How Weak Recognition and Measurement in the Federal Budget Encouraged Costly Policy: The Case of "Supervisory Goodwill"

The budget process is the primary means by which federal policymakers allocate resources. The failure of the budget to recognize and measure the full cost of federal programs encourages the Congress and president to skew resource allocation toward policies whose budgetary costs are underestimated. These "low-cost" policies often increase costs to taxpayers without providing taxpayers with benefits. Recent examples of this phenomenon are found in the "supervisory goodwill" cases. This article reviews these cases, the budgetary weaknesses they identify, the influence these weaknesses had on legislators, and the unnecessary costs for taxpayers that result from the supervisory goodwill policy. Specifically, the federal budget did not recognize the cost that would result from encouraging financial institutions to assume the assets and liabilities of insolvent savings and loans. The budget's recognition of costs failed a second time by not recording expenditures when the government abrogated its contracts with acquirers. Both actions raised costs to taxpayers unnecessarily. In addition to analyzing budgetary weaknesses and their potential costs, this article also reviews two proposed budgetary reforms that could address the budgetary failures highlighted by the supervisory goodwill cases.     

Charter High Schools’ Effects on Long‐Term Attainment and Earnings

Since their inception in 1992, the number of charter schools has grown to more than 6,800 nationally, serving nearly three million students. Various studies have examined charter schools’ impacts on test scores, and a few have begun to examine longer‐term outcomes including graduation and college attendance. This paper is the first to estimate charter schools’ effects on earnings in adulthood, alongside effects on educational attainment. Using data from Florida, we first confirm previous research (Booker et al., 2011 ) that students attending charter high schools are more likely to graduate from high school and enroll in college. We then examine two longer‐term outcomes not previously studied in research on charter schools—college persistence and earnings. We find that students attending charter high schools are more likely to persist in college, and that in their mid‐20s they experience higher earnings.     

Local Context, Retrospective Economic Evaluations, and Voting: The 1997 General Election in England and Wales

Local context is widely believed to influence voting behavior with, for example, the voters' evaluation of the state of their local economy affecting whether they choose to reward or punish the incumbent government. Such reward-punish models apply in the United Kingdom at the national scale: those who believe that the government has delivered prosperity vote for its return, whereas those who believe that its policies have produced a worsening economic situation vote against it. This article shows that the operation of this calculus varies spatially, according to the level of unemployment in the voter's home area: the higher the local level of unemployment the lower the probability of someone who thought that government polices had delivered national prosperity voting for the incumbent government. It also shows that this is a consequence of cross-pressured situations. Those who thought that the government's policies had delivered both national and local prosperity were very likely to vote for it; those who thought that the policies had delivered national but not local prosperity were less likely to vote for it—especially in areas of high unemployment.     

A Low Turnout Landslide: Abstention at the British General Election of 1997

Turnout at the 1997 British General Election fell to a post-war low of 71 percent, raising worried speculation about long term decline in political participation. On closer analysis, however, this judgement seems premature. Most of the post-war decline in British turnout occurred between 1950 and 1970, and there is no evidence of long term decline in general election turnout between 1974 and 1997. The closeness of the electoral competition is a better predictor of national turnout than a secular trend. Close elections produce high turnout, but widely anticipated landslides (as in 1997) produce low turnouts. The 1997 election was also notable for the small ideological gap between the main parties. Analysis of individual voter abstention in 1992 and 1997 reveals that changes from one year to the other in the perceived difference between Labour and the Conservatives is crucial to accounting for the fall in turnout between the two contests. Turnout in 1997 was low because the result was widely anticipated and because relatively few saw important policy differences between the parties, not because British democracy is in crisis.     

Sticking to the Union? Nationalism,inequality and political disaffection and the geography of Scotland’s 2014 independence referendum

Scotland’s 2014 Independence Referendum affords a rare opportunity to examine public support for the break-up of a long-established, stable democracy. Analyses of support for Scottish independence reveal that while issues of national identity loomed large in the vote, they were not the only factors involved. Questions around the economic and political direction of the state, and around uneven development, ideology and trust in established politicians also influenced voters’ decisions. Partisanship also mattered, as voters were more likely than not to follow the lead of their party in what had become a highly partisan contest. But some parties – especially Labour – saw large minorities of their supporters vote against the party’s line to support independence.     

Was the 2016 United States’ presidential contest a deviating election? Continuity and change in the electoral map – or “Plus ça change,plus ç’est la mème géographie”

Several commentators before and after the 2016 US presidential election claimed that it involved a “redrawing of the country’s electoral map”, which in the context of the Key/Pomper classification of elections suggested that it was a deviating election, and potentially a critical election heralding a realignment. Analysis of the geography of the result of the 2016 contest, however, indicates considerable continuity at the county scale: the main trend was an increase in the spatial polarization of the US electorate. Trump not only performed best in 2016 in those counties where Republican party candidates had done well at the previous nine elections, he also increased the Republican share of the votes cast in many of them relative to his performance in counties where the Democratic party candidates were strong then. The main deviations from this trend were in counties with large Black and/or Hispanic populations and those with relatively large numbers of well-qualified, well-paid adults. It was not a potential critical election, therefore, but a continuation of a sequence now nearly four decades old.