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THE LIGHTHOUSE
"Enlightening Ideas for Public Policy..." Vol. 3, Issue 45 November 14, 2001 Welcome to The Lighthouse, the e-mail newsletter of The Independent Institute, the non-politicized, public policy research organization <http://www.independent.org<;. We provide you with updates of the Institute's current research publications, events and media programs. Do you know someone who would enjoy THE LIGHTHOUSE? Please forward this message to a friend. If they like it, they can add themselves to the list at http://www.independent.org/tii/lighthouse/Lighthouse.html. ------------------------------------------------------------- IN THIS WEEK'S ISSUE: 1. Would Government Oversight Be Charitable? 2. Drug Law Reform Up in Smoke 3. Battle Brings Out "Pork-Barrel Politics" 4. "Why Freedom Matters More Than Ever" -- Independent Policy Forum (12/4/01) ------------------------------------------------------------- WOULD GOVERNMENT OVERSIGHT BE CHARITABLE? The terrorist attacks of September 11 took not only U.S. government officials by surprise, America's non-profit charities were totally unprepared to handle the huge outpouring of donations they have received in response to the attacks -- or to quickly dispense the donated funds to the victims' families. Of the $1.19 billion collected in the past two months, only $204 million has been distributed. This has provoked a tremendous outcry from donors and news commentators. If the charities don't act quickly to improve accountability and responsiveness to donor intent, the critics say, federal and state governments may be justified in stepping in. Members of Congress even proposed federal and state oversight of the charities during two hearings on Capitol Hill last week. Lack of accountability to donors is not a problem that plagues only charities (although in the present case, IRS laws may be largely to blame, since charities must take the time to ensure that aid recipients are legally qualified to receive charity). America's non-profit foundations have suffered from poor accountability since long before September 11, according to Randall G. Holcombe, research fellow at The Independent Institute, whose book WRITING OFF IDEAS examines the economic, cultural, and intellectual implications of tax-exempt organizations. Many of America's best-known non-profit foundations -- the Ford Foundation, the Rockefeller Foundation and the Carnegie Corporation, for example -- have gone far astray from the intent of their founders. These foundations' trustees and officers typically promote redistributionist government policies rather than the spirit of free-market entrepreneurship that Henry Ford, John D. Rockefeller and Andrew Carnegie believed bestowed upon them their good fortune. Increased government scrutiny, both for charities and for foundations, is tempting. But, as Holcombe explains, it is a temptation we better not succumb to. If they are too inflexible (the charities) or too politically correct (the foundations) without government oversight, just think of how much more so they would be with government oversight, as special-interest groups try to pressure regulators to politicize charitable activities. "We should hope for better performance from foundation trustees and management," writes Holcombe. "[B]ut at this point additional government restrictions would be more likely to harm rather than help promote the public interest." For a detailed summary of WRITING OFF IDEAS: Taxation, Foundations, and Philanthropy in America, by Randall G. Holcombe, see http://www.independent.org/tii/lighthouse/LHLink3-45-1.html. To order WRITING OFF IDEAS, see http://www.independent.org/tii/lighthouse/LHLink3-45-2.html. ------------------------------------------------------------- DRUG LAW REFORM UP IN SMOKE About 1.5 million Americans were arrested on drug charges last year -- an all-time high -- and eight out of ten of them were arrested for marijuana possession. If you think that this startling statistic is likely to drop in the near future, as law enforcement focuses on anti-terrorism, think again. President Bush's new drug czar, John Walters, who was confirmed 14-5 by the Senate Judiciary Committee last week, shows every sign of increasing enforcement of the nation's drug laws -- despite large segments of public opinion supporting drug decriminalization and a growing number of judges fed up with the government's counterproductive "War on Drugs." Even medical marijuana clubs that operate with voter approval can expect a crackdown under Walters. Despite the predicted escalation of the drug war domestically, the Walters regime may leave its largest imprint on foreign lands, where U.S. drug laws reverberate even louder but far out of earshot for most Americans. To get a take of Walters's drug-war diplomacy: When the Peruvian military shot down an airplane carrying two American missionaries (claiming they thought it was carrying drugs), Walters must have viewed the missionaries' deaths as unfortunate but unavoidable collateral damage. He did, after all, earlier praise the Peruvian military's practice -- in violation of international law -- of shooting down planes thought to be used by drug smugglers. So, unless Walters does something to force his resignation, such as have an affair with an intern, American citizens can look forward to increased drug incarcerations, drug turf battles, drug-related crime and a foreign policy tainted by a marriage of therapeutic rhetoric and preemptive militarism against possible drug smugglers. In other words, for the remainder of the Bush administration the prospects for positive drug-law reform have gone up in smoke. For more information on drug law reform, see the transcript of "The Drug War on Trial: Two Judges Speak Out," an Independent Policy Forum featuring Judge James P. Gray and Judge Vaughn Walker, at http://www.independent.org/tii/lighthouse/LHLink3-45-3.html. For information about the U.S. Drug War on foreign soil, see the transcript of "The War on Drugs: Who Is Winning? Who Is Losing?" an Independent Policy Forum featuring Alexander Cockburn, Jonathan Marshall and Peter Dale Scott, at http://www.independent.org/tii/lighthouse/LHLink3-45-4.html. and: "What Will Congress Do About New CIA-Drug Revelations?" by Peter Dale Scott (SAN FRANCISCO CHRONICLE, 6/19/00), at http://www.independent.org/tii/lighthouse/LHLink3-45-5.html. Also see op-eds by Alex Tabarrok, research director of The Independent Institute: "It's California versus the Feds on Medical Marijuana" (SAN DIEGO UNION-TRIBUNE, 10/17/99) http://www.independent.org/tii/lighthouse/LHLink3-45-6.html. "Barry McCaffrey Should Resign" (PITTSBURGH REVIEW-TRIBUNE, 6/20/00) http://www.independent.org/tii/lighthouse/LHLink3-45-7.html. ------------------------------------------------------------- BATTLE BRINGS OUT "PORK-BARREL POLITICS" Reporter Jon Dougherty capably spells out the case against the "military-industrial-congressional complex," highlighting the ways in which pork-barrel politics as usual has led to an over reliance on Cold War-type of defense spending, rather than the rethinking needed in the age of global terrorism, in a recent article for WorldNetDaily. Drawing largely upon the work of Robert Higgs, senior fellow at The Independent Institute, Mr. Dougherty explains that both the U.S. Congress and the Department of Defense are culpable in wasting taxpayers' money on inappropriate weapons systems. "Higgs," writes Dougherty, "says pressure from defense contractors coupled with the typical bureaucracy of the Defense Department and politicians 'beholden to the military-industrial-congressional complex' is turning the war between 'the U.S. and Osama bin Laden's al-Qaida network into a more traditional exercise in pork-barrel politics." See "Battle Brings Out 'Pork-Barrel Politics,'" by Jon Dougherty (WorldNetDaily, 11/9/01), at http://www.independent.org/tii/lighthouse/LHLink3-45-8.html. Also see by Robert Higgs: "The Cold War Is Over, but U.S. Preparation for It Continues" (THE INDEPENDENT REVIEW, Fall 2001) http://www.independent.org/tii/lighthouse/LHLink3-45-9.html. "World War II and the Military-Industrial-Congressional Complex" (FREEDOM DAILY, 5/95), at http://www.independent.org/tii/lighthouse/LHLink3-45-10.html. "The Cold War Economy: Opportunity Costs, Ideology, and the Politics of Crisis" (EXPLORATIONS IN ECONOMIC HISTORY, 7/94) http://www.independent.org/tii/lighthouse/LHLink3-45-11.html. ------------------------------------------------------------- "WHY FREEDOM MATTERS MORE THAN EVER" -- Independent Policy Forum (12/4/01) To overcome the new threat of terrorism and a faltering economy, must freedom be restricted? Americans hold that freedom makes economic progress and the good society possible -- yet many support curtailing freedom during national crises. Economist DAVID R. HENDERSON, however, holds that freedom is as important during wartime and recession as it is during peacetime and prosperity. Based on his insightful and inspiring new book, THE JOY OF FREEDOM, Dr. Henderson will demonstrate the power of individual choice and free markets to improve education, health, the environment, community, culture, and much more. Not only is the intellectual battle for freedom exciting and just, according to Dr. Henderson, it is crucial for ensuring lasting peace, security and harmony. SPEAKER: -- DAVID R. HENDERSON (Professor of Economics, Naval Postgraduate School) is author of THE JOY OF FREEDOM: An Economist's Odyssey WHEN: Tuesday, December 4, 2001 Reception and book signing: 6:30 p.m. Program: 7:00 - 8:30 p.m. WHERE: The Independent Institute Conference Center 100 Swan Way Oakland, CA 94621-1428 For a map and directions, see http://www.independent.org/tii/tii_info/about.html#map TICKETS: $30.00 per person: includes one copy of THE JOY OF FREEDOM: An Economist's Odyssey. Admission without a book is $12 per person ($8 for Independent Institute Associate Members). Reserve tickets by calling (510) 632-1366. Praise for David R. Henderson's THE JOY OF FREEDOM: An Economist's Odyssey: "THE JOY OF FREEDOM is an engaging tale of Henderson's odyssey to the wonders of freedom." -- JOHN STOSSEL, correspondent, ABC News "THE JOY OF FREEDOM is passionate and eloquent, yet at the same time, thoughtful, informed, and profound. A splendid statement of the moral case for a free society, at the same time it is an informed and comprehensive survey of its practical virtues and of the harm done by widespread government intervention." -- MILTON FRIEDMAN, Nobel Laureate in Economics "THE JOY OF FREEDOM is a dazzling intellectual memoir, a high-level lesson in market economics, a terrific read." -- DANIEL SELIGMAN, columnist, FORBES Magazine "A superb lesson from one of the masterly economics teachers." -- AMITY SHLAES, columnist, FINANCIAL TIMES For more about this event, see http://www.independent.org/tii/lighthouse/LHLink3-45-12.html. ------------------------------------------------------------- THE LIGHTHOUSE, edited by Carl P. Close, is made possible by the generous contributions of supporters of The Independent Institute. If you enjoy THE LIGHTHOUSE, please consider making a donation to The Independent Institute. For details on the Independent Associate Membership program, see http://www.independent.org/tii/lighthouse/LHLink3-45-13.html or contact Mr. Rod Martin by phone at 510-632-1366 x114, fax to 510-568-6040, email to <RMartin@independent.org<, or snail mail to The Independent Institute, 100 Swan Way, Oakland, CA 94621-1428. All contributions are tax-deductible. Thank you! ------------------------------------------------------------- For previous issues of THE LIGHTHOUSE, see http://www.independent.org/tii/lighthouse/LHLink3-45-14.html. ------------------------------------------------------------- For information on books and other publications from The Independent Institute, see http://www.independent.org/tii/lighthouse/LHLink3-45-15.html. ------------------------------------------------------------- For information on The Independent Institute's upcoming Independent Policy Forums, see http://www.independent.org/tii/lighthouse/LHLink3-45-16.html. ------------------------------------------------------------- To subscribe (or unsubscribe) to The Lighthouse, please go to http://www.independent.org/subscribe.html, choose "subscribe" (or "unsubscribe"), enter your e-mail address and select "Go." ------------------------------------------------------------- THE LIGHTHOUSE ISSN 1526-173X Copyright ? 2001 The Independent Institute 100 Swan Way Oakland, CA 94621-1428 (510) 632-1366 phone (510) 568-6040 fax
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