be consistent with freedom or economy. time. on fatty foods, just as governments do on cigarettes and But the other pole in the debate, held up by the alcohol. There are plaintiffs already beginning an initial open-borderers, is characterized by myopia. Immi- North Carolina’s laughable statistic round of lawsuits against food companies to recover health grants aren’t just potential workers or entrepre- costs from obesity, and it's not too much of a stretch to neurs. They are also potential consumers of public Sorry for the lengthy explanation, but only now can imagine state governments following suit at some point to services, welfare recipients, even criminals and ter- we explain what happened with North Carolina’s exag- recover Medicaid and other public health expenses. rorists. In a perfect world, government shouldn’t gerated graduation rate. First, a group called Education What’s dangerous is not that these attempts are being care who enters the country, but then again in Trust compared the states’ independently measured gradu- or will likely be made, but that they are not all wholly un- Neverland fairy-dusted emigres could simply fly ation rates to those reported by the states to the federal reasonable. If obesity isn't just a problem for the obese but over the border. Here in the real world, states and government. In some cases, the differences were dramatic for the entire society, made so by government programs localities must deal with the cost of schools, pris- — none more so than North Carolina’s, which had been that socialize risk and reduce incentives to act wisely, tax- ons, hospitals, clinics, and other institutions. They reported as 92 percent but was actually 63 percent. payers cannot fail to have some legitimate say in trying to must grapple with political demands for bilingual Why this huge disparity? Many drew the rather obvi- reduce their financial risk. education, politically correct curriculum, and dis- ous conclusion that North Carolina education officials were It would be no different if government compelled criminatory quotas. They have a duty to keep crimi- trying to hide bad news. The state’s methodology was ris- homeowners to purchase insurance and then compelled nals or terrorists out while welcoming those immi- ible: It started with the 12th-graders who graduated and insurers to offer coverage even to already burning houses. grants truly pursuing the American Dream. then worked backwards to see how many had done so in And advocates of today’s government health programs Bush’s proposal is a laudable attempt to pur- only four years. This gets the problem exactly backwards, can’t get away with insisting only that they favor informa- sue these goals simultaneously — to increase the since obviously those students who dropped out before tion and public education. What if a Medicaid patient or flow of legal immigrants seeking opportunity while getting to the 12th grade aren’t in the mix. elderly retiree refuses to take your sound advice? Given decreasing the flow of illegal immigrants seeking But school officials denied playing games. They said the socialization of health care, what right do they have to handouts, crime victims, or terrorist targets. Let’s that North Carolina had submitted admittedly flawed data refuse and thus impose a cost on everyone else? get real. We aren’t going to deport 10 million illegal because they didn’t yet have a way to measure a real gradu- There are plenty of moral reasons to oppose the con- immigrants and we cannot simply ignore our bor- ation rate. “For the Education Trust to come along and sug- tinued growth of intrusive government. Taxation for ex- ders. Bush’s opening offer deserves careful and ra- gest we’re somehow deceitful . . . is absolute nonsense,” tra-constitutional government is theft. And making all sort tional debate. CJ state school Superintendent Mike Ward told the Asheville of tax-financed goodies available to the right special inter- Citizen-Times. est and the right time is an invitation to bribery and fraud. Here’s where Ward lost us. We know for a fact that the But add this one to the list: Individual freedom will be im- Hood is president of the John Locke Foundation and pub- agency he heads, the Department of Public Instruction, had periled over time in rough proportion to the degree of in- lisher of Carolina Journal. long measured and reported the graduation or retention dividual dependency on the state. CJ February 2004 C A R O L I N A 22 Opinion JOURNAL

Editorial Briefs

Endangered Species Act doesn’t work

The main purpose of the 1973 Endangered Spe- cies Act is to protect species on the verge of extinction and to aid in their recovery. Yet some observers consider the law a failure, perhaps one of the worst environmental laws passed by the government. Over the past 30 years, only 30 species have been removed from the “endangered” list of more than 1,000 species. The primary reason for the removal of the species is their extinction and not their recovery through gov- ernment efforts. Although the law has actually prevented some federal projects that would have destroyed habitat, the majority of endangered species live on private land. Private initiatives by such groups as Ducks Unlimited have successfully encouraged waterfowl conservation. However, the ESA creates a perverse incentive for private landowners by substantially reducing the economic value of their land. For example, North Carolina timber owners log young trees before they grow large enough to entice endangered critters. And a recent study found that landowners would not allow experts on their land to assess the Preble’s meadow mouse population, fearing that ESA regula- tions would restrict use of their property. An attempt by the Fish and Wildlife Service to revise the ESA to include “safe harbor” and “no surprises” protections for landowners was recently invalidated by a federal judge. There has been no major revision of the ESA since 1982, but the ESA must be fixed so that the federal government works with landowners, not against them. Reported in the Wall Street Journal. Should Americans Fear a Trade Deficit?

Hillary’s program caused vaccine shortage By MICHAEL L. WALDEN causes damage to the economy. Certainly a trade deficit Contributing Editor represents sales that go to foreign companies and workers RALEIGH rather than to U.S. companies and workers, and so, on this If Democrats, and a few Republicans, get their s the country moves into a new year, most of the basis alone, a trade deficit costs the United States both jobs way, flu vaccine shortages will soon spread to medi- economic indicators are looking up. Indeed, 2004 and income. cines for other diseases, said Robert Goldberg, direc- is expected to be the best year, thus far, of the ‘00’ But there are several responses to this fundamental tor of the Manhattan Institute’s Center for Medical A decade, with substantial gains being registered in eco- concern about a trade deficit. If a trade deficit results Progress. That’s because Democrats want to apply the nomic growth, jobs, income, and stock mar- because some U.S. buyers are finding better policies that produced the shortages — federal bulk ket returns. bargains from foreign producers, then the purchase and distribution of old vaccines at govern- But there’s one nagging economic issue U.S. economy is actually made better-off from ment-controlled prices, combined with a refusal to that doesn’t seem to be getting better — the the foreign purchases. pay for new technology in the name of cost contain- trade deficit. As a country, we continue to For example, the main reason the United ment — to every drug used for every disease, no import more products than we export. The States buys so much foreign oil is that the oil is matter how fatal. United States has run a trade deficit annually cheaper and of better quality than much of the The current mismatch of immediate demand and for more than 20 years. In 2002, the deficit was oil that could be pumped in the United States. available supply can be blamed on the federal Vac- $483 billion, and in 2003 it was likely just as Using foreign oil allows all of us to pay less for cines For Children Program, Hillary Clinton’s dry run large or larger. gasoline, and therefore we have more money for national health care. Analogies are often made between na- remaining to spend on other things. The vaccine program buys up nearly 70 percent of tional economic situations and family per- A trade deficit can also be a sign a country all childhood vaccines at government-set prices and sonal finance. So most families know if they is growing faster than foreign countries. In distributes them to states according to a federally set continually spend more than they earn, they this case, the country’s appetite for products formula. The result is vaccines have gone to where the will ultimately face financial trouble. and services is so great that it must be partially outbreaks aren’t, and price controls have discouraged Michael L. Walden Some like to make the same statement for supplied by foreign producers. vaccine makers from producing more than what the the nation regarding the trade deficit. If the government orders. United States continually buys more products from other Dollars and foreign investment Reported in the Washington Times. countries than it sells to those countries, then won’t this eventually mean monetary trouble for our country? Just But perhaps the biggest misconception about a trade The costs of unemployment benefits like a person running up large credit card debts, doesn’t a deficit is what happens to the dollars that are paid to trade deficit mean the country is living beyond its collec- foreign companies. There’s a sense among some people Economists have isolated the effects of extended tive means? these dollars are lost or hoarded. unemployment benefits. Since many workers wait Actually, the dollars come back to the United States in until their benefits are almost exhausted before taking Different ways of looking at the deficit the form of foreign investments. Foreign owners invest the a new job, the effect of extending benefits beyond 26 dollars in U.S. stocks, bonds, land, companies, farms, and weeks extends the date when they have to take a job. However, two adjustments must be made to put the factories. And these foreign investments create jobs and One estimate concluded that for each week benefits trade deficit in perspective. First, there is also world trade income in the United States. are extended, the average duration of unemployment in services. For example, when U.S. legal firms or construc- In fact, in any year, the dollars lost through the trade increases by about a day. tion companies have contracts in foreign countries, this is deficit to foreign countries are virtually counterbalanced Forcing a worker to take a job that he may not counted as exports of services from the United States to by the dollars invested in the United States by foreign want may seem cruel, but the alternative can be those countries. countries. So, essentially we pay for our greater purchase of worse. In Europe, every country has unemployment Or, when foreign tourists come to Disney World or to foreign products by giving up ownership of some U.S. benefits more generous than they are here. It is not our North Carolina beaches, mountains, and golf courses, assets to foreign owners. uncommon for benefits to replace 80 percent to 90 these are also exports of services from the United States to Does this means we’re gradually selling off America? percent of gross wages, compared to 50 percent to 70 the home countries of the tourists. Recent trends would suggest not. The share of U.S. land percent in the United States. Unemployment benefits The United States actually runs a trade surplus in and financial assets owned by foreigners hasn’t changed in Europe typically last for a year; some allow people services, amounting to $65 billion in 2002. So when world much in 20 years, and stands at less than 10 percent. So to receive them for up to five years. trade in both products and services is considered, the U.S. although there are many economic issues in our country But the cost of compassion is high. Taxes are trade deficit in 2002 was $418 billion. that may concern you, the trade deficit probably shouldn’t vastly higher and so is the unemployment rate. In Second, it’s important to keep the trade deficit in be one of them. CJ Belgium the unemployment rate is 11.6 percent. Italy, perspective. Certainly $418 billion is an incomprehensible Germany, and France have rates over 9 percent. Eu- number to any person. But the entire U.S. economy gener- rope as a whole has an unemployment rate of 8.5 ates almost $11 trillion of income each year. The trade percent, compared with 5.9 percent here. deficit was therefore less than 4 percent of the U.S. economy Michael L. Walden is a William Neal Reynolds distinguished Reported by the National Center for Policy Analy- in 2002. professor at North Carolina State University and an adjunct sis. CJ Yet, the broader question is whether a trade deficit scholar with the John Locke Foundation. February 2004 C A R O L I N A JOURNAL Opinion 23 Has the GOP Become the Party of Big Government?

By MARC ROTTERMAN mitted to reducing the size and scope of government, but warned his House colleagues that their vote for the Medi- Contributing Editor politically his rhetoric was a winner for Clinton in 1996. To care prescription drug benefit would label the GOP as the RALEIGH give the Devil his due, Clinton understood what would sell party of new entitlements. as the GOP become the party of big government? with the public. No administration in the history of the Some economists argue that the bill’s colossal new President Ronald Reagan said it best: “govern- Republic polled the electorate more than Clinton’s team. spending will hasten the bankruptcy of Medicare, or that Hment is not the solution to our problem; govern- the increased spending will cause massive inflation. Fur- ment is the problem.” As one who worked on Reagan’s Government on steroids since 1998 ther, retired employees are now the obligation of taxpay- 1980 presidential campaign and subsequently ers, and the new plan will force senior citizens who have in his administration, I always thought that Since 1998 there has been, by any mea- employee drug benefits into lower coverage and a more philosophy, at least domestically, along with sure, a colossal expansion of the federal gov- expensive government plan. across-the-board tax cuts, really defined the ernment. During that year, a temporary boon Consider these statistics that highlight the cost of gov- differences between the Republican and the in tax collections brought the first budget ernment, according to the Heritage Foundation: Democrat parties, or more succinctly, between surplus in more than 25 years. With the aboli- • In 2003, federal spending exceeded $20,000 per conservatives and liberals. tion of the budget deficit, the argument for household for the first time since World War II. budget restraint quickly lost its relevance • The federal budget has expanded by $353 billion Reagan’s reformation cut short among lawmakers and the Clinton adminis- over its 1998 level, led by sharp increases in defense, tration. The big spenders and purveyors of education, health, farm subsidies, unemployment benefits, After the debacle of President Lyndon pork were back in business. and dozens of small, lower-priority programs. Johnson’s Great Society programs, and By the first year of George W. Bush’s • Defense and the attacks of Sept. 11 accounted for just frankly, Presidents Richard Nixon and Jimmy administration in 2001, the budget surplus 45 percent of all new spending since 2001. Carter’s expansion of the federal government, was quickly evaporating. This happened in • Mandatory spending has reached the highest level in Reagan was swept into office defeating an Marc Rotterman large part because tax revenues could no longer U.S. history. incumbent. He almost immediately made keep pace with runaway spending. Then, the • These total-spending increases occurred despite net good on his promise of across-the-board tax cuts for the terrorist attacks of September 11 necessitated increased interest costs that plummeted by $110 billion. working families of America. The cuts stimulated an eco- spending on national security. Lawmakers in Congress, nomic recovery, which continued well into the 1990s. with the exception of a minority of conservatives, stead- Conservatives must call for restraint However, a Democratic Congress that refused to coop- fastly refused to balance these new top priority costs with erate when it became time to cut the size of bureaucracy cuts elsewhere in the budget. Recently, President Bush released the outline for his hamstrung Reagan’s administration. Reagan once quipped, According to the Heritage Foundation, education 2004 budget, which includes accelerating income-tax re- “We have long since discovered that nothing lasts longer spending surged by 78 percent from $34 billion to $58 ductions and numerous other tax cuts. Let’s be clear, the than a temporary government program.” Perhaps no truer billion. Most of the growth transpired between 2001 and president deserves much credit for the tax cuts that were statement was ever uttered. Even allies such as then-Secre- 2003 as the No Child Left Behind Act was being imple- passed in 2003. Those tax cuts have stimulated the economy, tary of Education Bill Bennett did little, if anything, to mented. and because of the president and his allies in Congress, reduce the size of their respective departments. In fact, families are keeping more of what they earn. history affirms that Bennett increased the budget in the Medicare prescription benefit was final straw The administration’s fiscal 2004 budget calls for a 4.2 Education Department. percent increase over 2003 spending levels. That is a good Now, fast forward to President Bill Clinton’s State of Before the congressional break for the holidays, a ma- start, but conservatives must insist that Congress and the the Union speech Jan. 23, 1996. Taking a page out of jor fight erupted between conservatives in Congress and Bush administration do better. The national debt is inching Reagan’s playbook, Clinton said in that speech, “We know congressional leaders and the Bush administration. The toward $7 trillion. Belt tightening is required, and priorities big government does not have all the answers. We know fight was over the Medicare prescription benefit, which must be set. To not do so would be irresponsible of the there’s not a program for every problem. We have worked would expand the size of government. Essentially what the GOP, which, after all, controls both houses of Congress and to give the American people a smaller, less-bureaucratic legislation did was to create a new unfunded entitlement. the White House. CJ government in Washington. And we have to give the Many conservatives argued that the Republican Party American people one that lives within its means. The era of turned its back on limited government, and the absolute big government is over.” monopoly on the claim that the Democratic Party was the Marc Rotterman is a senior fellow at the John Locke Foundation Not for a moment do I believe that Clinton was com- champion of big government. Rep. Mike Pence, R-Ind., and treasurer of the American Conservative Union.

Cooper Wages Environmental Imperialism Against Other States

By DR. ROY C. CORDATO that that does not happen.” It should be noted Monitors placed near polluters Contributing Editor that this is an analytically vacuous threat, RALEIGH since there is no serious scientific analysis According to a report in the Lexington Dispatch, prob- n 2002 the North Carolina General Assem- identifying what those benefits are. lems in these locations could be due to where the DAQ has bly passed the “clean smokestacks” bill. Governor Mike Easley and the Republi- placed the monitors that measure the amount of soot in the IThe legislation mandates dramatic reduc- cans and Democrats in the Assembly relied air. Fine particles are the result of burning fuels such as tions in emissions from coal-fired power plants almost completely on propaganda from left- coal, gasoline, diesel, oil, and wood. The monitor in Lexing- run by Duke Power Co. and Progress Energy wing environmental pressure groups as justi- ton is located next to a wood-burning barbecue restaurant, and will cost North Carolina electric customers fication for the bill. railroad tracks carrying diesel locomotives, and a furniture more than $2 billion over the next eight years. Now it appears that the administration, factory. Guy Cornman, Davidson County planning direc- In spite of the high price tag, the law was through its attorney general’s office, is con- tor, is quoted as saying that Sheila Holman from the DAQ enacted with no cost-benefit analysis or seri- tinuing to carry the water for these same “almost guaranteed us we could get lower readings” from ous scientific investigation of its health effects. groups. The point is to have the courts force a monitor in a different location. In addition, The Dispatch Now that these costs are a permanent part of Dr. Roy Cordato an ideological agenda onto states whose leg- revealed that the monitor in Hickory is near a railroad and living and doing business in North Carolina, islatures are not the water boys found in Ra- furniture plant, and a monitor in Charlotte that consis- Attorney General Roy Cooper has decided to leigh. Cooper’s latest assault on the sover- tently gets above-normal readings is also next to a barbecue use a little-known aspect of the law in an attempt to impose eignty of our neighbors comes in the restaurant. these hardships on our neighbors. The smokestacks bill form of a threat to pursue action through This suggests that Cooper’s office authorizes the state to “use all available resources and the EPA against Georgia, Kentucky, Ohio, The monitor in Lexing- has either not done its homework or it is means,” including lawsuits, “to induce other states...to South Carolina, Tennessee, Virginia, and deliberately harassing the citizens of achieve reductions in emissions...comparable to those re- West Virginia. ton is located next to a other states. In either case its actions are quired [in NC]...” While providing no evidence, Coo- wood-burning barbe- inconsistent with the best interests of per strongly suggests that emissions from cue restaurant, rail- North Carolina and good relations with North Carolina bows to propagandists these states are responsible for possible our neighbors. compliance problems with EPA pollu- road tracks... and a fur- It is clear that when it comes to envi- North Carolina’s smokestacks regulations are much tion standards in Charlotte, Hickory, and niture factory. ronmental policy, North Carolina’s more stringent than those enacted by other states or the Lexington. policy makers have been motivated pri- federal EPA. Ever since the bill was passed, Cooper has The N.C. Division of Air Quality has marily by ideology and environmental- been using the presumed moral authority that it gives determined that these areas are in danger of not meeting ist propaganda, with little attention paid to sound scientific North Carolina on air quality issues to pursue what might new EPA regulations on what is called particulate matter, analysis. This was clearly the case with the Easley best be called “environmental imperialism” with respect to or “soot.” administration’s dogged pursuit of the clean smokestacks our neighbors. First, it is not clear yet whether these areas will indeed bill and it appears to be equally true for Cooper’s crusade Last year, shortly after passage of the bill, he sent a fail the EPA test. A determination is not due until next year. of environmental imperialism. CJ threatening letter to seven Southeastern states, stating But more importantly, there is no reason to believe that the “…North Carolinians do not want the benefits created by problems that these three locations may be experiencing this new law to be lost because of emissions from other have anything to do with emissions coming from other Dr. Roy Cordato is vice president for research and resident states. We will look at all options available to us to ensure states. scholar at the John Locke Foundation. February 2004 C A R O L I N A 24 Parting Shot JOURNAL It’s Not Laziness; It’s a Neurological Disorder A UNC-Chapel Hill researcher’s discovery of ‘Output Failure’ could save a generation from abusive language, work

“He’s so lazy!” It’s an epithet frequently flung at children usually serves as a protective bosom against the manifold who don’t do their homework or apply themselves in school. But cruelties of the American family, this time provides no re- in his new book, The Myth of Laziness, Mel Levine, M.D., a spite. Indeed, assigned “homework” is a regular activity professor of pediatrics at the University of North Carolina at of this antiquarian mode of education delivery. Homework Chapel Hill, argues that very few children (or adults) are actu- compounds the OF victim’s unhappiness, and the schools ally lazy. Instead, he believes that subtle, undiagnosed often replicate the errors of the parents by insisting that neurodevelopmental breakdowns cause memory, language, mo- the work be completed at the risk of losing privileges. At tor-function, and organizational weaknesses, which lead to what least in the schools, corporal punishment is no longer he calls “output failure.” threatened, but this modest advantage is compromised by — Child Magazine, February 2003 the fact that in schools, the OF sufferer faces usually many peers who are quick to deliver epithets based upon his condition. Ironically, as this neurological disorder has only OTE: The following is excerpted from the most re- recently been discovered, few victims know of their cent edition of The Public Schoolteacher’s Manual One way a sufferer of OF may try to alleviate his condition. victimhood, and therefore it is not unusual for a person Nfor Diagnosing Mental Disorders That Can Be afflicted with OF to be insulted for the outcroppings of his Treated by Ritalin™, updated quarterly and published by their abilities to defeat, however, and such labeling brings ailment by peers who are unbeknownst fellow sufferers. Novartis Pharmaceuticals Press with a grant from the U.S. Dept. about only unhealthy shame, which leads to self-loathing Left untreated, a person with OF can grow into adult- of Education: and in some cases, suicidal thoughts, although happily the hood and appear functionally normal. He will face, how- latter are prevented from being carried to fruition by the ever, a frightening array of “responsibilities” that society …The physical lethargy often derisively termed “lazi- very presence of the disorder. in its collective ignorance places upon all apparently func- ness” is usually undiagnosed output failure (OF), a de- The application of derisive labels is not, however, the tionally normal adults. Chief among them is, of course, bilitating neurological disorder that often leaves its victims only injustice done to OF sufferers. In their own homes, getting a job, but it is also expected of him that he will find confined to beds or couches, showing little interest in any most are tasked, sometimes at an early age, with the his own domicile and perform the necessary upkeep upon mental or physical stimulus except activities (including completion of sundry “chores,” and when they subse- it. The encouraging news is that, as knowledge of this dis- sports, video games, hobbies, and other recreation) that quently retreat to their output comfort zones (bed, couch, order has spread, many adults with OF have been allowed bring immediate pleasure. outdoor playtime, etc.) and leave the chores unfinished, to remain living with their parents (those in the most for- An individual afflicted with OF is often also accused their actions are unfortunately viewed as proof of laziness, tunate of circumstances do so “rent-free” even in their 30s), of being a “procrastinator” because many sufferers of the procrastination, etc. Tragically, in many households where but others, either out of manifest ignorance or denial of ailment share the same mental delusion (known as children with OF reside, such manifestations of their dis- their ailment or out of the baseless optimism that it is sim- Rountuit’s Deficiency) that they will be healed of output order are met not with compassion and understanding, but ply a “lack of discipline” on their part that can be over- failure tomorrow. Granted, most people that inflict hurt- with greater insistence that the chores be completed, many come through meeting personal responsibilities, not only ful labels (e.g., lazybones, layabout, slacker, sluggard, dead- times accompanied with threats to the physical comfort of burden themselves with jobs but even homes with lawns. beat, slugabed) on OF victims are merely doing so out of a the OF sufferer — a loss of privileges, including comfort- A touching portrayal of a victim of OF can be found in misguided belief that so doing would promote the impe- zone privileges; a withholding of promised or expected John Kennedy Toole’s prescient A Confederacy of Dunces, in tus necessary to stimulate the individual to produce and access to snacks or desserts; or even corporal punishment. which obvious OF sufferer Ignatius J. Reilly tries to meet therefore transcend their illness. This disease is beyond For such individuals, the public school system, which the demands of society and his oppressive mother… CJ

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