Do intergovernmental grants create ratchets in state and local taxes?

A large literature on the ‘flypaper effect’ examines how federal grants to states at time period t affect state spending (or taxes) at time period t. We explore the fundamentally different question of how federal grants at time period t affect state tax policy in the future. Federal grants often result in states creating new programs and hiring new employees, and when the federal funding is discontinued, these new state programs must either be discontinued or financed through increases in state own source taxes. Government programs tend to be difficult to cut, as goes Milton Friedman’s famous quote about nothing being as permanent as a temporary government program, suggesting that it is likely that temporary federal grants create permanent (future) ratchets in state taxes. Far from being purely an academic question, this argument is why South Carolina’s Governor Mark Sanford attempted to turn down federal stimulus monies for his state. We examine both the impact of federal grants on future state budgets and how federal and state grants affect future local government budgets. Our findings confirm that grants indeed result in future state and local tax increases of roughly 40 cents for every dollar in grant money received in prior years.     

The Unraveling of Public Security in the United States: The Dark Side of Police-Community Co-Production

In this article we review the emergence of police-community ‘co-production’, as a prominent crime control paradigm in the United States. We argue that although allowing citizens to co-produce through programs like Neighborhood Watch may be beneficial in many respects, such co-production is not an unmitigated virtue. While its proponents contend that co-production promises to enrich the provision of public security in the United States, recent events have reinforced warnings voiced by policing scholars and practitioners of a dark side that also continues to threaten, not enhance, public security. As such, we advocate that the future co-production should be embraced cautiously, and its downside risks managed with care.     

Labour's Transformation: Searching for the Point of Origin – The European Dynamic

Adam Lent's article in Politics Volume 17 presents a cogent set of explanations pointing to the rebirth of Labour starting well before 1987, however he has not considered the role of the European issue in explaining the location of the origins of Labour's transformation. Europe as will be shown, created a clear dynamic for party renewal as it married together a range of key factors that the Kinnock-Hattersley leadership had to constantly balance in their efforts to rebuild the Party. Namely, party unity, the retention of union support, the creation and sustaining of a new economic policy, and a rapidly changing international economic environment. These factors shaped the paradigm that has to be used if Labour's renewal is to be fully understood in the time frame identified.     

Technology assessment in Australia: the case for a formal agency to improve advice to policy makers

The pace and reach of technological change has led to calls for better technology policy and governance to improve social outcomes. Technology assessment can provide information and processes to improve technology policy. Having conducted a review of international best practice, we established a set of quality criteria for TA. In effect, good technology assessments are systematic, broad, inclusive and well resourced and are conducted by organisations that are trustworthy and influential. Although not having a formal TA agency, Australia does have a number of recent examples of TA-like activities in the form of ad hoc processes (such as reviews and inquiries) and within other organisations. Drawing on reports, commentaries, discussions and our observations as participants, we have assessed these activities and processes against our quality criteria. Our findings indicate that TA capacity in Australia is fragmented, uncoordinated and variable in quality and impact. We conclude that a formal TA agency could improve Australian technology policy and capacity for technology governance that would be more in line with other nations, notably in Europe.     

Quest for grace: fraternal authority and feminine resistance in colonial Australia

The emergence of feminism in Australia, as elsewhere, was grounded in personal experience. This paper explores the small and private rebellion of one woman against fraternal authority, an episode that took place before women had access to a feminist ideology with which to express their feelings of oppression. It argues that an examination of the tissue of domestic life – in this instance, a tiff about piano-playing – can be read at a number of levels: as a metaphor of inarticulate resistance and as an important precondition for feminism.     

Crime,Confiscation, and Frowth: For and Against Leviathan

This paper presents a dynamic general equilibrium model ofrent seeking in which the payoffs and the choices between productiveand non-productive activity are endogenous. The economy has the potential for endogenous growth, but when agents can choose between confiscation and productive investment, growth is no longer possible. The confiscation activity has multiple interpretations.In one, confiscation occurs as a result of theft;the lack of sufficient property rights eventually makesinvestment in productive activity unpalatable.Alternatively, confiscation is the result ofgovernment activity (e.g., taxation). The paper underlines the difficulty of creating aninstitutional structure conducive to growth.