Restitution for Victims of North Carolina’s Involuntary Sterilization Program Does Not Mark the End of American Eugenics Laws

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By James Bowden

On Tuesday, a task force in North Carolina concluded that it would request restitution of $50,000 from the North Carolina legislature to each of the estimated 1,500-2,000 living victims of the state’s formal 45-year experiment with eugenics. As recently as 1974, people deemed “undesirable” by North Carolina authorities (most often minorities, women, the mentally ill, and the impoverished) were subjected to involuntary sterilization.

This is unfortunately just the last page of one chapter in the history of America’s experimenting with the practice of eugenics. Much like the fact that almost 150 years after the ratification of the 13th Amendment the United States still struggles to annihilate human trafficking and slavery within its borders, most Americans are unaware of the history of eugenics and forced sterilization in the United States.

The practice also has a rather dark history with the U.S. Supreme Court, which, when given the opportunity, granted the practice purported constitutionality. In what was almost certainly the worst opinion of his career (and ranking as one of the worst decisions in the history of the Supreme Court, along with the Dred Scott case and Plessy v. Ferguson) Oliver Wendell Homes, Jr. declared that “three generations of imbeciles is enough,” upholding the constitutionality of the sterilization of Carrie Buck, a Virginia woman who had been institutionalized as “feeble minded,” in Buck v. Bell, 274 U.S. 200 (1927). Later scholarship indicates that Carrie had likely been raped by a successful doctor who employed her as his housekeeper and insisted on her being committed to protect himself, was institutionalized by her ne’er do well mother, and received ineffective assistance of counsel at trial from an attorney who had inexcusable conflicts of interest and who may have deliberately lost the case. Nonetheless, Carrie Buck lost her petition before the US Supreme Court in an eight-to-one decision and was sterilized against her will upon her return to Virginia. Her daughter, Emma, whom Holmes regarded as the third generation of imbeciles, was perfectly normal and did well in school. The eugenics expert that recommended Carrie’s sterilization went on to be honored by the Nazis for drafting Germany’s “Race Hygiene” law, the direct legal progenitor of the Holocaust.

Following Buck v. Bell, eugenic sterilization laws were passed by an increasing number of states, and by 1956 27 states had sterilization laws on the books. Even after Skinner v. State of Oklahoma, 316 U.S. 535 (1942) prevented the application of compulsory sterilization to convicted criminals under a statute that excluded white-collar crimes on equal protection grounds, the practice continued. Eugenics fell out of favor in the U.S. after the atrocities committed by the Nazis in the Holocaust and subsequent defenses raised by war criminals at Nuremburg, some of which cited American eugenics practices as evidence of the permissibility of genocide, but the statutes remained on the books across the country. In North Carolina, the practice continued until 1974. Oregon maintained a Board of Social Protection (f/k/a the Oregon Board of Eugenics) until 1983.

Here’s the kicker – under existing American constitutional law, forced sterilization is technically constitutional. The most recent case, Poe v. Lynchburg Training School & Hospital, 518 F. Supp 789 (W.D. Va 1981), found that sterilization did not violate constitutional rights.  At least as a technical matter, the law of the land still tolerates the involuntary sterilization of some of the most helpless among us.

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How to Use the iPad (iPhone) and iOS 5 in Litigation

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By Brian Malcom

You have an iPad. You're an attorney and, worse yet, a litigator. Now what? The iPad is nothing new.  That sentence is shocking to read, but it is true. The iPad hit stores in April 2010.  The iPad 2 is a success, and we are nearing the release of the third-generation iPad.  What the iPad has lost in novelty, it has gained in utility. The native iOS 5 software and the App Store contain useful tools and applications to help you, the litigator, get the most out of your iPad or iPhone.

The following are some iPad and iOS features, applications and tips that litigators might find useful: 

iOS Features
:

- VoiceOver.  (Settings > General > Accessibility).  Eyes tired?  Long day staring at documents?  Don’t feel like reading that 500-word email?  In the car at a stoplight and don’t have time to read the whole email?  Why not listen to it with VoiceOver?  If you have an iPad or iPhone, you already have the capability.  Simply adjust your Accessibility settings so that VoiceOver is on, point to text and let your iDevice read the contents of your screen to you.  For quicker access to the VoiceOver feature, go to the Accessibility settings screen and adjust “Triple-Click Home” to “Toggle VoiceOver”.  Now VoiceOver can quickly be turned on and off by tapping the Home button (circular button with the square in it on the iPad body) three times in quick succession. Caution: Be sure to familiarize yourself with the touch controls while VoiceOver is on before turning VoiceOver on.  The touch controls are slightly different.  Here are some quick tips on VoiceOver touch controls:

  • Tap once on text to read the text aloud until the next HTML break, such as a paragraph break.
  • If you tap an on-screen button once, it will read the button function aloud and then you must double-tap the same button to activate the button. 
  • You must scroll with three fingers, instead of one. 
  • To jump to the next text field like Tab does on a keyboard, swipe one finger to the right.  To go back, swipe one finger to the left. 
  • To have VoiceOver read continuously through an email and not stop at each break, swipe two fingers in a downward direction on the screen after selecting the starting paragraph.
  • Remember, VoiceOver was designed to assist users with vision problems.  If it doesn’t make sense to you why VoiceOver is doing something, consider whether it would be helpful if you could not see your screen. 
- VPN and RDP.  (For initial setup: Settings > General > Network > VPN).  (Once settings are saved, toggle on by: (Settings > VPN). This one may require coordination with your IT department.  iOS 5 on the iPhone and iPad allows for VPN (virtual private network) access to your office network.  This is likely necessary to access information behind the security walls of most law firm computer networks.  Plug in your firm’s VPN settings and connect to the firm’s network via VPN.  Once connected, you can use a RDP (remote desktop protocol) app to remotely access your office workstation.  One RDP client app that I recommend is iTap.  You will need to know certain information about your computer’s identifying information and your user name and password.
- Lock Rotation.  Did someone email you a file with an incorrect orientation—in landscape when it should have been sent in portrait?  Well, if this happens to you, it can be a dizzying and annoying experience trying to tilt your iPhone or iPad just right so you can read the document.  The gyroscope and the reorienting feature of the iPad/iPhone is great…until it’s not.  There is a way to stop the screen from spinning.  Go to Settings > General and review the settings under “Use Side Switch to:”.  If “Mute” is checked, a double-tap of the Home button and a swipe of the App Tray to the right is how you will access your screen orientation lock button (double-tap home button and a swipe of the App Tray to the right is also how you access Lock Rotation on your iOS 5 or later iPhone). If “Lock Rotation” is selected, the slide switch on the side of your iPad above the volume controls will toggle your lock rotation feature on and off. If your screen continues to spin after locking the rotation, consult a physician.
- Mirroring.  Want to project the display of your iPad or iPhone on to a television or other screen for presentations or meetings?  Mirroring is a good option.  With an iPad/iPhone/iPod Touch running iOS 5 or later on the same WiFi network as an Apple TV (or the proper direct connection cable), a user can create a mirror image of what she sees on her iOS device on the screen connected to the Apple TV.  For instance, you can display what you see on your iPad on an LCD television.  This might be useful for presenting PDF files, web pages, or even training others on how to use the iPad.  Learn more about setting up and using Mirroring here. 
-AirPlay.  AirPlay also requires an iPad/iPhone/iPod Touch running iOS 5 or later connected to the same WiFi network as an Apple TV.  If you do not need all of the features of Mirroring and simply want to play a video, song, or display photos in a slideshow type format to a group, AirPlay might be right for you.  Learn more about setting up and using AirPlay here.

Apps:

- iAnnotate or GoodReader.  Litigators live and breathe PDFs.  Court filings, discovery productions, and client files all flood a litigator's email account with PDF files. Inevitably, an attorney will want to markup a PDF, make notes on a document or store certain PDFs on the iPad hard drive for quick retrieval later. Attorneys with iPads should have a PDF annotation and organization app. In my opinion, there are two clear leaders in this app category, iAnnotate and GoodReader.  Tip: While any PDF can be marked up and annotated in these programs, ensuring that the PDFs you use are OCRed prior to use with these apps will allow a user to make use of the full suite of features in both apps. To the extent possible, every PDF should be OCRed. (OCR is an initialism for optical character recognition.  It means the PDF is no longer just a flat image of the document. An OCRed document contains text recognized by computing devices–allowing text search and character highlighting.)  
  • iAnnotate.  A robust PDF markup and annotation program, that allows highlighting, underlining, typed notes, call-out notes, and more. If you will be doing a lot of handwritten annotation, I would recommend the purchase of a stylus. Targus makes a good, inexpensive stylus for the iPad. Google it or find a Best Buy.
  • GoodReader.  Learning from iAnnotate and similar programs that beat it to the punch, GoodReader recently updated its app to include substantial PDF markup and annotation tools.  The current features of this app are too many to list in this post, but the following are a few highlights litigators may find useful: 
    • Store files, such as but not limited to PDF files, on the iPad hard drive for quick, ready access;
    • Organize multiple files in folders and subfolders;
    • Highlight, markup and annotate PDFs;
    • Search OCRed PDFs;
    • Transfer files to iPad via USB, WiFi, email attachment or web download;
    • Attach files within GoodReader to emails (This is big, since the native Mail app in iOS 5 will not allow for email attachments other than pasting photos.);
    • Data protection or file encryption for locally-stored files;
    • Password protection of the entire GoodReader app or individual files with the app;
    • AirPrint; and
    • Integration with iCloud, Dropbox, other cloud data services. 
     

-Keynote.  An app version of Apple's answer to Microsoft PowerPoint, use Keynote to create, edit and deliver slideshow presentations. For presentations, get a HDMI cable to hook up to a television or use AirPlay Mirroring with an Apple TV.  Not a perfect app, but it may be the best app at what it does.
- Pages.  A trimmed-down and touchscreen-friendly word processing program, this app is no replacement for Microsoft Word on a desktop or laptop. Still, it is a useful tool for creating or editing the formatting of word processing documents. This post was created primarily using Pages.

- FedCtRecords.  Use PACER? Want access to PACER on your iPhone or iPad? This app is new and allows users to access PACER using their account information.  Since the app is relatively new, I have not had a chance to thoroughly test the app. There is only an iPhone version of the app for now, but it works with the iPad through the iPad's iPhone app compatibility feature.  This app is free for a limited time. After that, the rumor is it will be $19.99. Act now and save your $20.
- WestlawNext.  Westlaw research on your iPad, but this is not yet available for the iPhone. This app is highly functional with a WestlawNext subscription. Research case law, statutes, secondary sources and more on your iPad. Highlight text and make notes on Westlaw research materials. Save to WestlawNext's cloud-based, user-friendly folder storage. It is great for research on the go and may help you find that case you need even while you are in the courtroom. 

A
ccessories:
- Get the bigger hard drive?  If you are going to be storing large files or a number of files of any size on your iPad hard drive, this includes all your iTunes movies and your vacation photos, pay the extra money for a larger hard drive. Sure you could use cloud storage to virtually expand your hard drive.  But storing files in the cloud will require web access and patience to retrieve when those files are needed. Access to the former is sometimes difficult, and the latter is simply impossible for litigators.
- Keyboard or No Keyboard?  I am comfortable using the iPad on-screen keyboard. I don't want the bulk of a Bluetooth or dock keyboard, and that is one more thing I have to remember to carry.  Some people hate the lack of tactile feedback from the on-screen keyboard. This decision is pure preference. One point I would make is that if you prefer having use of your entire iPad screen, as opposed to two-thirds of the screen when the iPad soft keyboard is in-use, you may want an external keyboard.
- C
ase.  There is a reason there is no question mark after this header. You (or your firm if you're one of the chosen few) just shelled out a good bit of money for an iPad. iPads break or scratch. People are clumsy. I am sure Apple is working on an indestructible iPad, but until then, why wouldn't you protect your device? What's that?! You prefer the look of the iPad as Steve Jobs himself intended? Ok, then don't whine to anyone when your preference for aesthetics over practicality and protection bites you. Search the web. There is a wide array of iPad cases, covers, and shields out there to help protect your shiny object. Some even look nice. If you're an external keyboard person, there are a number of cases on the market with external keyboards integrated into the case itself.
- Stylus? If you think you want to create handwritten notes, draw, design, or simply hate fingerprints, a stylus may be right for you.  You can also digitally sign documents with a stylus and PDF annotation program.  
 

And two to grow on . . .
- Backup your device regularly, and encrypt your backup file if you store confidential information on your iPad or iPhone. New features such as wireless syncing and iCloud make this process easier than ever (well, less wire-intensive at least). Do it or risk regret.
- Siri Dates.  While this sounds like the worst name ever for a dating site for Apple fanboys and fangirls, Siri does a great job of calculating calendar dates and calendaring appointments.  If you have an iPhone 4S or otherwise have access to Siri (cough…cough…hacked), here is a quick tip.  Let’s say your client has been served with a complaint and under the applicable rules you have 30 days to respond.  You can simply ask Siri, “what is 30 days from December 25, 2011?”  Siri will respond with the date of 30 days following December 25, 2011, January 24, 2012.  If your client was served with a complaint on Christmas, I feel sorry for your client.  But you get the idea.  While Siri will not explain to you how deadlines are calculated under the applicable rules with respect to holidays, weekend and how to count the number of days (yes, I asked), a quick comparison of the result of the Siri inquiry and your own separate, educated calculation will tell you if Siri is counting the days correctly under the relevant rules. You can figure out what to do if the end date falls on a holiday or weekend on your own. Lawyer disclaimer: Siri is not a substitute for independent judgment. Heaven help us all when it is.

YLB - How to Use the iPad.pdf (442.34 kb)

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Don’t Worry about “Holiday Networking” – Make Connections and Have Fun!

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By Kathleen Pearson

So you made it through law school finals and headed home for the holidays.  Congratulations!  The only problem now is that your CSO (and everyone else for that matter) keeps telling you that you need to “network.”  Whether you have a job lined up or not, that word keeps buzzing around like an annoying gnat.  Don’t they know you are wiped out and the mere thought of having to do something else is going to send you right over to the edge?? 

“Networking” has become one of those insidious corporate buzz words that seems to be the panacea of all problems anyone might ever face. Because it has an official name, it seems unattainable by anyone that is not a perfect conversationalist or social butterfly. The word itself now seems filled with an undercurrent of wanting to get something from the other person – i.e. a job.  That’s a lot of pressure for both you and the other person!

Relax.  The holidays should not be filled with even more pressure and tasks.  It should be about having fun, reconnecting with old friends and family, and making new connections with interesting people.  Instead of focusing on networking, focus on connecting.

Just in case you have forgotten, here is a quick reminder of how to connect with others and have fun over the holidays:

  1. Go to a holiday party with friends and family. 
  2. Talk about your experiences in law school with friends and family
  3. Ask your friends and family what they have been up to
  4. Meet new people at the party and ask them about their interests
  5. Tell the new people about yourself and your interests
  6. Promise to keep in touch with the people you just talked to!
Add some music, food and perhaps a little egg nog, and you are well on your way to having fun and making connections with new people.  By recharging your batteries at home and talking about all those new experiences you just had in law school, you will come back to school refreshed and ready for a new semester. 

 

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After Successive Legal Victories, Occupy Nashville Holds On Tight

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By James Bowden

The Occupy Wall Street movement looks like it is waning, or at least hibernating for the winter. In New York, Zuccoti Park has been cleared out. The Occupy LA, Occupy Philadelphia, and Occupy Oakland encampments are gone. But if the movement is in retreat, no one told the Occupy Nashville folks camping out on Legislative Plaza, right outside my office doors. Winter is settling in, and over the last week we’ve had torrential rains and freezing temperatures, but they are still out there every morning when I get to work. Occupy Nashville is holding tight to their spot on Legislative Plaza after several interesting legal twists and turns. Their tenacity may make them a unique outfit within their movement.

Tents sprang up at the foot of the Tennessee State Capital early in October. Later that month, reports of all sorts of not-entirely-legal-or-appropriate behavior led Tennessee Governor Bill Haslam to impose a curfew on Legislative Plaza from 10 p.m. to 6 a.m. The curfew was announced the afternoon of October 27th. The Tennessee Highway Patrol (THP) arrested protesters early in the morning of October 28th for violating the curfew.

I think it is an understatement to say that it didn’t go so well for the Governor and the THP. A Magistrate Judge first refused to hear the charges against the protesters on the grounds that the protesters were not given sufficient notice of the curfew, and released them for lack of probable cause. The THP tried to arrest protesters again at about midnight on October 28th; this time, Metro Night Court Judge Tom Nelson issued an epic benchslap – unable to identify any legal authority for the curfew, he again found no probable cause for their arrest and ordered all arrested protesters released. Release on a finding of no probable cause at arraignment is a very, very rare occurrence. Two in a row? Probably a record. To add insult to injury, the THP was called out for a less-than-covert attempt at infiltrating the encampment. Soon after the arrests, U.S. District Court Judge Aleta Trauger issued an injunction against enforcement of the curfew. A decision isn’t expected until February at the earliest, but I expect it to be well read and well reported when it arrives.

So, the Occupy Nashville protesters are still there. I went down and walked around Legislative Plaza after work for a few minutes last night. It is a surprisingly well organized little encampment, with a mess tent, a first aid tent, a front office, and even a “social media” tent. The protesters are perfectly friendly, and happy to talk to anyone who will listen. I hope they stay warm and safe, have happy holidays, and are ready for their hearing next year.

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The [Surprise] Driver of U.S. Legal Policy

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By James Bowden

The United States’ political system is controlled by two major political parties, one generally politically liberal and one generally politically conservative. That is the way we think of the political policy-making process: the left and the right fight for enactment of their policies and, ever so rarely, compromise. Query: what if the actual conflict implicit in the U.S. political and policy-making process wasn’t the conflict between right or left, or rural versus urban, or racial, or any of the main dichotomies that we use to try to make sense of policy making. Here’s the surprise: the main conflict is really generational. Presented in customary bullet-point format for your perusal:

  • The Wealth Gap. Forget the 1% versus the 99%. Even the fact that the top 1% of wage earners own more of the nation’s financial wealth than the bottom 50%, or that in 2007 the top 1% of all income earners in the U.S. made 23.5% of all income, more than the entire bottom 50%. The starkest statistic is the difference between the change in wealth of the old and the new generations over the past several decades. Since 1984, older people have seen a 42% increase in their net wealth while their younger counterparts have experienced a 68% decrease. I sure hope they aren’t planning to take it all with them. 
  • Debt and Taxes. For the past decade, tax increases have been the most-hated villain in Washington. Really, it goes back further than that. Since 1986, maximum marginal tax rates have been historically low, particularly compared to what the Greatest Generation paid. Over the same period, the U.S. debt has increased seven fold. The average baby boomer was between 22 and 40 in 1986; their prime income earning years have overlapped with an uninterrupted period of historically low taxation, over which period public debt exploded. Now the baby boomers are cashing out – the first of the baby boomers became eligible for Medicare and Social Security in 2011. They are retiring, and won’t be paying in anymore. Guess who picks up the tab by default? 
  • The Fiscal Battle. We saw a battle over raising the debt ceiling this summer, and are facing sequestration if the “supercommittee” that resulted from the compromise fails to agree on cuts to federal spending in excess of $1 trillion. What is on the chopping block? The big losers are defense (which is a large employer of younger workers), education (which is supposed to provide the younger generation with opportunities), and spending on programs designed to reduce unemployment (which, as discussed below, effects the younger generation inordinately). What are the sacred cows? The spending items that are bringing the committee to loggerheads are entitlement programs like Social Security and Medicare (which benefit the older generation effectively exclusively) and the possibility of raising taxes (which, as discussed above, has the effect of benefiting the older generation). 
  • The Cost of Success. The saying goes that there are two kinds of good debt – debt the incurrence of which produces a positive net change in wealth. One is a mortgage and the other is student debt. The saying is getting pretty difficult to stand behind these days. Grad PLUS loans are not dischargeable in bankruptcy and guaranteed by the most credit-worthy institution in the world – the full faith and credit of the United States of America. They carry an interest rate of 8.5%. The interest rate on the last car I bought was 7.1%. That means that in 2007 a non-dischargeable, absolutely guaranteed debt carried an interest rate 140 basis points higher that a dischargeable loan secured by a depreciating asset which was likely underwater the moment it rolled off the car lot. Since then, it has gotten worse – most interest rates have dipped over the past few years, but student loan rates are fixed. A person’s cost of capital for a fancy new car is lower than for an education, and the average indebtedness of a law school grad is $100,000, which buys a pretty fancy car. Or two. Or three. That is insanity. 
  • The Tyranny of High Expectations. Just like every generation [allegedly] works to pass a better world on to their children, each generation is expected to make good use of the benefits they receive from the generation that went before them. I never thought I would do this, but I am going to paraphrase Cracked.com: members of the young generation were told they needed to go to school and work hard so they didn’t have to flip burgers. Now that the younger generation has gone to school and worked hard, the economy is feeble, the impact of unemployment inordinately falls on them (young adults age 20-24 have an unemployment rate of 14% compared to 9% for the population overall and 7% for people over 55), and they are being criticized as entitled for … you guessed it: not wanting to flip burgers.
Why does the conflict of generations matter? Think of the impact on public policy, including tax policy, entitlements policy, public finance, education and fiscal policy, just to name a few, if the debate is cast in the contrast of decisions’ impacts on different generations. The next decades are going to see important legal developments involving the enforcement of promises made to the public through entitlement programs, the protection of wealth, and innovations in mechanisms for the passive investment in wealth-generating assets. If attorneys can advise their clients and legislators from a perspective of the benefits and detriments to them and their constituents based on the disparate impacts on generations, long-term results are likely going to be better for clients and everyone in general. If not, someone is definitely getting hosed.

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Veterans at the Nashville Bar

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By James Bowden

Last year for Veterans Day we here at the Young Lawyers Blog gave recognition to some of Nashville’s lawyers that have served under the stars and stripes. It feels like a good tradition to continue.

James O. Bass, Sr. graduated from Harvard Law School in 1934, and has for the most part practiced law at Bass, Berry & Sims ever since. It is no coincidence his name is on the letterhead – Mr. Bass founded one of Nashville’s and the U.S.’s great law firms. In October of 1942, Mr. Bass, having established a successful law firm and served as a member of the Tennessee House of Representatives and a State Senator, took a commission to the Judge Advocate General’s Department of the U.S. Army and went to Germany to fight Hitler. He must have done a great job, because he left Germany as a Lieutenant Colonel in 1945 with a Bronze Star. Having fought injustice abroad, Mr. Bass returned to Nashville to fight injustice at home, plying a pivotal role in advancing civil rights as the chair of Nashville’s Committee on Human Relations. The word “hero” isn’t enough for Mr. Bass, who turned 101 this summer. You can still call him in his office – he shows up at work every morning to this day.

Bob Tuke served as an officer in the U.S. Marine Corps, and went to Vietnam as part of the Marine Combined Action Forces, earning the Vietnamese Cross of Gallantry. Bob earned a trunk full of awards in his time, but the Cross of Gallantry was awarded for a specific action he took, and it’s the only one he’s willing to let me brag about. He came back to Nashville and went to Vanderbilt for law school, and went on to serve as the Chairman of the Tennessee Democratic Party and run for U.S. Senate, all the while continuing to teach as an adjunct professor at Vanderbilt University Law School. He spends his days practicing law at his firm, Trauger & Tuke, and continues to be active in politics. From time to time he even puts up with me.

Waller Lansden’s own Joseph A. “Woody” Woodruff somehow managed to have a successful legal practice and serve in the U.S. military for 30 years. After graduating from the University of Alabama School of Law, Woody returned to active military service as a Judge Advocate in the U.S. Army. Nowadays, when he’s not practicing law he’s practicing as a sports writer. Woody’s an avid Alabama fan, so don’t be surprised if he always picks the Crimson Tide for the win. Woody even finds time to be active in politics, and is often the Yin to Bob Tuke’s Yang in that respect. If you want to see an example of his leadership, read his firm profile – in his version of things it is always his team that succeeds, not him personally. Some might say that he learned that in the military, but I’m betting that the military learned leadership from him. We’re lucky to have him.

Sean Bennett graduated from Vanderbilt University Law School with me in 2009. With a background in financial services, you’d think he would have gone for the power and glory of legal practice on Wall Street, but no; he joined the U.S. Army instead. If being universally loved by his classmates was the measure, Sean would have won the Founders Medal. His whole class is proud of him and hopes he stays safe.

This year saw a couple of very notable old soldiers fade away to serve in heaven’s armies. Frank Buckles had been the last living confirmed veteran of the First World War, serving as an ambulance driver on the Western Front. Having served in the War to End All Wars, He was held prisoner by the Japanese in World War II as a civilian. Buckles died in West Virginia on February 27 of this year. Flags flew at half staff to honor the final death of a generation who gave so much they were almost completely lost.

Richard Winters, made famous late in his life by the HBO series “Band of Brothers,” found himself the leader of the 101st Airborne Division’s Easy Company on D-Day when his commanding officer was killed over Normandy during the invasion. He lead the division through D-Day, a failed expedition in Belgium, the worst of the Battle of the Bulge, and the capture of Hitler’s sanctuary, Berchtesgaden. The last of Easy Company’s living commanders, Major Dick Winters died in peace on January 2nd of this year.

On this Veteran’s Day, remember all veterans, including the ones that still walk among us.

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The Eurozone Debt Crisis: An Opportunity to Compare Legal and Fiscal Systems in Times of Financial Uncertainty (Cage-Match Style) - Round 2: The Political Thrilla in Manilla

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By James Bowden

Welcome back, monetary policy sports fans. In round one, the U.S. clobbered the E.U. with its enlightened monetary and fiscal policies. But what about the political institutions that underlie the decisions that our combatants made when confronted by crises? Let’s take the gloves off and find out:

  • Fiscal integration doesn’t work without political integration. The European Union is effectively a treaty system connecting the participating countries in an agreement to share a currency and not take on more than a certain percentage of GDP in debt, with one central bank. The United States is a politically and fiscally integrated federation of states, with one central bank. The difference is stark. Because the nations that make up the Eurozone have differing fiscal, political and social policies and positions, the only unifying factor is their currency – so if Greece’s economy falls apart, each individual nation has to perform its own risk assessment as to whether assistance is warranted. Conversely, if, say, Idaho’s failing economy was rending the social fabric of its communities, the United States would not seriously consider the possibility of doing nothing. That puts the U.S. on the board with one. 
  • The Eurozone has no effective built-in checks and balances.  You know those wonderful, self-equalizing checks and balances that you learned about in grade school? The ones that balance competing interests of majority rule with individual liberty, the power of coequal branches of government, and the relationship between the states and the federal government? Yeah, the Eurozone doesn’t really have those. Since the only unifying factor is currency, the financial well-being of the constituents are directly tied to the whims of the economic center of gravity, which is Germany – an economy featuring a robust manufacturing industry, a trade surplus, and a borderline-psychotic fear of inflation. Beware, smaller European economies with real estate and tourism based economies, because the folks holding the purse strings don’t have the same interests that you do. Look at it in a constitutional sense: the U.S. apportions legislative power in a bicameral system, allocating representation by population in the House of Representatives and by equal representation per state in the Senate, with majority rule in each chamber (sort of). The Eurozone system effectively operates on a system that would be similar to California and New York making all monetary decisions for the country, and each state trying to maintain a functioning economy and government in the middle – unless the issue required unanimity, in which case Rhode Island could hold up the policy making process completely at its whim. Doesn’t sound very democratic, does it? Hurray for democracy, and hurray for the U.S.A. We win this one. 
  • It isn’t your tax rate; it’s your tax collection rate. I know that Americans hate taxes, and the only good taxes are no taxes (or, alternatively, the taxes someone else pays that you get the benefit of). But the U.S. actually has an excellent collection rate; despite the relative rarity of audits and enforcement action, almost all taxes due are collected. Fraud is exceedingly rare. In Greece, tax evasion is a national pastime. No kidding – leading up to their collapse, the Greeks collected somewhere around 66% of the total taxes legally due. That’s a 33% evasion rate, and a 100% inability on the part of the government to realistically project the level of debt that the country’s economy can realistically service. Maybe it isn’t a question of law – maybe it is an issue with implementation, but either way Greece was doing it wrong. So that’s a big thumbs up to the U.S. tax system. Rare praise, I know.
And the U.S. political, monetary and fiscal system wins in a 2-0 knock-out. Which is kind of a hollow victory, really, considering it was mostly our financial institutions that kind of started the whole thing.

Special thanks to Chris Brummer, my former law professor and the inspiration for my interest in international fiscal and monetary policy and law, for giving me some of his invaluable time to assist with this post.
 

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The Eurozone Debt Crisis: An Opportunity to Compare Legal and Fiscal Systems in Times of Financial Uncertainty (Cage-Match Style) - Round 1: Rumble in the Fiscal Jungle

Posted by wlansden | Filed under , , ,

By James Bowden

It appears that the Eurozone may have, at least temporarily, staved off the possibility of rapidly collapsing into a debt-lined, lava-filled hole in the earth with a new, comprehensive strategy to deal with the mounting E.U. debt crisis. I thought this would be a perfect opportunity to look at some of the differences between the U.S.’s and the European Union’s fiscal, political and legal systems to illustrate why the same financial crisis has led to such different results, in convenient bullet-point format: 

  • Paging Joseph Stiglitz. Joseph Stiglitz to the white courtesy phone. For years, Joseph Stiglitz has criticized the IMF and what he has dubbed the “Washington Consensus” for their practice of enforcing draconian austerity measures on developing countries following a currency crisis and bailout. The criticism makes sense – while developed countries take a page from John Maynard Keynes and pour money into their economies to make up for drop-offs in demand, the same countries insist that the road to salvation for developing countries with currency issues is to impose “austerity” measures that are universally contractionary: tax hikes, cuts in government services and spending, government employee layoffs and the like. Now, with Greece we have an example of a developed country having austerity measures forced down its throat, and it ain’t pretty. Riots in the streets are common, and every round of new cuts further depresses the economy – effectively guaranteeing that tax revenue will be insufficient to pay back the emergency loans. If you need another example, look at Great Britain: austerity for all has taken an economy with high debt and a faltering (but admirably powerful) economy into a full-on depression. Joe says “I told you so,” and the point goes to the U.S. 
  • Bailouts are great when you can get the benefit without making the investment, but it will catch up with you. When the U.S. implemented the Troubled Asset Relief Program (“TARP”), the Eurozone criticized the U.S. as chicken little. When the U.S. passed a stimulus bill, the Eurozone criticized it as profligate. U.S. spending on those programs helped prop up the Eurozone, both indirectly by stabilizing a world economy on the edge of free-fall and directly by shoring up financial institutions that the Eurozone depends on, and the U.S. isn’t in crisis now. But look at the issues Europe has created by not bailing out their financial institutions at the first sign of trouble (and when they could have capitalized on the benefit they received from riding the U.S.’s monetary and fiscal coat tails). The size of the proposal to save the Eurozone is phenomenal: increasing the European bailout fund to $1.4 trillion (that isn’t a typo – “trillion” with a “t”). That is almost twice what the U.S. stimulus package cost. And that is on top of money already thrown down the hole in Greece – with the real possibility that more will be necessary to prop up faltering European banks after they take a haircut on the sovereign debt that they hold (there is a lot of Greek debt floating around that, if the proposed fix is accepted, will lose half its value instantly). This one goes to the stars and stripes, and the E.U. gets a personal foul for bad sportsmanship. We’ll enforce it on the kickoff. 
  • Know when to hold them and know when to fold them. Today, U.S. banks may not be completely healthy, but TARP and associated stress tests administered on U.S. financial institutions by the Treasury Department have ensured that they are no longer on the verge of collapse. The Eurozone is frightened by more than just the possibility of a Greek default leading to financial contagion – if the European banks that hold Greek debt are forced to recognize their losses, they will likely be insolvent. The U.S. recognized that its financial institutions were in trouble and dealt with them. The Europeans pretended all was well, much the way the Japanese banking system refused to recognize accrued losses in a financial screw-up that ushered in what economists call “the lost decade.” Now, the Eurozone’s losses are bigger than they would have been, and the possibility of a calamity that could shut down financial commerce throughout Europe is real. European financial institutions are being given the option to take a 50% haircut on all of the Greek debt they hold – not really an option, though, since the other likely alternative is [complete] default. The stress tests that the E.U. belatedly performed have now been discredited, as well. Imagine if you woke up tomorrow and you couldn’t use a credit card or a debit card, go to an ATM, go to a bank branch, write a check, bank online – the only money you had were the bills in your wallet and the change in your couch – and everyone else had the same problem. That’s what a modern-day financial collapse would look like. The U.S. isn’t losing sleep over the possibility anymore, but the E.U. would have to be intentionally ignorant not to. Point U.S.A. 
  • I like my schizophrenic central bank, thank you very much. There is a wealth of academic and political debate over whether it is a problem that the U.S. Federal Reserve has two mandates that conflict with each other, specifically (1) maintain price stability, and (2) maximize employment. The E.U.’s central bank has no such conflict – it’s only mission is price stability. It is additionally effectively dominated by German thought, which continues to be scarred by the hyperinflation that occurred in the 1920s. I’m not trying to minimize the horror of hyperinflation; the possibility that the proceeds of a life insurance policy could barely buy a loaf of bread is truly terrifying, and that scenario actually happened during the German hyperinflation. But jacking up interest rates for fear of inflation that has no signs of materializing while unemployment stays unsustainable high? I’ll take my conflicting mandates happily, thx. 

It looks like the U.S. soundly drubs the E.U. in round one, with a score of four to nothing. Tune in for Round 2, monetary policy sports fans, and see if the epicenter of western civilization can get a leg-up on its upstart North American cousin.

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Thanks for the Teachable Moment

Posted by wlansden | Filed under ,

By  James Bowden

Pop Quiz: does a hotel blatantly oppress an individual or a group’s right to freedom of speech by canceling a contract with an anti-Islamic organization seeking to hold a conference on the basis that it may cause interruptions to the hotel’s business? 

a)       No.

b)       Yes

c)       Both A and B

d)       Wait, what? 

If you went to law school and you answered B or C, you should probably seek a refund of your tuition money. Fact: private persons cannot violate the First Amendment guaranty of freedom of speech. The restriction only applies to state actors. But thank you for playing.

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Law School Grads: Looks like the "JD = golden ticket" blinders are off . . .

Posted by wlansden | Filed under , , ,

By Kathleen Pearson 

Did you see this article and survey from the ABA Journal last week?  The article asked readers to answer these six questions in the comment section:

  1. How long did it take you to get a job in the legal field?
  2. Did you get the position you wanted, or did you compromise?
  3. How many interviews did you go on?
  4. What was your salary range for that first job?
  5. Would you recommend attending law school to a recent graduate?
  6. What year did you graduate from law school?
So far, over 200 comments have been left from law school graduates.  The overall tone?  Don’t pursue a JD unless you have significant ties to the profession or deep burning desire to be a lawyer.   YLB readers, what do you think?

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