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Posts Tagged ‘Open Government’

Just recently CRI began a campaign to keep Transparent Delaware, our government payroll and vendor contract data website, open to the public by asking people to donate towards our goal of $5,000.

https://www.indiegogo.com/projects/help-keep-government-spending-data-open-to-all/x/9753455

Our campaign pitch:

“We operate the website Transparent Delaware, which provides the public with open data on state payroll spending and state vendor payments. Want to know who the highest paid state employees are, by division or year? We have that. Want to see why an employee who was given a $60,000 base salary received $164,000 is overtime and “other” pay? We have that too.

We would like to obtain state pension data but we have been blocked multiple times in our efforts to find out how much the state spend on employee pensions. While we recognize that state workers are human beings too the fact is, it’s our money and we should know how it’s being spent. With extremely few exceptions government spending data should ALWAYS be open to the public.

What we need from you: It costs us about $5,000 a year to keep Transparent Delaware open to the public. All money collected for this campaign go to paying our web developer and host to keep the site up, or else we’ll have to shut it down :(. The exception is if you reach a donation threshold, we will send a small gift of thanks.

Even if we do not meet the $5,000, the more money we receive towards this goal, the more we can pay our web developer to keep the site open. They are great people but they have bills to pay too!”

As many before us have stated, “freedom isn’t free.” Now generally people who use this line are nearly always speaking about military service and the need for people to make some kind of meaningful sacrifice to keep our freedoms alive. But this axiom should apply as well to keeping information about our government available to the public.

We have to pay our web host and site developer, and while they may be awesome people they have bills to pay too. Understandably many people are used to internet content being free or “freemium” and the more successful web pages can place ads on the site to make money, but we are a non-profit and we cannot, and will not, rent our website space over to advertisers. Thus, we need the generous support of people like you to help us reach our goal and keep Delaware state payroll and vendor data available to the public.

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Hispanic CREO2014

photo: hcreo.com

Yesterday, January 7, our Director of the Center for Economic Policy and Analysis (CEPA) Omar Borla appeared on 104.1 and 930 AM “La Exitosa” (the success) on the Cristian Tijerino show for a Spanish-language interview about the most recent Friedman Foundation poll on attitudes toward school choice. The interview transcript is available by request and we will begin to integrate more content towards the Hispanic community, which comprises nearly 8% of the state’s total population.

The observation Cristian made was that for many Hispanic families, lack of information about school choice options prevents them from ever considering alternatives such as charter schools or private schools. Since many parents are either not able or capable of homeschooling or cyber-schooling their children they are often left in the traditional public school system, typically in schools which lack the resources to properly educate Hispanic children. Many Hispanic children come from homes where one or both parents do not speak English and it is this language barrier which discourages many parents from being more active in their children’s education, whether that means not going to parent-teacher conferences or being able to help with homework.

Omar explained the poll results and pointed out the huge enthusiasm gap between people of ALL groups who supporter school choice versus those who don’t. For Hispanics 74% of parents and for Blacks over 70% of parents were supportive of the idea of charters and vouchers. You can read the full results by clicking that link but there were overwhelming majorities in every demographic group: ethnicity, age, gender, party affiliation, among others.

In regards to the Hispanic community, where language is often a barrier, the question is what to do to help bridge this gap. Cristian pointed out that in addition to a lack of information about education alternatives, two other barriers which exist are: lack of interest with many parents in regards to the children’s education (NOT the same as not caring- just means by and large accepting the status quo without personally seeking alternatives) and also the negative perception floated around about alternatives. Cristian cited one parent who told her he though charter schools were for “kids with learning problems.” Many told her they thought charter schools are private schools and thus they cannot afford them.

Omar answered this by showing a data point where support for charter schools, vouchers, and Education Savings Accounts went up in every demographic when the options were explained, meaning more people were supportive when the understood exactly what these ideas were. Understandably school choice isn’t good for every child but parents can and should be better educated about these opportunities. Efforts to misinform parents about what these options are (how else would a parent think charter schools were private schools) are well underway and it’s up to us to counter these false perceptions.

At the end of the day we have only one question for parents, grandparents, legal guardians, educators, principals, elected officials, appointed officials, community leaders, and everyone else: Of all these groups,  who is likely to know best what is best for the child? We’re going out on a limb and saying “Education Department bureaucrats” and “elected officials” are not going to receive the majority of votes.

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Earlier this week Business Insider UK published an article titled, “Conservatives will hate this: Proof That Government Spending Cuts Hurt Economic Growth”. From the article:

“… austerity subtracted about 0.76 percentage points off the real growth rate of the economy between the middle of 2010 and the middle of 2011. If real government spending had remained constant at mid-2010 levels and everything else stayed constant, (yes we know these are big assumptions) the US economy would now be about 1.2 per cent larger.

There’s a secondary conclusion, too: War is good (economically), it turns out.”

They provided a graph (created by Matt Klein of the Financial Times) with data from the U.S. Bureau of Economic Analysis (BEA) “proving” that Keynesianism works. Without public spending, the author argued, our economy can’t grow.

US govt spending growth contribution detail

Enter the Foundation for Economic Freedom, whose founder Leonard Reed once published the famous short story “I, Pencil.” You absolutely should read this, by the way. An economist named Robert Murphy points out the fallacy in the calculations made for the graph above:

“Edwards (the author of the Business Times UK article) seems to think that the above chart shows at least a correlation between government spending and economic growth. After all, he wrote that the BEA chart “seems to show that government has a pretty straightforward effect on GDP.” But… the chart does nothing of the kind.

Look carefully at the legend. The various colored rectangles are different components of government spending. Specifically, the rectangles indicate how the change in each component — positive or negative — relates to the change in overall GDP. The black line is not GDP growth, but is instead the sum of the various components of government spending… if we take the BEA’s word for how much each component of government spending contributed to GDP growth in each quarter, then we can stack those numbers on top of each other and even add them up! Contrary to Edwards, the FT chart doesn’t “show” anything at all, except that the BEA each quarter announces how much various components of government spending contributed to, or subtracted from, GDP growth.

After this discussion, we can see why pretty charts from the FT showcasing government spending’s “contribution to GDP growth” quarter by quarter don’t really mean anything. It’s the same for the ex post “empirical” analyses that concluded that the Obama stimulus package “saved or created” such-and-such million jobs. The underlying models that generate these estimates assume a Keynesian world, and thus cannot test whether the Keynesian model is correct.”

Even though the government prints and issues money, it’s the private sector (both businesses and consumers) who determine the value of a good or service. The government can only run on money taken from the private sector; printing into eternity is Quantitative Easing, which causes inflation if too much is printed. So they tax or borrow it from the people. If government spending really did save economies, both Delaware and America would have people making record amounts of money instead of seeing wages stagnate. The Federal Reserve would not have to continue holding interest rates low in order to convince people to buy things like homes or cars or take out student loans.

Check out CRI’s analysis here and here.

The bottom line is, Keynesianism does not work in the real world, despite efforts by its supporters to say it does. The less the government spends, the less the government needs. Even The News Journal noted that in a recent editorial.

As we approach 2015, here’s to more free markets and less government spending at all levels.

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This week, Rhode Island Governor Carcieri announced the creation of an interactive, online transparency tool for Rhode Island state government spending.

The new site is available here. It will allow taxpayers to see how taxpayer dollars are being spent by the state’s Department of Administration.

The state plans on expanding the data available to personnel, purchasing, accounting, budgeting, IT, leasing and other contract services.

With the Delaware General Assembly’s failure to make similar moves in Delaware during the 144th General Assembly, the Caesar Rodney Institute will fill this need in the First State.

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