What Texans want is more, less expensive electricity, not less, more expensive electricity. If Texas wants to reduce energy costs and save money for Texas consumers, it needs to go back to the drawing board and make significant changes to the energy efficiency program and eliminate the Renewable Portfolio Standard.
Proposals to expand Texas’ energy efficiency program ignore the fact that there is simply no way, given the existing data and methodology, to properly determine the efficiency—or inefficiency—of the program.
Texans no longer have the right to use their land without approval from the state. Regulatory restrictions on property use—even more than eminent domain abuse—are the main threat to private property rights today.
The "Summer Disconnect" More Intervention Will Harm, Not Help, Consumers By Ryan Brannan and Bill Peacock
Proposals to “protect” consumers from high electricity bills during the summer and winter are fraught with unintended consequences that will wind up doing more harm than good.
Texas has the most competitive electricity market in the world. Its telecommunications market is equally successful. While the details of the transitions to competition for these two markets differ, the results are remarkably similar—exceptional increases in consumer choice and decreases in consumer prices.
This report focuses on identifying the underlying statutory provisions that, if amended or repealed, would eliminate many of the conflicts in homeowners’ insurance law. The report's recommendations are designed to do this and, ultimately, to bring a consumer-friendly regulatory system to the Texas homeowners’ insurance marketplace.
Although private property rights are guaranteed by both the U.S. and Texas constitutions, they have been systematically scaled back over time. Since the U.S. Supreme Court’s 2005 Kelo decision, however, Texas has begun the march toward restoring those rights. Here are some next steps for Texas.
This PowerPoint presentation was given by former FCC Commissioner Deborah Taylor Tate at the Foundation's April 14, 2010 Policy Primer on Network Neutrality at the Omni Downtown Austin Hotel.
This PowerPoint presentation was given by Dr. George S. Ford at the Foundation's April 14, 2010 Policy Primer on Network Neutrality at the Omni Downtown Austin Hotel.
This PowerPoint presentation was given by Peter S. Vogel at the Foundation's April 14, 2010 Policy Primer on Network Neutrality at the Omni Downtown Austin Hotel.
April 19, 2010
Internet Presentation A PowerPoint Presentation by FCC Commissioner Robert McDowell By Commissioner Robert McDowell
This PowerPoint presentation was given by FCC Commissioner Robert McDowell at the Foundation's April 14, 2010 Policy Primer on Network Neutrality at the Omni Downtown Austin Hotel.
March 31, 2010
Economic Development: Texas Style Testimony before the House Committee on Technology, Economic Development & Workforce By Bill Peacock
A state that keeps its taxes low and overregulation at bay is one that fosters economic development.
The Federal Communications Commission is attempting to regulate the Internet in the form of network neutrality rules. These rules would change line management from the service providers to the government—harming competition, stifling innovation, and ultimately stagnating the Internet entirely.
Texas, alone among the states, has moved forward into a truly restructured and competitive electricity era, which has brought lower prices, greater reliability, and increased consumer choice.
Texas can do many things to cost-effectively improve transportation networks in ways that save energy, reduce accidents, and cut toxic and greenhouse gas emissions. High-speed rail is not one of those things.
June 24, 2009
Economic Freedom 81st Legislative Session in Review By Bill Peacock
A review of the 80th Texas Legislature’s work on property rights, homeowners' and windstorm insurance, electricity and renewable energy, civil justice, telecommunications, and financial regulation.
Cities and counties oppose using “possession, occupation, and enjoyment” because it would lead courts to stop the practices that the cities and counties want to continue: using eminent domain to take property from one property owner and give it to another to enhance local government tax revenue.
Texas cities believe that SB 18 will allow them to conduct eminent domain business as usual. That is correct. SB 18 does nothing to stop Kelo-style takings in Texas.
The high level of regulatory intervention and resulting uncertainty brought about by prior approval has become a major problem. One significant aspect to this is the lack of capital commitment to the Texas homeowners’ market.
One of the primary ways consumers have benefitted from the competitive markets is through their ability to choose and voluntarily contract with telecommunications providers. Several bills filed this session threaten competition and
the integrity of contracts in the telecommunications market
by telling consumers and producers what they can and
cannot agree to in a contract.
A vibrant, competitive short-term lending market is necessary for the financial well-being of many Texans. Restricting or cutting off access to short-term, micro loans will have very real unintended consequences for consumers who use these financial products.
The explosion of Internet and wireless-based technologies has revolutionized the telecommunications market. Future regulatory and tax policies should reflect these changes to promote a competitive telecommunications industry, reduce high taxes and fees, and encourage future economic growth within the state.
Having access to various forms of short-term credit helps consumers by allowing them more choice in matters of personal finance. The best way to protect borrowers is to allow for a competitive and healthy short-term lending market.
Government spending crowds out private sector spending, diminishing the private economy’s rate of growth and costing Texans jobs. In other words, increased government spending makes citizens poorer because it takes their money now, while also reducing their future income and employment prospects. This fact is at the heart of the debate about whether or not Texas should accept federal stimulus money.
The best way to protect property rights is to define public use in the Texas Constitution; not to ban takings that are only for the “primary” purpose of economic development.
Texas needs a positive definition of "public use" in its eminent domain legislation. Legislative changes in 2005, in response to Kelo, attempted to solve this problem, but they came up short. This analysis takes a look at three of the bills up for consideration this session.
Consumers don't need the government to protect them from high prices; they need the government to allow them to make their own choices about what products they will buy at what price.
While the Texas Windstorm Insurance Association (TWIA) may have been intended as a residual provider, it has become anything but that. Its unrealistically low rates have made TWIA an unbeatable competitor and are crowding out the private market.
This PowerPoint presentation covers Texas' current economic condition and what the state must do to continue to weather the economic storm and stay on the path of prosperity.
Consumer protection laws stand in stark contrast to the consumer-friendly workings of today's competitive homeowners' insurance market, where voluntary participation forces attention to the needs of consumers.
Testimony and recommendations related to the budget and strategic planning of the Texas Department of Insurance and the Office of Public Insurance Counsel.
The Texas Windstorm Insurance Association (TWIA) provides windstorm and hail coverage in the 14 coastal counties and a few other specially-designated areas. All property insurers in Texas must participate in TWIA and must help pay losses. Although TWIA was intended to provide windstorm insurance coverage only to those who could not purchase insurance in the voluntary market, it is no longer an insurer of last resort.
When it comes to deregulation of the telecom industry, Texas is generally one step ahead of the rest of the nation. Thanks to the most recent legislation—SB 5—local telephone service for more than 15 million Texans was significantly deregulated as of January 1, 2006. This was a major step forward in reducing costs and bringing new technologies and services to millions of Texans.
When a state or municipality takes title to private property, the private property owner must be compensated for the property condemned by the government. The Texas
Constitution calls for “adequate compensation” to be paid. At issue is what constitutes “adequate compensation” when private property in Texas is condemned by the State or a Texas municipality under the constitutional takings authority known as “eminent domain.”
The organizational structure of Texas’ state court system was originally laid out in Article V of the State Constitution adopted in 1891. Piecemeal and ad hoc restructuring over the intervening years have resulted in an antiquated system full of irregularities, inconsistencies, and overlapping jurisdictions.
In order to bring simplicity and rationality to the legal process, the system’s organization and administration should be reformed.
Consumers and producers are uniquely situated to make judgments about meeting their own wants and needs. So government regulation in the name of protecting consumers and competition—or in any other name for that matter—rarely lives up to its billing.
December 31, 2008
Telecom Taxes 2009-2010 Legislators' Guide to the Issues By Bill Peacock
Texas consumers are burdened with high tax rates on telecommunications services. The average consumer who subscribes to telephone, cable, and cellular service pays annual taxes of around $318. Texas’ tax rate on landline telephone service is the third highest in the nation.
For good or ill, many people reduce the entire pro-growth worldview of supply-side economics down to the “Laffer Curve,” which graphically depicts the tradeoff between tax rates versus the total tax revenues actually collected by the government.
November 20, 2008
Franchise Fees 2009-2010 Legislators' Guide to the Issues By Bill Peacock
While the Legislature has improved the franchise process, it has left franchise fees at high levels. So while the process is now more efficient, consumers still pay fees that provide
revenues for cities far above what it costs to manage the public ROW.
Introducing competition into Texas’ retail and wholesale electricity markets has made Texas the greatest success story in the United States—if not the world. That success is largely due to policymakers’ willingness to let markets work and not manipulate prices or other policies for political reasons.
The sunset review process of TDI presents an excellent opportunity to address today’s problems with the regulation of homeowners’ insurance and to bring a consumer-friendly
regulatory system to the Texas homeowners’ insurance marketplace.
Texas has taken some steps since Kelo in moving toward protecting its citizens from eminent domain abuse. However, the veto of HB 2006 and the failure to pass HB 3057 last session have left much to be done in restoring Texans’ property rights.
November 14, 2008
Tort Reform 2009-2010 Legislators' Guide to the Issues By Drew Thornley and Bill Peacock
Since 1995, no state has done more than Texas to restore the trust of citizens in their court system. However, Texas’ tort climate still has problem areas, namely its number of “judicial hellholes,” areas with histories of large or excessive verdicts against tort defendants.
Whether you focus on theory or history, the lesson is clear: government intervention in the marketplace wastes resources, harms consumers, and often achieves the opposite from its intended goal. A deregulated, lightly taxed market is the best vehicle to achieve freedom and prosperity for all.
Proposed and enacted solutions for securing affordable and reliable energy for Texas consumers run from higher taxes and subsidies to mandated production from alternative fuel sources. However, long-term solutions must rely on a proper understanding of our current situation and market-based innovations.
Instead of subsidizing private wind development and imposing billions of dollars in new transmission costs upon retail electric customers, Texas policymakers should step back and allow the energy marketplace to bring wind power online when the market is ready. Texas consumers will reap the benefits.
A careful look at the costs of wind energy in Texas reveals that Texas consumers and taxpayers ought to think twice about the state’s current policy of subsidizing wind energy.
Immigration is an issue as complex as it is contentious. With respect to immigration issues, we must recognize the efficacy of free markets in promoting economic growth, but also acknowledge the necessity of policy interventions to protect the rule of law and the security of the state and nation.
September 29, 2008
Influential Issues The Economy By The Honorable Talmadge Heflin and Bill Peacock
Government policies influence people's decisions on whether, where, and how much to work, save, and invest, impacting the ability of states to retain and attract residents and businesses. Research has shown that pro-growth policies result in higher after-tax returns, increased economic activity, and an eventual improvement in overall state fiscal health.
For other Influential Issues papers covering education, health care, immigration, and thinking economically click here.
A pro-growth, market-friendly state attracts talented workers, entrepreneurs, and investment, which spurs job creation and booming tax receipts. Empirical evidence backs this up: on every important criterion, pro-growth states outperform those with hostile business climates. State policies matter!
The move to a file-and-use regulatory system for homeowners’ insurance, as called for by the Texas Legislature, is incomplete. Completing the move is necessary for consumers to reap the benefits of a competitive marketplace.
July 24, 2008
The Other Franchise Tax Municipal Franchise Fees Add Hundreds of Millions of Dollars to Consumers' Bill Each Year By Bill Peacock
Consumers have greatly benefitted from recent efforts to reduce telecommunications taxes. But this testimony shows that the municipal franchise tax on video, voice, electricity, and natural gas services still takes hundreds of millions of dollars a year out of consumers' pockets.
Many people today call for "fair" trade rather than free trade. But that ignores the fact that all free trade is fair because people only agree to trade if they believe they will benefit from it.
Where our money comes from remains a mystery for most people. The answer would be much simpler if everyone conducted their transactions in cold hard cash. But we can start by applying the law of supply and demand.
Texas has been a leader in tort reform since enacting landmark medical malpractice reform in 2003. This history of tort reform in Texas discusses how it came to be and the tremendous results since.
Taking private property is not only wrong, it is also unnecessary. A recent study shows that economic develop can and does occur without eminent domain, another reason why Texas should reform its laws for the post-Kelo world we live in.
The U.S. today is in its best shape ever. Americans enjoy low flat(ish) tax rates, an economy open to foreign trade, and wealth unprecedented in human history. To continue to enjoy this prosperity, it is important to understand why the 1980s and beyond have been so much better.
Market institutions matter. Countries that have secure property rights and the rule of law have greater prosperity and greater freedom.
March 26, 2008
Texas Electric Meter Measuring the Effects of Electricity Deregulation By Bill Peacock
With two years of full deregulation before the next legislative session, Texans have the opportunity to get a clear picture of the true effect of deregulation of the Texas electricity market. The short answer is that consumers are benefitting.
This PowerPoint presentation was given by Rob Bradley of the Institute for Energy Research, at the Texas Public Policy Foundation's policy primer, “Wind Energy: Power for the Future or a Lot of Hot Air?”
What made the Edsel so valueless and the Cabbage Patch doll so valuable? It wasn’t their intrinsic worth based on factors such as production costs or the skill of the labor used in their production. Instead, it was the value placed upon them by consumers.
The Texas Department of Insurance is undergoing Sunset Review in 2008. This Q&A is based on the Center for Economic Freedom's response to a series of questions on TDI from the Texas Sunset Commission.
Steady advances in technology are decoupling fossil-fuel energy and air pollution. In fact, air pollution continues to reach new record lows in Texas and the nation, even as Americans burn increasing amounts of coal, oil, and natural gas to power their homes, vehicles, businesses, and factories.
January 25, 2008
Power for the Future The Debate Over New Coal-Fired Power Plants in Texas By H. Sterling Burnett
One reason for Texas' continued economic progress is its successful deregulation of the electric industry. Continued progress, and the prosperity it brings, relies upon continued growth in available power. In the short term, only coal can deliver enough reliable, inexpensive power to meet this need.
Thinking Economically is a project of the Texas Public Policy Foundation designed to provide a basic economic education for policymakers, the media, and the general public. In this way, the Foundation hopes to highlight the intersection of economics and public policy, and the importance of “thinking economically” when making policy decisions. This paper shows that immutability of economic laws means that there are limits to what can be accomplished in the political realm.
The international climate change bandwagon has yet to offer a plan for battling emissions anywhere close to as good as the U.S.’s strategy of unleashing market forces to control emissions and investing in clean-energy technologies, with a focus on long-term emissions control, as opposed to unrealistic short-term strategies. If the goal is to curb emissions over the long-term, then countries should follow the example of the U.S. in letting competition and the free market lead the way to success.
Texans understand that hurricanes are an inevitable hazard along the Gulf Coast. However, subsidizing that risk has left Texas taxpayers on the hook for billions of dollars and the state as a whole unprepared for the next big one.
Insurance regulators and consumer advocates are in denial regarding the problems caused by regulations and subsidies in the Texas homeowners’ and windstorm insurance markets. This presentation given at the Heritage Foundation examines the problems and how to remedy them.
Eminent domain is seen by cities as a “tool” to be used to foster economic development. However, this presentation to the Texas Association of Community Development Corporations shows that eminent domain harms those in need of affordable housing.
Arguably the most serious threat facing the Texas economy is that of a severe hurricane strike. Government intervention in the windstorm insurance market has put billions of taxpayer dollars at risk on top of the damages to property that would occur.
Texas’ outdated pursuit of “affordability” over fairness and solvency in insurance regulation over the last 10 years has been found to be wasteful and expensive—delaying innovation and reducing competition—leaving both consumers and taxpayers at risk. This paper provides four recommendations for modernizing insurance regulation in Texas.
With HB 2006, Texas has taken a determined stand against the U.S. Supreme Court’s abandonment of one of our most fundamental rights, saying “No” to Kelo and “Yes” to private property rights.
After a detailed interim study, the Legislature is addressing eminent domain in several pieces of legislation which are expected to soon be considered by the Texas Senate. This paper provides an analysis of key provisions of these bills.
The practical problem with the Kelo decision was not so much what it said, but the problems with Texas eminent domain law that it exposed. This testimony examines four key areas that need to be addressed in HB 2006 and HB 3057.
This report underscores the high telecommunications tax burden shouldered by Texas consumers and how important it is that the Legislature cut taxes on telecommunications services this session.
This paper takes a look at the debate over electric deregulation and what needs--or doesn't need--to be done to ensure competition and consumer choice in Texas' world class electric market.
Competition in Texas’ newly deregulated electric market has brought substantial benefits to Texas in only a few years, both in absolute terms and relative to other states. Texas should avoid unpredictable major alterations of the existing market structure that would harm its stability.
Texas has made great strides in reforming its civil justice system in the last decade and its citizens are reaping the benefits. Modernizing the court system will bring the clarity and rationality necessary for the state to build on these reforms.
This report examines the details of the Texas electric market and its transition to competition. It finds that customers of all types have found attractively priced power in the new retail markets, and the Texas transition to competition has been the nation's most successful.
This brief examines the need for Texas to implement a long-term solution for securing affordable, reliable energy supplies that relies on a proper understanding of our current situation and market-based innovations.
This brief provides the facts and recommendations on the current state of electric competition in Texas and how competition is working to the consumer's advantage.
Texas stands out among the states for the competitive performance of both its retail and wholesale markets. This review of an upcoming Foundation study explains why this is and how to maintain our competitive edge.
Texans pay the third highest level of state and local telecom transaction taxes in the nation. This brief examines the facts about Texas' high rate, identifying over $382 million in telecommunications tax cuts that could be implemented by the 80th Texas Legislature.
This report--the first in a series--is a primer on electricity and provides a foundation for our examination in future papers of the successes and challenges in the move toward deregulation in Texas electric markets.
This letter to the editor of the Wall Street Journal was in response to an October 27 article, "In Texas Energy Deregulation, Top Company Is a Winner."
This report examines the background of the Kelo decision, looks at the current state of eminent domain protections in Texas, and makes recommendations about what must be done to restore the centrality of private property rights that existed when our nation and our state were founded.
This Q&A provides a basic understanding of the USF--its purpose, strengths and weaknesses--and makes recommendations as to how it can be modified to bring more competition to the Texas telecommunications marketplace.
To insure a level playing field and increased competition in the telecommunications market, reforms to the management of the public rights of way must be based on the ideal of limited government.
The Institute for Justice (IJ) is at the forefront of the national battle to protect property rights from eminent domain abuse. In collaboration with the Foundation, Clark Neily, one of IJ’s senior attorneys, examines the current situation in Texas and proposes changes to Texas law that would provide protections for private ownership of land once thought to be enshrined in the U.S. Constitution.
Bill Peacock, director of the Center for Economic Freedom, testified on the issue telecommunications deregulation on April 27 before the Senate Committee on Business and Commerce and the House Committee on Regulated Industries.
In the last 11 years, great accomplishments have been made in reforming the Texas civil justice system. But there are still problems to address. This report examines the options for continued tort reform in Texas.
This brief explains the concept of consumer stickiness as a sign of healthy competition and an integral part of the market process based on individual preferences.
This paper provides recommendations designed to remove the uncertainty and instability that government price regulation brings to the homeowners’ insurance market and allow the free market and regulators to each do what they do best.
Just as Texas has become the national leader in deregulation of telecommunications, it should also become a national leader in reducing telecommunications taxes. The recommendations in this paper would save Texans over $382 million per year. But only if a concerted effort is made to reduce government reliance on these existing tax revenues.
In its recent Kelo decision, the Supreme Court essentially
rewrote the Public Use Clause of the U.S. Constitution. The Texas Legislature responded and took a step in the right direction, but more must be done to adequately protect Texans' property rights.
This policy perspective examines competition in the telecommunications industry, looks at specific aspects of the regulatory system in Texas, analyzes the provisions and impact of SB 5, and looks at the road ahead for telecommunications in Texas.
Testimony by the Foundation's economic freedom policy analyst on "Takings of Private Property" (eminent domain) and how Texans are affected by the recent Supreme Court decision.
Testimony by the Foundation's economic freedom policy analyst on how telecommunications regulatory reform in Texas could bring significant benefits to consumers and businesses throughout the state.
May 11, 2005
Senate Bill 533 Mandate for Renewable Energy Costs Consumers By Bill Peacock
Proponents of mandating the increased use of wind power
claim it is less expensive than traditional sources of
power. However, that claim ignores the facts.
Rates for Texas basic residential telephone service, including
the federal subscriber line charge, range from
about $13.82 per month in rural areas to $16.72 in urban
areas. But long-run incremental costs for service range
from $11.84 per month in the most densely-populated
areas to more than $250 per month in rural areas. Approximately
95 percent of all basic residential lines are
subsidized. Sources for the subsidies include added features,
business service, long distance and the Universal
Service Fund.
There is no doubt that the regulation of homeowners’
insurance needed changing in 2002-03. However, many policymakers seeking to remedy the situation have not focused primarily on the faulty laws and regulations. Instead, the focus has too often been on insurance companies, the high premiums they were charging and how to get immediate relief for consumers.
Telecommunications technology has been rapidly changing
since the breakup of AT&T in 1984, producing products
and services unforeseen by the courts. One of the major
advances has been the convergence of voice, video and
data services across all types of telecommunications media. The regulation of telecommunications has not kept pace
with the technological changes, resulting in regulatory
inconsistency between various products and service providers.
Asbestos litigation is a nationwide phenomenon. It is important to determine the costs it has produced for the nation’s economy, and the way it has affected us all. The impact on Texas is – and will continue to be – significant, as this review demonstrates.
Texas has more roadway miles than any other state. Over a quarter of Texas’ 302,000 miles of public roads is state owned. From 1990 to 2003, the demand for roads in Texas increased 13 times faster than the state’s road system increased in capacity. As a result, travel delay due to congestion in Texas increased from 750 million hours per year in 1982 to 3.6 billion hours in 2000. Combine these road-demand statistics with the fact that over half the state’s population lives in ozone nonattainment pollution zones, and it becomes clear that Texas faces serious transportation problems needing solutions.
Workers’ Compensation Making It Work for Texans By John Colyandro and Chris Patterson
Texas has one of the worst workers’ compensation insurance programs in the nation, whether one looks at it from the perspective of the injured worker or the cash-strapped employer. Despite decades of effort, the Texas Workers’ Compensation System is ineffective and inefficient. This study recommends lawmakers commit to a ground-up revamping of the system.
With billions of dollars on the line, Texas lawmakers will this Session overhaul the way the state regulates telecommunications. The overhaul comes as part of the sunset of the Public Utilities Commission, the state agency responsible for regulating telephony services. This primer offers a tutorial on the issues, options and – most importantly – what’s at stake in making bad regulatory decisions.
Pocket Facts Texas Telecommunications By Texas Public Policy Foundation
Facts and recommendations taken from "Texas Telecommunications" by Robert Crandell and Jerry Ellig.
January 05, 2005
Texas Telecommunications Everything Is Dynamic Except The Pricing By Robert W. Crandall and Jerry Ellig
Telephone rates in Texas reflect substantial distortions that were intended to make basic local service “affordable.” Measured only by that narrow goal, the policy might be considered a success. Local rates for large incumbent carriers fall about $600 million short of covering long-run incremental costs, and consumers pay higher prices for other services to make up the difference. Local wire-line rates are cheap, but consumers bear a high cost in exchange for these bargain rates.
A change in homeowners’ insurance regulation passed by the 78th Texas Legislature goes into effect in December 2004. Because it transforms the state from a “flexible band” to a “file and use” regulatory environment, the law – SB 14 – in theory moves Texas closer to being a free market in insurance. In the context of the homeowners’ insurance market as a whole, this paper examines the hoped-for positive outcomes and potential pitfalls of SB 14, which includes a provision for “subsequent disapproval” rulings by the insurance commissioner.
Reform of property and casualty filing requirements enacted by the 78th Texas Legislature represents an important step toward reducing the cost, improving the quality, and expanding choices for consumers. In this presentation to the Texas Department of Insurance and the Office of Public Insurance Council at an open meeting, recommendations are made for continuing improvements to the state's insurance market.
June 30, 2004
Great Rail Disasters Impact Of Rail Transit On Urban Livability By Randal O'Toole
The stampede to plan and build rail transit lines in American cities has led to a series of financial and mobility disasters.
Staff and friends of the Texas Public Policy Foundation offer their remembrances of the nation's 40th President in this special paper issued on the day of his funeral.
Telecommunications plays an important and growing role in our economy, and therefore the rules and regulations governing the industry will literally shape our economic competitiveness for many years to come. In this unique sector of the economy, federal and state laws create a dizzying complexity that makes it one of the most regulated – and taxed – in Texas. In this report, a free-market perspective is brought to the debate as Texas lawmakers look to overhaul the agency that oversees telecommunications regulation in the state – and therefore the regulations themselves.
Critical Condition How Lawsuit Abuse Is Hurting Health Care & What Texans Can Do About It By Chris Patterson, Colleen Whalen and John Pisciotta
The legal system in Texas is suffering from medical lawsuit abuse - excessive claims against health care providers and unreasonably exorbitant judgments. While the number of legal claims against health care providers in Texas has skyrocketed, most are being dismissed without any finding of negligence or award for damages. At the same time, however, the amount of payouts from lawsuits is astronomical and growing.
April 02, 2003
Shopping for a Solution Effective consumer protection through competitive regulation of insurance rates By Nat Shapo
Regulation of the insurance marketplace must seek to complement rather than distort the laws of supply and demand. By choosing market-based solutions instead of government price controls, Texas can empower its homeowners and ensure them a viable means of protecting their most valuable investments.
When I became a Member of the Parliament of New Zealand, we were judged as the most socialistic of nations. We had been one of the richest of countries at #3 in per capita income, but by 1984 we were only #27. We had gone for 23 years relying on deficits, without balancing our budget. The government was taking 44 percent of the Gross Domestic Product, and, in 1984, our forecast deficit was 15 percent of the GDP...
This informative Guide covers the hottest topics facing the Legislature in concise, easy-to-read form. Presented here is the Tort Reform section.
October 15, 2002
Mold for Gold By Michael C. Hotra and Kimberly A. Martin
The problem is, little reliable medical or sci-entific evidence exists establishing a causal link between mold and illness. To date, “toxic” mold is largely considered toxic be-cause the personal injury bar says so.
Traffic congestion is increasing around the nation and is routinely one of the most significant concerns raised in public opinion surveys. There is evidence that freight-based projects offer substantial opportunities to contain traffic congestion.
The Road Ahead Innovations for Better Transportation in Texas By Thomas Rubin and Wendell Cox
Texas has become the nation's second most populated state and added nearly as many new residents over the past decade as California, which is much larger. This high growth rate is likely to continue in the decades to come. However, increased general taxation or gasoline taxation is not likely to be the answer for tansportation. It makes greater sense to require more direct user funding of transportation improvements. This would be accomplished by greater reliance on toll roads and HOT lanes. In the long run, electronic road pricing and competitive franchising of roadways may offer significant improvements.
Capital Metro has proposed building a 52 mile light rail system, and has asked for voter approval on the November 7 ballot. Austin faces a very serious transportation problem, with the demand for automobile travel expected to increase as the population continues to increase.
September 27, 2000
Trolley Folly A Critical Analysis of the Austin Light Rail Proposal By Thomas Rubin and Wendell Cox
Austin is growing very rapidly, and traffic volumes are increasing similarly. The most important transportation problem in the Austin area is accommodating this increased demand. Light rail is being proposed as a strategy to assist in reducing traffic congestion. Regrettably, not even the projections of local transportation agencies indicate any material impact of light rail on traffic congestion.
Like virtually all other metropolitan areas in the developed world, Texas metropolitan areas are struggling to control increasing street and highway traffic volumes. Transit, and particularly rail, is often cited as a strategy for reducing traffic congestion. Unfortunately, transit's effectiveness in reducing traffic congestion is limited to downtown corridors. This is as much so in areas with extensive rail systems as in areas with little or no rail, such as the large Texas metropolitan areas. The only location to which convenient, quick, no-transfer transit service (bus or rail) is provided is to downtown. But downtowns comprise, on average, 10 percent of employment. The distribution of employment is crucial to traffic congestion, because work trips during the morning and evening peak hours are the primary cause of such congestion.
Conservatism encompasses the accumulation of experience and wisdom over many generations, enlightened and guided by Divine Revelation. Much of the knowledge embodied in conservatism cannot be put into words but consists rather in certain dispositions and habits of the mind and heart. However, there are certain fundamental truths that have been articulated within this tradition with increasing clarity and certainty. To many Americans, these truths may seem mere truisms or platitudes ("self evident", as Jefferson put it), yet it is vitally important to remind ourselves periodically of what we know, to ensure that this body of wisdom can be passed on without loss to a new generation.
There currently is much discussion about the state of the Social Security System. Some are advocating radical change such as privatization of the system. These calls are met with concern that nothing like that has ever been done. Even if we ignore the success of other countries that have privatized this remnant of paternalist government, we need to look no further than the Texas coast for an example of successful privatization.
This is a story about promises made and promises broken and who pays the consequences. In particular, it is the story of the S&L debacle. In this article, we will focus on the agreements made to business people to get them involved in what was, at the very least, a risky proposition. The story of the S&Ls starts simply.
October 15, 1995
Tort Reform Has Texas Ended Its Lawsuit Lottery? By B. D. Daniel and Michael D. Weiss
The 73rd and 74th Sessions of the Texas Legislature generated significant legislation reforming the Texas civil justice system. While this legislation will govern lawsuits involving business disputes as well as those cases involving physical injuries, these legislative changes are normally and most effectively encapsulated by the phrase "tort reform."
As the Congressional debate rages over reauthorization of the Endangered Species Act, both property rights advocates and environmental activists agree that the key to balancing species protection with landowner rights is through the implementation of market-based incentives to preserve and create habitat.
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