Arrogance on Stilts during a Flood or an Educated American Electorate?

According to Newsweek, when the magazine asked 1,000 U.S. citizens to take America’s official citizenship test in early 2011, 29 percent "couldn’t name the vice president. Seventy-three percent couldn’t correctly say why we fought the Cold War. Forty-four percent were unable to define the Bill of Rights. And 6 percent couldn’t even circle Independence Day on a calendar. For as long as they’ve existed, Americans have been misunderstanding checks and balances and misidentifying their senators."[1] The magazine's analysis treats all of the questions as equally important. However, I contend that the lack of knowledge on matters such as governmental checks and balances is more problematic than whether a citizen knows the name of his or her U.S. Senator. 

The full essay is at "Arrogance on Stilts during a Flood."

1. Andrew Romano, "How Ignorant Are Americans?" Newsweek, March 3, 2011.

Two Governmental Sovereignties in American Federalism: Medical Marijuana and Drug Trafficking Across State Lines

"Federal agencies conducted 26 raids on medical marijuana facilities in 13 Montana cities [in mid-March, 2011], as agents seized thousands of marijuana plants and froze about $4 million in bank funds. The raids stunned medical marijuana advocates, many of whom believed the Obama administration's policy was to leave states with medical marijuana laws alone. That belief stemmed from Attorney General Eric Holder's announcement in October 2009 that the pursuit of 'individuals whose actions are in clear and unambiguous compliance' with existing state medical marijuana laws would be the lowest priority of U.S. law enforcement. . . . Montana U.S. Attorney Michael Cotter said there was 'probable cause that the premises were involved in illegal and large-scale trafficking of marijuana. . . . When criminal networks violate federal laws, those involved will be prosecuted.' . . . While 15 states have legalized some form of medical marijuana use, the federal government still considers the drug an illegal controlled substance with a high potential for abuse and no accepted medical use. Justice Department officials contend the focus of investigations involving marijuana is on large-scale drug traffickers and not on individual patients. 'We have made clear that we are not going to look the other way while significant drug-trafficking organizations try and shield their illegal efforts from investigation and prosecution through the pretense that they are medical dispensaries,' Justice Department spokeswoman Jessica Smith said. Marijuana advocates say enforcement of illegal activities involving medical marijuana should fall to the states, not the federal government."

The complete essay is at Essays on Two Federal Empires, available at Amazon.

The U.S. War Powers Act: The Case of Obama's Decision on Ameican Involvement in Libya

The New York Times describes the War Powers Act of 1973 as follows: “(P)assed in the aftermath of the Vietnam War, [the act] puts limits on the ability of the President to send American troops into combat areas without Congressional approval. Under the act, the President can only send combat troops into battle or into areas where 'imminent' hostilities are likely, for 60 days without either a declaration of war by Congress or a specific Congressional mandate. The President can extend the time the troops are in the combat area for 30 extra days, without Congressional approval, for a total of 90 days.”[1] While the law is beneficial in that it enables the President to act in his capacity as commander in chief when time does not permit a preceding Congressional declaration or more specific resolution (e.g., the U.S. being attacked), the act is not limited to such cases. Therefore, the President can put off Congressional approval even when he could obtain it before sending the troops into battle.  Regardless of the exigency of the military action, Congressional approval is required within 90 days, and this applies even if the President is acting on behalf of the U.S. as a member of the United Nations to enforce a Security Council resolution.

The full essay is at "The U.S. War Powers Act."

1. "How the War Powers Act Works," The New York Times, March 29, 1984.

On the Irrational Exuberance of a Market's Bubble: The Tech Industry

I contend that the degree of uncertainty related to the expectation of future profits in the social media companies means that that industry ought to be treated by investors as if it were in a bubble, even if it turns out that the expectations were spot on. That is to say, investors should buy in lightly, and supported by a diversified portfolio. So perhaps the question of whether the industry is in a bubble is not as vital as the media may suppose; the extent of uncertainty, which was clearly evident for instance in LinkedIn's trading at 540 times its prior year's profit, is itself a factor not to take lightly. So call it bubble or not, the difference between known and expected revenues is itself worthy of consideration, and when that difference is significant, the wise and prudent investor naturally treads lightly, even if it seems that others may make out like bandits.

The full essay is at "On the Irrational Exuberance."

Food Prices Rising: Will the Global Population Growth Outstrip Food Supply?

I contend that it is in our interest as a species to see that our population size is managed toward a steady state rather than as a maximizing variable (i.e., schizogenic). In fact, we have a right and obligation as one body to see that our various limbs are coordinated such that none engages in hypertrophy. That is to say, the whole has the right to protect its viability by arresting excessive growth in one of the parts. That much of the world's population growth takes place in the developing world does not mean that this right, or obligation, of the world is somehow a plot by the developed countries to oppress the poorer countries. In fact, much of the pain of the higher food prices is in the developing world rather than in the industrialized countries, so it is in the interest of the developing countries to accede to the world’s demand that their population growth be stopped.

The full essay is at "Food Prices and Global Population Growth."