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Posts Tagged ‘government incompetence’

Alex Tabarrok has a fascinating article in the Wilson Quarterly about the history of bail bondsmen and their role in this privatized segment of the criminal justice system. Let’s start by excerpting some history of the system.

Bail began in medieval England as a progressive measure to help defendants get out of jail while they waited, sometimes for many months, for a roving judge to show up to conduct a trial. If the local sheriff knew the accused, he might release him on the defendant’s promise to return for the hearing. More often, however, the sheriff would release the accused to the custody of a surety, usually a brother or friend, who guaranteed that the defendant would present himself when the time came. So, in the common law, custody of the accused was never relinquished but instead was transferred to the surety—the brother became the keeper—which explains the origin of the strong rights bail bondsmen have to pursue and capture escaped defendants. Initially, the surety’s guarantee to the sheriff was simple: If the accused failed to show, the surety would take his place and be judged as if he were the offender.

The English system provided lots of incentives for sureties to make certain that the accused showed up for trial, but not a lot of incentive to be a surety. The risk to sureties was lessened when courts began to accept pledges of cash rather than of one’s person, but the system was not perfected until personal surety was slowly replaced by a commercial surety system in the United States. That system put incentives on both sides of the equation. Bondsmen had an incentive both to bail defendants out of jail and to chase them down should they flee. By the end of the 19th century, commercial sureties were the norm in the United States. (The Philippines is the only other country with a similar system.)

In recent decades, however, some states have begun to restrict or ban the use of private bail bondsmen. Not surprisingly, this hasn’t been good news. The cost to taxpayers rises and the effectiveness of the criminal justice system falls. Here’s another excerpt.

Every state now has some kind of pretrial services program, and four (Illinois, Kentucky, Oregon, and Wisconsin) have outlawed commercial bail altogether.

…Today, when a defendant fails to appear, an arrest warrant is issued. But if the defendant was released on his own recognizance or on government bail, very little else happens. In many states and cities, the police are overwhelmed with outstanding arrest warrants. In California, about two million warrants have gone unserved. Many are for minor offenses, but hundreds of thousands are for felonies, including thousands of homicides.

In Philadelphia, where commercial bail has been regulated out of existence, The Philadelphia Inquirer recently found that “fugitives jump bail . . . with virtual impunity.” At the end of 2009, the City of Brotherly Love had more than 47,000 unserved arrest warrants. About the only time the city’s bail jumpers are recaptured is when they are arrested for some other crime.

…Unserved warrants tend not to pile up in jurisdictions with commercial bondsmen. In those places, the bail bond agent is on the hook for the bond and thus has a strong incentive to bring those who jump bail to justice. My interest in commercial bail and bounty hunting began when economist Eric Helland and I used data on 36,231 felony defendants released between 1988 and 1996 to investigate the differences between the public and private systems of bail and fugitive recovery. Our study, published in The Journal of Law and Economics in 2004, is the largest and most comprehensive ever written on the bail system.

Our research backs up what I found on the street: Bail bondsmen and bounty hunters get their charges to show up for trial, and they recapture them quickly when they do flee. Nationally, the failure-to-appear rate for defendants released on commercial bail is 28 percent lower than the rate for defendants released on their own recognizance, and 18 percent lower than the rate for those released on government bond.

Even more important, when a defendant does skip town, the bounty hunters are the ones who pursue justice with the greatest determination and energy. Defendants sought by bounty hunters are a whopping 50 percent less likely to be on the loose after one year than other bail jumpers.

In addition to being effective, bail bondsmen and bounty hunters work at no cost to the taxpayers. The public reaps a double benefit, because when a bounty hunter fails to find his man, the bond is forfeit to the government.

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I’m in Singapore for two days to help fight the Organization for Economic Cooperation and Development, a statist international bureaucracy based in Paris. The OECD has something called a global tax forum, the purpose of which is to harass so-called tax havens in hopes of coercing them into acting as tax collectors for Europe’s decrepit welfare states. Here’s the executive summary from the memo I wrote, which warns low-tax jurisdictions that the OECD may push even harder to undermine fiscal sovereignty because of fears that a GOP takeover of Congress will make it more difficult to push for tax harmonization policies in the future.

The Paris-based Organization for Economic Cooperation and Development has an ongoing project to prop up Europe’s inefficient welfare states by attacking tax competition in hopes of enabling governments to impose heavier tax burdens. This project received a boost when the Obama Administration joined forces with countries such as France and Germany, but the tide is now turning against high-tax nations – particularly as more people understand that such an approach inevitably leads to Greek-style fiscal collapse. Looming political changes in the United States will further complicate the OECD’s ability to impose bad policy. Because of these developments, low-tax jurisdictions should be especially wary of schemes to rush through new anti-tax competition initiatives at the Singapore Global Forum.

The good news is that nothing dramatic took place on the first day of the two-day conference. The OECD continued to bully low-tax jurisdictions to sign information-sharing agreements and the low-tax jurisdictions kept asking for double-taxation agreements so they could get some benefit in exchange for weakening their human rights/financial privacy laws. The OECD and high-tax nations have been ignoring these requests for a two-way street, thus continuing their bad-faith behavior.

For more information on this issue, here’s a link to my video on tax competition, and here are a handful of TV appearances where I discuss the issue. This is a challenging issue to debate, so I’d welcome feedback on which arguments you think are most effective.

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Here’s another remarkable story illustrating the incompetence of government. A bureaucrat in Norfolk, VA, got paid for 12 years (including benefits) without ever showing up for work. Depending on the agency, this may actually have been a good thing (I wish IRS bureaucrats did this), but it certainly shows how taxpayer money gets wasted when nobody is accountable and there is no bottom-line incentive to use money effectively.

A Community Services Board employee collected a salary with benefits for 12 years and never showed up for work, several City Council members said Wednesday.

The head of the agency refused to identify the employee but acknowledged in response to inquiries from The Virginian-Pilot that an employee was “on the board’s payroll who had not reported to work in years.”

Maureen Womack, the agency’s executive director, said she fired the employee, informed the board that governs her agency and asked City Attorney Bernard A. Pishko to investigate the matter earlier this summer. Pishko’s investigation is nearly complete and will soon be turned over to the Norfolk police, she said.

Womack also refused to divulge the employee’s salary.

The council also was told in a recent closed meeting that at least one other staffer, a Community Services Board supervisor, is being investigated for alleged complicity.

…Councilman Tommy Smigiel said recent revelations about the Community Services Board employee and other matters, including the profligate use of a city credit card by the Commissioner of Revenue and the purchase of a cell phone with city funds for a gang member by an assistant to the city manager, are doing “serious damage” to Norfolk’s image.

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I take second place to nobody in my view that government is horribly incompetent, but even I’m shocked by this story linked on Drudge. According to a news report out of Indiana, students who take the government’s driver’s ed class are four times more likely to crash than those who don’t take the classes. There almost certainly must be other factors that account for this surprising difference, as suggested in the excerpt below. After all, even I don’t believe bureaucrats can turn people into more dangerous drivers. At the very least, though, this presumably shows that government classes have no positive impact. Maybe the right way to deal with young drivers is to put parents back in charge, backed up by the discipline of auto insurance rates determined by market forces. How’s that for a radical idea?

Indiana lawmakers say they are puzzled by a study that shows teenagers who take driver’s education classes are more likely to crash than those who do not take the classes. The Indiana BMV released the study that it says shows current drivers under 18 who took driver’s ed had nearly four times the crashes than those without the training. Some lawmakers say it might be time for an overhaul. The state’s drivers ed program has not changed in the past 30 years. But the BMV says the numbers might be skewed by the fact that teens with driver’s ed get their permits earlier and have more time on the road.

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