front cover of Last Resort
Last Resort
The Financial Crisis and the Future of Bailouts
Eric A. Posner
University of Chicago Press, 2018
The bailouts during the recent financial crisis enraged the public. They felt unfair—and counterproductive: people who take risks must be allowed to fail. If we reward firms that make irresponsible investments, costing taxpayers billions of dollars, aren’t we encouraging them to continue to act irresponsibly, setting the stage for future crises? And beyond the ethics of it was the question of whether the government even had the authority to bail out failing firms like Bear Stearns and AIG.
           
The answer, according to Eric A. Posner, is no. The federal government freely and frequently violated the law with the bailouts—but it did so in the public interest. An understandable lack of sympathy toward Wall Street has obscured the fact that bailouts have happened throughout economic history and are unavoidable in any modern, market-based economy. And they’re actually good. Contrary to popular belief, the financial system cannot operate properly unless the government stands ready to bail out banks and other firms. During the recent crisis, Posner agues, the law didn’t give federal agencies sufficient power to rescue the financial system. The legal constraints were damaging, but harm was limited because the agencies—with a few exceptions—violated or improvised elaborate evasions of the law. Yet the agencies also abused their power. If illegal actions were what it took to advance the public interest, Posner argues, we ought to change the law, but we need to do so in a way that also prevents agencies from misusing their authority. In the aftermath of the crisis, confusion about what agencies did do, should have done, and were allowed to do, has prevented a clear and realistic assessment and may hamper our response to future crises.

Taking up the common objections raised by both right and left, Posner argues that future bailouts will occur. Acknowledging that inevitability, we can and must look ahead and carefully assess our policy options before we need them.
[more]

front cover of Law and Leviathan
Law and Leviathan
Redeeming the Administrative State
Cass R. Sunstein and Adrian Vermeule
Harvard University Press, 2020

Winner of the Scribes Book Award

“As brilliantly imaginative as it is urgently timely.”
—Richard H. Fallon, Jr., Harvard Law School


“At no time more than the present, a defense of expertise-based governance and administration is sorely needed, and this book provides it with gusto.”
—Frederick Schauer, author of The Proof


A highly original framework for restoring confidence in a government bureaucracy increasingly derided as “the deep state.”

Is the modern administrative state illegitimate? Unconstitutional? Unaccountable? Dangerous? America has long been divided over these questions, but the debate has recently taken on more urgency and spilled into the streets. Cass Sunstein and Adrian Vermeule argue that the administrative state can be redeemed so long as public officials are constrained by morality and guided by stable rules. Officials should make clear rules, ensure transparency, and never abuse retroactivity, so that current guidelines are not under constant threat of change. They should make rules that are understandable and avoid issuing contradictory ones.

These principles may seem simple, but they have a great deal of power. Already, they limit the activities of administrative agencies every day. In more robust form, they could address some of the concerns of critics who decry the “deep state” and yearn for its downfall.

“Has something to offer both critics and supporters…a valuable contribution to the ongoing debate over the constitutionality of the modern state.”
Review of Politics

“The authors freely admit that the administrative state is not perfect. But, they contend, it is far better than its critics allow.”
Wall Street Journal

[more]

front cover of LBJ's Neglected Legacy
LBJ's Neglected Legacy
How Lyndon Johnson Reshaped Domestic Policy and Government
Edited by Robert H. Wilson, Norman J. Glickman, and Laurence E. Lynn, Jr.
University of Texas Press, 2015

During the five full years of his presidency (1964–1968), Lyndon Johnson initiated a breathtaking array of domestic policies and programs, including such landmarks as the Civil Rights Act, Head Start, Food Stamps, Medicare and Medicaid, the Immigration Reform Act, the Water Quality Act, the Voting Rights Act, Social Security reform, and Fair Housing. These and other “Great Society” programs reformed the federal government, reshaped intergovernmental relations, extended the federal government’s role into new public policy arenas, and redefined federally protected rights of individuals to engage in the public sphere. Indeed, to a remarkable but largely unnoticed degree,Johnson’s domestic agenda continues to shape and influence current debates on major issues such as immigration, health care, higher education funding, voting rights, and clean water, even though many of his specific policies and programs have been modified or, in some cases, dismantled since his presidency.

LBJ’s Neglected Legacy examines the domestic policy achievements of one of America’s most effective, albeit controversial, leaders. Leading contributors from the fields of history, public administration, economics, environmental engineering, sociology, and urban planning examine twelve of LBJ’s key domestic accomplishments in the areas of citizenship and immigration, social and economic policy, science and technology, and public management. Their findings illustrate the enduring legacy of Johnson’s determination and skill in taking advantage of overwhelming political support in the early years of his presidency to push through an extremely ambitious and innovative legislative agenda, and emphasize the extraordinary range and extent of LBJ’s influence on American public policy and administration.

[more]

front cover of Legitimacy
Legitimacy
The Right to Rule in a Wanton World
Arthur Isak Applbaum
Harvard University Press, 2019

At an unsettled time for liberal democracy, with global eruptions of authoritarian and arbitrary rule, here is one of the first full-fledged philosophical accounts of what makes governments legitimate.

What makes a government legitimate? The dominant view is that public officials have the right to rule us, even if they are unfair or unfit, as long as they gain power through procedures traceable to the consent of the governed. In this rigorous and timely study, Arthur Isak Applbaum argues that adherence to procedure is not enough: even a properly chosen government does not rule legitimately if it fails to protect basic rights, to treat its citizens as political equals, or to act coherently.

How are we to reconcile every person’s entitlement to freedom with the necessity of coercive law? Applbaum’s answer is that a government legitimately governs its citizens only if the government is a free group agent constituted by free citizens. To be a such a group agent, a government must uphold three principles. The liberty principle, requiring that the basic rights of citizens be secured, is necessary to protect against inhumanity, a tyranny in practice. The equality principle, requiring that citizens have equal say in selecting who governs, is necessary to protect against despotism, a tyranny in title. The agency principle, requiring that a government’s actions reflect its decisions and its decisions reflect its reasons, is necessary to protect against wantonism, a tyranny of unreason.

Today, Applbaum writes, the greatest threat to the established democracies is neither inhumanity nor despotism but wantonism, the domination of citizens by incoherent, inconstant, and incontinent rulers. A government that cannot govern itself cannot legitimately govern others.

[more]

front cover of License To Steal
License To Steal
Nevada'S Gaming Control System In The Megaresort Age
Jeff Burbank
University of Nevada Press, 2005
These seven precedent-setting case studies taken from the files of the Nevada Gaming Control Board and Commission illustrate vital issues addressed in the first decade of Las Vegas' megaresorts.
[more]


Send via email Share on Facebook Share on Twitter