INSIDE THIS ISSUE: DEPARTMENTS Challenger North Carolina 2 C A R O L I N A Education 10 backs term- Higher Education 13 limit pledge Local Government 16 Books & the Arts 20 with large Opinion 24 Parting Shot 28 check /5 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION JOURNALFROM THE JOHN LOCKE FOUNDATION November 2009 Vol. 18. No. 11 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Verizon bought booze Man Alleges Sexual Assault By Soles for state employees Says he was 13 while negotiating when Soles lured $51 million contract, him to his home records suggest y avid ass By Don Carrington B D N. B Executive Editor Associate Editor RALEIGH RALEIGH 47-year-old North Carolina man xpenses documented by Veri- says that when he was 13 years zon Business and released by the old State Sen. R. C. Soles Jr. of state suggest the telecommuni- TaborA City lured him to his secluded Ecations company bought alcohol for lakeside home, plied him with alcohol state employees on at least a dozen oc- and sexually as- casions, even while negotiating a $51.5 saulted him. million contract to support the state’s The man Carolina Journal Executive Editor Don Carrington, right, interviews “Jay,” a man who vehicle inspections program. said Soles, 74, a says he was sexually assaulted by State Sen. R.C. Soles Jr. nearly 35 years ago at State officials and Verizon repre- 40-year veteran of the senator’s home in Tabor City. (CJ photo) sentatives won’t confirm whether spir- its were part of more than 200 meals the North Caro- 19. The man, who did not want his real from the alcohol and awoke to find the company says it bought for em- lina General As- name used or his face shown on cam- Soles performing oral sex on him. He ployees and their significant others at sembly and chair- era, will be called Jay in this story. then was raped, he said. He described the Department of Transportation and man of the Senate Jay said the first incident oc- the event in graphic terms that CJ has the Department of Environment and Democratic Cau- curred after Soles, a prominent lawyer chosen not to use in this publication. State. Sen. R.C. Natural Resources over the past four cus, threatened and legislator, offered him a ride and Jay said there were many other Soles Jr. years. But per-person expenditures at him and his family the two ended up at Soles’ lakefront sexual encounters with Soles over a pe- the bars and restaurants suggest that to gain his silence. home. The 4,000-square-foot home, riod of approximately six months. He such beverages were on the tab mul- “He told me if I ever told anyone built in 1968, sits on a secluded two- said the relationship ended when he tiple times. he would make life hell for me and my acre site just outside the city limits. left town to stay with other relatives. parents,” he told Carolina Journal in an Soles served him beer and mixed interview videotaped the week of Oct. drinks, Jay said. He said he passed out Continued as “Man,” Page 2 Continued as “Verizon,” Page 3 Media Reports Prompted Hearings on Easley

PAID By CJ Staff Questions surrounding free trav- RALEIGH el, cars, home renovations, discounted RALEIGH, NC U.S. POSTAGE PERMIT NO. 1766

NONPROFIT ORG. he hearing that convened Oct. real estate, high-paying jobs, and other 26 in downtown Raleigh by the perks provided the govenor and his North Carolina Board of Elec- family first came to light in the press tionsT marked the first time a current and laid the foundation for the board’s or former governor had faced a formal investigation. inquiry into campaign finances. CJ’s initial story on the Easley While earlier investigations led scandals, dated March 13, 2006, high- to criminal prosecutions and jail time lighted the governor’s failure to dis- for former state Agriculture Com- close a $150,000 renovation contract missioner Meg Scott Phipps, former with Wilmington businessman and House Speaker Jim Black, and former political donor Nick Garrett. As Execu- state Rep. Thomas Wright, former Gov. McQueen Campbell, a long-time Easley tive Editor Don Carrington reported, supporter, testifies before the State Elec- Mike Easley is by far the most promi- tions Board on Oct. 26. (CJ photo by Don Garrett was part owner of a Marina nent public official to find himself in Carrington) in Southport that received a valuable the election board’s cross hairs. lease from the state. Easley called on The unprecedented investiga- degree as a result of a series of inves- the Council of State to approve the tion of Easley, who served two terms tigative reports published in Carolina as attorney general and two terms as Journal

The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 over the past three years and in governor, was made possible to a large other media outlets more recently. Continued as “Media,” Page 4 PAGE 2 NOVEMBER 2009 | CAROLINA JOURNAL

C a r o l i n a Man Alleges Sexual Assault By Sen. R.C. Soles Jr. Continued from Page 1 Journal He did not tell his parents about his encounters with Soles. Jay returned to Rick Henderson Tabor City when he was 18 years old, Managing Editor saying it was his impression that Soles preferred relationships with minor Don Carrington teens and he no longer had to fear him. Executive Editor Jay no longer lives in Tabor City. WWAY-TV in Wilmington has David N. Bass, Mitch Kokai reported that, over a period of years, Michael Lowrey the Tabor City 911 dispatcher has re- Associate Editors ceived numerous calls regarding vio- Jana Benscoter, Kristen Blair lent encounters between Soles and Roy Cordato, Becki Gray young men, either at his law office or Paige Holland Hamp, David Hartgen his home. Sam A. Hieb, Lindalyn Kakadelis Soles placed some of the calls, George Leef, Karen McMahan sometimes bypassing the 911 system al- Donna Martinez, Sarah Okeson together and calling the mobile phones Karen Palasek, Lee Raynor of Tabor City police officers. The News Marc Rotterman, Jim Stegall & Observer of Raleigh reported in Oc- George Stephens, Jeff Taylor tober that during one two-week period Michael Walden, Karen Welsh in 2008, police went to Soles’ home Hal Young, John Calvin Young seven times. Contributors Credible allegations Laura Barringer, Jacob Burgdorf Adrienne Dunn, Marissa Farell Wilmington psychologist Dr. S. State Sen. R.C. Soles Jr.’s secluded lakeside home,where he allegedly sexually as- Ben Goldhaber, Hans Kist Michael Plaut, who was on the faculty saulted a 13-year-old boy nearly 35 years ago, according to the boy himself, now 47 years old. (CJ photo by Don Carrington) Caitlin McLean, Alex Pitsinos, at the School of Psychiatry at the Uni- Sara Riggins, Andrew Schreiber versity of Maryland for 35 years, and Investigation. Recent incidents Editorial Interns who is past president of the Society Jay said he also has talked Wright received $8,000 from Published by of Sex Therapy by phone with Soles’ attorney, Joe and Research, Cheshire of Raleigh, to inform him Soles while serving time in prison, The John Locke Foundation WWAY reported. Both Blackburn and 200 W. Morgan St., # 200 is an expert on about the interview with WWAY. Jay Raleigh, N.C. 27601 professional-cli- told CJ that he is not seeking money Wright have been in prison and were (919) 828-3876 • Fax: 821-5117 ent boundaries by coming forward, but thinks Soles legal clients of Soles. www.JohnLocke.org and sexual ex- should be in prison for what he has Also in August, Allen Strickland, ploitation. Plaut done to him and others. 17, another client of Soles, was arrested Jon Ham reviewed CJ’s Cheshire and Soles did not re- for allegedly burning down a house Vice President & Publisher videotaped in- spond to requests for an interview that Soles bought for him. Soles also terview with Jay bought Strickland a Corvette, even John Hood about these allegations. and said he also Chairman & President The SBI is part of the N. C. De- though Strickland does not have a has reviewed a Dr. S. Michael partment of Justice and is under the driver’s license. Bruce Babcock, Herb Berkowitz Plaut videotaped inter- authority of Attorney General Roy Strickland recently wrecked the view Jay did with Charlie Carter, Jim Fulghum Cooper. Before car. Strickland, WWAY, which had yet to be aired at Chuck Fuller, Bill Graham being elected at- who appeared in Robert Luddy, Assad Meymandi press time. torney general Columbus County Baker A. Mitchell Jr., Carl Mumpower, “To me it sounded very credible,” in 2000, Cooper Jay said recent District Court Oct. J. Arthur Pope, Thomas A. Roberg, Plaut told CJ at his office Oct. 24. “It is David Stover, J.M Bryan Taylor, served in the N. C. 23 for previous very unfortunate what allegedly hap- news stories traffic violations, Andy Wells pened to him. But what he says is con- Senate with Soles told CJ he did not Board of Directors sistent with what I have heard in other for 10 years. Jus- prompted him have an attorney cases of a similar nature which I have tice Department Carolina Journal is a monthly journal to come for the arson case. been involved in over the last 25 years s p o k e s w o m a n of news, analysis, and commentary on state While Soles or so.” Noelle Talley con- forward and local government and public policy issues was not Jay’s at- in North Carolina. firmed to CJ in an ©2009 by The John Locke Foundation Coming forward e-mail that the SBI torney at the time is investigating the incidents alleg- Inc. All opinions expressed in bylined articles Jay told CJ that he decided to edly occurred, Plaut said a power re- are those of the authors and do not necessarily come forward recently after seeing the shooting incident and allegations reflect the views of the editors of CJ or the lationship existed without an attorney- several news stories about Soles’ inter- made by another Soles legal client, staff and board of the John Locke Foundation. client arrangement. actions with young men. A report that Stacey Scott, who said that more than Material published herein may be reprinted as a decade ago, when he was 15, Soles “There is a power differential be- long as appropriate credit is given. Submis- Soles had shot a man at his house in tried to molest him. tween the two people. So whether he sions and letters are welcome and should be August led Jay to fear that Soles was was acting as his attorney at the time directed to the editor. becoming unstable and could bring In August, WWAY reported that CJ readers wanting more information harm to Jay or others. In that incident, Scott, now around 27, said Soles once may not be fully relevant. He was a between monthly issues can call 919-828-3876 Soles shot 22-year-old Thomas Kyle gave him $35,000 in cash. Scott later powerful, wealthy figure in the com- and ask for Carolina Journal Weekly Re- Blackburn in the leg when Blackburn changed his story about the molesta- munity,” Plaut said. port, delivered each weekend by e-mail, or visit and B.J. Wright, 23, both clients of tion attempt, claiming he was high on WWAY also has reported that CarolinaJournal.com for news, links, and ex- Soles, were allegedly trying to break drugs when he gave the interview, but subpoenas and interviews with some clusive content updated each weekday. Those not before District Attorney Rex Gore of the young men confirm that a fed- interested in education, higher education, or down the front door of his home. eral grand jury is investigating Soles. local government should also ask to receive In addition to the CJ and WWAY and Tabor City Police Chief Donald weekly e-letters covering these issues. interviews, Jay said he also has spoken Dowless asked the SBI to investigate CJ has confirmed there is some type with agents from the State Bureau of Scott’s claims. of federal inquiry of Soles. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 3 Verizon Bought Booze For State Employees, Records Suggest Continued from Page 1 On Oct. 17, 2007, three Verizon “[W]e have no further comment employees paid $38.89 per person for with respect to the expenses,” said a meal at BJ’s Brewhouse, where din- Verizon’s vice president for media ner tickets average $15 a plate. The relations, Jack Hoey, when asked by day before, the company picked up a Carolina Journal whether the receipts tab of $38.79 per attendee for a meal included alcohol. at Chevy’s, a Mexican restaurant with According to documentation pro- dinner entrees ranging from $9 to $15. vided by Verizon, the company spent Not all meals were that high. more than $21,000 on gifts for state em- Some were from fast-food restaurants, ployees that included a pair of beach pizza shops, delis, cafes, or grocery chairs, hockey tickets, and health club stores. But the costs still have open- admissions. The lion’s share of the government advocates incensed. expenses, though, came from pricey “You could have three entrées, meals at Fleming’s Prime Steakhouse, dessert, and leave a big tip, and still not the Angus Barn, Sullivan’s Steakhouse, come close to $80 a person,” said Mike and similar upscale restaurants. Munger, professor and chair of the De- Other times, the bill came from partment of Political Science at Duke establishments that primarily serve University, in response to e-mailed alcoholic beverages, such as $273.44 at questions from CJ. “Clearly, what hap- the Grove Park Inn’s great hall bar in pened was that a private company Asheville and $154.80 at the Peabody bought a lot of drinks for state employ- Hotel’s lobby bar in Orlando. ees, and the payoff was the misuse of In many cases, the per-attendee public funds for a no-bid contact.” The State Bureau of Investigation Verizon was negotiating a $51.5 million contract to support the state’s vehicle inspec- cost was high enough to indicate the tions program when the questionable purchases occurred. (CJ photo by David N. Bass) tab included alcohol. In September is probing the expenses. DENR is con- 2008, for instance, two Verizon sales- ducting an internal review as well, said what was consumed, or if it was con- “These were meals purchased by men treated five individuals, includ- spokesman Jamie Kritzer. DMV Com- sumed by our staff.” a for-profit company for the purpose ing three state employees, to a $570.48 missioner Mike Robertson told report- DMV spokeswoman Margaret of influencing the judgments of state meal at an undisclosed Mediterranean ers that his agency plans to conduct Howell said her office has no addition- employees about the use of taxpayer restaurant. The cost per attendee was an internal investigation following the al records. “The only ones that we have funds. How dare state agencies refuse $81.50. SBI’s criminal probe. are the ones that have already been re- to disclose what was actually pur- In October 2008, Verizon paid Verizon has fired four employees leased,” she said. “Since this is an on- chased,” he said. $81.14 per person, or $486.82 total, for a and taken another one off North Caro- going investigation, that is all I know meal at Jerry’s Food, Wine & Spirits in lina’s account, said Hoey. “We are not to this point.” Perdue steps in providing any further details, other Wrightsville Beach. A year before, the It’s illegal for state agencies to than the discipline was appropriate Footing the bill company paid $59.88 per person for a use taxpayer funds to reimburse for based on our investigation,” he said. meal at Jake’s Famous Crawfish in Se- The most expensive ticket was alcohol. Until recently, restrictions on Similar to Verizon’s media repre- attle. Last April, the company picked from the Capital City Chop House in state employees accepting alcohol or sentatives, press officers for DMV and up the bill for an $84.64 per-person trip Raleigh, according to the documents other gifts from companies that con- DENR declined to say whether their to Truffles restaurant. prepared by Verizon. Two Verizon em- employees accepted alcohol. duct business with the state were lim- In other instances, a comparison ployees treated 15 state employees to a “What I’ve learned is alcohol ited to those directly involved with of per-attendee cost with the average $1,021.18 meal there on June 26, 2008. was available at some of these events. third-party contracts. price of a dinner entrée indicates that The meal came just days after DMV That’s according to the documents I But on Oct. 1, shortly after news drinks were likely included on the bill. awarded a multimillion-dollar con- sent you,” Kritzer said. “I don’t know of the Verizon reimbursements broke, tract to Verizon. Gov. Bev Perdue signed an executive Bonefish Grill, a seafood chain order extending the state’s gift ban to restaurant, was the most frequented all executive branch state employees. Visit the new-look establishment. Verizon employees re- Former Democratic Party con- quested reimbursements for seven dif- sultant and government watchdog Carolina Journal Online ferent occasions in 2008 during which Joe Sinsheimer told CJ that Perdue’s they spent a total of $2,240.21. executive order “was a welcome baby Many of those tabs came in Sep- step,” but that the governor should go tember 2008, when Verizon staff paid further by firing the DMV employees the bill for $1,363.36 spent at Bonefish. involved. Records indicate that Verizon “Firing workers would send a staff spent $428.24 at venues where al- strong message that this type of behav- cohol is the primary menu item. Alco- ior is unacceptable,” he said. hol is also available at most other res- The State Department of Trans- taurants listed on the documents. portation already has an ethics policy State Sen. Eddie Goodall, a Union that prohibits employees from accept- County Republican, said that it would ing gifts or favors “in return for being be unusual in the business world for influenced in the discharge of the em- companies not to offer those enter- tained a choice of beverage. ployee’s duties and responsibilities.” Asked why Verizon and the state Kritzer said that none of the agencies involved would decline to DENR employees listed on the Ve- specify whether alcohol was on the tab, rizon documents were tied to the Goodall said, “I don’t know why they contract and therefore would not would refuse to answer that question.” have fallen under the original gift With links to the new CJTV and CJ Radio Web sites Munger said the meals were not and favor restrictions in state law. He added, though, that DENR would http://carolinajournal.com recreational and were instead tied to Verizon’s business interests. abide by Perdue’s executive order. CJ PAGE 4 NOVEMBER 2009 | CAROLINA JOURNAL Media Reports By CJ and Others Prompted Hearing on Easley

Continued from Page 1 home on two occasions — a potential lease without disclosing his conflict. violation of campaign laws. Carrington added, “the well-con- In 2008, Carrington also raised nected Garrett managed to get a plum concerns about a job at N.C. State Uni- automobile license tag franchise in versity given to Mary Easley, Mike’s Wilmington from the N.C. Department wife. Campbell, by then the chairman of Transportation despite a recommen- of the N.C. State board, initially denied dation by a DOT official against grant- any role in Mary Easley’s hiring or in ing the franchise.” a subsequent move raising her annual On the hearing’s first day, in tes- salary from $80,000 to $170,000. timony Garrett alluded to a “special E-mail documents released in fund” of the state Democratic Party June show that Campbell indeed allowing donors who had contributed played a central part in securing the the maximum to the Easley campaign position for Mary Easley. So did Dan to provide additional funding to Eas- Gerlach, Easley’s top budget adviser, ley. The party would act as a conduit who made inquiries on behalf of Mike for the money. State party officials and Mary Easley about the job. deny any fund existed. Campbell, Provost Larry Nielsen, That same day, Lanny Wilson, ap- and Chancellor James Oblinger re- pointed by Easley to the N.C. Real Es- Gov. Easley’s attorney, Thomas Hicks answers questions during a lunch break on signed in the spring after their roles in tate Commission and state Department Oct. 27 at the State Elections Board hearing. (CJ photo by Don Carrington) the hiring became public. of Transportation, also mentioned the The hearing, expected to last un- Observer of Raleigh published a copy in 2001 by Easley to the N.C. State Uni- til at least Oct. 30, was still under way special fund in testimony. Wilson also of the closing document showing that versity Board of Trustees. Campbell was listed as a major Easley donor at press time. The board will have the Easley got an additional perk — a was involved in the Easleys’ Cannon- and business partner of Garrett in Car- option of taking no action, issuing 25-percent discount at closing, letting sgate real estate transaction and owns rington’s original sanctions, imposing fines, or making the former gover- several lots and boat slips in the devel- story. a referral to the Wake County District nor presumably opment. On April 27, Attorney urging a criminal investiga- pocket $137,000. 2006, a story by State Democratic He testified Oct. 26 that he used tion of the former governor, fundrais- By 2008, sto- Carrington sug- funds from the Easley campaign to ers, campaign staff members, or Dem- CJ gested Easley got Party officials ries in asked repay for repairs at Easley’s Raleigh ocratic Party officials. CJ a sweetheart deal deny serving as questions about on a lot purchased the Easley family’s in 2005 at the Can- a conduit for travels, includ- nonsgate develop- ing regular trips ment on the North money to Easley between Raleigh Carolina coast. and Southport at Reviewing other taxpayer expense property sales at that were never the subdivision, Carrington concluded reimbursed. Other articles suggested that the sale price of $549,800 seemed that for years Easley had taken trips on The Triad Freedom Club Presents low — an adjacent lot with less build- private aircraft within North Carolina able space sold for nearly $700,000. and outside the state without disclos- Carolina Journal’s Wilson was an investor in Cannons- ing them. gate. The pilots included Raleigh busi- In September 2009, The News & nessman McQueen Campbell, named

Don Carrington

and

Rick Henderson CJ Executive Editor and investigative reporter Don Carrington will lay out the evidence in the criminal investigations of former Gov. Mike Easley and former First Lady Mary Easley, and how his path-breaking reporting brought the story to a statewide audience. CJ Managing Editor Rick Hen- derson, will also talk about Carolina Journal’s expanding role in a changing media marketplace. Monday November 16, 2009 6:30 -7:30 p.m. The Hawthorne Inn & Conference Center 420 High Street Winston-Salem, NC 27101

Registration is required. To register please visit ww.johnlocke.org/events or call 1-866-JLF-INFO. NOVEMBER 2009 | CAROLINA JOURNAL PAGE 5 McIntyre Foe Will Breazeale Takes Bonded Term-Limits Pledge eastern North Carolina, stretching from Fayetteville in the north to Wilm- Candidate pledges ington in the south. The district is a mixed bag politically, according to The three-term limit Almanac of American Politics 2010, and tends to vote “Republican in national or will pay $250,000 contests but still Democratic in some state races.” By David N. Bass John McCain won the district Associate Editor 52 percent to 47 percent over Barack RALEIGH Obama in the 2008 presidential elec- raq war veteran and congressio- tion. nal hopeful Will Breazeale on Oct. McIntyre, first elected in 1996, is 22 became the nation’s first con- a member of the Blue Dog Coalition, a Igressional candidate to take a bonded group of conservative-leaning Demo- term limits pledge, agreeing to donate cratic lawmakers in the House. “His $250,000 of his own assets to a pri- Will Breazeale signs a replica check for $250,000, pledging the money to a charity voting record — conservative among should he not keep his term-limit pledge. (Submitted photo) vate charity if, after being elected, he Democrats, especially on cultural is- doesn’t limit himself to three terms in day. If you don’t put up personal net for elected office voluntarily to bond sues — is centrist in the House as a office. worth, then you will not be elected.” “their term limit promise with person- whole,” the Almanac says. Breazeale, a Republican hoping Breazeale partnered with the Al- al assets in advance of the election,” Aside from pushing for all can- to unseat 7th District Democratic Rep. liance for Bonded Term Limits, a na- according to the alliance’s Web site, didates and elected officials to take a Mike McIntyre next year, made the an- tional nonpartisan group, to sign the www.bondedtermlimits.org. bonded term limits pledge, Breazeale nouncement at a press conference out- pledge. Alliance president and board Breazeale, who now works as a said his top three priorities in Con- side the New Hanover County Gov- chairman John Skvarla told Carolina commercial airline gress would be ernment Center in Wilmington. Journal that bonded term limits are pilot, promised to replacing federal “I see [bonded term limits] bring- about accountability. give $250,000 to income and sales ing about the largest power shift in this “This is a politician’s word, in- the Cape Fear Vol- National group, taxes with the country since we became a country,” tegrity, and ethics on the line with this unteer Center in Fair Tax (a nation- Breazeale said in a telephone inter- pledge,” Skvarla said. Wilmington if he Alliance for al retail sales tax), view. “This will be the standard one The pledge allows those vying breaks his three- ensuring victory term pledge. Bonded Term in Afghanistan, “Even though Limits, is and passing “a I know I won’t fair health plan.” be breaking my pushing pledges “It’s far- pledge, it was a r e a c h i n g , ” scary moment sign- Breazeale said of ing that $250,000 his health care check,” Breazeale said. proposal. “It asks sacrifice of every- Since 1991, Carolina Journal has provided thousands of readers each month with In 2008, the three-time Iraq war one, but it reduces the national debt because it finds a way to eliminate in-depth reporting, informed analysis, and incisive commentary about the most veteran lost to McIntyre, who has served in Congress seven terms, 69 Medicaid, probably the government pressing state and local issues in North Carolina. Now Carolina Journal has taken percent to 31 percent. program most fraught with fraud.” its trademark blend of news, analysis, and commentary to the airwaves with The state’s 7th Congressional McIntyre’s spokesman, Dean Carolina Journal Radio. District encompasses much of south- Mitchell, didn’t return a phone call and e-mails seeking comment. CJ A weekly, one-hour newsmagazine, Carolina Journal Radio is hosted by Mitch Kokai and Donna Martinez and features a diverse mix of guests and topics. The program is currently broadcast on 18 commercial stations – from the mountains Books authored By JLF staFFers to the coast. The Carolina Journal Radio Network includes these fine affiliates: Efficiency and Externalities Albemarle/Concord WSPC AM 1010 Saturdays 11:00 AM Asheville WWNC AM 570 Sundays 7:00 PM in an Open-Ended Universe Burlington WBAG AM 1150 Saturdays 6:00 AM Chapel Hill WCHL AM 1360 Sundays 6:00 PM Elizabeth City WGAI AM 560 Saturdays 6:00 AM Fayetteville WFNC AM 640 Saturdays 1:00 PM Gastonia/Charlotte WZRH AM 960 Saturdays 2:00 PM Goldsboro WGBR AM 1150 Saturdays 6:00 PM Greensboro/Burlington WSML AM 1200 Saturdays 12:00 PM Hendersonville WHKP AM 1450 Sundays 6:00 PM By Roy Cordato Jacksonville WJNC AM 1240 Sundays 7:00 AM Vice President for Research Newport/New Bern WTKF FM 107.3 Sundays 7:00 AM John Locke Foundation Salisbury WSTP AM 1490 Saturdays 11:00 AM Siler City WNCA AM 1570 Sundays 6:00 AM “Cordato’s book is a solid Smithfield/Selma WTSB AM 1090 Saturdays 6:00 AM performance, demonstrating Southern Pines WEEB AM 990 Sundays 7:00 PM impressive mastery of both Valdese WSVM AM 1490 Tuesdays 6:00 PM the Austrian and neoclassical Wilmington WAAV AM 980 Saturdays 4:00 PM literature.” Winston-Salem/Triad WSJS AM 600 Sundays 8:00 AM Israel Kirzner For more information, visit www.CarolinaJournal.com/CJRadio Cato Journal www.mises.org PAGE 6 NOVEMBER 2009 | CAROLINA JOURNAL

N.C. Briefs Berry Challenges Cooper on TVA Expenses Gun ownership a right round-trip flight between Washington, exchange over the alcoholic beverage A recent N.C. Supreme Court D.C., and Knoxville, Tenn., for two during the Council of State meeting in ruling should convince state law- Labor Commissioner Resolution lawyers. October. makers to rewrite a law that Records also show that Cooper “I think that in that particular bill tramples on some ex-felons’ con- criticizes payments paid a second firm, the Ayres Law that that was disallowed and supposed stitutional right to own guns, Group, as much as $515 per hour to as- to be paid back,” Cooper said. according to the John Locke Foun- for snacks and beer sist in the case. “But it was paid. That’s my con- dation’s in-house legal expert. The reimbursements in part came cern,” Berry responded. “Owning firearms is a right, By David N. Bass from $1.7 million in gas-tax revenue The council ended up approving not just a privilege,” said Daren Associate Editor and inspection and maintenance fees the new funds for the TVA suit, with Bakst, JLF legal and regulatory pol- RALEIGH that the legislature transferred to Coo- Berry casting the lone dissenting vote. icy analyst. “But an overbroad law eer and snacks were on the per’s office from the N.C. Division of that creates blanket prohibitions on agenda at a recent meeting of the Air Quality to help meet TVA litiga- ‘Under my skin’ exercising a right, even for an ex-fel- North Carolina Council of State tion expenses. DAQ is planning to cut In a telephone interview, Berry on, makes gun possession a privilege B— and they had one executive-branch 25 staff positions in the current fiscal said she wasn’t comfortable voting to rather than a right. The legislature officer fuming. year; budget constraints caused by the approve the funds without knowing can amend the law in 2010 and make The council, comprising 10 transfers are cited as one reason for the whether past expenses were appropri- North Carolina once again a state elected officials, agency’s reduction ate. that respects the right to bear arms.” including the lieu- in personnel. “That’s the Bakst’s new Spotlight report tenant governor, Cooper de- only chance we responds to the state Supreme meets periodi- fended the expens- Berry told Cooper get to vote on it,” Court’s August ruling in Britt cally to vote on re- es at the council’s she said. “I don’t v. North Carolina. In that case, source allocation October meeting. taxpayers want to vote to justices ruled that a 2004 change and to streamline “When you look shouldn’t be pay for some- in state law violated ex-felon information be- at the extensive thing, and then Barney Britt’s right to own guns. tween executive amount of time buying snacks for learn later that ”The court concluded that agencies. that it took to re- it’s something we the legislature went too far in At the coun- Labor Commis- search and try sioner Cherie Berry attorneys who shouldn’t have passing a complete and per- cil’s Oct. 6 meet- this case,” he said, paid for. … I manent ban on gun possession ing, Attorney General Roy Cooper “and when you make $515 an hour guess sometimes by all ex-felons,” Bakst said. requested $103,771 in additional tax- look at the result, it’s those little tiny Technically, the court’s recent payer funds to finance the state’s on- which will result in things that really ruling affected Britt alone, Bakst going pollution control lawsuit against the savings of hun- start to get under said. “Based on the holding and the Tennessee Val- dreds of millions of dollars in health my skin.” rationale of the court, though, it’s ley Authority, cur- care costs and in saving lives in North Berry pointed to one expense, re- likely that many other ex-felons are rently on appeal Carolina, this has been a significant ported by CJ in July, of nearly $7,000 for having their constitutional rights to the Fourth U.S. victory for the state of North Carolina.” a Resolution paralegal, Barbi Sloan, to Circuit Court of violated through this excessively Beer bungle? stay one month at the Embassy Suites broad ban on gun possession.” Appeals. Hotel at the Chevy Chase Pavilion in Labor Com- Berry particularly criticized $60 Washington. missioner Che- in snack food and $5.50 for a beer, the Airline receipts show that Sloan rie Berry, one of latter of which ran afoul of state law, flew back to her home in Indianapolis two Republicans which prohibits taxpayer-funded reim- for long weekends, leaving the room JLF: Overhaul budget on the council, Attorney General Roy Cooper bursements for alcohol. vacant for 17 nights. The cost for the wanted no part of “That’s embarrassing to me — unused nights was $4,068.27. Legislators need to overhaul it. She objected to North Carolina’s budget process that we’re buying snack food for attor- Asked why Sloan booked the past reimbursements for two private neys that are being paid $515 an hour. room for unused nights, Talley said before they force taxpayers to law firms assisting Cooper with the cough up billions of additional They can buy their own snack food,” that Resolution negotiated a discount- suit, expenses first reported byCarolina Berry said. ed rate of $209 per night for a one- dollars in new taxes. That’s the Journal earlier this year. assessment of the John Locke Cooper responded that the ex- month stay, which was cheaper than “Information is out there that in penses had been “scrubbed.” If a dis- paying the standard price of $299 per Foundation’s chief budget analyst. the past we have paid for things like “While families across North allowed expense comes in, “then it is night. snack food, beer, valet parking, hotel deducted from a future bill or it is re- But even at that rate, Resolution Carolina were tightening their rooms that haven’t been used, [and] budgets and adjusting their priori- quested that it be paid back,” he said. would have saved several thousand upgrades to airline tickets on some of Contacted by e-mail, Justice De- dollars if it had reserved the room at ties, the General Assembly missed these invoices from these law firms,” partment spokeswoman Noelle Talley the nightly rate for the 12 nights Sloan a rare opportunity this year to put Berry said at the meeting. “I just want said that Resolution Law Group never was present in Washington. government spending on a more to feel comfortable going forward pay- charged the state for the beer. “The Follow-up questions to Talley sustainable path,” said Joseph ing these that we’re not doing that kind State had never paid for the beer and seeking clarification were not returned, Coletti, JLF fiscal policy analyst. of thing anymore, and I’m not comfort- thus did not have to seek reimburse- other than to repeat that Resolution ne- “Instead, lawmakers chose able right now.” ment for it,” Talley said. gotiated a discount rate. to add $5.9 billion from new taxes, Invoices obtained by CJ in March But an expense report submitted In another instance, records show fees, and one-time revenue sources show that Cooper’s office used tax- by Resolution includes the beer as a that Cooper’s office reimbursed Reso- to pay for $41 billion in programs payer funds to reimburse Resolution reimbursement, and Talley indicated lution’s lead counsel in the TVA case over two years. That’s more than Law Group, now renamed Hunsucker earlier in the year that the beer was a nearly $500 for a flight between Ashe- $4,200 per North Carolina resident.” Goodstein & Nelson PC, thousands of disallowed expense and would be paid ville and Washington that he never Coletti’s proposed reforms in- dollars in travel expenses. back to the Justice Department. took. Asked about the expense by CJ, volve simple changes, he said. “Top- Those included stays at such ho- “Alcoholic beverages are not re- Talley said the Justice Department ping the list is a proposal to make a tels as the Sheraton Needham Hotel imbursable by the State and the State would be refunded for the unused por- budget bill publicly available online in Needham, Mass., and the Marriott will be reimbursed by the law firm for tion of the ticket. 72 hours before lawmakers take their Bethesda in Bethesda, Md. The receipts this purchase,” Talley wrote in an e- Resolution lawyers have declined first vote,” Coletti said. CJ included pricey airline tickets, includ- mail March 17. repeated interview requests about the ing $1,245.60 for a “special class” Berry and Cooper had a brief reimbursements. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 7 N.C. FreedomWorks to Hold ‘Taxpayer March on Raleigh’ Nov. 14

By Karen McMahan can over a Democratic candidate if the Contributor election were held today. The poll also RALEIGH showed swing voters heavily favoring aturday, Nov. 14, North Carolin- Republicans. ians can join with others from around the state promoting limit- Influencing policy edS government and lower taxes to state “We’re trying to influence pol- lawmakers at the “Taxpayer March on icy,” Brandon said, “by building a Raleigh,” sponsored by North Carolina permanent constituency. We’re doing FreedomWorks. voter education, attending campaign FreedomWorks, headquartered events, and training grass-roots activ- in Washington, D.C., is a grass-roots ists to help conservative candidates get organization founded in 1984 to re- elected, but we’re not going away after cruit, educate, and train volunteer ac- the elections.” Brandon said Freedom- tivists to fight for individual freedom Works will ensure accountability of and economic opportunity. elected leaders by staying on top of Organizers say the idea for the what they’re doing in office. North Carolina event grew from the Citing health care reform as an energy that followed the successful example, Brandon said lawmakers March on Washington co-sponsored by who approve legislation that does not FreedomWorks Sept. 12. The national reflect the will of the people may find event drew hundreds of thousands of it’s the last big vote they take, because protesters from across the nation to FreedomWorks hopes to continue the momentum against high taxes and big govern- they’ll be voted out of office. voice their concerns to Congress over “We want to make it clear to taxes, spending, and government ex- ment that the Sept. 12 Taxpayer March on Washington (above) revealed. (CJ photo by Jon Ham) lawmakers that the end game is about pansion. policy, not just getting elected,” Bran- The Taxpayer March on Raleigh boro, and Charlotte have held a num- “We play by the rules,” Page don said. “America doesn’t need Eu- will start at 11 a.m. on Halifax Mall, ber of “Can You Hear Me” protests remarked. “We act respectfully and ropean-sized government or taxes. We which is located between the Legisla- aimed at the media, said Page. peacefully at events, just like the pro- don’t need to expand entitlements that tive Building, and the Legislative Of- testers did during the March on Wash- Grass-roots organizing are already bankrupt. That’s part of the fice Building and will include both a ington.” problem, not the solution.” march and rally. Leading the kickoff Since July 1, Page and fellow With U.S. Senate and House lead- The March on Raleigh will call will be former Rep. Dick Armey, R- volunteer activists have visited U.S. ers threatening the “nuclear option” to attention to state and national issues. Texas, the one-time U.S. House major- Sen. Kay Hagan’s Greensboro office pass health care reform through bud- Among the confirmed speakers are ity leader and current FreedomWorks five times to protest and to deliver get reconciliation — a procedural pro- motivational speaker and author Ma- chairman. handwritten letters asking Hagan not cess allowing a bill to pass the Senate son Weaver; Bill Johnson, general man- “We’re just now getting the word to support congressional Democrats’ with no more than 51 votes — some ager of Curtis Media Group; Mitch out and trying to get buses to bring in health care reform proposals. have questioned whether the tea par- Kokai, director of communications for people from around the state,” said “Handwritten letters drive them ties, town hall meetings, and march- the John Locke Foundation; and Curtis Allen Page, state director of Freedom- [Hagan’s staff] crazy because they es have had any effect on the fate of Wright, host of “The Morning Beat” on Works, in a phone interview. “We’re cannot just scan in the letters,” Page health care legislation. 93.7 FM and 106.3 FM in Wilmington. also contacting local and state media to said. “They must read each one and “They have been very effective,” Tax and health care issues are let them know about the event.” respond.” Handwritten letters send insisted Adam Brandon, Freedom- sure to be in focus. As highlighted in a In response to limited media cov- an important message to lawmakers Works press secretary, in a phone inter- recent article published on the Civitas erage of past town hall meetings and when they see someone took the time view with Carolina Journal. “Remember, Institute Web site, North Carolina im- tea party protests in North Carolina, to write a letter about an issue and then President Obama and congressional posed massive tax hikes of more than volunteers in Winston-Salem, Greens- delivered it in person, Page added. Democrats first said they’d have a $1 billion to balance its 2009-10 budget. health care reform bill passed by July Already plagued by one of the 4. Then they said by the August recess, highest unemployment rates in the and now they’re scared they won’t get nation, North Carolina raised sales, it by the end of the year. Free Choice for Workers: corporate, and income taxes, and in- “I believe people have been dis- troduced new taxes that will further A History of the Right to Work Movement appointed in politics and politicians,” weaken the state’s economy and com- Brandon said, “and independents who petitiveness, especially compared with voted for Obama did not vote for a other southeastern states, according to massive expansion of government. Civitas. Fiscal conservatives have no levers of “The Tax Foundation currently power right now, so they’ve taken to the streets.” ranks North Carolina’s business cli- A quick Internet search of “tea mate a dismal 39th in the nation, the parties,” for example, lists dozens of worst ranking in the southeast,” writes grass-roots groups across North Caro- Brian Balfour for the Civitas Institute, lina founded by average citizens, from and “the Small Business & Entrepre- stay-at-home moms to senior citizens. neurship Council ranks North Carolina These individuals are bringing others 39th in terms of entrepreneur-friendly policy environments, also worst in the By George C. Leef together to take action and let lawmak- Vice President for Research at the ers know where they stand on issues southeast.” John William Pope Center for Higher such as taxes, property rights, health Other groups with similar Education Policy care, individual freedom, and personal goals of limiting government, pro- responsibility. moting freedom, cutting spending, “He writes like a buccaneer... One sign that growing voter dis- and lowering taxes also plan to at- recording episodes of bravery, content in North Carolina could ben- tend the Taxpayer March on Raleigh. treachery, commitment and efit Republicans in the next election Truman Newberry, vice presi- vacillation.” comes from a Civitas Institute flash dent of Wake County Taxpayers Robert Huberty poll released Oct. 13. In a generic ballot Association, for example, said his (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center for Congress, a majority (52 percent) of group will urge its members to pub- voters said they preferred a Republi- licize and attend the event. CJ PAGE 8 NOVEMBER 2009 | CAROLINA JOURNAL Barone: ‘Choose Your Future’ a Good GOP Message for Youth

By CJ Staff RALEIGH What we’ve seen now is that basic attitudes of year has passed since Ameri- Americans on the balance between markets cans elected Barack Obama as the 44th U.S. president. Po- and government have not changed, except liticalA analyst Michael Barone of Fox News and The Washington Examiner that they may have gone a little more toward says many of the voters who sup- ported Obama in November 2008 ap- trusting markets and a little less toward trusting pear to question his policies one year government than they were a few years ago. later. Barone recently addressed a John Locke Foundation Headliner luncheon Michael Barone in Raleigh on the topic “Obama’s The Washington Examiner America: Working Out As Planned?” He also discussed the current state of American politics with Mitch Kokai for Carolina Journal Radio. (Go to http:// next 10 years, from about 40 percent up sion and had a real crisis in financial electorate is capable of expanding a lot www.carolinajournal.com/cjradio/ to about 80 percent. That’s up to World markets, that we ought to be going to a if people are enthusiastic for one side to find a station near you or to learn War II levels. I think a lot of voters are much bigger government. or against one side, there’s a big pre- about the weekly CJ Radio podcast.) saying, “We’re facing some problems mium on the side that has enthusiasm. here, but this isn’t World War II.” Kokai: You mentioned that cur- So I’m going to be looking at who’s Kokai: You’re known as a politi- rent trends might not necessarily mean turning out in large numbers, who’s cal “numbers guy.” What are the num- Kokai: Based on your knowl- great news for Republicans. What’s the not turning out in large numbers, have bers you’re looking at now? edge of political history, what do those message for conservatives? we had a sea change of opinion since trends tell us about the future? 2008 — as I think we have had — and Barone: Well, the numbers I think Barone: What the numbers tell what that may bode for the future. I’m paying most attention to are the Barone: Well, I think the biggest me is that economic distress has not numbers that try to give us an indica- lesson we’ve learned this year is that produced a demand for bigger govern- Kokai: Looking to 2010 and even tion of enthusiasm — not just who sup- the Democrats, the analysts, the people ment, that Americans’ feelings tend- ahead to 2012, are there some policy ports the president, who opposes him, in the mainstream media who told us ing to oppose big government [in a] proposals conservatives could pursue who approves, who disapproves, but that economic distress produces a de- complex sort of way, continue to be that would have a chance for success? who strongly supports and strongly mand for big government have been roughly what they were before — if opposes — because what we’ve see in proven wrong. At least, that’s not anything, a little less favorable toward Barone: One of the problems that this decade is a vast increase in turnout. necessarily so. They drew that lesson big government than we’ve seen in the conservatives have had — it was em- Turnout in our presidential elections from the New Deal histories, the very past. You can chart different views on blematic of the 2008 election — Barack went up from 105 million [in 2000] to eloquent versions of which were best- different issues. Obama got the support of young 122 million in 2004 and 131 million in sellers for many years, and which ped- I think right now if you’re look- voters, 66 [percent] to 32 [percent]. I 2008. Enthusiasm drives turnout. dled Franklin Roosevelt’s view of the ing at elections in calendar years 2009 think there’s a real tension between That can be negative enthusiasm. 1930s. We had economic distress then, [and] 2010, that’s pretty good news for the views of young voters in the way You hate George Bush or whatever. It and supposedly we had big approval the Republicans because they’re the they live their lives and the Obama could be positive enthusiasm. You’re of big government. opposition party. program. In their own lives, this is a crazy about Barack Obama. And what There’s some data you can sup- The Democrats have big majori- mouse-click generation. This is a You- we’ve seen … since Obama’s been pres- port in that. They overlook the fact that ties nationally and in North Carolina Tube and MySpace and Facebook gen- ident is that the balance of enthusiasm other English-speaking countries went state government. Voters may want eration. It’s a generation where they has changed from what it was last year. the other way. At the same time Ameri- to overturn some of those, or at least have their own iPods, their own playl- Last year, the balance of enthusiasm cans were voting for a big-government reduce those majorities. I think in the ists of music. really favored the Democrats. Repub- party in the 1930s, voters in Canada, longer run, for 2012 and years later, They don’t listen to somebody licans were down in the dumps. The Britain, and Australia were voting Republicans are going to have to come else’s Top 40. Yet the Obama programs Democrats were enthusiastic. Now it against big-government parties. up with more articulated policies and are all about jamming you into a gov- seems to be the other way around. What we’ve seen now is that ba- programs. There are some Republicans ernment health care plan, jamming Opponents of the Democrats’ out there that have done so. big-government programs have the en- sic attitudes of Americans on the bal- you into a labor union that’s run by a Their policies have not attracted thusiasm. They’re generating the turn- ance between markets and govern- bunch of ACORN allies, jamming you much attention, if only because they out at the tea party movement, which ment have not changed, except that into a cap-and-trade proposal that fa- don’t have much chance of being en- they created spontaneously, [and] the they may have gone a little more to- vors lobbying interests, and so forth. town hall meetings. And we see it in ward trusting markets and a little less acted at all. They’ve got to do more in I think that’s at odds, and I think that polling evidence in terms of strong dis- toward trusting government than they that direction positively to show that what Republicans have to come up approval of the president and his poli- were a few years ago. they can be responsible stewards of with — particularly if they want to ap- cies, in terms of strong disapproval of This is the opposite of what a governmental positions, rather than peal to these young voters — is a pro- a lot of the Democratic officials, includ- lot of the liberal elites believed and just replacements for Democrats that gram that says here are public policies ing your governor here in your state of claimed, and it’s pretty clear from the voters may have become discontented that enable you to choose your future. North Carolina. data, from the public resistance to a with. These policies — offering an ar- The enthusiasm quotient favor- lot of the big-government programs — ray of market-oriented health insur- ing the Democrats is very low. Now whether it’s the stimulus, whether it’s Kokai: What political events will ance reforms, rather than a one-size- that doesn’t automatically favor the the cap and trade or as its opponents you be watching closely? fits-all government plan — this helps Republican Party. Voters still have a call it the cap-and-tax plan, the Dem- you choose your future and choose to pretty dim view of the Republican Par- ocrats’ health care plans, the plans to Barone: I’m going to obviously be the kind of person and achieve the ty. But they’re really scared about these effectively abolish the secret ballot in be looking at the Virginia and New kind of things that you want to achieve Democratic proposals and about the unionization elections — there’s been Jersey governor elections. And one of in your lives. I think the Republicans fact that we are embarked on a path — a lot of pushback from the voters. They the things I’m going to be looking [at] need to get in touch with these young as the Congressional Budget Office tells don’t like these things. there is turnout. The most important voters, and I think “Choose Your Fu- us — of doubling the national debt as They don’t really feel, even thing, in many ways, is enthusiasm. ture” is a theme that might work for a percentage of the economy over the though we’ve been in a deep reces- When you’ve got a situation where the them. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 9 State’s New Recycling Law Sets off Local Scrambles

By Hal Young another drop-off point. Contributor “I have found a recycling cen- RALEIGH ter in another county that does accept ost North Carolinians are commingled recyclables, she said. “I probably aware that certain drive there every other month or so, items don’t go in the house- wasting about two gallons of gas in Mhold trash. Tires, old appliances, and my effort to preserve the environment. motor oil are specifically banned from Ironic? I think so.” landfills in the state, and other items Others shared similar stories. such as car batteries carry disposal Elayne Humphrey moved from Cary fees at the point of purchase. Starting to north Fayetteville five years ago and Oct. 1, though, the General Assembly found recycling required a 20-minute made it illegal to throw a plastic milk drive to the downtown collection cen- jug or an empty ketchup bottle in the ter; when gas prices peaked, they de- garbage, too. cided it was too expensive to continue. While the law’s penalties are Irene Paine of Angier said her vague and directed at the companies family tried to arrange for pickup with and municipalities that actually take their private trash contractor when trash to the landfill, the new rule ex- they moved to Harnett County three pects every citizen to separate certain years ago. “I was told that residents classes of plastic containers from their of Harnett County were still allowed household trash and redirect them to to burn their trash, thus, no recycling recycling programs — even if local au- The plastic bottle ban was an leave recyclable items behind as a re- was available,” she said. When they thorities don’t offer them or the pro- amendment to existing landfill restric- minder if they find them mixed with attempted to return to Wake County gram is distant or inconvenient. tions, passing the General Assembly household garbage. to drop off recyclables there, a sher- According to the state’s Division by near-unanimous votes before being Other counties trail far be- iff’s deputy turned them away from of Pollution Prevention and Environ- signed into law. Although the law took hind Orange’s collection of nearly 30 a collection center. Harnett has since mental Assistance, an agency of the effect this October, it has been on the pounds per person each year. The pol- opened up several collection centers N.C. Department of Environment and books since 2005. The statute contains lution prevention division reports that but does not have a designated recy- Natural Resources, only 20 percent of other restrictions on discarded televi- Pamlico County comes in second, col- cling coordinator for the county. plastic bottles are being recycled, “de- sions and computer equipment that lecting less than half Orange’s amount, Lowell Shaw oversees the recy- spite [the state] hosting some of the take effect in 2011, stemming from a 14.76 pounds per cling programs largest processors of these materials.” different bill. capita. Only six in Wake County Scott Mouw, the environmental super- Other than its length — over four counties reported from his position visor for DPPEA, said in a press release years in this case — that kind of delay as much as 10 One local official as solid waste fa- that, “Widespread compliance with the is not uncommon, said Rep. Verla In- pounds per person cilities manager. plastic bottle disposal ban will ensure sko, D-Orange, one of the bill’s origi- in 2007-08, and 19 burst into laughter Wake has 11 con- a flow of plastic bottles to meet market nal co-sponsors. “It was probably to — including Cum- venience centers demand for the materials and will re- allow local governments to plan for berland, Robeson, when asked about scattered around sult in additional job creation through it,” she said. “It was also probably to and Harnett coun- the county and the expansion of recycling collection gain more votes. There are people who ties, representing his recycling open to all — but companies,” calling the ban “a major might not have voted for it if it went almost half a mil- only — Wake resi- growth opportunity for the state’s re- into effect right away.” Insko’s district lion residents — supervisor dents. He said it’s cycling businesses and for local gov- has the state’s highest per-capita col- collected less than too soon to tell the ernment recycling collection programs lection of plastic bottles for recycling; one pound per impact of the new as well.” she said trash collectors will actually person. Mecklenburg and Wake recy- bottle ban cled between 6 and 7 pounds each. “To be honest, this is still rela- Some counties and cities have tively new,” he said. “It took effect in Books authored By JLF staFFers extensive recycling programs, includ- October, so there’s no data yet to see ing curbside pickup and city-supplied if there’s a difference in volume. The Efficiency and Externalities recycling bins provided to residents. infrastructure is there to handle it, The town of Smithfield, for instance, though, and we definitely do want in an Open-Ended Universe recently resumed curbside service, them to recycle their bottles.” which had been canceled several years Most of his recent effort has been ago. Until recently, residents who on education, he said, explaining the wanted to recycle took their materials county’s recycling system and answer- to a truck parked at the town’s com- ing homeowners’ concerns. plex near the water treatment plant. “Some citizens are worried about Convenience centers, including one what this means to them. No, we’re not in a business district along U.S. High- going to look in their garbage,” he said way 301 in Smithfield, are reserved for with a chuckle. By Roy Cordato county residents with proper stickers. The same afternoon, when Vice President for Research Other areas don’t offer compa- a rural county manager’s office John Locke Foundation rable convenience, and while some was asked for the recycling su- homeowners are enthusiastic about pervisor, the administrative assis- “Cordato’s book is a solid the new law, others express frustration tant burst into peals of laughter. performance, demonstrating at their efforts to comply. Jen Froio in In spite of four years’ warning, impressive mastery of both Granville County said she recycles as a not every county is fully on board with the Austrian and neoclassical matter of conscience, “but I absolutely the state’s unfunded mandate to cre- literature.” despise it!” Her town does not offer ate, maintain, and operate recycling Israel Kirzner curbside pickup, she said, and the col- programs — and even where the coun- Cato Journal lection center is “teeming with flies” ty is ready, it seems, residents have and does not accept mixed recyclables, their own complaints and difficulties www.mises.org forcing her to sort her garbage or find to address. CJ PAGE 10 NOVEMBER 2009 | CAROLINA JOURNAL

COMMENTARY Furloughed Teachers Seeking Circle Wiser Use of Education Dollars Of Mockers By Karen Welsh Atkinson said this year’s fur- Contributor lough is “water under the bridge,” and ecent episodes of school- free-floating rage among the young RALEIGH she is unsure what will happen during related violence provide a — displaced toward a random or eachers in North Carolina the next fiscal year. disturbing snapshot of the convenient target? That is a newer, learned a tough lesson from the Lanane disagreed, saying the fur- consciencesR of American youth. Not far more sinister beast. Hawaii State Teacher’s Associa- lough issue is far from over. only do these incidents spotlight Coupled with boredom, such Ttion, which in September successfully “Right now, it’s a tug of war with brutal aggression and its ongoing anger reaches its boiling point. One bargained 34 unpaid furlough days — the governor,” she said. “People are formerly budgeted as student instruc- still pretty angry about the furlough threat to students; they also of- 19-year-old college student I know, tion days — into their contracts. time. It’s not a happy day in North fer emerging anecdotal evidence who just finished three years at a North Carolina educators won- Carolina.” that kids’ reasons for engaging in Durham public high school, said, dered if they could do the same with Lanane said many teachers are violence are changing, as are their “I actually had people that told the 10-hour furlough ordered by Gov. reeling from the law and are untrust- perceptions of it. me they just felt like getting into Beverly Perdue to help balance the ing of the governor, who used educa- Consider the following well- a fight. They just wanted a break state budget. tion issues for her election platform. publicized trio of violent events from their routine.” The answer was an emphatic “Gov. Perdue was supposed to already this fall. In Charlotte, a What about the students who “no,” said Jennifer Lanane, president be a big education governor,” she said. 17-year-old male student attacked laugh and cheer? This is violence of the Wake County Chapter of the “She has not been as attentive to edu- a school security guard viciously as spectator sport. Such malevolent North Carolina Association of Educa- cation as we had hoped.” enough to send him to joy smacks of schaden- tors. Similar to their Hawaii coun- surgery. According to a freude, the German- “We don’t bargain a contract in terparts, the teacher furloughs were school district spokesper- derived word for pleasure this state,” she said. “We’re not a union a strategic political move, said Terry in the strict sense of the word. We are Stoops, education policy analyst for son, the guard was break- felt at the sufferings of an association. We are more of a politi- the John Locke Foundation. ing up a verbal altercation another. Make no mis- cal group. We can’t bargain. We can’t He said N.C. legislators could between girls when one take: this is not bystander strike. It’s the system we have. It’s the have trimmed the fat from the bud- of the girls’ brothers got apathy, bad as that is. It system we work with.” get easily by first cutting nonessential involved and attacked is exultation, or gloating, Perdue man- state personnel him. as another is traumatized. dated that educa- and extraneous In Belleville, Ill., a Schadenfreude may not tors and support nonteaching posi- student was beaten by KRISTEN be a novel concept, but it staff take the 10 Some teachers are tions. “Without a two other teens while BLAIR traditionally has charac- hours of unpaid doubt, there were riding the bus to school. terized deviant adults, not leave (or “flex especially upset ways to cut ex- Denied a seat repeat- mainstream children. time”) by Dec. 31; penses,” Stoops edly, the victim pushed a backpack No longer. One of the laugh- the furloughs can- that Gov. Perdue, said. “Instead, not be taken dur- they decided to aside and sat down; the backpack’s ers during the bus beating told ing time assigned a former teacher, trim teaching po- owner began punching and chok- the local Fox network, “If you see for student learn- sitions.” ing him. Moments later, another a fight, every kid will laugh. Any ing. The governor backed furloughs L e n o i r student attacked. Video footage fight you see we always laugh, it’s cited the addition- County resident shows onlookers laughing, cheer- like adrenaline, we just laugh.” The al cost of hiring Carol Irwin, a ing, and clapping. student I interviewed said that, substitutes to cov- mother of both In Chicago, 16-year-old Der- while he avoided the troublemakers er classes as justification for scheduling gifted and slow learners, believes leg- rion Albert was fatally beaten with at his Durham school, many other the furloughs on teacher work days. islators could save a lot of money in wooden planks as he walked to a kids enjoyed the fighting: “Ten “It’s a convoluted system,” La- the long run if they reorganized the ed- bus stop after school. Video clips seconds after something happened, nane said. “The governor made a rule ucation system entirely, taking the lead reveal a mob scene with many people are yelling, a circle forms… that teachers could not use the fur- from its European counterparts. onlookers; none saved him. Some For whatever reason, people do lough time when they are responsible “[Europeans] have some ba- for kids. They have to take their time sic standardized testing at the end of bystanders reportedly laughed as enjoy watching it, regardless of off on unprotected teacher work days.” eighth grade, and then the children he suffered. whether it’s ‘justified’ or someone North Carolina state School Su- are split into vocational or academic Such episodes of violence, picking a fight.” perintendent June Atkinson said it’s tracks,” she said. “They all still receive perpetrated against innocent stu- What can we do? Obviously, a moot point because many teachers a good education, just with different dents and an adult, have generated schools and law enforcement must took the furlough at the end of last emphases.” outrage. Much already has been ensure the safety of students and year, or in lieu of a teacher work day. Stoops said this would have been said, and rightly so, about our cul- staff, seeking justice and punish- Other educators have taken time a good year for the N.C. General As- ture of violence and the pernicious ing those who harm others. But we during an early day dismissal to make sembly to remove its charter school influence of gangs, poverty, and lax also must face the circle of mockers, up for the “mandatory time off,” she cap, which limits the number of char- supervision on brutish adolescent gaping from the sidelines. said. “It’s placed an extra burden on ters at 100 statewide. “It would have behavior. Their hearts, like the attackers the teacher, but there’s been some flex- been a powerful choice,” he said. “If But there is another, perhaps they cheer, have grown cold. No ibility,” Atkinson said. “It’s been an North Carolina would increase the more insidious, element that per- government program or initiative hour here or an hour there. It’s all de- amount of charter schools, we would pended on individual school district be eligible for additional federal gov- meates these events: the way kids can fix that. In the end, warming calendars.” ernment funding.” view acts of aggression. Youth have the human heart and inculcating Atkinson admitted some teach- Stoops was referring to the Race become increasingly desensitized empathy is the work of parents. No ers were disturbed by Perdue’s actions, to the Top Program, a $4.35 billion to the effects of violence. In all three excuses. CJ but others supported the requirement federal initiative providing money to incidents, provocation was scant not to take time away from classroom states that demonstrate improvements or nonexistent. True acts of ven- instruction time. “They said they were in public schools. The Obama adminis- geance, while immoral, have been Kristen Blair is a North Carolina professionals,” she said. “They were tration has said that states capping the with us since time immemorial. But Education Alliance Fellow. willing to do what they could to help number of charters may not be eligible with the cuts.” for the competitive grants. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 11 Newly Elected Wake School Board Reformers Ready to Move By Jim Stegall Many people have found that they like Contributor them, but it should be about choice, RALEIGH and others have not had a traditional he newly elected majority on the option.” Wake County school board will Tedesco agreed that choice is move quickly to make good on key, but adds that coming up with a theT campaign promises that propelled workable choice model “is going to its side to victory in the Oct. 6 election. take a little bit longer than 2010-11.” Members contacted by Carolina He said that the current model doesn’t Journal agreed that while it will take take into account the variety of family time and careful planning to imple- types (single-parent, dual-earner, etc.), ment neighborhood schools fully and how having children in schools — the new majority’s primary initia- with conflicting calendars might cause tive — the board could begin making problems. neighborhood schools a reality by the “We have to be a little more un- start of the next school year. sideration, but there’s more to it than He also questioned the lottery. derstanding of those modern family For years, Wake County pursued that,” said Margiotta, who is expected “The selection process isn’t always dynamics and offer parents choice that a diversity policy ensuring that no to be chosen as the new chairman of fair. Some of our most underserved works for them,” Malone said. “I think school would have more than 40 per- the school board after the newly elect- kids don’t always have an opportunity we ought to just make it as simple as cent of its students from low-income ed members are seated Dec. 1. to go to the great programs,” Tedesco possible. If you want to be there you families. In an interview, Margiotta point- said. “I personally find it an inequity ought to have that opportunity.” To achieve this goal, some stu- ed to changes to other policies he’d like in the system that affluent children get The four members contacted for dents from poorer, mostly minority to see. Margiotta said that he didn’t a bus ride to a gifted program while this story agreed that these changes neighborhoods were bused to schools foresee any major changes to the inner- poorer children … get a bus ride to an could be made without stretching the in more affluent areas, and some stu- city magnet schools program, but that average school.” current Wake County schools budget. They anticipate some savings from dents from those areas were bused to they “may need some tweaking.” Another new member, Chris reduced busing and will be looking inner-city schools. “Some communities have been Malone, also voiced concerns about for grants that aren’t currently being The policy garnered praise and terribly punished by magnet schools the selection process but added, “there sought because of what Malone called recognition from left-leaning educa- because the magnets draw programs are a lot of pro-magnet school people “strings attached having to do with tion groups around the country, but away from suburban schools, and sub- on the school board. We don’t plan to success.” was highly unpopular with those urban kids must apply for a restricted get rid of magnet schools.” As for when these changes will parents who preferred neighborhood Another major issue in the recent number of slots,” Margiotta said. take effect, Goldman said the board campaign was Wake’s policy forcing schools and shorter bus rides. Another new member, Debra needs to take its time to make sure re- some students into year-round schools. It became a major issue in the Goldman, said “The lottery [used to forms are implemented carefully. “The The move originally was conceived campaign leading up to the elections, determine which student applicants worst thing we could do would be to in which opponents of the policy won are accepted into the magnet program] as a cost-cutting measure (by using make a bunch of changes and then all four open seats. Along with current is not really a lottery, because the mid- school facilities year-round, more stu- find out that we have to go back and member Ron Margiotta, the pro-neigh- dle-class kids are left out.” dents can be served with the same in- change it again,” she said, adding the borhood schools faction will have a Another newly elected member, frastructure), but many families found old carpenter’s adage, “Measure twice, majority on the nine-member board. John Tedesco, wants to see a fairer use the arrangement irksome and unfair. cut once.” The diversity policy may draw of magnets. “They should be used as Margiotta questions whether Margiotta and the others agreed, the most attention from the media, but programming for our gifted and tal- the expected savings from year-round however, that some changes in student it won’t be the only item on the change ented kids, not as tools for social and schools actually have materialized, assignment and other policies should agenda. “The news media want to economic redistribution of kids,” he noting that “some year-round schools be in place by the start of the next make the diversity issue the only con- said. have fewer students now than before. school year. CJ PAGE 12 NOVEMBER 2009 | CAROLINA JOURNAL

Turnover rate may be even lower Teacher Turnover May Not Reflect True Job Market By Karen Welsh Still, Norris said graduates need Contributor to do all they can to find a teaching job RALEIGH in the state. “They repay their promis- he latest Teacher Turnover Re- sory note through teaching, and they port presented in September to have to be willing to make a good- the state Board of Education re- faith effort to go where the jobs are,” Tvealed that an average of 12.72 percent she said. “That’s the way the program of teachers statewide left their class- works.” rooms from March 2008 to March 2009. One rural school district where That figure is down from 13.85 turnover is not a problem is the state’s percent in 2007-08 and is well below second smallest: Camden County, the national teacher turnover rate of which lost only one of its 134 teachers 16.8 percent reported by the National from March 2008 to March 2009. Commission on Teaching and Ameri- “We’ve been fortunate over the ca’s Future. last several years to have an excellent With some teachers retiring and teacher retention rate,” said Camden others relocating to other schools out- County Public School Superintendent side their districts but within the state, Ron Melchiorre. “Our staff does a tre- the numbers may be even lower, said mendous job to achieve this.” John Locke Foundation education pol- Paula Mickey, Camden County’s icy analyst Terry Stoops. director of personnel and community “They don’t take enough into Jones County Public School students lina Teaching Fellows Program. Each schools, said the district’s new em- consideration,” he said. “I don’t feel continue to do well in the classroom year the program provides 500 high ployee orientation, teaching mentors, the turnover rate is as much of a prob- and on the Annual Yearly Progress school seniors a $6,500 annual schol- and accountability programs offer new lem as [school officials] say.” tests. That alone is attracting teachers arship if they promise to teach at least teachers a sense of well-being, employ- While the turnover rate might to the remote rural school district. four years after college graduation in a ment satisfaction, and stability within seem high, many local school officials “Our data is showing we are licensed, full-time teaching position in the system. say statistics don’t tell the whole story. a hidden jewel,” he said. “We have North Carolina. “We intentionally develop re- In small, rural districts, a few retire- smaller class sizes and more personal- While the report shows the high- lationships with the new teachers,” ments or reassignments might inflate ized support. Teachers actually want to est teacher turnover rates occur in ru- Mickey said. “We show them we’re a turnover in a misleading way. come here and teach in the district. We ral counties, many of the Teaching Fel- great community with great principals Take the rural Jones County Pub- are doing well in achievement. Success lows Program graduates are unable or [who] support the teachers, good stu- lic School System. It had the state’s breeds success.” unwilling to relocate to the more iso- dents, and great parent support.” highest rate of teacher loss, 25.69 per- Still, the yearly teacher turnover lated school districts. Camden County is reaping the cent, or 28 out of 109 teachers during reports are cited as justification for tax- “Many of the younger, newer benefits of the program, she said. the reported time period. payer-funded programs to provide in- teachers don’t want to live in the rural “There is longevity of our teach- Jones County School Superin- centives for recent college graduates to areas,” said Program Administrator Jo ers, and that not only benefits the stu- tendent Michael Bracy said the initial enter teaching, even if there are more Ann Norris. “They are looking for a dents, but the entire system,” Mickey numbers in the report were deceptive, educators looking for work than there quality of life, things like malls, sym- said. “When people are in place and however, as six teachers moved to non- are openings in the most desirable ur- phonies, and activities to do after work they’re not moving around, they be- teaching positions, three teachers re- ban centers and suburbs. and on weekends. There are pockets of come stronger teachers, and that makes tired, and one was Alisa Chap- for better classrooms and [better] re- a formerly retired school districts in farm communities man, associate vice sults on their Annual Yearly Progress teacher who had where that lifestyle doesn’t exist, and it president of aca- isn’t attractive for [them].” [evaluations].” CJ returned to the Turnover rates demic planning classroom but had and university- never intended to for teachers school programs stay there for an at the University extended number in North Carolina of North Carolina of years. at Chapel Hill, Visit our Wilmington regional page “In a nut- lower than the said the “revolv- http://wilmington.johnlocke.org shell, 10 of the 28 national average ing door” of teach- were very valid ers in the state moves,” he said. continues to be The John Locke Foundation “Without those 10 a “phenomenal has five regional Web sites span- in the mix, we would have been at a problem,” especially in middle and ning the state from the mountains 16.5 percent loss, and it would have secondary school mathematics, sci- to the sea. been an average year for us.” ence, and special education depart- The district often suffers chronic ments. loss of instructors because there is an The Wilmington regional page “Approximately one-third of includes news, policy reports inordinate number of transient teach- the teaching work force changes each ers on staff, said Otis Small, executive year,” she said. “We have a persistent and research of interest to director of human resources and ac- and very high teacher turnover rate. people in the coastal area. countability for the district. With 2,400 schools and almost 100,000 “Many of our teachers are mar- teachers, it’s a complex puzzle to put It also features the blog Squall ried to military personnel from Camp together. ... The public university sys- Lines, featuring commentary LeJeune in Jacksonville and Cherry tem is taking an active role to shore up Point in Havelock,” he said. “When on issues confronting coastal our public education system’s supply N.C. residents. their spouse’s tour is up, they have to and demand of teachers.” leave.” One program, created by the Despite their constant need to General Assembly in 1986 as a way to The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 refresh the teaching staff, Bracy said prevent teacher loss, is the North Caro- NOVEMBER 2009 | CAROLINA JOURNAL PAGE 13

UNC-CH Changes Tune on First Amendment Campus Briefs UNC-Chapel Hill isn’t the By Jay Schalin in Education, was the keynote speaker only university embracing a clash Contributor at the event, which drew several hun- of ideas on campus (see adjacent RALEIGH dred people. Another highlight was a article). Schools across the state n April, the University of North panel “debate” featuring the only stu- have been welcoming new voices Carolina at Chapel Hill appeared dent arrested for the Tancredo protest, and open dialogue on campus to the nation as an affront to free- Haley Koch, and the current president about a number of contentious is- domI and civil society. YouTube videos of the group that invited Tancredo, sues. showed an angry crowd of protest- Youth for Western Civilization (YWC), • The Duke Democrats ers overcrowding a small lecture hall Nikhil Patel. and the UNC-Chapel Hill Young to shout down former U.S. Rep. Tom During the discussion, Koch Democrats have come together to publish a new campus magazine Tancredo, a Republican, calling him a openly rejected the right to free speech and blog, Campus Blueprint. The racist for his stance against illegal im- of those with whom she disagreed, magazine’s first issue was pub- migration, and chasing him from the drawing a negative reaction from both lished on October 1, 2009. Editor podium. the audience and fellow panel mem- David Gilmore, a Carolina stu- Writers described how the jubi- bers. dent, explained that Campus Blue- lant protesters issued a chilling threat On Oct. 7, the Christian Apolo- print is intended to be a counter- to the student group that invited Tan- getics Club held a debate between point to conservative magazines credo to campus, chanting, “We know conservative author (and Christian) on both campuses: Carolina Review where you sleep at night.” Dinesh D’Souza and liberal religion at UNC-CH and the Gothic Guard- The leftist mob ruled the campus, professor (and agnostic) Bart Ehrman. ian at Duke. or so it seemed. And there had been It was sold out long before the curtain • In October, Casey Lar- other incidents that suggested that al- rose at UNC-CH’s 1,400-seat Memorial tigue Jr. spoke at NCSU, N.C. ternative opinions, particularly conser- Hall — for a scholarly campus debate A&T, and N.C. Central about vative opinions, were not welcome on entitled “God and the Problem of Suf- “Government: Friend or Foe of the Chapel Hill campus. fering.” Minorities?” Lartigue is an inde- Yet half a year later, Chapel Hill And despite the weighty topic, pendent education consultant, Center for Media Law and Policy (a seems more like a shining beacon of Ehrman’s and D’Souza’s comments writer, analyst, and former talk joint venture of the School of Law and free speech than a repressive state im- were frequently punctuated with ap- show host. He is co-editor of the posing an extreme version of politi- School of Journalism). The event was preciative applause. The two men book Educational Freedom in Urban cal correctness. In a recent two-week conceived last spring when UNC-CH’s were genial toward one another, even America: Brown v. Board of Educa- period, student groups and faculty Media Law Center was contacted by as they argued about perhaps the sin- tion after Half a Century. The events supporters of free speech brought to the Liberty Tree Initiative, a coalition gle most divisive and emotional issue were sponsored by the Pope Cen- campus a veritable feast of alternative of media professionals and academ- there is — whether God exists. ter. views. ics who seek to promote awareness of There was considerable appre- • The Federalist Society for First up, on Sept. 28, was con- free speech, according to journalism hension before former U.S. Treasurer Law and Public Policy Studies servative author and National Review professor Cathy Packer, who was in Bay Buchanan’s Oct. 8 campus appear- at Campbell University hosted a Online editor Jonah Goldberg, brought charge of the daylong event. ance. The YWC were again the spon- debate between Doug Bandow by the College Republican Club. Gold- “This seems like a good idea sors of the event, as they had been for of the Cato Institute and Adam berg drew approximately 300 people generally,” she said of the Initiative’s Tancredo, and Buchanan was essen- Searing of the N.C. Justice Cen- to hear his lecture on the subject of his promotion of First Amendment aware- tially taking Tancredo’s place as an ter. They addressed the question, book Liberal Fascism, in which he ar- ness, “and the Tancredo incident had anti-illegal immigration spokesperson. “Heath Care Reform: Are Con- gued that fascism, long assumed to be just occurred, so we thought students Would protesters launch an all-out gress’ Cures Worse than the Dis- an ideology of the right, is actually an would be especially interested in free effort to silence her? After all, Haley ease?” They tackled the individu- ideology of the left. speech issues.” Koch had publicly stated on First al mandate, rationing, the deficit, Then came First Amendment Greg Lukianoff, the president of Amendment Day that Buchanan’s ap- and the incentives provided by a Day — Oct. 1 — produced by the the Foundation for Individual Rights pearance would be met with opposi- third-payer system. tion, and suggested that “sometimes • Groups of students at two things get messy.” universities recently hosted show- As it turned out, the new protest ings of “Not Evil, Just Wrong,” fizzled. The effects of the administra- a new documentary by Phelim tion’s precautions, the media attention, McAleer and Ann McElhinney, ar- and First Amendment Day had taken guing “the only threats to Ameri- their toll on the dwindling ranks of the ca (and the rest of the world) are protesters — there were no more than the flawed science and sky-is- a dozen or so at the Buchanan event. falling rhetoric of Al Gore and his Finally, on Oct. 13, the Carolina allies in environmental extrem- Students for Life presented another ism.” The Campbell Liberty Club debate, this time on the abortion issue. and the UNC-CH Collegians for Nadine Strossen, the former president a Constructive Tomorrow hosted of the ACLU, squared off against pro- the event. life activist Scott Klusendorf. The event • At Appalachian State drew approximately 100 people. University, the Network of En- While other major universi- lightened Women hosted a Health ties around the country continue to Care Roundtable. The discussion, garner attention for their inhospi- titled “The Future of Health Care tality to conservative speakers, the in America,” centered on suc- Chapel Hill campus is instead open- cesses in free-market health care ing itself up to them, and large num- reform. CJ bers of students are coming out to hear them in large numbers. CJ Jenna Ashley Robinson is the campus outreach coordinator for the Jay Schalin is a senior writer with John W. Pope Center for Higher Edu- the John W. Pope Center for Higher Edu- cation Policy (popecenter.org). cation Policy (popecenter.org). PAGE 14 NOVEMBER 2009 | CAROLINA JOURNAL

COMMENTARY Will Online, For-Profit Education Accreditation Nightmares Cause ‘Creative Destruction’? By George Leef er convenience: It sounds as though Contributor ollege accreditation is one of Wait a minute — if the school StraighterLine has invented the pro- those obscure subjects that was in such dire financial straits RALEIGH verbial better mousetrap. people almost never think two years ago, how can it still be nline education has been If that is true, and if this new Cabout. If they do, they probably do alive and kicking? Evidently the around for years without do- competition catches on, there is likely so mistakenly. “unstable” situation that so alarmed ing any noticeable damage to to be a big shakeup in the higher edu- Otraditional bricks-and-mortar schools. cation industry. Our top colleges and They assume that accredita- SACS was not quite that desperate. There is reason to believe, however, universities aren’t going away, but a tion means that a college has passed Student enrollment has decreased that things are about to change. substantial number of mid- to lower- an educational “Underwriters only moderately. In 2007, the school Most students (and their families, tier schools will face competition un- Laboratories” test, proving that its had a freshman class of 216 and and taxpayers) now spend $20,000 to like any they have previously experi- programs are at least respectable. total enrollment of 745; in 2008, the $50,000 per year for college. In return, enced. One factor that will determine Those assumptions are way, numbers fell to 138 and 623; in 2009, they get instruction by professors, lec- how widespread the “creative destruc- way off target. Whether a college freshman enrollment increased to turers, and grad students tion” will be is this: how is accredited doesn’t say anything 147, while total enrollment declined that is often indifferent. will employers react to about its educational quality. I am to 600. What if they could in- educational work done aware of no cases in which a col- Moreover, educational quality stead get better instruc- online? lege lost its accreditation because at the school has remained good. tion for $1,200 per year? The reputation fac- its educational standards U.S. News put St. Andrews That’s right — tor is a big hurdle for were absurdly low or on its list of the 248 top $1,200. the growth of compa- because its curriculum liberal arts colleges in the A new firm, nies like StraighterLine. did not ensure anything nation in 2008 and 2009. StraighterLine (www. Their products may be remotely resembling a There is much to criticize straighterline.com), of- excellent and affordable, broad and basic education in the U.S. News ranking fers courses students but if the business world for students. system, but it doesn’t call can take for only $99 per doesn’t recognize that, When colleges lose bad schools good. month: For that price, a student can students will be spending their time their accreditation (or Furthermore, St. take as many of StraighterLine’s cours- and money for naught. Solvig didn’t are threatened with its Andrews received accredi- es as he wants and progress through take that math course just for the sat- loss), the reason is usu- GEORGE tation from the American them as quickly as it suits him. isfaction of a better understanding of ally financial. That is the Academy of Liberal Edu- Maybe that sounds like one of math. She took it because she hopes reason why St. Andrews LEEF cation (AALE). AALE’s those infamous diploma mill scams, that some employer who is looking for Presbyterian College, a imprimatur is ordinarily but it’s genuine. In a recent article in people who are competent in math will small liberal arts college sufficient to qualify an The Washington Monthly, Kevin Carey, hire her because she is competent. in Laurinburg, is in trouble. In 2007, institution for federal financial aid policy director of Education Sector, a Will employers recognize her the Southern Association of Col- money, but bureaucrats at the U.S. Washington, D.C., think tank, wrote StraighterLine credits as a good indica- leges and Schools (SACS) decided Department of Education refuse to about the experience of one woman tor of competence? StraighterLine has to revoke the school’s accredita- allow AALE to be the primary ac- who wanted an affordable way of no reputation to speak of. What will tion. It said that St. Andrews lacked creditor. boosting her resume and improving it take for employers to start thinking, a sound financial base and clear If St. Andrews fails for loss of her employability. Her name is Solvig, “She passed StraighterLine’s statistics financial stability. Therefore, the accreditation, the main villain will and Carey interviewed her to find out course, so she must be pretty good”? school might not be able to continue be the Department of Education. what StraighterLine’s courses were Two forces will push toward rec- offering students a good education. Why should accreditation and like. ognition of the value StraighterLine If a college loses its accredita- eligibility for federal student aid be Carey writes: “Every morning provides, if it does indeed provide tion, students are no longer eli- linked? They shouldn’t be. Con- she would sit down at her kitchen ta- value. First, StraighterLine and other gible for federal and state financial gress linked them to avoid wasting ble and log on to a Web site where she online education firms have a strong could access course materials, read text, incentive to inform people in the busi- aid. Since most schools depend federal money on “diploma mills,” watch videos, listen to podcasts, work ness world about the quality of their on students who rely on govern- paying for worthless degrees with through problem sets, and take exams. programs. This is essentially the same ment funds (including subsidized tax dollars. Congress assumed that Online study groups were available problem that any new business faces loans), losing accreditation is almost accreditation is a reliable way of where she could collaborate with other — getting people to think well enough equivalent to being forced out of distinguishing between the wheat students via listserv and instant mes- of it to try it. business. and the chaff, but it isn’t. saging. StraighterLine courses were Second, with growing evidence Following SACS’ 2007 deci- And the situation with St. designed and overseen by professors that many college graduates are un- sion, St. Andrews filed a lawsuit in Andrews is far different; it’s a fi- with Ph.D.s, and she was assigned a able to read well, write well, and do federal court, arguing that SACS’ nancial matter. When businesses go course adviser who was available by e- basic math, businesspeople are likely actions were illegal because its through tough financial times, their mail. And if Solvig got stuck and need- to be interested in better information standards are vague and it did not creditors work with them to avert ed help, real live tutors were available sources. So business has an incentive, follow fair procedures. U.S. District closure. Ironically, in education, at any time, day or night, just a mouse too — finding dependable ways of Court Judge William Duffey re- one of the “helping professions,” an click away.” identifying people who won’t need cently dismissed St. Andrews’ suit, accreditor can exterminate a college While Solvig was taking this additional training before they can be- ruling that accrediting agencies are experiencing tough financial times. course, her daughter was taking a come valuable workers. entitled to “great deference.” Let us hope that St. Andrews avoids math class at her community college If and when those connections The St. Andrews administra- that fate. CJ that used exactly the same course ma- are made, the result could be an exo- tion announced immediately that terials Solvig had used with Straighter- dus of students from schools that are it would appeal. The legal stay Line. The community college class cost selling degrees but only paying lip ser- against SACS’ pulling the plug, in George C. Leef is director of a lot more, and her daughter had to vice to education. CJ place since 2007, will continue until research at the John W. Pope Center for adjust her schedule to fit class meeting the 11th U.S. Circuit Court of Ap- Higher Education Policy (popecenter. times. Moreover, she found the profes- George Leef is director of research at peals can review the case. org). sor to be of little help. the John W. Pope Center for Higher Educa- Better quality, lower cost, great- tion Policy (popecenter.org). NOVEMBER 2009 | CAROLINA JOURNAL PAGE 15

Opinion Lecture Series Reveals Opinion Chasm over Western Civilization n 2006, the John W. Pope Founda- ing its subtleties Selecting a sideline to the Western tradition? tion agreed to sponsor six lectures or comparing it such a sensation- No, he said, emphatically. The forma- at UNC-Chapel Hill on the topic of to non-Western alist topic — the tion of the New Testament is “extraor- “RenewingI the Western Tradition.” traditions, or even moral crisis over dinarily important” to the history of Anyone attending the lectures just pointing out its the greatest ethical Western thought. Pagels’ studies of so far — or even looking over the list faults. lapse in the history the Gnostic gospels help us under- of speakers and topics — can see that To illustrate of the United States stand “how the canonical books relate UNC-CH’s College of Arts and Sci- the differences, — would seem to to their cultural context.” Kwame An- ences views “renewing the Western here is a list of the be motivated by thony Appiah’s talk was “extremely tradition” quite differently than many past Pope lecturers, a desire to focus positive” about Western traditions, members of the public would inter- beginning in 2008: on the failings said Koelb. pret it. • Elaine Pagels. She is a brilliant of Western history. This is in spite He admitted that Greenblatt’s The diction- scholar, yes, who made her reputa- of the fact that the first anti-slavery talk may have been “more about ary definition of tion by writing, and praising, the movement in the history of the world Stephen Greenblatt than it was about renewing is “re- Gnostic gospels. Those early Christian originated in the West — in Great Shakespeare.” suming,” “restor- books were rejected when the New Britain, which ultimately ended the “The theme is ‘renewing the ing,” or “reviv- Testament was “canonized” in the slave trade. Western tradition,’ which implies ele- ing.” The public fourth century, primarily because they Two other speakers have been ments of both conservation and inno- would expect a reflected the heresy that Christ did not selected: Iain Fenlon of Cambridge vation,” he wrote in an e-mail. “That’s series in “Renew- actually have a bodily existence. How- University, a specialist in Renaissance the balance we’ve wanted to strike.” ing the Western ever fascinating, they are a sideline to music, and Averil Cameron, a profes- I don’t doubt Koelb’s sincer- Tradition” to give JANE the Western tradition — and Pagels’ sor of late antiquity and Byzantine ity. But the choices reveal a chasm attention to the SHAW enthusiasm for them suggests that history at Oxford. between what I believe most of you strengths of West- she believes that the direction that the The Pope Foundation has no reading this column think about West- ern civilization, Christian church took was wrong. role in the selection. It appears that ern civilization and what the academy especially because • Kwame Anthony Appiah. He is those who select the lecturers intend thinks of it. they are often neglected on university a Princeton philosopher who explores to stress the value of intercultural To many people, a lecture series campuses. cultural relationships between the “conversation” and — it would seem about renewing the Western tradition Those strengths include, among West’s “cosmopolitanism” and the rest — to demote or cavil with the benefits would seek to reawaken interest in others, the process — beginning at of the world. of Western traditions. the work of past writers and thinkers least with Plato and Aristotle and • Stephen Greenblatt. Author of But Clayton Koelb, chair of the of that tradition — perhaps even to probably with early Judaism — that a Shakespeare biography, Greenblatt Department of Germanic Languages celebrate it. But that is, apparently, too developed freedom of thought and focuses on the cultural contexts of lit- and Literatures and head of the seven- conventional — perhaps even border- freedom of scientific inquiry, separat- erature, and he co-wrote a version of member committee that selects the ing on simplistic. The faculty’s view ed religious conscience from political a Shakespearean “lost play,” Cardenio. Pope lecturers, was shocked when I of “renewal,” like much of academic obeisance, and laid the foundations His talk was about various adapta- suggested that. Koelb said that the scholarship today, is a long way from of economic freedom and demo- tions of his Cardenio. committee sought as speakers only what I believe the broader educated cratic governance. These forces led to On Oct. 29, the scheduled respected international humanities public expects. CJ unprecedented levels of liberty and speaker was Andrew Delbanco, direc- scholars with a high public profile. It economic growth in the world. tor of American studies at Columbia was certainly “not our intention” to But the College of Arts and Sci- University. His topic was “How Could treat the Western tradition negatively, Jane S. Shaw is the president of the ences seems to think that “renewing Anyone Defend Slavery? Moral Crisis he said. John W. Pope Center for Higher Educa- the Western tradition” means analyz- in Antebellum America.” Were the Gnostic gospels merely tion Policy (popecenter.org). PAGE 16 NOVEMBER 2009 | CAROLINA JOURNAL

Town and County Woodfin drops annexation Incentive Foe Backs Incentive-Like Plan The Buncombe County town received would be returned should the policy be ruled un- of Woodfin has dropped plans for constitutional. a large-scale involuntary annexa- Guilford Commissioner Arnold Parks also inquired about the definition of “pub- tion. The town will pursue an an- lic good” included in the plan’s language, asking that it nexation agreement with Ashe- says economic times justify shouldn’t mean job creation. ville instead, reports the Asheville Such a definition “should be at the discretion of the Citizen-Times. new policy on tax rebates board,” attorneys replied. Woodfin had announced Another issue that Parks and Commissioner Mike its intention to annex about 3 ½ By Sam A. Hieb Winstead addressed was the fact that the plan did not cover square miles, including the Erwin Contributor residential development, including homes, apartment com- Hills and Leicester communities. GREENSBORO plexes, or additions. The move would have brought f it looks like an economic incentive, walks like an eco- Ernie Pearson, an attorney representing the county, about 3,360 people into Wood- nomic incentive, and quacks like an economic incentive, said the state statute addresses only industrial and commer- fin and increased the town’s land then it must be an economic incentive. cial development. area by 38 percent and its popula- I That may be stretching the cliché, but it was the gist of “I hear what you’re saying — it sounds like there’s tion by about half. The town had the debate surrounding a controversial tax rebate policy just some will on the board to include multifamily [housing],” described the move as being de- passed by the Guilford County Board of Commissioners. Pearson said. “But I just can’t get comfortable with that fensive, to prevent Asheville from Adding to the controversy is the fact that the plan was from a legal point of view.” annexing the area. The land the authored by Commissioner Steve Arnold, who has been a Winstead, a developer, expressed disappointment town proposed taking in included strong opponent of the many incentives requests to come with the way the plan has evolved. the West Buncombe Fire District, before the board in his nearly 20 years as a county commis- “I’ve gotten less and less excited about this plan,” which provides the town’s fire sioner. Winstead replied. “When we first started, it seemed like a protection. Asheville, though, de- In fact, Arnold recently criticized economic incentives unique plan — something no one else in the state was do- nied any immediate plans to annex when Dell announced it was closing its Forsyth County ing. We’ve slowly started knocking folks out, and now — in the area. plant. He told local media the my opinion — we’re only helping Those in the area Woodfin multimillion-dollar package used one group.” wanted to take in strongly op- to lure Dell was another example Commissioner Kirk Perkins posed the involuntary annexation. of “politicians subjectively pick- said the plan was a “disguise for a About 400 residents attended a ing winners and losers in the mar- rebate, which I don’t think is fair.” public hearing in July to express ketplace.” “I just think this is poor pol- their opposition to the proposed But, when defending his icy from top to bottom,” Perkins annexation. plan, Arnold said tough economic added. “This board is trying to do “We wanted to get the issue times demanded action. the right thing, but they’re trying behind us,” said Woodfin Mayor “Guilford County and the to do it in the wrong way. There’s Jerry VeHaun. rest of the nation are in a deep, no way I can support it, know- The town will now work dark recession,” Arnold said. ing what our bills and obligations with Asheville to define “areas of “Things are tough, and there are.” interest” for future annexations. needs to be an effort made to do Arnold further defended something about it. What we need his policy as being different from to do is in effect reduce marginal other economic incentives, say- ing that Gibson’s charge that the Public facilities ordinance taxes on businesses, and that’s what this is — a targeted tax cut policy won’t create jobs “is a judg- Twenty developers have for business growth and expan- ment that is absolutely impossible sued Cabarrus County, seeking the sion.” to make.” return of $2.6 million in fees they The plan would provide a tax Arnold pointed out that larg- paid under the county’s adequate rebate for property improvements er incentives packages to compa- nies don’t necessarily incentivize public facilities ordinance. in excess of $10,000. It would cost their behavior, because commis- Whether the fee is refunded the county between $1 million and sioners don’t know if a package to developers depends upon ongo- $3 million per year, with commis- offered up was the ultimate decid- ing litigation before the state’s ap- sioners carving out $1.3 million in ing factor in whether or not to lo- pellate courts, reports the Concord the 2009-10 budget. cate in Guilford County. Independent Tribune. While the plan passed by an 8-3 vote, commissioners Besides, Arnold explained, additional value to the tax An adequate public facilities had a wide variety of complaints: It’s no different than other ordinance is a special fee on new base — not jobs — was the focus of the plan, although more incentive plans; it varies too radically from other incentive jobs very likely could be a residual factor. housing construction. It’s based plans; it has no requirement to add jobs along with prop- upon a theory that the population But probably the harshest criticism of Arnold’s plan erty improvements; it unfairly excludes residential develop- came from Commissioner Billy Yow, who has been Ar- associated with new construction ment; and it might not stand up in the courts. imposes additional burdens upon nold’s ally in opposing economic incentives. In fact, Arnold “I still don’t see where there’s any criteria to produce and Yow were the only two commissioners to vote against a community’s public facilities, any jobs,” said Commissioner Paul Gibson. “We’re not try- such as schools, which should be awarding Dell $7.1 million in economic incentives in 2004, ing to get anybody to do anything that they wouldn’t do when Guilford County was making its own pitch to land addressed by an impact fee rather ordinarily.” than some other funding mecha- the company. Commissioner John Parks quizzed county attorneys Yow added that the plan doesn’t address the reali- nism. on the legality of the plan, which was presented for a for- ties of the economic meltdown, because property improve- In August, Superior mal vote on the eighth draft after consultation with legal ments are going to be minimal until the banks start lending Court Judge David Lee ruled experts. money again. the county didn’t have au- “I just want to make sure if we pass something it’s go- Interestingly enough, Yow’s criticism appeared to thority to impose the fee. ing to hold up legally,” Parks said. echo Arnold’s later comments about the Dell incentives — The county is appealing and Attorneys assured Parks that the plan had elements of that it was indeed a case of politicians subjectively picking continues to impose the fee pend- other incentives policies in the state that have stood up to winners and losers in a tough economy. ing a ruling by the N.C. Court of legal challenges. “If you want to talk about fairness, it’s ‘one Appeals. CJ Board Chairman Skip Alston addressed the legality is- for all, and all for one.’ And if it ain’t that way, I sue, saying that applications should stipulate that money can’t support it,” Yow said. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 17

N.C. Air Quality Improves, COMMENTARY Toxic Brew Despite Tighter Standards For Taxpayers By Karen Welsh called for.” Contributor Other groups are on the same overnment isn’t run like a unalarmed when signs started to RALEIGH bandwagon, he said. One case in business. It does, however, appear that the ballpark would ust the facts, ma’am. Just the facts. point is the American Lung Associa- often offer aid — politely cost more than originally thought. They’re what Dr. Roy Cor- tion’s longstanding campaign to blame calledG “incentives ” — to business- It was presumed that Prim and dato, vice president for research ozone pollution for the rise of child- es. And that can be a toxic brew for Filipowski would cover any cost andJ resident scholar at the John Locke hood asthma in Western North Caro- taxpayers, especially if local gov- increases. Indeed, a pricier stadium Foundation, was trying to ascertain lina. ernments don’t engage in the same was seen as a plus, as it would gen- when he compiled “A Decade of Data “The air quality is going up, and sort of due diligence that a well-run erate more property tax revenues on Smog.” the ozone is going down, but asthma is business would. Winston-Salem’s for the city. The report details the last 10 years going up,” Cordato said. “The counties of North Carolina’s compliance with with the lowest levels of ozone have involvement in building a new mi- By late last year, it became ever-tightening U.S. Environmental the highest levels of asthma. It just flies nor league baseball stadium high- clear that Prim — with or without Protection Agency ozone and air qual- in the face of what they are trying to lights the problem. Filipowski — couldn’t cover the in- ity standards. claim.” Billy Prim and Andrew “Flip” creased costs, or even the original, “We are the For many of Filipowski were the owners of the lower cost amount. City officials only organization the organizations, Winston-Salem Class A baseball felt obligated to provide the money putting out the it’s nothing more team, which is now known as the to finish the job. data,” he said. “I than fear tactics Dash. They wanted to And in an act of lay out the data designed to keep build a new stadium but closing the barn door with very little them in business, didn’t have the financial long after the horse had analysis and no said Joel Schwartz, resources to pull it off. left, Winston-Salem spin. This paper is a national envi- just the facts.” ronmental consul- So they went to the city appointed a citizens Cordato said tant specializing for a cheap loan. The city committee to oversee the the statistics gath- in air pollution. agreed in November 2007 stadium project. ered over the past He said compli- to provide $12 million In an ideal world, decade show most ance both nulli- toward the then-projected local governments communities in fies their mission $22.6 million cost of the MICHAEL wouldn’t subsidize North Carolina and the potential 5,500-seat facility. LOWREY sports team owners. consistently have funding they need The new ballpark Those choosing to do so met stricter ozone to survive. didn’t end up costing should be fully aware and air pollution “We are $22.6 million; the actual of what they are getting standards put forth now breathing the by the EPA in 2008. cleanest air urban cost is currently projected at $40.7 themselves in for. That means North Carolinians people have ever breathed,” Schwartz million, plus an additional $8 mil- An early red flag in this case can breathe a lot easier. said. “The EPA has to ensure its own lion for land paid for by the city. was the Dash’s owners’ original re- “It’s a good trend,” Cordato said. survival by tightening their own stan- Earlier this year, Prim, by then the quest for $12 million to build what “Smog has gotten better. This year may dards. The EPA depends on the per- Dash’s sole owner, sought addi- was described as a $22.6 million end up being the best on record with ception that there is a serious problem tional public assistance to finish stadium. When private business the lowest number of high ozone-level to solve. They want to stay in business, the project. In June, the city agreed people, seeking to provide an en- days.” to keep in power.” to provide another $15.7 million to tertainment facility, don’t want to The EPA asserted its full author- He said it’s unfortunate, but each get the stadium completed. or can’t come up with even half of ity to control ozone and air pollution time the EPA tightens the regulations, Things went off the tracks the funds required, there’s reason after Congress passed the Clean Air the cost for that increment becomes Act into law in 1990. more and more expensive for both the early on. The Winston-Salem Journal to be concerned. Viney Aneja, professor of marine, residents of North Carolina and the reports that the original cost fig- Public officials should ask earth, and atmospheric sciences at rest of the country. ures were little more than a place- some hard questions, including N.C. State University in Raleigh, said Cordato said it’s time to stop the holder. Prim needed a number to how solid the cost estimates are. If the problem of ozone pollution is not EPA from spewing out its own pollu- use when talking to city officials, so team owners had a valid business only improving in North Carolina, but tion in the form of out-of-date rheto- he plugged in the cost for Greens- model, they probably wouldn’t is also decreasing steadily across the ric and costly standards, which hold boro’s baseball stadium, which was need local government’s help. And country. North Carolinians hostage to the high- built in 2003-04. if they didn’t have a valid business “Even with stringent standards, est pollution standards in the country. The stadium Prim would model, as was the case here, watch it is coming down,” he said. “It means He said the only way to stop the build hadn’t actually been de- out. [the EPA approach is] a good strategy escalation is to ask state officials to signed yet. And when it was Sadly, this isn’t the only for our country.” curb the EPA’s control. Cordato said the EPA, the Ameri- “Someone needs to hold the reg- designed, it included significant, recent high-profile case in North can Lung Association, and other en- ulatory agencies accountable,” he said. pricey upgrades, including wider Carolina of local government of- vironmental entities continue to use “Politicians need to rein them in, but concourses and a “kid’s zone.” ficials not doing their homework. irrelevant and outdated air quality unfortunately most are not willing to The layout also had to meet city The Randy Parton Theatre fiasco in information to scare citizens and com- do so because they feel they will be regulations, such as minimizing the Rocky Mount also could have been munities into stricter compliance. seen as nonenvironmentally safe. Not impact on the neighborhood from avoided if officials had done some “The EPA doesn’t want to make only don’t they rein them in, but they the noise and lighting, and includ- due diligence. CJ people comfortable,” he said. “They aid and abet them.” ing stormwater controls. want them always to worry. These Cordato said cleaner air stan- City officials, for their part, are folks who feel it’s never enough. dards have become a dirty business, were largely uninterested in the Michael Lowrey is an associate Whenever the community comes into one in which residents pay dearly compliance, they ratchet the standard through higher electricity bills — leav- accuracy of the cost number and editor of Carolina Journal. lower to make it harder. I think it’s un- ing everyone gasping for air. CJ PAGE 18 NOVEMBER 2009 | CAROLINA JOURNAL

Local Innovation Bulletin Board Durham Officials Want Bigger Community Bill of Rights Slice of Airport Revenue Pie

n November, the citizens of Spo- nificantly since the peak. This comes By Michael Lowrey ties are trying to accomplish is sim- kane, Wash., will have a first-in- despite Houston, Dallas-Ft. Worth, Associate Editor ple: build a law-enforcement training the-nation chance to vote on a and Atlanta all being among the RALEIGH center, featuring an indoor shooting “communityI bill of rights.” The mea- country’s most desirable destina- powerful legislator is argu- range, at Forsyth Tech’s Northwest sure, if approved, would guaran- tions for relocation, with each mar- ing that the General Assembly Forsyth Center, with the cost being tee legal rights to a sustainable and ket adding 120,000 people per year. should re-examine how sales split between the city and county. The locally based economy, affordable “This suggests that local fac- Atax revenues collected at Raleigh-Dur- facility is estimated to cost $21 million preventative medical care, afford- tors, not national policies, were a ham International Airport are distrib- and also would include a fire-training able housing, and affordable and necessary condition for the hous- uted. Rep. Paul Luebke, D-Durham, a area. renewable energy. The proposal also ing bubbles where they took place,” senior chairman of the House Finance The complicating factor is how would assign legal rights to the envi- says O’Toole. Committee, thinks the city and county Winston-Salem covers its share of con- ronment and neighborhoods while “The most important factor of Durham should get a slice of the struction costs. The city plans to issue specifying how workers would be that distinguishes states like Cali- money as they’re $7 million in cer- paid, write Abby Burlingame and fornia and Florida from states like co-owners of the tificates of -par Carl Gipson of the Washington Pol- Georgia and Texas is the amount of airport, reports ticipation with icy Center. regulation imposed on landowners the Durham Her- the other $3.5 If the community bill of rights and developers, and in particular a ald-Sun. Cherokee million coming is adopted, litigation is almost cer- regulatory system known as growth RDU is op- from other sourc- tain to follow. State law requires management.” erated by the es. Certificates of each referendum to be on a single Growth management includes to Raleigh-Durham participation are subject matter only. The array of a wide range of public policies that Airport Author- similar to bonds rights granted by the community bill restrict the amount of land that can of rights may simply be too much for be developed. Examples include ur- ity. The city of Currituck except they do a single vote. ban growth boundaries, greenbelts, Durham, Dur- not require voter The measure also contains a and annual limits on the number of ham County, approval. They number of contradictory provisions. building permits that can be issued. Wake County, and Raleigh each ap- can be used only to fund projects For example, providing more afford- point two members of the authority’s owned by the issuer, in this case the able housing could easily conflict eight-member board. Under an agree- city. State law, meanwhile, prohibits with the neighborhoods’ capacity Calorie labeling ment reached in 1939, each of the four Forsyth Tech from allowing anyone for self-government. local governments also contributes else to build on land it owns. In July 2008, New York City be- $12,500 per year toward the costs of “It is one of those legal wran- It’s clear, though, that the aim came the first U.S. city to require fast operating the facility. The amount has glings you have to go through,” said of the community bill of rights is to food restaurants to post the number not changed over time as the airport Forsyth County Manager Dudley establish a number of new legal en- of the calories each item contains on has grown. The facility’s current bud- Watts. “I don’t think the intention of titlements. The measure before vot- menu boards. According to a new get is $114 million. the General Assembly is to get us not ers does not contain any mention of study in the journal Health Affairs, how the new rights would be paid while the new regulation greatly in- Because RDU is located in Wake to collaborate. We would love to have for, though it’s clear that these obli- creased public awareness of calorie County, all of the sales tax revenues an agreement this fall and a really gations would require higher taxes. information, it didn’t actually lead generated there go to Wake County lo- workable project next spring.” “Much of the language associ- to a reduction in calories purchased. cal governments. Such a solution may require spe- ated with the measure is vague on Researchers analyzed the pur- Facing tight local budgets, Dur- cial legislation, he noted. purpose, so that courts and future ham County officials and legislators chases of 1,156 adults at Burger Wilmington hotel city legislation can take the lead in King, Kentucky Fried Chicken, Mc- want a share of the tax receipts. defining what the amendments re- Donald’s, and Wendy’s before and “I want the public in Durham to Wilmington’s new convention ally mean,” said Burlingame and after the requirement to post calorie have a slice of the pie at the airport,” center is set to open in late August. It Gipson. information prominently went into said Durham County Commissioner may take an additional 18 months to “Unfortunately, this means effect. Joe Bowser. two years before a hotel opens next that when voters go to the polls in Consumer awareness of the No one is sure how large that pie door, reports the Wilmington Star- November, they may not have an ac- calorie count of the items they pur- is, as the state handles sales tax collec- News. curate understanding of what it is chased did increase by 16 percent tions and doesn’t break them down at they are voting on.” Having an adjoining hotel would to 54 percent. That did not translate the point of sale. help the convention center attract into people buying items with lower At least four other legislators events that draw overnight visitors. Housing bubbles calorie counts; indeed the total cal- have signaled that they support the The city was hoping to have a hotel ories purchased actually went up measure. ready when the convention center In the recent financial crisis, slightly after the rule went into ef- “Filing the bill is a fairly simple opened. housing prices in some areas fell fect. act,” said Sen. Floyd McKissick Jr., D- The city had entered into an much more sharply than in oth- “Though the introduction of Durham. “Having the bill pass is a dif- agreement with a development group ers. In those areas, housing bubbles calorie labels did not change the ferent issue.” to put a Hotel Indigo next to the con- burst. In a new analysis for the Cato number of calories purchased, a Legislators from Wake County vention center, but that fell through in Institute, Randal O’Toole argues that combination of public policy efforts are expected to oppose a sales tax early September, when the developers housing bubbles in states such as are likely necessary to produce a transfer to Durham County. couldn’t come up with the financing to California and Florida were caused meaningful change in obesity,” said by growth controls imposed by ur- Brian Elbel, a professor at the New Forsyth firing range buy the land from the city. ban planners. York University School of Medicine Back at square one, city officials Housing prices in both Cali- and a lead author of the study, to Re- Forsyth County, Winston-Salem, must rethink what sort of hotel should fornia and Florida doubled between uters. and Forsyth Technical Community be associated with the convention cen- 2000 and the peak of the bubbles; The New York City regulation College all agree on the need to work ter. The decision involves a trade-off; they have fallen by 20 percent to 30 has served as a model for similar cal- together to build a law-enforcement the city’s more likely to find a develop- percent since then. By comparison, orie disclosure rules in other places, training center. Making that happen er quickly if the facility offers few up- housing prices in Texas and Georgia including California, other parts of may require legislation from the Gen- scale amenities. Such a “select-service” on average grew by only 20 percent New York state, and the cities of Se- eral Assembly, reports the Winston-Sa- hotel could limit the range of events to 25 percent and haven’t fallen sig- attle and Portland, Ore. CJ lem Journal. the convention center can attract in the In theory, what the three enti- future. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 19 Court: Religious Developments Can Impose Otherwise Illegal Fees property owners comply with the rules Justice Paul Newby for a four-judge emphasizing that the unique nature of and regulations of the Lake Junaluska majority of the N.C. Supreme Court in the Lake Junaluska Assembly was fun- Decision involved Assembly. Since 1996, those regula- holding the service charge was proper. damental in reaching that conclusion. tions have included a requirement that The majority treated the imposi- Justices Robin Hudson and Pa- Lake Junaluska property owners pay an annual service tion of the service charge as an amend- tricia Timmons-Goodson disagreed. charge for “police protection, street ment to the restrictive covenants on In particular, they were disturbed that maintenance, street lighting, drainage the properties. The Supreme Court has the majority and concurring opinions Methodist property maintenance, administrative costs, and previously held that such amendments rested upon the “unique, religious By Michael Lowrey upkeep of the common areas.” can be enforced if they are reasonable, community character” of the Lake Ju- Associate Editor Gordon and Diane Emerson, Paul with reasonableness dependent upon naluska Assembly Development. The RALEIGH Huffman, and Donald and Virginia the intent of the contracting parties, Southeastern Jurisdictional Adminis- o special rules apply for prop- Patten are prop- including “the trative Council, Hudson pointed out, erty developments associated erty owners in nature and char- had never argued at any stage in the with religious groups? The an- the assembly who The North Carolina Courts acter of the com- litigation that special rules in inter- Dswer, according to the N.C. Supreme refused to pay the munity.” Newby preting covenants should apply to re- Court, appears to be “yes,” with the service charge, found that for ligious communities. Indeed, the case high court finding in an Oct. 9 decision which was im- nearly a century, had progressed as a run-of-the-mill that the “unique, religious community posed years after the assembly had dispute between a commercial real es- character” of a development associat- they bought their worked to devel- tate developer and its property own- ed with the United Methodist Church homes. The South- op its unique, reli- ers. allowed for the imposition of fees on eastern Jurisdic- gious community Hudson found the dispute to be property owners under circumstances tional Adminis- character. straightforward, and that it was not that otherwise would be prohibited. trative Council “In purchas- necessary to get into the history of the The origins of the Lake Junaluska sued to collect. In response, the prop- ing property in the Assembly, defen- SJAC to resolve it. In a 2006 case, Arm- Assembly Development date to 1908, erty owners contended that the service dants presumably desired to take ad- strong v. Ledges Homeowners Association, when the Laymen’s Missionary Con- charge was improper. vantage of the Assembly’s exceptional the N.C. Supreme Court held that “[i] ference in Chattanooga passed a reso- A Superior Court judge ruled community atmosphere, and in order n the same way that the powers of a lution calling for a Methodist assembly in favor of the SJAC, but on appeal, to preserve that atmosphere, they were homeowners’ association are limited in this region. Construction began in a three-judge panel of the N.C. Court willing to relinquish significant own- to those powers granted to it by the 1913, and private lots were soon of- of Appeals ruled ership rights and original declaration, an amendment fered for sale. In 1929, the name of the in favor of the give the Council should not exceed the purpose of the property became the Lake Junaluska homeowners. Be- substantial control original declaration” in rejecting an as- Methodist Assembly. Since 1988, the cause the appeals Lake Junaluska’s over the commu- sessment imposed by a homeowner’s Southeastern Jurisdictional Adminis- court ruling was ‘unique character’ nity,” wrote New- association. Huffman purchased his trative Council also is headquartered not unanimous, by. lots in 1970 and 1974, while the Emer- at the assembly. the state’s highest was cited Newby, in sons bought theirs in 1992. At the time, The assembly includes 200 lake court was required turn, found the no service charge existed, nor was the acres plus associated amenities such as to hear the case as justification for service charge cov- potential of one mentioned in the cov- boat rentals and a golf course, meeting upon request by ers costs that are enants. facilities, rental accommodations, and the SJAC. special rules reasonable com- “This amendment appears to over 700 private homes. More than “In light of munity expenses. be precisely the type of ‘overreaching 150,000 people visit the assembly ev- the unique char- Chief Justice Sarah by one party or sweeping subsequent ery year for ministry retreats and other acter of the As- Parker and Jus- change’ that we cautioned against in events. sembly and its longstanding history of tices Mark Martin and Edward Brady Armstrong,” wrote Hudson. The private homes in the assem- covenant-imposed regulations, we up- joined in Newby’s opinion. The case is Southeastern Juris- bly are all subject to a number of cov- hold the covenants as enforceable and Justice Robert Edmunds wrote dictional Administrative Council, Inc. v. enants, including one requiring that reverse the Court of Appeals,” wrote separately, agreeing in the outcome but Emerson (62A08). CJ Help us keep our presses rolling Publishing a newspaper is an ex- Visit our Triangle regional page pensive proposition. Just ask the many http://triangle.johnlocke.org daily newspapers that are having trouble making ends meet these days. It takes a large team of editors, re- The John Locke Foundation porters, photographers and copy editors has five regional Web sites span- to bring you the aggressive investigative ning the state from the mountains reporting you have become accustomed to the sea. to seeing in Carolina Journal each month. The Triangle regional page in- Putting their work on newsprint and cludes news, policy reports and then delivering it to more than 100,000 research of interest to people readers each month puts a sizeable dent in the John Locke Foundation’s budget. in the Research Triangle area. That’s why we’re asking you to help defray those costs with a donation. Just It also features the blog Right send a check to: Carolina Journal Fund, Angles, featuring commentary John Locke Foundation, 200 W. Morgan on issues confronting Triangle St., Suite 200, Raleigh, NC 27601. residents. We thank you for your support.

John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 20 NOVEMBER 2009 | CAROLINA JOURNAL

From the Liberty Library Movie review

• The discipline of economics is not what it used to be. Over the Documentary Credits de Soto’s Free-Market Ideas last few decades, economists have begun a revolutionary reorientation • “The Power of the Poor, with Hernando de Soto” cope with these systemic impediments to economic prog- in how we look at the world, and this Directed by Jim Taylor ress. They found that when the poor are shut out of the for- has major implications for politics, Free to Choose Media mal economy, an informal or “extra-legal” economic system policy, and our everyday lives. arises to take its place. What economists left out of By Jim Stegall Based largely on social custom and sheer necessity, a the story were the positive forces Contributor parallel system of land ownership, contract enforcement, of creativity, innovation, and tech- RALEIGH credit and foreclosure, etc., which closely mirrors the ideal nological advancement that propel n 1539, Hernando de Soto, scion of a minor Spanish no- of free-market capitalism, develops within these communi- economies forward. Economists did ble family, having made a fortune in business by the age ties. not describe the dynamic process of 38, set out to explore what is now the southeastern Unfortunately, these informal systems are strictly lo- that leads to new pharmaceuticals, IUnited States (including parts of western North Carolina), calized; they have no recognition outside the small commu- cell phones, Web-based information looking for new sources of wealth. nities in which they operate. They may work well enough services — forces that fundamentally Years of exploration yielded no gold, and in 1542 de to keep the family fed (poorly) for a day, but without access alter how we live our daily lives. Soto died in Arkansas, his corpse wrapped in weighted to the “real” economy with its legal and structural support Economists also left out the clothes and tossed into the Mississippi River by his men in systems, the poor have no hope of improving their lot. negative forces that can hold econo- hopes that the natives would not learn that the explorers De Soto’s proposed solutions are ones John Locke mies back: bad governance, coun- were, contrary to what the Spaniards had b e e n himself may have approved of. He wants governments to terproductive social practices, and telling them, mere mortals. simplify and clarify laws governing business so that they patterns of taking wealth instead In 1979, Hernando de Soto, scion of can be understood by the average citizen, of creating it. a prominent political family in Peru but give legal identities to the poor, From Poverty to Prosperity, writ- raised in exile in Switzerland, having and establish a system of ten by Arnold Kling and Nick Schulz, made a fortune in business and retired recognizing and record- tells a big-picture story about the by the age of 38, set out to explore the ing the informal property huge differences in the standard of mystery of why his native land, rich titles they hold so they can living across time and across borders. in natural and human resources and be used to obtain credit for operating under a nominally capital- improvements. ist economic system, remained poor In short, he wants to in- while many countries less favor- vite these budding entrepre- • Despite the calls for massive ably endowed prospered. Unlike neurs into the system by mak- spending and “stimulus,” if the cur- the luckless 16th-century de Soto, ing the system user-friendly. rent financial crisis has taught us this 21st-century version believes De Soto claims that this anything, it is to save, not just spend. he has struck the mother lode. program was highly successful In fact, over the years “thrift” has The most recent result of when adopted in Peru by the ad- become America’s lost or forgotten his efforts is “The Power of the ministration of former President virtue, rarely mentioned and never Poor with Hernando de Soto,” Alberto Fujimori in the 1990s. He celebrated, despite its historical a documentary produced by says that these reforms drastically significance. Free to Choose Media, with cut the time and cost of starting a In Thrift, Theodore Roosevelt funding by the John Temple- business and made legal landown- Malloch traces the history of thrift ton Foundation. In it de Soto ers out of nearly half of Peruvians. from its roots in the Scottish enlight- argues that the reason the De Soto believes his reform plan enment to the no-waste credo of poor haven’t benefited from was a key component in the govern- Sam Walton. Thrift, Malloch argues, capitalism is that they have ment’s victory over the communist provides the resources to stimulate never really been allowed “Shining Path” guerrilla insurgency prosperity. Even if the government to give it a try, at least not in that decade. manages to shock our economy legally. He argues that the The guerrillas must have thought back to life, America will require world’s poor, about two-thirds of hu- so, too — they tried repeatedly to kill discipline, accountability, and far- manity by his count, are both ready and eager to par- him for his efforts. sightedness to right its course for ticipate fully in capitalist economies and can do so success- Of course, leftist critics of de Soto’s generations to come. fully, if only their governments would get out of the way program argue that private land ownership is incompat- In an age when corruption and and let them. ible with the values of the poor (especially when the poor greed have crowded out personal Using his native Peru as an example, he shows how are indigenous peoples), or that the poor are not “ready” for responsibility, Thrift is lively, topical, the country’s legal and business structure made it virtually capitalism, or that only a collective approach to land owner- and immediately useful. impossible for the average citizen to buy land, start a busi- ship will work. ness, take out a loan, or enter into business contracts. Fur- The collective approach was tried for years in Peru ther research by the Institute for Liberty and Democracy, an with disastrous results. “The Power of the Poor” contains organization founded by de Soto (and praised by The Econ- a brief segment in which a rural campesino explains how it • A powerful, persuasive omist as one of the world’s top two think tanks), revealed worked in his village. In 1969, the Peruvian government speaker and notorious wit, Win- that the same legal impediments to business exist in most seized all the land, but did not give titles to the villagers. In- ston Churchill is one of the 20th poverty-stricken Third World countries. stead, a “cooperative” was established, and directors were century’s most oft-quoted leaders In “The Power of the Poor,” de Soto identifies three appointed by officials in Lima. — and one frequently misquoted major factors that keep the poor locked out of the system. As the campesino explains, “we still had to work the or quoted out of context. Yet his First, most of the poor around the world have no legal iden- land as before” (for about 50 cents a day), while the direc- actual remarks were often much tity. Second, they have no legal titles to the lands they inhab- tors “sat around drinking beer. Even now they have their wiser and wittier than reported. it and work. Finally, without verifiable legal identities and houses and cars … tractors, purchased by the cooperative.” Churchill By Himself is the titles to their lands or shops, the poor cannot obtain credit, The documentary makes a thoughtful yet power- first exhaustive, attributed, and make contracts and have them enforced, buy and sell assets ful case for de Soto’s free market ideas. The program has annotated collection of Churchill outside of their own small communities, or do any of the excellent production values and is available on DVD from sayings. The quotations provide the normal business activities we in the developed world take The Idea Channel. Like all Free to Choose Media pro- first wholly accurate record of the for granted. grams, it was aired on PBS, perhaps as that network’s pen- esteemed statesman’s words. CJ De Soto and his ILD investigators spent years in the ance for inflicting Bill Moyers on the American public for countryside and the shanty towns studying how the poor so many years. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 21 An Overtly Partisan Press is as American as the First Amendment partisan press is not evil. It can In 1798, the U.S. Congress Macon continued, and he reminded making a comeback. be beneficial, so long as jour- debated whether to silence the press, his Federalist counterparts that Cob- Sometimes, watching partisan nalists act responsibly and the with the passage of the Sedition Bill, bott’s, the Federalist paper, was as cheerleaders such as Sean Hannity on governmentA doesn’t squelch particu- fearing editors who expressed views culpable as the Repulican Aurora. He Fox or Rachel Maddow on MSNBC lar viewpoints. Partisan reporting — contrary to ongoing war efforts. then spoke of freedom of the press, can be nauseating. It’s still interesting what one excludes is often as impor- The Federalists, the party in power, read aloud the First Amendment, and to note how each commentator inter- tant as what he wanted to silence the Aurora, the asked: “How can so plain language prets events. While Hannity called for or she includes — Republican paper, for spreading what be misunderstood or interpreted into investigations into ACORN, for in- should no longer Connecticut Federalist John Allen consistency with this bill before us?” stance, Maddow defended the organi- hide, as it has been called “shameless falsehoods” that Such partisan reporting started zation. While Hannity interviews Karl doing for some were “hostile to free government and disappearing during the Mexican- Rove on economic bailouts, Maddow time now, behind genuine liberty, and of course to the American War. In 1846, newspaper interviews Howard Dean. a disguise called welfare of the country.” The Sedi- owners and editors created The Try it sometime. You may find “objectivity.” With tion Bill’s language was alarming. It Associated Press (AP). The coopera- the channel flipping interesting. an issue-driven suggested fining and/or imprisoning tive helped cut the costs of gathering Here’s a warning, though: At times, and/or partisan those who spoke anything “libelous, worldwide news and thereby helped when opposing views are presented, press, viewers, scandalous, or tending to defame the provide more information for sub- your stomach will remind you what listeners, and read- TROY government or its officer.” scribers. A byproduct of this venture you had for lunch. But as Nathaniel ers will know what KICKLER During the Sedition Bill debate, was “objective” reporting; the AP Macon, a defender of a partisan press they are watching, North Carolina’s Nathaniel Macon had to sell its stories across the nation and the press in general, said in a hearing, and reading. remarked that Americans comprised to all papers. AP reporting excluded congressional debate concerning the During the early republic and a politically aware citizenry who overt partisanship. By 1900, “objec- Federalist and Republican papers, he antebellum eras, partisan media cherished freedom of the press. Such tive” reporting was mainstream. subscribed to both because he needed outlets abounded. The names say it a citizenry would “suspect something Today, with the advent of one to counteract the lies of the all — Bristol County Democrat and Es- is not right when free discussion is technology (i.e., the Web and Twitter) other. A partisan press is a good thing sex County Whig, for instance. There feared by government. They know the helping reduce the costs of individuals — and is as American as the First were issue-driven papers, too, such as truth is not afraid of investigation.” gathering news, media are once again Amendment. CJ William Garrison’s abolitionist pub- Americans have as much right to at a crossroads. Mainstream media are lication The Liberator. Partisan media, discuss politics as the men whom they not needed as much anymore; they it seems, were considered evil only elect “to do their business.” serve as ancillary sources for many Dr. Troy Kickler is director of the when they undermined the powerful’s The national government did who get their news via cable or from North Carolina History Project (www. objectives. not have the right to limit the press, online outlets. Partisan reporting is northcarolinahistory.org). Stay in the know with the JLF blogs Visit our family of weblogs for immediate analysis and commentary on issues great and small www.JohnLocke.org YOUR HOME ON THE WEB FOR The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the foundation post on this site every day: http://www.johnlocke.org/lockerroom/ NORTH CAROLINA PUBLIC POLICY Creating your own personal Key Account at www.JohnLocke.org is a great starting place for tracking the critical public policy issues facing North Carolina.

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Squall Lines is the JLF’s blog in Wilmington. A group of JLF staffers and coastal friends keep folks on excellent tool for those drafting legislation, researching the coast updated on issues facing that region of the state: http://wilmington.johnlocke.org/blog/ policy issues, preparing news stories, planning political or lobbying campaigns, or seeking information with which to be an informed voter and citizen.

Piedmont Publius is the JLF’s blog in the Triad. Greensboro blogger and writer Sam A. Hieb mans the controls to keeps citizens updated on issues in the Triad: http://triad.johnlocke.org/blog/ Visit www.JohnLocke.org and create your personalized Key Account today!

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The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 NOVEMBER 2009 | CAROLINA JOURNAL

Short Takes on Culture Book review ‘I Am David’ Outstanding Gelles Illuminates Woman Founder •”I Am David” Throughout the book, Lotz • Edith B. Gelles, Abigail & John: Por- Revolution meant sacrifice. And for Walden Media shares many personal experiences. trait of a Marriage, New York: William both of them the major sacrifice that it Directed by Paul Feig But as she looks at the life of Abraham, Morrow, 2009, 339 pages, $26.99. required was companionship.” Their she shares how his experiences with letters took the place of daily conver- t’s the early 1950s, and 12-year-old God have inspired her, shaped her life, By Hal Young sation, and John seemed to grasp the David is a prisoner in a Commu- and strengthened her walk with God. Contributor importance of this fact when Abigail nist forced-labor camp in Bulgaria. Lotz instructs and inspires the RALEIGH alone had to nurse their young family I A mysterious voice provides reader on how to have the magnificent xamining the impact the first through an epidemic that claimed her David, with instructions on how to experience that she has had through ladies have had on their hus- mother and one of their servants, while escape. David is given a piece of her study of Abraham’s life. bands’ presidencies would be John sat in Philadelphia with only sec- bread, a bar of soap, a pocketknife, a Although Lotz is not college- Ean interesting study. Hillary Clinton ondhand news and a British army sep- compass, and a letter. educated, nor has she attended a and Eleanor Roosevelt followed inde- arating him from home. Realizing the The voice tells David to travel seminary, she is a biblical scholar pendent political agendas. Those with written word would be their closest south to Greece and then north to who brings that knowledge to her deep emotional bonds to their hus- fellowship, he abandoned the reserved Denmark. He must not open or lose well-documented book. Magnificent bands could be demanding, like Mary tone he had adopted and truly began the letter, and he is to trust no one. Obsession is an inspirational book Lincoln, or they could provide an emo- to open his heart to Abigail. Who is behind the mysterious and a wonderful Christmas gift for tional safe haven, like Nancy Reagan The resulting letters spanning voice? Why does he help David to readers of all ages. and Edith Roosevelt did for their gre- terms in Congress, missions overseas, escape? What is in the letter, and why — MELISSA MITCHELL garious but sensitive husbands. and shorter separations throughout must it remain unopened? Why is he One who his career, docu- instructed to go to Denmark ,and what served in both ca- ment this fascinat- will he find there? pacities was Abigail ing marriage. Here In due course, the movie an- • “Randy and the Mob” Adams, the wife of we find the passion- swers all of these questions. But view- Capricorn Pictures President John Ad- ate patriot was also ers also learn that David’s struggle is Directed by Ray McKinnon ams. Edith B. Gelles’ a passionate hus- not just with traveling alone for thou- Abigail & John: Por- band, and the de- sands of miles with no money. His By accident recently I stum- trait of a Marriage is a voted wife was also view of humanity has been shaped bled on a pay-per-view movie dual biography of “a a pointed political by his experiences with prisoners and that I’d never heard of, but which founding couple.” A adviser. guards in the labor camp. Once free, turned out to be well worth my self-described femi- Their mutual he must learn difficult lessons about $3.98. nist historian, Gelles friendship with trust and friendship outside the labor The movie was “Randy and presents a full pic- Mercy Otis Warren camp’s barbed wire. the Mob,” and it was directed by ture of how their was symbolic of “I Am David” is another out- Ray McKinnon, a native of Adel, love affair weathered John’s openness to standing production of Walden Me- Ga., a stone’s throw from my ances- a lifetime of public larger public roles dia, the producers of the Chronicles tral stomping grounds. service that made in- for women. For de- of Narnia, “Because of Winn-Dixie,” McKinnon is probably best credible demands on cades Mercy was a and “Amazing Grace.” known for his excellent portrayal both, including long close confidant of — MICHAEL SANERA of “Pappy” O’Daniel’s campaign separations, political Abigail, who ad- manager, Vernon T. Waldrip, in intrigue and betray- mired her greater “O, Brother Where Art Thou?” In al, and illness and formal education. “Randy and the Mob” he not only grief within the family circle but borne When Mercy expressed a desire to • Magnificient Obsession: Embracing acts in two roles, he also directs. alone. Adversity drew them closer. write a history of the Revolution, both the God-Filled Life “Randy” exquisitely captures “After half a century,” Abigail wrote John and Abigail were enthusiastic By Anne Graham Lotz the quirkiness of small-town south her sister, “I can say, my choice would supporters. Zondervan Georgia. be the same if I again had youth. And The unfortunate result was em- Each portrayal reminded me the opportunity to make it.” blematic of John’s dependence on Abi- Anne Graham Lotz, daughter of of an aunt, a cousin, or a grandpar- Gelles’ inclusion of Abigail gail. When Mercy’s History of the Rise, Billy and Ruth Graham, is considered ent from Cordele, Pitts, Ashburn, or among the traditional list of founders Progress, and Termination of the American one of today’s finest Bible teachers and Rochelle. — like her husband John, his cousin Revolution was published, John found As I later read up on the preachers. She has spoken throughout Samuel Adams, and later Benjamin his strenuous efforts negotiating Dutch the United States and in more than 20 movie via the Internet, I learned Franklin and Thomas Jefferson — funding for the new republic were dis- foreign countries. why. The production is littered with raises the question how marriage may missed lightly, and worse, his longtime In her latest book, Magnificent Georgians, and it was produced by shape the character and policy of the friend had accepted and published Obsession: Embracing the God-Filled the late Phil Walden’s Capricorn man in public life. It is abundantly his enemies’ cavil that he was “mon- Life, Lotz chronicles the life of Abra- Pictures. clear that Abigail, even as a home- archist” at heart. A series of outraged ham. Just as Abraham had trials, tribu- One of those Georgians, body ideal of 18th-century wifeliness, letters from John to Mercy, apparently lations, and triumphs, so has Lotz. Walton Goggins, plays an eccentric was a stabilizing force in John Adams’ written in a heat without Abigail’s As she relates the story of Abra- hit man named Tino Armani, sent life. There is no question that Adams input, “survived to help paint an en- ham, Lotz uses her unique ability to to Georgia by a loan shark Randy would have been a much more erratic, during image of John Adams as vain, provide practical applications for used to help keep his truck stop in irascible, and ultimately ineffectual pompous, and a misogynist, which he everyday life by challenging readers business. He and McKinnon are the leader without the coolheaded counsel was not,” Gelles says. to ask themselves tough questions, treat of this movie. of his Portia. The friendship they shared was while providing a historical journey McKinnon not only plays That we know this with such their earthly treasure and their great- through the Biblical times of Abra- Randy, the lead role, but plays assurance is due to two facts — first, est sacrifice for their country. “In death ham. Randy’s gay twin brother Cecil. His One would think that with portrayal of a gay man in a small that Abigail was a very well-educated John and Abigail Adams lie next to parents like Billy and Ruth Graham, rural town in the South is poignant- woman for the time, and second, that each other,” Gelles concludes. “For Lotz never would have experienced ly accurate. their mutual commitment to the call of almost two centuries they have rested the feeling of restlessness or believing This is a little gem of a movie. public duty meant a life of long separa- together, commemorating a marriage there “has to be more,” but she has. — JON HAM CJ tions. of enduring love and loyalty and duty “For Abigail and John Adams the to the nation.” CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 23 ‘The Informant!’: A Comedy So Subtle That You’ll Miss the Comedy • “The Informant!” Directed by Steven ecutive for agribusiness giant Archer guys he’s looking to take down — if Soderbergh, Warner Bros. Pictures, Re- Daniels Midland. As Whitacre notes not more so. Indeed, there was consid- leased Sept. 18, 108 minutes in the voiceover, we probably eat few erable debate in the media about how meals in which ADM isn’t involved. Whitacre was portrayed. Eichenwald’s By Sam A. Hieb Throughout the movie, Whitacre stares account — which Soderbergh used as Contributor at his plate and ponders that thought, the basis for his film — is considered GREENSBORO especially when he’s looking at the unsympathetic, going into great detail t’s hard to say exactly what kind jumbo shrimp fattened up by — you about Whitacre’s bizarre behavior dur- of message director Steven Soder- guessed it — corn produced by ADM. ing the course of the investigation and bergh is trying to send with his Whitacre is also consumed with trial. newI movie “The Informant!” Soder- detail and time efficiency — he flosses Indeed, this is shown in the film, bergh insists the movie is a comedy, his teeth in the shower while the con- as is Whitacre’s false claim that he was with the exclamation point gracing ditioner soaks into his hair. Such at- adopted after his birth parents died in the title indicating something exciting tention to detail is what led Whitacre an accident. Eichenwald also reported and stimulating. The credits are in late to discover a conspiracy on the part that doctors who treated Whitacre over 1960s-style graphics, and the Marvin of ADM to control the price of lysine, the years say he suffered from bipolar Hamlisch score is zany and whimsical, an amino acid found in most foods. disorder. more Austin Powers than James Bond. Since ADM’s a food producer, it makes So where does Soderbergh see The prologue advising the audience sense the company would be involved comedy in all this? It’s hard to say. that the movie takes certain necessary in such a scam. I think Soderbergh was going for a liberties with the story ends with a Whitacre turns to the FBI, and Three Stooges-type caper in which defiant “So there,” indicating that the for the next three years works closely Whitacre and the agents are constant- director approached his subject with a with a couple of agents (Scott Bakula ly stumbling over each other as they subtle wink. and Joel McHale) to collect informa- pursue the bad guys. Unfortunately, it But “The Informant!” is most tion and record conversations to ex- dential pardon or executive clemency, doesn’t work. definitely not a story of the ’60s. Quite pose the conspiracy. During the course Whitacre has received neither. It’s a shame that McHale is wast- the contrary. It’s set in 1992, just as of the investigation, however, Whita- Unfortunately, the story’s not ed in his role, as anyone who watches the Reagan “decade of greed” had de- cre confesses that he himself had been intense, gripping drama like “All the “The Soup” on the E! (there’s the ex- scended into the recession that would involved in his own scam in which he President’s Men” or even Soderbergh’s clamation point again) cable network cost George H.W. Bush the presidency. set up a bogus offshore company that Oscar-nominated film “Traffic,” for knows that McHale is one of the fun- Johnny Carson was retiring after 30 would send ADM false invoices, en- which he won the Academy Award for niest men on television. But he plays years as host of “The Tonight Show,” abling Whitacre to embezzle $9 million best director. his role straight, without even a hint and Vice President Dan Quayle was — or $5 million, or $11 million — Whit- It’s easy to believe Soderbergh of a Jack Webb-Sgt. Joe Friday parody. duking it out in public with the tele- acre keeps changing his story, reveal- would go after corporate America, Bakula also plays the chiseled, stoic ca- vision character Murphy Brown over ing a pattern of bizarre behavior. considering the fact that the same year reer G-man character straight. There’s single motherhood. Despite his help during the price- he received nominations for “Traffic,” very little comic chemistry there. As Unlike “Murphy Brown,” “The fixing investigation, Whitacre was con- he also received nominations for “Erin for Damon, he pretty much looks just Informant!” is not fiction. The film is victed of money laundering and wire Brockovich,” the true story of the sin- like he always does, except for the based on the book with the same title fraud and was sentenced to 10 years in gle mother who takes on a California thick glasses and mustache. (minus the exclamation point) by Kurt prison. He was a model prisoner, earn- power company. Big Food has become Perhaps Hollywood is sensitive Eichenwald, who covered the scandal ing graduate degrees while helping a popular target for liberals as they to the fact that it came across as heavy- for The New York Times. other inmates earn degrees and GEDs. continue to push localism as a means handed during the George W. Bush The movie’s main character, Whitacre also was able to keep of warding off their absolute favorite era and strives to be subtle now that Mark Whitacre (Matt Damon), cer- his family together during his prison cause, global warming. their man Obama is in office. Prob- tainly isn’t a product of the ’60s. He’s time, and is now president of a Califor- But while the title character in lem is, “The Informant!” — despite an Ivy League-educated brainiac who nia-based biotech company. Though he Erin Brockovich is sassy and straight- the exclamation point — is just a little goes on to become a corporate ex- had many advocates seeking a presi- forward, Whitacre is as flawed as the too subtle. CJ Books authored By JLF staFFers Selling the Dream Why Advertising is Good Business

By John Hood President of the John Locke Foundation

“[Selling the Dream] provides a fascinating look into the world of advertising and beyond ... Highly recommended.” Choice April 2006

www.praeger.com PAGE 24 NOVEMBER 2009 | CAROLINA JOURNAL

COMMENTARY Focus On Low-Cost Power ike the federal government, more reliable than nuclear power. state governments have It has a capacity factor of about 90 adopted policies that un- percent. This means that it gener- dermineL efforts to secure low-cost ates 90 percent of the total electric- and reliable energy sources. States ity it technically can generate. In have created numerous obstacles comparison, wind power only has a to developing low-cost energy, and capacity factor of about 30 percent, even outright mandated the use of largely because the wind doesn’t expensive and unreliable forms of blow at the right speeds all the time. energy. Third, coastal states, in par- The stated goal of these ticular, need to take a leadership policies is to fight global warming. role in promoting offshore drilling. However, even if the United States Now that federal moratoria have drastically reduced its carbon- been lifted, states can be the driving dioxide emissions, there would force for increased domestic oil and EDITORIAL be no meaningful effect on global natural-gas production. In the areas temperature. The idea currently off-limits to that emissions reductions drilling, the United States in the U.S. can heal the Department of the Interior We Need To planet, while China’s and estimates that there are India’s emissions grow about 18 billion barrels unchecked, is absurd. of oil. Based on current Cover Scandals Further, there hasn’t numbers, this would be been global warming equivalent to 32 years’ hese days, it can be difficult for of what separates modern liberal de- since 1995. In fact, since worth of imports from newspaper readers to tell the mocracies from the corrupt states that 2001, there’s been a Saudi Arabia. difference between the state have dominated human life since the decline in global tempera- There’s an estimated newsT section, the gossip page, and the dawn of history. DAREN crime blotter. Douglass North, the famous tures even as atmospheric BAKST 76 trillion cubic feet of carbon-dioxide levels natural gas — equal to 19 As we go to press, the state economist and Nobel Laureate, has have risen. years’ worth of natural- Board of Elections has convened a just published a new book with co- There are three gas imports. Besides hearing to investigate the controver- authors John Joseph Wallis and Barry simple things that states can do to reducing dependence on foreign sies surrounding former Gov. Mike Weingast titled Violence and Social Or- develop sound energy policy. energy sources, offshore drilling Easley’s campaign finances. Federal ders. The authors distinguish between First, states should allow would increase the supply of oil and state law-enforcement officials two mature forms of government: are reportedly looking into alleged natural states and open-order states. utility companies to use the least ex- and natural gas, thereby driving personal and criminal wrongdoing by What’s the distinction? pensive and most reliable sources of down prices. Sen. R.C. Soles of Columbus County. To put it simply, in natural states electricity. Unfortunately, about 35 States also would benefit Several shocking allegations are re- the offices and benefits of government states mandate that utility compa- directly from removing obstacles to ported in this issue of Carolina Journal. are distributed by coalitions of ruling nies generate some electricity from offshore drilling; they would share Also in this issue, you’ll learn elites according to kinship, patronage, renewable energy sources, such as in the royalties from offshore leases. that divisions within two state de- or tribal membership. Think ancient solar and wind power. These man- An estimate by the House Natural partments, Environment & Natural pharaohs, medieval kings, and mod- dates, called renewable-portfolio Resources Committee’s Republican Resources and Transportation, are un- ern sheikdoms and banana republics. standards, drive up electricity costs staff indicated that North Carolina der investigation for accepting pricey In open-order states, the rela- and undermine the reliability of the would receive about $24 billion meals and other gifts from private tionship between public officials and electricity grid. over a 30- to 40-year period. vendors. And Rep. Ty Harrell of Wake others is impersonal. If you have the There’s no great mystery as to Energy is the lifeblood of our County recently resigned from the same economic means as your neigh- why these mandates exist. If man- nation. It keeps our factories hum- legislature after authorities pointed to bor, you pay the same tax — even if dates didn’t exist, utility companies ming, computer disks whirring, and irregularities in his campaign-finance he knows the governor personally and wouldn’t buy electricity from these telecoms crackling. It allows us to reports. you don’t. If you apply for a permit sources — primarily because they cool ourselves in the summer and Of course, these and other recent to open a shop, no regulator will ask are unreliable and expensive. warm ourselves in the winter. stories about official mistakes, lapses what political party you belong to or Second, states need to stop While the federal government in judgment, or wrongdoing involve which politician you supported in the blocking the development of low- continues to look for ways to drive only a small fraction of North Caro- last election. In other words, while cost and reliable electricity sources, up energy costs through proposals lina’s state employees and politicians. open-order states are hardly perfect, such as nuclear power. Across such as cap-and-trade, the states Are the state’s journalists asking the they are less corrupt and more effi- the country, many states make it don’t have to join in. They can take right questions? Are they pursuing cient than natural states are, for pretty difficult if not impossible to build the lead and once again commit front-page exposés and broadcast much the same reason. nuclear power plants. themselves to policies that enhance exclusives at the expense of covering Political corruption is not, or is According to the Energy energy supplies and lower energy more important stories? not only, a laughing matter. It is a seri- Information Administration, a new costs. CJ A large chunk of the state’s ous impediment to social well-being advanced nuclear power plant costs political establishment thinks so. But and economic development. about 32 percent less, in dollars per they’re mistaken. Sure, there are other important megawatt hour, than a new onshore Daren Bakst is legal and regula- When political insiders abuse stories to cover in North Carolina. But wind power plant. tory analyst for the John Locke Founda- government power and waste tax- no matter what you think government There’s no electricity source tion. payer money, they don’t just commit a should do, a corrupt government will boo-boo. They strike at the very heart never do it well. CJ NOVEMBER 2009 | CAROLINA JOURNAL PAGE 25

EDITORIALS COMMENTARY An Edifice Complex Fight Monopoly Raleigh mayor seeks to reroute money downtown With Monopoly? ewly re-elected Raleigh for the Charlotte Hornets, and then ount me among the puzzled. care spending, but they are very Mayor Charles Meeker has two decades later were compelled Advocates of govern- real. long talked in general about to finance an uptown arena for the ment-run health insurance According to the Triangle Busi- Nhis desire to build a major sports com- Charlotte Bobcats — with the previous Cseem fascinated with the fact that ness Journal, BCBS of North Carolina plex in or near downtown Raleigh. coliseum being demolished. in many states, a single private took in nearly 70 percent of all pre- His problem is that the RBC Center, The mayor of Raleigh appar- insurer dominates the market. They mium dollars in the state’s health the 10-year-old home of the N.C. State ently sees this as a success story to decry monopoly, though having 70 insurance market. It sells virtually percent market share doesn’t really all of the policies in the individual Wolfpack and the Carolina Hurri- be emulated, rather than as a debacle fit the definition. Yet their promised market — plans marketed directly canes, is located next to the university that continues to embarrass and anger solution is a very real monopoly. to families rather than to employers campus and its Carter-Finley Stadium Charlotte taxpayers. In North Carolina, the rhe- — and is also the dominant player on the west side of town. If anything, Meeker’s idea has torical back flips are more puzzling in the group market. Meeker sees this as a problem of even less merit. Who would play because the dominant The issue, however, timing, not a problem of need. In the in a new downtown Raleigh arena? private player is the isn’t so much whether latest edition of Triangle Business Jour- N.C. State, not surprisingly, strongly nonprofit Blue Cross & Blue Cross or another Blue Shield Association. insurer dominates the nal, the mayor indicated that he wants prefers the current location next to Finding it inconvenient market, but why. If a firm the current funding arrangement for campus. Hurricanes Vice President to blame profit for the earns a dominant market the RBC Center to end in 2019 so as Jason Karmanos told Triangle Business problems in our state’s share because it delivers to free up tax money to build a new Journal that his team doesn’t want to insurance market, activists the best service at the best downtown arena. move, either. The current location is have resorted to attacking price, then by definition This story affects North Caro- relatively easy to get to from all over CEO Bob Greczyn’s $4 it isn’t hurting consum- linians far beyond the Triangle. As the Triangle market, including Dur- million salary as if it had ers. But if a firm owes some significant bearing its dominance to unfair originally conceived, the RBC Center ham and Chapel Hill. A downtown on health costs or access. JOHN barriers to entry that keep was to be funded one-third by N.C. Raleigh location would be less acces- I have no idea if HOOD competitors out, consum- State, one-third by local government, sible. Greczyn is overpaid. But ers are hurt. and one-third by private sources. Two- Now, here’s why this isn’t just what I am confident about is that In health insurance, there are thirds of the original cost, in other a Raleigh story. First, there are poli- if you add up his salary and that indeed unfair barriers to entry. For words, was supposed to come from ticians like Meeker across the state of other top Blue Cross executives, decades, Blue Cross/Blue Shield as- the result wouldn’t come close to sociations have used their political taxpayers. who lack common sense and love to explaining the rise in health care power to acquire exceptions to state That was bad enough, but dream big with other people’s money. costs or the taxes and regu- then the project ran over budget, the Beware of them. inability of hun- lations imposed fundraising didn’t quite make it, and In Winston-Salem, the city has dreds of thou- on commercial taxpayers ended up shouldering the assumed ownership of a ballpark for sands of North Eliminating health health insurers. vast majority of the bill. the Winston-Salem Dash Single-A Carolinians to In the 1990s, The primary (though not only) minor league baseball team. The sta- purchase true insurance profits North Carolina health insur- imposed price sources of public funds for the project dium’s original price tag of $22.6 mil- ance coverage wouldn’t save controls on were local taxes on meals and hotel lion now has soared to $48.7 million, at reasonable small-group stays. Proponents argued that these including land. Team owners, who prices. Executive enough to plans in an at- taxes would fall on visitors rather than initially had pledged to pay half the compensation is make a difference tempt to protect local residents, a notion that would construction costs, have since pleaded a tiny fraction of consumers. surely come as a surprise to local din- financial hardship, leaving taxpayers the bill. Insurers could ers and local businesses and residents on the hook for the facility’s full cost. Profit no longer adjust won’t take you very far as an ex- premiums more than 25 percent with many out-of-town guests. Back in Charlotte, there’s talk of planation, either. The average profit in a year, up or down. That had a By 2019, the construction bonds building a new Uptown baseball park margin in the health insurance busi- disproportionate effect on new en- for the RBC Center will be paid off. for the Triple-A Knights, who now ness is a little less than 4 percent. trants and smaller firms without the Supporters of the existing arena want play in nearby Fort Mill, S.C. In early Eliminating profit entirely wouldn’t ability to handle unforeseen risks in local officials to keep funneling the October, York County, S.C., extended save enough to curtail medical insured groups of 50 or fewer mem- hotel and meals tax revenue to them the Knights’ lease at the Fort Mill inflation noticeably or to subsidize bers. Such rules always work to for maintaining and improving the fa- stadium through the 2013 season. But coverage for the uninsured. But the advantage of larger, established even that reflects a misunderstand- players in the market — which is cility. Meeker and others would rather the club rarely fills half the 10,000-seat ing of what profit is. often why the rules survive the lob- reroute the money to new facilities, ballpark. And in 2005 it signed a lease Any large-scale enterprise, bying process in the first place. such as Meeker’s downtown arena with Mecklenburg County, agreeing to private or public, must raise suf- In the past, then, the Blues idea. move if a new stadium were built. ficient capital to invest in assets have assumed dominant market The tax should go away as Second, don’t be surprised sev- and cover unforeseen costs. Profits positions because of special gov- soon as possible. The next best thing, eral years down the road if there’s a represent the return to shareholders ernment assistance. Now, the Left however, would be to maintain the push to secure regional or state fund- for investing their money in build- wants to set up new public or non- ing and operating the business. profit insurers, with special govern- asset taxpayers already have been ing for a downtown Raleigh arena, Government-run health insur- ment assistance, as an “option” to compelled to finance, the RBC Center. should the project move forward. ance programs also have to pay to the Blues. The worst possible option is the one State taxpayers ended up funding part acquire necessary capital. Taxpay- My head hurts. CJ Meeker seeks. of the RBC Center, though many prob- ers bear this cost in part by paying One need look no further than ably never knew it. Beware of that. interest to holders of government the experience of Charlotte, where Basically, wariness is always debt. These costs may not show up John Hood is president of the John taxpayers were compelled to build warranted where “progressive” politi- in simplistic comparisons of health Locke Foundation. a coliseum on the west side of town cians are involved. CJ PAGE 26 NOVEMBER 2009 | CAROLINA JOURNAL

LETTER TO THE EDITOR AARP Official Says He Was Misquoted

To the Editor:

I was incorrectly identified as Bill Garner in the October Carolina Journal story, “AARP Losing Members Over Health Care Debate.” I was also misquoted in the story. Discuss- ing AARP members who had dropped their memberships because of their opposition to AARP’s support for health care reform, I was quoted as saying those opponents who had con- tacted the North Carolina state office “are rac- ist.” I did mention during the telephone inter- view that AARP North Carolina had received a few e-mails containing overtly racist comments, but I never said or implied that all — or even a large number — of those opposing health care reform and AARP’s position on the issue were racist. It is not now and never has been my opin- ion that a significant number of those opposing AARP’s position on health care reform are moti- Are Both Recessions Over? vated by racial antipathy to the Obama admin- istration. ederal Reserve Chairman Ben Bernanke earnings will have higher-priced stocks. Bob Garner recently created headlines when he stated But the other side of the recession is the job Communications Director that, technically speaking, the recession may picture, and production and jobs — at least now — AARP North Carolina veryF well be over. However, the 268,000 workers don’t necessarily go together. While there are signs who have lost their jobs in North Carolina since the economic production is rising, jobs still have not Editor’s note: The reporter who wrote the story recession began may have another opinion. come back. In fact, in the latest employment report in question says what she reported is consistent with So is Chairman Bernanke out of touch with for North Carolina — for August — the broadest the notes she took during the interview. what’s happening to workers and families? Un- survey of the jobs picture in North Carolina showed likely. The Federal Reserve probably collects more the state losing over 8,000 jobs in that month. information about the economy But even here a case for improvement can be EDITORIAL BRIEFS than any other institution in the made. Job losses have been slowing. In the last six country, and Bernanke is fully months, North Carolina has averaged monthly job aware of these statistics. cuts of near 10,000. In the previous six months, the Clunkers Instead, Bernanke’s com- average was 25,000 job losses per month. Similar op- ments point to the fact that timism can be taken from the weekly initial unem- In Practice there are really two recessions, ployment claims. These data show the number of a production recession and a new people signing up for unemployment compen- jobs recession. Production refers sation. New claims have been moving lower in ash for Clunkers was an expensive to the amount of output our North Carolina for six months. failure, The Wall Street Journal argues, nation’s factories, farms, and of- The pattern that seems to be unfolding is one that failed to meet either of its objectives fices are making. Of course, jobs MICHAEL we’ve seen before. The production recession ends C— helping the environment by lowering fuel mean the amount of employ- WALDEN before the jobs recession ends. For example, in the consumption, or stimulating the economy by ment available. I interpreted 2001 recession, production in the economy began increasing automobile sales. Bernanke’s statement to imply the production part rising at the end of the year, but jobs didn’t start The Obama administration program of- of the recession shows signs of improving. coming back until late 2003. fered incentives of up to $4,500 for a limited And he’s right. The broadest measure of Most economists think this pattern also will production in the economy, called gross domestic hold true today — that is — jobs will come back time to replace older, less-fuel efficient vehicles. product by economists, or GDP for short, fell in the with a lag after the production economy turns Car sales in September, just after the program spring of this year by 1 percent. However, that was around. But there is some good news. Unlike the ended, fell 25 percent compared to a year far better than the 6 percent drop last winter, and last recession, when it was more than a year before earlier, suggesting that many of those taking economists almost universally think GDP is now jobs came back, economists think the lag will be advantage of Cash for Clunkers would soon growing. between six and nine months this time. This is be- have bought a new car anyway. There’s more good news on the production cause businesses have cut jobs so much during this The environmental benefits, meanwhile, front. Factory output has now risen for two straight devastating recession that they’ll be hard pressed to were minimal. Hudson Institute economist months, both nationwide and also here in the South- sustain production increases without adding work- Irwin Stelzer estimates the program will, at east. And in the all-important housing sector, more ers. new homes are being built than last spring. But, I So Chairman Bernanke didn’t have his head in most, cut U.S. gasoline consumption by only should caution, these gains are being made from a the sand when he said the recession was technically 0.2 percent per year, or less than a single day’s very low base. For example, factory output today over. If we use production and profitability as a gasoline use. is still 15 percent under its level two years ago, and guide, he’s probably right. The problem is that most Burton Abrams and George Parsons of the new home construction is off 75 percent from its people don’t look at the economy that way. University of Delaware compared the environ- peak during the real estate boom. They look at one simple indicator — jobs. And mental benefits from the program to its cost, Nevertheless, the bottom line is that profit- the job market isn’t back yet, and likely won’t be for and determined the net cost was about $2,000 ability is beginning to return to businesses, and this a while. CJ per vehicle. The program as a whole made the is making businesses want to produce more. This is economy $1.4 billion worse off. CJ also the reason the stock market has risen, on trend, since March. Greater profitability for businesses Michael Walden is a William Neal Reynolds Dis- means higher earnings, and companies with higher tinguished Professor at North Carolina State University. NOVEMBER 2009 | CAROLINA JOURNAL PAGE 27 People Move to Where They’ll Be Happy ast month, French President cation of a statist economy and a way they are feeling more affluent. This is als are presumably less driven by cul- Nicolas Sarkozy rather gleefully to rationalize Europe’s poor economic particularly the case in rich western tural ties and geographic convenience. presented a report written by a performance under existing metrics. democracies. The study has shown re- Organization for Economic Coopera- groupL of distinguished economists. No doubt the commission and peatedly that Americans and Britons, tion and Development (OECD) data Led by Nobel Laureate and Clinton their patron felt emboldened by the or those who live with the generally show about 10 times more western administration official Joseph Stiglitz, financial crisis and the current low robust Anglo-Saxon model, are appre- Europeans choose to live in the United the academics concluded that increas- esteem in which laissez-faire econom- ciably happier in their jobs, with their States than Americans choose to go ing the gross do- ics is held. For many of the French, personal incomes, and in their family to Europe. There are generally about mestic product or the report is also likely to be viewed lives than the French and Germans. 40,000 Americans working in France, GDP to an appre- as part of a broader resistance to There are other appropriate indi- but 200,000 French working here. The ciable extent in a American cultural and economic cators. Migration flows are revealing. United States attracts many more sustained manner imperialism. It could be compared to Of course, national laws, geographical highly skilled migrants than it sees should not be the French-language protection laws and position, and cultural and linguistic well-trained immigrants leave its obsessive goal of the vandalism of McDonald’s restau- association shape individuals’ deci- shores. No other country has a posi- public policy. rants by farmers. sions to migrate. Still, it is surely the tive balance approaching it. Instead, the I agree there is need for a more case that people generally move to so- If you use these measures, it is group suggested expansive understanding of well- cieties that they like and into political clear. We can alter the way we grade a different under- being. To be considered a success and and economic systems they admire. countries by employing different standing of policy ANDY a model for emulation, a society must People will move away from societ- measures, but people are still going objectives and a TAYLOR have more than a large and rapidly ies in which they feel stifled and their to embrace the same things: prosper- broader gauge of growing economy. What Sarkozy well-being is deteriorating. ity, freedom, and reward for personal public well-being. and Co. propose to do, however, is If we use these kinds of mea- accomplishment. It may be hard for Their indicator looks at matters such exchange one indirect indicator with sures, it is again clear the Anglo- a café intellectual in Paris to believe as income inequality, public health, another — even if theirs is quite Saxon model is superior. By far the the church-going married American education levels, and the environ- comprehensive. Surely a better way most popular big-country homes for suburbanite is happy — according to ment. It’s not entirely new — a simi- of understanding whether the general international migrants are Australia, studies done of U.S. citizens, these are lar genuine progress indicator (GPI) quality of life is good in a nation is to Canada, and the United States with three of the most content demograph- has been discussed for 20-odd years. find out what its residents think. 6.34, 5.62, and 2.92 migrants per 1,000 ics — but she is. Perhaps her health But this broader measure now has, in There are many ways to do this. of the population in 2008. France’s care is inferior to his. Maybe her kids Sarkozy, an important and energetic The first is quite simple: you ask them. score was 1.48. All three are comfort- could go to better schools. But in the champion. If you do you find that maybe GDP ably in the top 10 when measured by aggregate it is the American model Beneath the surface, the Stiglitz isn’t quite as erroneous an indicator most indexes of economic freedom. that people generally embrace, not the report represents deep resentment of of basic well-being after all. Over the France hardly ever breaks the top 30 French one. CJ the success of what is often called the past decade, the Pew Global Attitudes in these rankings. Anglo-Saxon or American economic Project consistently has revealed The picture is the same if you Andy Taylor is Professor and Chair model — one that adheres to capital- a very strong correlation between focus exclusively on the movement of of Political Science in the School of Public ist principles much more closely than economic expansion and the happi- people between rich countries. The and International Affairs at N.C. State does the French. It is a defiant justifi- ness of citizens, presumably because migration patterns of these individu- University. Why So Many People are TEAed Off ess than a month after President sages from speakers (including many pan? Just folks blowing off steam? A were $8 billion. The tax take for 2009- Obama’s inauguration and days of us at JLF), signing petitions, and tempest in a teapot? Hardly. Finally, 10 is expected to top $19 billion. In ad- after his announcement to use looking for ways to organize. Since the folks footing the bill have had dition, the state’s debt is $6.7 billion. Ltaxpayers’ money to subsidize people then, statewide TEA parties drawing enough. And no wonder. Taxed enough? Hold on. who couldn’t pay their mortgages, thousands have been held in Raleigh, Federal taxes are charged on per- Local governments will get their CNBC financial commentator Rick Charlotte, Edenton, and the Triad. At sonal and corporate income, payroll share through real estate and prop- Santelli criticized the bailout from least a couple of times a month a TEA taxes via Social Security, Medicare, erty taxes, and on additional sales, the floor of the Chicago Mercantile party is held in a North Carolina com- and unemployment, death taxes and occupancy, prepared food, and land Exchange. Santelli munity. Many North Carolinians have excise taxes on gasoline, tobacco, transfer taxes. Does it end with taxes? wondered who traveled to Washington to participate airfare, spirits, and some firearms. Environmental regulations wanted to subsi- in national TEA parties. The federal stimulus package will cost passed in 2007 requiring 12.5 percent dize losers’ mor- As the movement has grown, Americans $327 trillion. Proposed of energy to come from renewable tagages, said gov- a few things have become appar- health care reform could cost $849 energy or efficiency measures will add ernment should ent. This is not a political movement billion. $1.8 billion in additional energy costs, reward people orchestrated by any formally orga- The federal deficit is the highest impacting the costs of everything to who can carry the nized party or association. Republi- since World War II — $1.42 trillion, consumers, taxpayers, and business water rather than cans, Democrats, Libertarians, and or $4,700 for every man, woman, and owners. This government mandate those who drink independents have participated. child in the U.S. Enough? There’s also will take $140 million out of the the water, and con- What participants seem to have in more. state’s economy every year. templated organiz- BECKI common is a belief and respect for The tax burden in North Caroli- And what does all that money ing a Chicago tea GRAY fiscal responsibilbity, constitutionally na is the highest in the southeast, with buy? Corrupt politicians, 30 percent party. The modern limited government, and free markets. 24 separate taxes and innumerable school dropout rates, regulations that day TEA (Taxed Although the movement started in op- fees. Taxes include sales and use, per- are stifling businesses, a prison system Enough Already) party movement position to the government-sponsored sonal and corporate income, highway that releases felons back onto the was born. bailout of the mortgage industry, it use, gasoline, franchise, incorporation, streets, a 10.8 percent unemployment The first North Carolina TEA has embraced lower taxes, fought withholding, employment security, rate, expanded social services, and an party was held on the state Capi- wasteful spending and the growth of and even taxes on dry-cleaning sol- unsustainable spend-and-tax roller tol grounds March 21 with several government, expressed concern over vent. coaster. hundred taxpayers attending. On health care reform, and sounded the State taxes in North Carolina just TEAed off? Join the party. CJ April 15, over 17,500 North Carolin- alarm about the stimulus package. increased by over $1 billion, including ians gathered in large cites and small But the root of the whole move- more taxes on cigarettes, alcohol, retail communities across the state, with ment is people who are TEAed (taxed sales, and individual and corporate Becki Gray is vice president for out- handheld signs, listening to mes- enough already). Is this a flash in the income. In 1992-93, the state’s taxes reach at the John Locke Foundation. PAGE 28 NOVEMBER 2009 | CAROLINA JOURNAL Parting Shot State to Seize Dell Factory, Make Own Computers (a CJ parody)

By Kym Command Doe Fletcher Hartsell, R-Cabarrus. Hartsell, who spear- Technology Correspondent headed legislation in the General Assembly that RALEIGH would take the dams from Alcoa. Hartsell said he ex- sing as a model its attempt to forcibly take pected to be picked by Perdue to run the operation. over four central North Carolina hydro- “And unlike Alcoa, who poisoned the Yadkin electric dams owned by Alcoa, the Perdue River and killed all those people,” Hartsell said, “I administrationU announced it would seize the land, guarantee a safe plant with no more than an accept- buildings, and equipment left behind by Dell when able level of fatal accidents.” the computer manufacturer’s Winston-Salem facility In a media teleconference call, Crisco and closes early next year. Hartsell said the plant’s initial product will be the State Commerce Secretary Keith Crisco, trav- “Tar Deel,” a desktop computer based largely on a eling with Perdue on a trade mission to Japan and Dell design. They would not reveal the retail price of China, said the state would reopen the facility and the initial models. “We haven’t figured that out yet,” hire members of the State Employees Association of Hartsell said, “because those state workers are pretty North Carolina to build desktop computers using the expensive. We can’t announce a price for the com- existing assembly lines. puters until we figure up how much we’d have to In 2004, Dell received a commitment for as mark them up to make a profit.” much as $280 million in incentives from state taxpay- Hartsell did note that the plant has received its ers when it decided to build a plant in North Caro- first order — from the state Board of Elections, for lina to assemble desktop computers. To receive the Carolina Journal has obtained a photo of the super- 20,000 machines to use at polling places during the payments, the company pledged to create as many as secret new state-government-built computer, the Tar 2010 primary and general elections. 1,500 jobs within five years. In September, however, Deel. Officials said it would be based on the design of Perdue did not respond to requests for an in- Dell announced it would close the plant and lay off the computer that most state employees use in their daily terview. A source with the governor’s office, who work, reasoning that if it was good for state employees the 905 people employed there. it would be good for the consumer. (CJ spoof photo) did not want to be identified, did say, however, that Crisco said Dell had forfeited its right to keep Perdue had set aside some time to discuss economic the facility when it shut down the plant, the same closed the plant and laid off all those people. they development issues with Chinese officials. rationale used in the attempt to take over the Alcoa violated the rental agreement and lost their license to “Before Bev left, she said she might ask Com- dams that were built to power a now-closed alumi- do business at that location.” munist Party officials for guidance in efficient num smelting plant. The state has applied for funding from the manufacturing [methods],” the official told Caro- “This land and this equipment does not be- Obama administration to jump-start the operation. lina Journal. “Of course, she could be negotiating long to Dell,” Crisco said. “They simply had a rental “We’ve been told there will be money in the second a contract to have the Chinese operate the Alcoa agreement to create jobs at the factory. When Dell stimulus package to pay for this stuff,” said Sen. dams after we take ‘em.” CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2010 Fellowship class. Applications available online or at the John Locke Foundation. Application deadline is November 23, 2009. Please visit the E.A. Morris Fellowship Web site (www.EAMorrisFellows.org) for more information, including eligibility, program overview and application materials.

Application Timeline August 31, 2009 Applications available November 23, 2009 Applications due from candidates January 9, 2010 Notify of finalist status February 5-6, 2010 Selection week February 15, 2010 Notify Fellows and alternates Fellowship Dates March 12-14, 2010 Retreat 1- Pinehurst, NC June 18-20, 2010 Retreat 2- Blowing Rock, NC October 22-24, 2010 Retreat 3- Coastal NC

www.EAMorrisFellows.org [email protected]

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