Financial Regulation in the United States: Lessons from History

History is institutional memory writ large. One looks at economic history to see what problems recur, what causes them to recur, what solutions have worked best in the past, and which interventions have made the problems worse. The authors argue that a moderately complex interaction between the workings of the financial sector, the way in which the political system is organized, and the administration of regulation makes perfect regulation of the financial sector extremely unlikely. Many of these problems arise as a result of conflicting incentives for those participating in and regulating the financial field. The authors find that some proposed solutions have improved matters but have costs, and that some proposed solutions have actually worsened problems in the financial sector.

Peoples and governments never have learned anything from history, or acted on principles deduced from it.
— Georg Wilhelm Friedrich Hegel, 1837

     

Alasdair MacIntyre: Social Practices, Marxism and Ethical Anti-Capitalism

Alasdair MacIntyre's concept of social practice sits at the core of his account of the virtue-fostering forms of resistance to capitalism, liberalism and the modern (un)democratic state. However, while this concept was articulated, in part, as a response to perceived weaknesses with Marx's analysis of working-class revolutionary praxis, and although MacIntyre has criticised Marx for the paucity of his theorisation of such practice, he has himself only gestured towards concrete instances of his alternative. This essay engages with one of these examples: MacIntyre's suggestion that Welsh mining communities in the nineteenth and twentieth centuries should be numbered among those modern communities within which the virtues have flourished. I explore some of the ramifications of this example for MacIntyre's broader ethical theory through the lens of a discussion of the continuities and breaks between his youthful Marxism and his more mature thought. I suggest that this example problematises his concept of practice in a way that implies a space for reconciliation between his mature thought and his earlier Marxism.     

Budget Process Reform: Waiting for Godot

The unraveling of the budget process described by Irene Rubin will have extraordinary consequences for the long-term budget outlook facing the nation. The retirement of the baby boom generation will prompt unprecedented and unsustainable structural fiscal imbalances for decades to come. Early policy action on the spending and revenue sides of the budget is critical to avert fiscal and economic crisis and to phase in changes in order to avoid precipitous and politically perilous actions in the future. Yet such actions constitute what amounts to a politically unnatural act, as one generation of political leaders is asked to make sacrifices in current policies benefiting future generations. Budget process reforms can serve to highlight the salience of these issues and help deal with the significant political hurdles faced by decision makers in making these intertemporal budgeting trade-offs. Ironically, the need for budget rules and processes has intensified as policy makers have become more vulnerable to polarized political parties, ever more watchful media, and mobilized interest groups. Budget rules and processes can help policy makers cope by protecting their ability to make the hard choices that will be necessary. The pressures for budget process reform will accelerate as the current financial crisis increases near-term budgetary pressures, promoting greater alignment between near-term and long-term fiscal problems.     

Political economy of crime and punishment under Stalin

Why do dictatorships favor harsher punishments than democracies? We use a rational choice approach to explain the stylized facts of Stalin’s dictatorship—preference for harsh sanctions, higher incarceration rates, greater use of capital punishment, low tolerance for theft of state property and workplace violations. They are shown to be explained by the preferences of a rational dictator, who does not internalize the social and private cost of punishment.     

Parental leave policies and parents' employment and leave‐taking

We describe trends in maternal employment and leave‐taking after birth of a newborn and analyze the extent to which these behaviors are influenced by parental leave policies. Data are from the June Current Population Survey (CPS) Fertility Supplements, merged with other months of the CPS, and cover the period 1987 to 1994. This time span is one during which parental leave legislation expanded at both the state and federal level. We also provide the first comprehensive examination of employment and leave‐taking by fathers of infants. Our main finding is that leave expansions are associated with increased leave‐taking by both mothers and fathers. The magnitudes of the changes are small in absolute terms but large relative to the baseline for men and much greater for college‐educated or married mothers than for their less‐educated or single counterparts. © 2009 by the Association for Public Policy Analysis and Management     

Beliefs About Corporate America and the Structure of Opinions Toward Privatization

This research analyzes the individual-level factors associated with public support for the private provision of public goods and services. Given that privatization requires the transfer of authority from public to private entities, we argue that beliefs about private companies are an important and overlooked source of heterogeneity in explaining public policy preferences toward privatization. We test this expectation using survey data from the 2014 Cooperative Congressional Election Study. We find that support for privatization is associated with positive beliefs about the motivation of private companies and with favorable views about corporate accountability relative to the accountability of government. Opposition to privatization is associated with beliefs about corporate influence in politics. Preferences for limited government are also associated with support for privatization. These results highlight the potential for beliefs about private companies to serve as a group heuristic in political reasoning and the ability of citizens to make reasoned choices on complex public policy issues.     

Electoral infidelity: Why party members cast defecting votes

Party politics and electoral research generally assume that party members are loyal voters. This article first assesses the empirical basis for this assumption before providing individual‐level explanations for defection. It combines prominent theories from party politics and electoral behaviour research and argues that internal disagreement and external pressure can each bring about disloyal voting. The hypotheses are motivated with multi‐country European survey data and tested on two sets of party‐level national surveys. The results show, first, that, on average, 8 per cent of European party members cast a defecting vote in the last election, and second, that dissatisfaction with the leadership is the strongest predictor of defection. Additionally, internal ideological disagreement is associated with higher probabilities of defection, whereas the effects of pull factors in the form of contentious policies are rather limited. These findings emphasise the importance of testing scientific assumptions and the potential significance of party leadership contests.     

Of ‘Strong’ Leadership,Crisis Communication,and Pooper Scoopers: Change in the Queensland Public Service Under Newman

Governments have historically offered their workforce a public service bargain founded on stable pay and conditions and job security. However, while the Westminster system aims for public service employment to be protected from the whims of government, public servants are nonetheless affected by the political environment in which they operate and changes to this bargain can occur with a new government. This paper focuses on a Queensland public service change process that resulted in large‐scale forced redundancies, non‐renewal of temporary contracts, and legislative changes that nullified the provisions in job security, organisational change, and redundancy policies. Using communication as a lens through which to understand leadership, it examines how the government communicated with the public service about this organisational change, immediately before and after the 2012 election. In particular, through analysis of public and media commentary, speeches and Hansard records, it examines Premier Newman's change leadership and communication by contrasting pre‐election messages to the public service with post‐election messages about the public service and the justifications for change during this period of downsizing. This analysis is used to reflect on political leadership, communication, fair treatment, and trust in public service change.