The Newsletter of the Mackinac Center for Public Policy • www.mackinac.org • Fall 2005 Property Rights: Blinking Lights of Freedom A L R- E N D A P P E A L Y E A A S P E C I Seizing the Initiative For the inspirational story of the blinking hen the U.S. Supreme government takings that aim to lights of Warsaw, check WCourt issued its Kelo increase tax revenues “reverses your mail for our special v. New London decision in the proper relationship between year-end appeal. June, Americans’ property the people and the government,” rights seemed to have reached forcing the people to become a Waterloo. The court had the means to government ends. approved government con- In Crain’s Detroit Business, he demnation of private homes so observed, “I think that this deci- that government officials could sion is going to be met with reassign homeowners’ land to quite a bit of hostility from the private developers in an effort American public in general. And to boost tax revenues. I think to the extent that any state But with the explosion of Patrick J. Wright testifies before the Michigan changes laws … it would be to public outrage over the deci- House Committee on Government Operations. enact more protections.” sion and with a spontaneous demand for the Cen- This proved prophetic. Within days, state Sen. ter’s guidance on how to fight back, it became clear Tony Stamas of Midland had announced he would that the battle had just begun. sponsor a bill to ban public takings for the primary Senior Legal Analyst Patrick J. Wright has been benefit of a private entity. In the next three months, leading the Center’s charge. Within hours of the five measures were introduced in the state Legisla- Kelo decision, Wright fired off a news release and ture to restrict the use of eminent domain. Three Web commentary that led to major media coverage would disallow takings meant for primarily private (see Impact, Summer 2005). uses, while two others would ban takings intended Wright argued, “This decision ignores the Fifth to enhance tax revenue. CONTENTS Amendment’s clear meaning that government taking By August, Wright was receiving regular calls President’s Message 2 of private property should be for public — not from policymakers for guidance on takings under Wetlands Supreme 3 private — use.” He also pointed out that allowing see “Property Rights,” Page 4 Educational Diligence 3 Media Impact 5 Debate Workshops Shine 6 Budget Cuts Follow MEGA Study Maguire Restoration 8 n April, the Mackinac Center published a True, the state’s budget has been April 2005 Head Count for Liberty 8 Iblockbuster 121-page analysis of the Michigan pinched by Michigan’s frail economy, Labor and Education 9 Economic Growth Authority, the state’s primary but MEDC officials have typically A Mackinac Center Rep ort MEGA: Free-Market “economic development” program (see Impact, used economic weakness to argue for A Retrospective Assessment Fundamentals 10 Summer 2005, Page One). The study’s release led budget hikes, claiming their agency Michael D. LaFaive and Michael Hicks, Ph.D. A study of the Michig Free-Market Library to widespread media coverage and to legislative can jumpstart job growth. MEDC offi- an Economic Growth Autho 11 the State of Michigan’s rity, primary tax incentive pro gram Detroit Agenda testimony concerning MEGA’s ineffectiveness by cials have also been drawing media Endorsed 12 study co-author Michael D. LaFaive, the Center’s attention to the MEGA tax incentives director of fiscal policy. Now the Michigan Eco- it hasn’t been able to offer businesses because of nomic Development Corporation, a quasi-govern- purportedly stingy legislative limits. mental agency that supports MEGA, has received Yet this summer, at the very moment the MEDC a budget cut for fiscal 2006, and the MEDC’s job might have expected an increase, the Michigan claims have been placed under the scrutiny of the Legislature clipped a total of $3 million from the state Auditor General. MEDC’s budget, with most of the cut coming from In many ways, the budget hit was unexpected. see “State Audit,” Page 4 “(This) commentary from the Mackinac Center for Public Policy in Midland … lays out five things Detroit can do to right its financial ship and make the city more livable. We urge the candidates for mayor and City Council in the November election to embrace the ideas and make them part of their campaign platform.” www.mackinac.org | Fall 2005 Mackinac Center IMPACT — Detroit News lead editorial, Sept. 2, 2005 PRESIDENT’S MESSAGE BOARD OF DIRECTORS D. Joseph Olson, Chairman Edward C. Levy Jr. Senior Vice President and General President, Edw. C. Levy Co. Counsel, Amerisure Companies Rodney M. Lockwood Jr. Lawrence W. Reed, President President, Lockwood Mackinac Center for Public Policy Construction Company, Inc. Joseph J. Fitzsimmons Joseph P. Maguire Retired President, President, Wolverine University Microfilms Development Corporation Are We Biased? Hon. Paul V. Gadola Richard D. McLellan U.S. District Court Judge Attorney, Dykema Gossett Richard G. Haworth James M. Rodney ow loaded a single word can be! Chairman of the Board, Chairman of the Board, H In a vain attempt to dismiss hundreds of studies Haworth, Inc. Detroit Forming Inc. Phil F. Jenkins Linda K. Rodney and commentaries and thousands of ideas and recommen- CEO, Sweepster Inc. Attorney at Law, Law Offices dations, a well-known community figure in a nearby town Mara M. Letica of Linda K. Rodney, P.C. Executive Vice President, recently said of the Mackinac Center, “They’re biased.” General Counsel and Secretary, A moment’s thought shows that such a statement Letica Corp. hardly constitutes a refutation and is itself probably an indication of a bias. Nonetheless, it’s an accusation BOARD OF SCHOLARS Dr. Donald Alexander Annette Kirk Lawrence W. Reed that our opponents occasionally raise, and it therefore Western Michigan University Russell Kirk Center President deserves some attention. Dr. William Allen for Cultural Renewal Michigan State University Dr. Robert Kleiman In this instance (and probably most others as well), the accuser’s remark Dr. Thomas Bertonneau Oakland University should be translated this way: “The Mackinac Center comes to conclusions I Writer and Independent Scholar David Littman Dr. Brad Birzer Mackinac Center for Public Policy don’t agree with.” Hillsdale College Dr. Dale Matcheck The best way to prevent anyone from ever accusing you of bias is simply Dr. Peter Boettke Northwood University to keep quiet. Don’t take a stand on anything. Examine the evidence and George Mason University Dr. Paul McCracken Dr. Theodore Bolema University of Michigan pronounce that it tells us nothing. Act as if we live in the Dark Ages, where Law Offices of Theodore Bolema Charles Meiser Lake Superior State University the sum of study and experience leaves us as much in the dark as ever. Dr. Stephen Colarelli Central Michigan University Glenn Moots An intellectual shrug of the shoulders won’t offend anyone, but it can Andrew Coulson Northwood University hardly inform them either. We believe in certain core principles and have Cato Institute Dr. Robert Murphy Robert Crowner Hillsdale College always been candid in saying so: Limited, repre- Eastern Michigan University (ret.) Dr. George Nastas III sentative government is preferable to monarchy Dr. Richard Cutler Marketing Consultants University of Michigan (ret.) Dr. John Pafford or dictatorship. Free people are more produc- Robert Daddow Northwood University Oakland County Department Dr. Mark Perry tive than unfree people. Market economies of Information Technology University of Michigan - Flint work better than command and control ones. Dr. Stephen Dresch Dr. Leonard Plachta Those notions were not always widely Forensic Intelligence Central Michigan University (ret.) International, LLC Gregory Rehmke embraced in the past, but they are now Dr. Richard Ebeling Economic Thinking/ approaching settled truths. For the most part, Foundation of Economic E Pluribus Unum Films Education Dr. Steve Safranek the people who dispute them are peddling self- Dr. Jefferson Edgens Ave Maria School of Law Morehead State University Louis Schimmel Jr. serving agendas, or they are impervious to evi- Dr. David Felbeck Municipal Financial dence. University of Michigan (ret.) Consultants, LLC Dr. Burton Folsom Dr. Howard Schwartz Informed by core principles, the Mackinac Hillsdale College Oakland University Center endeavors to demonstrate when and Dr. Wayland Gardner James Sheehan how free markets and free people can solve Western Michigan University (ret.) Deutsche Bank Securities Dr. Wolfgang Grassl Rev. Robert Sirico problems. We don’t ignore evidence to the con- Hillsdale College Acton Institute for the John Grether Study of Religion and Liberty trary, cook the books or make unsubstantiated Northwood University Dr. Bradley Smith claims. Our research and conclusions should be Dr. Dale Haywood Capital University Law School assessed on their merits. Northwood University Dr. John Taylor Dr. Michael Heberling Grand Valley State University The fact that they stand up to scrutiny is why Baker College Dr. Richard K. Vedder Ohio University opponents often dodge any serious challenge Dr. Ormand Hook We hold some truths to be self-evident, but Mecosta-Osceola Prof. Harry Veryser Jr. we test their implications rigorously. and simply toss out the “b” word. Those who Intermediate School District Walsh College Robert Hunter John Walter, Jr. claim to approach every issue with a blank slate are often uninformed of Mackinac Center for Public Policy Dow Corning Corporation (ret.) what research and experience have shown — or are less than honest about Prof. Harry Hutchison Dr. William Wilson their predilections. Wayne State University Economic Consultant Dr. David Janda Dr. Martin Wing If “bias” means we have an informed perspective, then we’re guilty. But Institute for Preventative Kettering University when I hear that charge, I immediately want to know what’s flawed about Sports Medicine Dr.