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COMPETITIVE ENTERPRISE INSTITUTE FEATURED ARTICLES VOL 29, NO 2 | SPRING 2016 The Environmentalist Campaign to
COMPETITIVE ENTERPRISE INSTITUTE FEATURED ARTICLES VOL 29, NO 2 | SPRING 2016 The Environmentalist Campaign to

COMPETITIVE ENTERPRISE INSTITUTE

FEATURED ARTICLES

VOL 29, NO

2 | SPRING 2016

The Environmentalist Campaign to Punish Free Speech

4

FRED L SMITH, JR

Three Decades On, CEI’s Fight for Economic Freedom Continues

6

ANGELA LOGOMASINI

Outdated Science and Alarmism Drives Flame Retardant Debate

11

IAIN MURRAY

Let’s Stop Making Air Travel Security Worse

ALSO IN THIS ISSUE

Dodd-Frank Is Hurting Those Who Had Nothing to Do With the Financial Crisis, by John Berlau Banning Cars from Urban Centers:

5

Costly Policy with Few Benefits by Marc Scribner

10

The Good, the Bad, and the Ugly

14

Media Mentions

15

End Notes

16

BY SAM KAZMAN AND KENT LASSMAN

W ith seven state attorneys general and Al Gore sharing a New York City

stage, there was no doubt about it: It was show time for a whodunit The crime being investigated? Dissent The March 29 news conference unveiled, according to New York Attorney General Eric T Schneiderman, an “unprecedented” coalition to fight not only climate change but also allegedly deceptive speech about climate change The group, which dubbed itself AGs United for Clean Power, promised to “use all the tools at our disposal” to battle for progress on “the most

consequential issue of our time ” Schneiderman was blunt about his goal of shutting down debate: “You have to tell the truth You can’t make misrepresentations of the kinds we’ve seen here ” This isn’t a law-and-order drama It’s politics clothed in messianic garb, and its primary tools are censorship and intimidation The AGs are following a familiar script here: target an unpopular, deep-pocketed business, harass that business’ potential allies with overly broad investigations, run roughshod over the target’s First Amendment protections, and settle once the politically weakened company tires of fighting the endless resources of the state ExxonMobil was singled out by name at the news conference, but the coalition appears to be following the script perfectly Now it’s on to the fishing-expedition stage On April 7, the Competitive Enterprise Institute was subpoenaed by coalition member and U S Virgin Islands Attorney

General Claude Walker for all CEI material on climate change and energy policy, as well as information on our supporters, over 10 years beginning in 1997 The subpoena’s purported focus is on our contacts with ExxonMobil, a former CEI donor that publicly ended its support for us after 2005 Nonetheless, the subpoena calls for practically all of our material on climate change and energy policy, as well

as information on any donors who directly or indirectly supported that work That’s one hell of a burden to slap on a nonprofit The coalition’s purported justification is that the risks of global warming are so important and the scientific basis for them so settled that disputing them

(continued on page 3)

FROM THE PRESIDENT

FROM THE PRESIDENT Leading CEI into a New Era by Kent Lassman S ince its humble
FROM THE PRESIDENT Leading CEI into a New Era by Kent Lassman S ince its humble
FROM THE PRESIDENT Leading CEI into a New Era by Kent Lassman S ince its humble

Leading CEI into a New Era

by Kent Lassman

S ince its humble beginnings 32 years ago, the Competitive Enterprise Institute has grown into a

leading pro-market voice in debates about economic policy and regulations that shape people’s lives and livelihoods For that reason, I am honored to be entrusted with its leadership As it has since its founding, CEI will continue to promote the cause of liberty and fight against government barriers to economic freedom One of the greatest threats to that freedom in America is the overreaching administrative state, which has grown unabated, regardless of which party has controlled the White House We will continue to expose how government overregulation impedes and displaces personal enterprise and economic growth, and show how private alternatives do more to provide individual choices and better results for all We see the runaway power of the executive branch in President Obama’s signing of the Paris climate treaty, which threatens to make energy more expensive for all Americans We also see it in federal labor regulators unilaterally imposing new overtime and joint employer mandates on American businesses large and small These examples merely hint at the scope of the problem CEI has put forward a series of reforms to restore and strengthen some crucial checks and balances, working with policy makers to implement realistic solutions Just this year, the chairman of the House Budget Committee included a proposal for a regulatory budget, which CEI has long advocated, in his budget plan That’s a big deal And we, along

with our allies, are doing what we can to keep that as part of the final budget that passes Congress Also, as you may have heard, CEI was recently presented with a subpoena from the U S Virgin Islands’ attorney general for information regarding our work on climate policy, as part of a fishing expedition to stifle ideas at odds with the “official consensus ” As with any such challenges, we hold that the best defense is a good offense We have launched a counteroffensive, challenging the subpoena in court, and we are confident we will ultimately prevail The state attorneys general who are waging this political attack are targeting an unpopular, deep-pocketed business, harassing potential allies with overly broad investigations, running roughshod over First Amendment protections, and hoping the company caves and pays the ransom That sort of government-led assault cannot be allowed to succeed Already, prominent opinion leaders have spoken out against this attack, including George Will and the editorial boards of The Wall Street Journal and the Financial Times It’s an honor to be entrusted with the leadership of a vital organization like CEI Under the leadership of Fred L Smith, Jr and then Lawson Bader, CEI has gone a long way toward a more reasonable policy debate, in Washington and beyond Yet, for its many victories, there are more challenges ahead We have

our work cut out for us challenge

I am eager to take on that

FROM THE PRESIDENT Leading CEI into a New Era by Kent Lassman S ince its humble
Ph (202) 331-1010 Fax (202) 331-0640 info@cei org ISSN#: 1086-3036
Ph
(202) 331-1010
Fax
(202) 331-0640
info@cei org
ISSN#: 1086-3036
Publisher Kent Lassman Editor Marc Scribner Editorial Director Ivan G. Osorio Contributing Editor Keara Vickers
Publisher
Kent Lassman
Editor
Marc Scribner
Editorial Director
Ivan G. Osorio
Contributing Editor
Keara Vickers

The CEI Planet is produced by the Competitive Enterprise Institute, a pro-market public interest group dedicated to free enterprise and limited government.

CEI is a non-partisan, non-profit organization incorporated in the

District of Columbia and is classified by the IRS as a 501 (c)(3)

charity

CEI relies upon contributions from foundations, corporations

and individuals for its support

Articles may be reprinted provided

they are attributed to CEI

AGs, continued constitutes fraud But the AG’s rhetoric is blissfully oblivious to the First Amendment Court

AGs, continued

constitutes fraud But the AG’s rhetoric is blissfully oblivious to the First Amendment Court rulings make it clear that broad subpoenas aimed at restricting speech, especially in the context of policy debates, are invalid Time and again, the Supreme Court has held that the remedy for unwanted speech is more speech in response The chief law-enforcement officers of several states should know better, but their reaction to a dissenting policy position is punitive, coercive, and unconstitutional As for breaching donor confidentiality, the obvious aims here are intimidation and to limit future use of the constitutionally protected right of anonymous donation In 1958, in NAACP v. Patterson, the Supreme Court held that such attempts were illegal under the First Amendment’s right of association You might think that if the law is that clear, we have nothing to worry about But fighting a subpoena is incredibly costly and time-consuming, especially when the attorneys general behind them have promised to “use all the tools” at their disposal, courtesy of their states’ taxpayers Regardless of where you stand on global warming policy, the notion of a multi-state campaign to end the debate ought to make you worry After all, there are many science-driven policy debates out there, on topics ranging from genetically modified food to population control It is not as if the government has a sterling reputation when it comes to science From Galileo to today’s food plate, we know government politicizes science It ought not to punish dissent, too

Kent Lassman (kent lassman@cei org) is President and CEO and Sam Kazman (sam kazman@cei org) is General Counsel of CEI. A version of this article origi- nally appeared in The Washington Post

Stand with CEI

for Free Speech

Twenty state attorneys general have formed a coalition called AGs United for Clean Power. Their real purpose is to silence debate on the issue of climate change by using their prosecutorial power to criminalize dissent.

The Competitive Enterprise Institute recently received a subpoena to that effect, demanding a decade’s worth of documents, including private communications containing donor information.

We will not let this stand. We will fight back. We need your help to succeed.

To learn more and help us defend free speech, please contact Coley Jackson at coley.jackson@cei.org.

AGs, continued constitutes fraud But the AG’s rhetoric is blissfully oblivious to the First Amendment Court

R.M.

FREEDMAN

SOCIETY

Help the Competitive Enterprise Institute carry on its work for generations by joining the R.M. Freedman society.

In 2013, CEI established the R M Freedman Society in honor of Robert M Freedman, a business owner from West Bloomfield, Michigan, who placed CEI in his estate and, in 2009, sadly passed on and gave CEI its first legacy gift We named the society in appreciation of his generosity

Many of CEI’s extended family choose to include CEI in their estate plans through:

• Bequests, • Charitable Remainder Trusts, • Charitable Lead Trusts, or as a • Life insurance beneficiary

If you make the decision to include CEI in your estate plans, please reach out and let us know

While these sorts of decisions should be undertaken with the help of an estate planner, Lauren Avey and Al Canata of CEI can be a resource to you. You can reach them anytime at 202-331-1010.

Three Decades On, CEI’s Fight for Economic Freedom Continues BY FRED L SMITH, JR T he
Three Decades On, CEI’s Fight for Economic Freedom Continues BY FRED L SMITH, JR T he

Three Decades On, CEI’s Fight for Economic Freedom Continues

BY FRED L

SMITH, JR

T he growth in government has many causes, but a key factor

has been the Traison de Clerics— the phenomenon of an intellectual class realizing its power potential and exercising it to take control of the state and expand its reach In America, this took the shape of the Progressive movement When our best and brightest abandoned America’s constitutional and cultural restraints on centralization, they began on the path to socialism on the left and crony corporatism on the right I launched the Competitive Enterprise Institute 32 years ago to address this challenge, seeing promise in an activist approach to policy

reform Our goal was a vertically integrated approach to policy reform, to move beyond the traditional think tank model and aggressively market our ideas to the media, policy makers, and the general public; build alliances to gain support; and make our case in the appropriate arena, whether in Congress, the agencies, or the courts And when appropriate, we add humor to make that case We’ve implemented that plan well That required moving from the academic work of policy analysis to a more practical understanding of why, so often, bad policies have such strong support On environmental issues, we took on Superfund, a major “green” pork barrel boondoggle, making the case that contracts are a more efficient and cost-effective means to satisfy concerns about waste sites In the labor policy area, we took on “comparable worth” legislation, distributing thou - sands of “My Worth is Incomparable!” buttons at protest rallies

We brought public attention to the

perverse moral hazard associated with

federal banking policy My Daddy used to say that banks would loan you money if you could prove you didn’t need it We noted that Fannie and Freddie would grant you a mortgage if you couldn’t repay it We reframed the debate over federal auto fuel efficiency standards, showing that forcing smaller cars on the driving public led to more traffic deaths—in effect, death by regulation In brief, CEI became the go-to group for regulatory reform from antitrust to FDA regulation Wayne Crews has brought public attention to the scale and costs of the regulatory administrative state through his publication, Ten Thousand Commandments, an annual survey of the federal regulatory state In effect, we’ve functioned as a Battered Business Bureau, reaching out to entrepreneurs suffering under unwise rules For years, the left has been very effective at forming rent-seeking alliances that enhance their ability to advance interventionist policies, while their economic partners gain political privileges Our business outreach sought to meet that challenge head-on I became a student of business in the political sphere, recognizing that many factors that led business leaders to seek to appease their critics The challenge was clear: capitalism was unlikely to survive if capitalists weren’t enlisted in its defense How might the competitive business sector be enlisted in the liberty struggle? In my 1989 CEI dinner talk, I made points that are now at the heart of the efforts of the Center for Advancing Capitalism, which I now lead

“Business’s message may be good but it remains a suspect messenger Business needs credible, independent allies—and the free market movement needs the economic and informational support that only business can provide,” I noted “Convincing business that supporting our groups is in its long term interest remains a key tasks for CEI ” CEI has grown greatly over the last three decades, fighting new battles as the scope and scale of government intervention in the economy has continued to increase Much of the time, CEI plays a blocking role, which is valuable in itself Yet, while government still grew steadily, we have remained hopeful, recalling the late Herbert Stein’s famous comment:

“If something cannot go on forever, it will stop ” Our current administrative state cannot go on forever We can find our way back to a government limited in scope and scale That was the dream of our Founders It undergirds our Constitution, the great document that checked Leviathan for our first century Twentieth century Progressives dismantled many of those constraints, in the hopes of achieving heaven on earth Their utopian vision has become dystopic, but it still exercises great power in politics CEI works continuously to restore legitimacy to limited government again It’s a long and difficult struggle, but one that still motivates me and CEI’s staff

Fred L. Smith, Jr. (fred smith@cei org) is Founder of CEI and Director of CEI’s Center for Advancing Capitalism. A version of this article originally appeared in Forbes.

Dodd-Frank Is Hurting Those Who Had Nothing to Do With the Financial Crisis BY JOHN BERLAU

Dodd-Frank Is Hurting Those Who Had Nothing to Do With the Financial Crisis

BY JOHN BERLAU

T he Dodd-Frank Wall Street Reform and Consumer Protection Act

has done too little to address the real causes of the financial crisis and too much to add red tape that hamstrings consumers, investors, and entrepreneurs who had nothing to do with it Indeed, some provisions of the law have virtually nothing to do with ensur- ing financial stability Take Section 1502, the “conflict minerals” provi- sion This requires public companies to disclose in their annual reports any use of five minerals—including gold, tin, and tungsten—that may have been sourced from the conflict zones of the Democratic Republic of Congo and adjoining countries Although this provision concerns a serious moral and geopolitical issue, no one can plausi- bly claim it would help avert the next financial crisis Moreover, shoehorning the conflict minerals provision into a bank bill and placing enforcement into the hands of a governmental entity—the Securities and Exchange Commission—that lacks foreign policy expertise has hurt the very people it was intended to help As journalist David Aronson wrote in The New York Times, since manufactur- ers often can’t be sure of the sources of their materials, many now avoid

the Congo region altogether

According to Aronson, this

Dodd-Frank Is Hurting Those Who Had Nothing to Do With the Financial Crisis BY JOHN BERLAU

Almost six years on since Dodd-Frank’s passage, big banks continue to dominate, while community banks’ loss of market share has accelerated dramatically.

created “a de facto embargo on the minerals mined in the region” that impoverished poor villagers and made war- lords more powerful Meanwhile, left untouched by Dodd-Frank are the gov - ernment-sponsored enterprises Fannie Mae and Freddie Mac While there is debate on whether these entities—which have implicit taxpayer back- ing and purchase mortgages from banks—were a principal cause of the financial crisis, there is widespread agreement that they at least played a significant role The 2010 majority report of the Financial Crisis Inquiry Commission called Fannie and Freddie the “kings of leverage” in the years leading up to the crisis Yet Dodd-Frank does nothing to shore up Fannie and Freddie’s capital requirements and contains a host of exemptions for them in its new mort- gage rules And Fannie and Freddie backed roughly 60 percent of new mortgages from 2008 to 2013, leaving taxpayers holding the bag Almost six years on since Dodd- Frank’s passage, big banks continue to dominate, while community banks’ loss of market share has accelerated dramatically

Though Dodd-Frank may not be solely to blame for this decline, com - munity banks and credit unions have become increasingly vocal about the costs of compliance, which are much more easily absorbed by large banks that can hire armies of attorneys, accountants, and information technol- ogy specialists Dodd-Frank should be changed so it does more to prevent the next financial crisis and less to harm innocent investors, entrepreneurs, and consumers

John Berlau (john berlau@cei org) is a Senior Fellow at CEI. A version of this article appeared at The New York Times’ “Room for Debate ”

Dodd-Frank Is Hurting Those Who Had Nothing to Do With the Financial Crisis BY JOHN BERLAU
Dodd-Frank Is Hurting Those Who Had Nothing to Do With the Financial Crisis BY JOHN BERLAU

I, Whiskey: The Movie

Coming Soon from CEI

Outdated Science and Alarmism Drive Flame Retardant Debate BY ANGELA LOGOMASINI L earning from history should
Outdated Science and Alarmism Drive Flame Retardant Debate BY ANGELA LOGOMASINI L earning from history should

Outdated Science and Alarmism Drive Flame Retardant Debate

BY ANGELA LOGOMASINI

L earning from history should keep us from repeating our mistakes

Yet when it comes to environmental politics, the opposite seems to be true History and improved scientific under- standing fail to inform, while alarmism and irrational fears drive policy The current debate related to flame retardant chemicals is a prime example Environmental activist groups have petitioned the Consumer Product Safety Commission (CPSC) to ban an entire class of flame retardant chemicals called organohalogens, with a decision expected this year Yet, the scientific justification for such bans has long been invalidated The debate about flame retardants began back in the early 1970s, with the emergence of the environmental movement and newfound fears that synthetic chemicals posed significant cancer risks Even the now world- renowned scientist Bruce Ames—who later proved these fears unfounded— once expressed concerns that trace synthetic chemicals were a significant cause of cancer “I didn’t want to put my kids in these pajamas [which were treated with chemical flame retardants], so we bought their pajamas in Europe when we were there,” he recalls in a 2014 interview In 1977, Ames and Arlene Blum published an article in Science that advocated banning of tris(2,3- dibromopropyl)phosphate, commonly known as “tris,” for use in pajamas At the time, tris was applied to sleepwear in order to meet federal flammability standards set by CPSC That same year, CPSC banned the use of tris in sleepwear, even as

it admitted in the Federal

Register that it had “no

conclusive data that establish TRIS has caused cancer in humans ” CPSC banned the chemical solely because it caused tumors in rodents exposed to very high levels At the time, scientists believed that was enough to demonstrate cancer risk in humans After all, CPSC noted, “all known human carcinogens have been shown to be carcinogenic in labora- tory animals ” However, Ames did not continue to advocate bans Instead, he and his colleague Lois Swirsky Gold decided to critically evaluate the prevailing wisdom about rodent tests Ironically, within a decade, Ames’s research thoroughly debunked claims that such trace chemicals pose a significant cancer risk, which invalidated his own fears about tris Ames and Gold found that it wasn’t the chemicals themselves that caused cancer in rodents, but the high doses “High doses can cause chronic wounding of tissues, cell death, and consequent chronic cell division of neighboring cells, which is a risk factor for cancer,” Ames and Gold explained in a 1997 research article In fact, Ames and Gold found that these tests caused tumors in rodents even when the chemical tested were naturally occurring chemicals found in many healthy foods, such as apples, carrots, and other fruits and veggies They concluded: “There is no convinc- ing evidence that synthetic chemical pollutants are important as a cause of human cancer ”

Outdated Science and Alarmism Drive Flame Retardant Debate BY ANGELA LOGOMASINI L earning from history should

Even the now world- renowned scientist Bruce Ames—who later proved these fears unfounded— once expressed concerns that trace synthetic chemicals were a significant cause of cancer.

Yet the facts don’t seem to matter much in this debate Even today, faulty rodent tests are being used as the basis for banning flame retardant chemicals Consider the evolution of policy regarding three Polybrominated Diphenyl Ethers (PBDEs) flame retardants: penta-BDE (used for foam

furniture) and octa-BDE (used in plastics for business equipment), and deca-BDE (used in electron - ics

furniture) and octa-BDE (used in plastics for business equipment), and deca-BDE (used in electron - ics such as television sets) These chemicals are not dangerous when used in consumer products Activists are targeting them for the same faulty reason they targeted tris—they are rodent carcinogens But again, so are chemicals that are naturally found in carrots, apples, and plums Green activists have been able to generate enough scary head- lines to press manufacturers to vol- untarily phase out these chemicals The Chemtura Corporation (then called Great Lakes Chemical Corporation) was among the first, deciding in 2004 to phase out penta-BDE and octa-BDE The EPA took this opportunity to essentially ban these chemicals with- out any scientific justification As the only U S manufacturer of these two chemicals, Chemtura eliminated the only legal domestic uses The agency then quickly issued a rule that bars any new significant uses without first gaining EPA approval under the Toxic Substances Control Act (TSCA) The EPA admits it had no health risk justification for its action “EPA has not concluded that PBDEs pose an unrea- sonable risk to human health or the environment,” the agency explained

furniture) and octa-BDE (used in plastics for business equipment), and deca-BDE (used in electron - ics

Old and faulty science coupled with activist- generated fear is driving this debate.

on its website “However, due to growing concerns, EPA believes that the phase out and the regulatory action taken in this announcement are useful steps to minimize and ultimately help prevent further exposure to these chemicals ” As a result, these chemi- cals are now effectively banned In 2009, the EPA pressured two U S producers (Chemtura and Albemarle) and one importer (Israel’s ICL Industrial Products) of deca-BDE to “voluntarily” phase it out as well, ending production and importation by 2013 Now activists—including Arlene Blum, who unlike her 1977 co-author Bruce Ames continues to believe that if it’s carcinogenic in rats it should be banned in humans—want to ban potential replacement products for the

Molecular structure of flame retardant TRIS
Molecular structure of
flame retardant TRIS

PBDEs, petitioning CPSC to ban all organohalogen flame retardants with- out any real scientific justification And there you have it: Old and faulty science coupled with activist- generated fear is driving this debate Banning flame retardants simply because they may kill rats in labs is absurd, given the fact that fires actu- ally kill people in their homes If we continue to eliminate flame retardants, we can expect that fires will burn hotter and move faster, and more people will die as a result

Angela Logomasini (angela.logomasini@ cei.org) is a senior fellow at CEI. A ver - sion of this article originally appeared in Science 2.0

furniture) and octa-BDE (used in plastics for business equipment), and deca-BDE (used in electron - ics

Learn more at RealClearRadio.org.

Realclear Radio offers listeners a fresh perspective on political and social issues of the day through informative interviews and dis- cussions Brought to you by the

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A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW

A Night in Casablanca

CEI’S ANNUAL DINNER AND RECEPTION

THUR SDAY, JUNE 2, 2016

JW MARRIOTT WASHINGTON, D.C.

  • 1331 PE N N SY LVAN I A AVE N U E, NW

Register online at CEI.org/CEIDinner

A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW

K EY N OT E ADDRESS

STEVE FORBES

CHAIRMAN AND EDITOR-IN-CHIEF OF FORBES MEDIA

Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Forbes Magazine is the nation’s leading busi- ness magazine with a circulation of more than 900,000. Combined with Forbes Asia, Forbes Europe, and the company’s licensee editions, Forbes Magazine reaches a worldwide audience of more than 5 million readers. Forbes.com is one of the world’s most influ- ential websites, with more than 60 million unique visitors each month.

In 1996 and 2000, Forbes campaigned for the Repub- lican presidential nomination. A flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits, and a strong national defense were key to Forbes’s platform, and he contin- ues to promote this agenda.

The author of several books, Forbes co-authored

Reviving America: How Repealing Obamacare, Replac- ing the Tax Code and Reforming the Fed will Restore

Hope and Prosperity with Elizabeth Ames (McGraw- Hill Professional), which was published in December 2015. He is the only writer to win the prestigious Crys- tal Owl Award four times.

In 1985, President Reagan named Forbes Chairman of the bipartisan Board for International Broadcasting (BIB). He was reappointed to this post by President George H. W. Bush and served until 1993.

A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
A Night in Casablanca CEI’S ANNUAL DINNER AND RECEPTION THUR SDAY, JUNE 2, 2016  JW
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN

JULI AN

L.

SI MO N

ME MO RI AL

AWARD

WINNER

DR. BRUCE YANDLE

DEAN EMERITUS, CLEMSON UNIVERSITY COLLEGE OF BUSINESS AND BEHAVIORAL

SCIENCE

JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN

MA ST ER O F CEREMONIES

MARY KATHARINE HAM

CNN POLITICAL COMMENTATOR, SENIOR EDITOR AT THE

FEDERALIST

Bruce Yandle is Dean Emeritus of Clemson Univer - sity’s College of Business and Behavioral Science, a Distinguished Adjunct Professor at the Mercatus Center at George Mason University, and a Senior Fellow Emeritus at the Property and Environment Research Center. During his distinguished career, he served as a senior White House economist during the Ford Administration, Executive Director of the Fed- eral Trade Commission during the Reagan Adminis- tration, and as member and chairman of the South Carolina State Board of Economic Advisors.

Yandle is best known for his “Bootleggers and Bap- tists” theory of interest group lobbying. The theory, which illuminates how strange-bedfellow alliances promote shared political aims, is now standard in political science and economic curricula.

Several of Yandle’s 17 books, and much of his schol- arly research, examine how secure property rights and enforced common law principles lead to better environmental and natural resource protection than regulatory restrictions. This work makes him an ideal recipient of the Julian Simon Memorial Award.

Yandle received his AB degree from Mercer University, and his MBA and PhD degrees from Georgia State University. Prior to his academic career, he worked in the industrial machinery business for 15 years.

Mary Katharine Ham is a CNN Political Commenta- tor and a Senior Writer at The Federalist. During the 2016 presidential election cycle, she co-moderated a GOP primary debate on ABC. Prior to joining CNN, she was a weekly commentator on Fox News’ “The O’Reilly Factor.” She is the co-author of End of Dis- cussion: How the Left’s Outrage Industry Shuts Down Debate, Manipulates Voters, and Makes America Less Free (and Fun) and has written for HotAir, The Weekly Standard, and The Daily Caller.

A fourth-generation journalist, she did a stint cov- ering NASCAR, high school football, and her coun- ty’s largest legumes before embracing new media and heading to Washington, D.C. Her career goal has been to discover the formula for talking about politics without being a blowhard. She is a Twitter enthusiast, and a mother of two who hiked Kiliman- jaro on her honeymoon.

JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
JULI AN L. SI MO N ME MO RI AL AWARD WINNER DR. BRUCE YANDLE DEAN
Banning Cars from Urban Centers: Costly Policy with Few Benefits BY MARC SCRIBNER T ake back
Banning Cars from Urban Centers: Costly Policy with Few Benefits BY MARC SCRIBNER T ake back

Banning Cars from Urban Centers:

Costly Policy with Few Benefits

BY MARC SCRIBNER

T ake back our streets!” is a common refrain among urban activists No,

they’re not talking about reducing violent crime, as many of them reside in affluent neighborhoods What they want to take city streets back from is cars, which they see as a scourge that lowers cities’ quality of life But the alternatives they propose are much more costly and provide far fewer benefits When mass transit use plummeted in the 1970s, anti-car activists succeeded in distorting government transportation funding to greatly advantage transit over highways Today, even though more than 90 percent of households have cars, government spends 28 percent of total transportation funds on transit, with most of that money coming from state and federal fuel taxes, as well as local property taxes Yet, despite this government gravy train, transit’s market share is lower than it was in 1980, at less than 2 percent of trips made nationwide Even when looking only at commuting trips, where trains and buses do best, transit accounts for less than 5 percent of the market share—one-fifth of its share of funding The myth that mass transit can serve most people does more than just waste taxpayer funds Reducing access to cars contributes to unemployment and poverty In the New York metropolitan area, where 40 percent of all U S transit trips occur and where one-third of the residents take transit to work, only 15 percent of jobs are accessible by transit in less than an hour In contrast, New Yorkers with cars can access more than five times as many

jobs in 60 minutes New Yorkers

dependent on transit suffer from

the longest commutes in America— even longer than New York drivers Closing some streets to auto traffic can occasionally make sense New York’s Times Square pedestrian plaza is often touted as a successful example But most cities are not New York and the nation’s experiments with converting streets to pedestrian malls have mostly ended in failure When cities including Chicago, Philadelphia, and Sacramento tried this in the 1960s and ‘70s in an attempt to revive their downtowns, customers stopped coming and businesses closed By the 2000s, nearly all these cities had reopened their streets to auto traffic These cities attempted to create small car-free zones, not the car-free cities envisioned by activists Following their advice and closing off most urban streets to auto traffic would be a disaster Environmental activists claim automobiles should be banned to curb air pollution, but that’s not quite right Yes, cars pollute, but they have become far cleaner over the last few decades and will be even cleaner still in the near future as automakers achieve greater fuel efficiency And environmentalists don’t mention the polluting impact of traffic congestion Instead, they often promote congestion and the resulting driver misery as a way to deter driving Then there is the issue of traffic safety The traffic congestion and low speeds in America’s downtowns help keep serious car accidents rare relative to the rest of the country The majority of road fatalities occur in rural areas, where fewer than 20 percent of

Banning Cars from Urban Centers: Costly Policy with Few Benefits BY MARC SCRIBNER T ake back

The myth that mass transit can serve most people does more than just waste taxpayer funds. Reducing access to cars contributes to unemployment and poverty.

Americans live The rest largely occur in auto-oriented suburbs where most Americans reside, not urban cores Attempting to seriously reduce auto injuries and fatalities by banning cars in the dense cities where crashes pose the lowest risk is both an overreaction and a misapprehension of the problem None of this means there aren’t problems with cars in our major cities, many arising from poor highway planning in the 1950s and ‘60s Introducing congestion tolls and market-rate parking are the places to start But 21st century problems will not be solved by trying to return our cities to the auto-free 19th century We should work to improve technology, not outlaw it

Marc Scribner (marc scribner@cei org) is a Fellow at CEI. A version of this article was syndicated by Tribune News Service.

Let’s Stop Making Air Travel Security Worse BY IAIN MURRAY E arlier this year, I planned

Let’s Stop Making Air Travel Security Worse

BY IAIN MURRAY

E arlier this year, I planned a trip to Berlin for mid-March I initially

thought to tack on a couple of extra days to conduct some business in Brussels, but decided against it Had I not changed my mind, I probably would have been checking into my return flight when the airport bomb went off And the awful realization of what could have happened to me concentrated my thinking as a frequent traveler on changes to airport security since 9/11 In trying to secure planes, we have made airports more of a target, and in doing so have not made travel safer That’s because the security aimed at keeping terrorists off planes concentrates large numbers of people in security lines As we learned in Brussels, those lines are tempting targets for terrorists seeking to inflict a lot of casualties This isn’t the first time airports have come under attack In 2007, terrorists deliberately crashed a jeep loaded with propane into the main entrance of Glasgow International Airport in Scotland, but it burst into flames rather than explode If your aim is to kill large numbers of people, a suicide attack on an international departures hall is an easy way to do it As is well known, boarding a flight is a lengthy business these days Not only are security lines long, lines to

check baggage are often long as well

The thing is, not every passenger poses

equal risk In fact, the vast majority of passengers pose no risk at all Yet, as we saw in Brussels, they are placed at extra risk thanks to a one-size fits all security mindset In fact, there is strong evidence that extra wait times deter people from flying at all and cause them to choose to drive instead Driving is much more dangerous than flying, terrorist atrocities notwithstanding Nearly 1,600 people died the year after 9/11 because they chose to drive instead of flying We might just regard this as a trade- off of risks if we had firm knowledge that the security procedures stopped terrorist attacks Yet, Americans were outraged last year when an internal investigation revealed that the Transportation Security Administration (TSA) failed 95 percent of tests designed to see whether it would stop weapons, explosives, or other contraband getting through Proposals to move the screening area to the terminal entrance merely move the potential target, doing nothing to increase security The TSA’s reaction to its lapses was predictable: tighten security by creating longer lines, beginning the cycle all over again The agency would also like to see more use of whole body scanners, which evidence suggests are ineffective, create longer lines as people opt out, and cost taxpayers a

fortune We learned recently that one of its grand schemes to shorten lines involved spending $1 4 million on an iPad app that randomizes which security line people should go to—an app so simple I could probably build it What America and the world need is a genuine risk-based security approach that focuses on finding dangerous people rather than dangerous objects Most travelers would go through security quickly This would include business travelers who have pre-registered with a scheme like TSA PreCheck (one of the good things TSA has done), families with children or elderly relatives who are also very unlikely to pose a threat, tourist groups, and other sets of people who have clear mutual trust with low-risk individuals People outside these categories would have to suffer through a more rigorous procedure like we have now (or perhaps more so), but as their numbers would be lessened, even those lines would go faster The result of cutting lines in this way would be happier travelers, less cost to the public, and a less tempting target to the world’s terrorists As a frequent flyer, all three of those things are important to me and I hope to see them implemented

Iain Murray (iain murray@cei org) is Vice President for Strategy at CEI. A version of this article originally appeared on CapX.

Center for Advancing Capitalism Co-Hosts Conference with University of Maryland On March 10, CEI’s Center for
Center for Advancing Capitalism Co-Hosts Conference with University of Maryland On March 10, CEI’s Center for

Center for Advancing Capitalism Co-Hosts Conference with University of Maryland

On March 10, CEI’s Center for Advancing Capitalism (CAC) partnered with the Ed Snider Center for Enterprise and Markets at the University of Maryland’s Robert H Smith School of Business to host the New Intellectual Forum, a new initiative aimed at creating an integrated alliance of business and intellectual supporters to defend and promote capitalism’s contributions to economic and societal prosperity CEI Founder and CAC Director Fred Smith and CAC Program Manager Richard Morrison participated in the panel Joining them on the panel were Andrew Sherman, Rajshree Agarwal, Rudolph Lamone, and Christina Elson of the Ed Snider Center

John Berlau at South by Southwest

On March 14, John Berlau addressed entrepreneurs attending the South by Southwest technology and entertainment festival in Austin, Texas Berlau was interviewed by Richard Swart, scholar- in-residence at the University of California-Berkeley and chief strategy officer of NextGen Crowdfunding, which sponsored the event Berlau discussed how the Jumpstart Our Business Startups Act has helped entrepreneurs by liberalizing some rules that held back investment-based crowdfunding, but Congress still needs to give much more freedom to investors and entrepreneurs (Photo by Sara Harris Photography)

Center for Advancing Capitalism Co-Hosts Conference with University of Maryland On March 10, CEI’s Center for
Center for Advancing Capitalism Co-Hosts Conference with University of Maryland On March 10, CEI’s Center for

William Yeatman Testifies in Congress on EPA Regional Haze Rule

On March 23, CEI’s William Yeatman testified before the Environment Subcommittee, of the House Science, Space, and Technology Committee, on the Environmental Protection Agency’s regional haze rule As Yeatman noted, the Regional Haze program is an aesthetic regulation that costs billions but whose benefits are literally invisible For example, it would impose almost $375 million in compliance costs on New Mexico utility ratepayers to achieve an imperceptible visibility improvement The program requires states to come up with their own implementation plans The EPA has imposed Regional Haze implementation plans on states that have not issued their own plans, including Oklahoma, New Mexico, and North Dakota, over the staunch objections of state officials These plans imposed by the EPA will cost at least $5 billion more than the states’ plans

Capitol Hill Briefing on Paris Climate Agreement On April 10, the Cooler Heads Coalition hosted a

Capitol Hill Briefing on Paris Climate Agreement

On April 10, the Cooler Heads Coalition hosted a congressional staff and media briefing on the Paris Climate Treaty and the Green Climate Fund, featuring CEI’s Chris Horner, Myron Ebell, and Marlo Lewis, along with David Kreutzer of the Heritage Foundation As the panelists made clear, the recently concluded Paris Climate Agreement is clearly a treaty, contrary to the Obama administration’s claim The agreement, negotiated at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change in Paris, is “self-renewing,” which means it could bind U S policy indefinitely This is one reason why, the panelists argue, it should be called a treaty and submitted to the Senate for its review

Capitol Hill Briefing on Paris Climate Agreement On April 10, the Cooler Heads Coalition hosted a
Capitol Hill Briefing on Paris Climate Agreement On April 10, the Cooler Heads Coalition hosted a

Marc Scribner Highlights Harmful Drone Regulations

In April, CEI Fellow Marc Scribner appeared on two panels on current and forthcoming consumer and commercial drone regulations The first, hosted by the Mercatus Center at George Mason University, featured a discussion before congressional staff by Mercatus scholar Eli Dourado and Scribner on the dangers of the precautionary principle approach to risk and the unnecessary regulatory burdens created by the Federal Aviation Administration The second, hosted by the Heritage Foundation, featured Scribner, along with a Maryland attorney suing the FAA over its recent requirement that all hobby drones over 0 55 pounds be registered with the agency Scribner highlighted the absurdity of maintaining a federal toy registry, as well as a dangerous new drone manufacturer certification requirement buried in the Senate’s FAA reauthorization bill

Iain Murray Joins the Free Market Road Show

CEI Vice President for Strategy Iain Murray was a featured speaker in three cities in this year’s Free Market Road Show—Brussels; Jerusalem; and Larnaca, Cyprus Every year, the Free Market Road Show takes liberty on the road with speakers from around the world to discuss free market concepts in cities across Europe, from Edinburgh to Athens, from Madrid to Talinn This year, the Road Show toured from March 7 to May 27 through 45 capitals in Europe and the Caucasus Murray spoke alongside such luminaries as Professor Ben Powell, head of the Free Market Institute at Texas Tech; John Fund of National Review, Syed Kamall MEP, head of the European Conservatives and Reformists group in the European Parliament; and Dr Barbara Kolm of the Hayek Institute in Vienna, who founded the Road Show Murray’s lectures covered financial privacy, the sharing economy, and entrepreneurship; they are available on the CEI website For more on the Road Show, see:

http://freemarket-rs.com

Capitol Hill Briefing on Paris Climate Agreement On April 10, the Cooler Heads Coalition hosted a
THE THE BAD GOOD THE UGLY CEI Files Two Legal Challenges to Aviation Regulations Supreme Court

THE

THE THE BAD GOOD THE UGLY CEI Files Two Legal Challenges to Aviation Regulations Supreme Court
THE BAD
THE
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THE THE BAD GOOD THE UGLY CEI Files Two Legal Challenges to Aviation Regulations Supreme Court

GOOD

THE THE BAD GOOD THE UGLY CEI Files Two Legal Challenges to Aviation Regulations Supreme Court
THE THE BAD GOOD THE UGLY CEI Files Two Legal Challenges to Aviation Regulations Supreme Court
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CEI Files Two Legal Challenges to Aviation Regulations

Supreme Court Deadlocks on Friedrichs Labor Union Case

CEI Receives, Fights Illegal Bullying Subpoena from Virgin Islands

In late April and early May, CEI filed two federal lawsuits challenging new regulations on electronic cigarette use on airplanes and the Transportation Security Administration’s body scanners On e-cigarettes, CEI accuses the Department of Transportation of illegally stretching the language of the anti-smoking law to cover e-cigarettes, which do not produce harmful smoke On the TSA’s body scanners, CEI alleges that the agency failed to consider the costs of security measures in terms of deterred flyers, some of whom will be injured and die by instead driving on much more dangerous roads CEI argues both of the rules should be vacated as “arbitrary and capricious” under the Administrative Procedure Act

On March 29, the U S Supreme Court announced a deadlock, 4 to 4 decision, in a major case involving forced labor union dues, Friedrichs v. California Teachers Association “With the court gridlocked, government unions will continue to take dues from non-members, whether they like it or not,” said Iain Murray, CEI Vice President for Strategy “Four justices have voted against the free speech rights of workers to prop up labor union power ” CEI Policy Analyst Trey Kovacs urged state legislators to use the tools at their disposal to protect government workers’ rights “State legislatures can take action to help teachers, librarians, bus drivers, and a whole host of other state and local public employees,” said Kovacs “Lawmakers can implement specific reforms to increase worker choice or allow non-union members to stop paying dues to a union they do not want ”

On April 7, CEI denounced a subpoena from Attorney General

Claude E

Walker of the U S

Virgin

Islands that attempts to unearth a decade of CEI’s materials and work on climate change policy This is the latest effort in an intimidation campaign to criminalize speech and research on the climate debate, led by New York Attorney General Eric Schneiderman and former Vice President Al Gore “CEI will vigorously fight to quash this subpoena It is an affront to our First Amendment rights of free speech and association for Attorney General Walker to bring such intimidating demands against a nonprofit group,” said CEI General Counsel Sam Kazman CEI served Walker with its official response on April 20, detailing 23 legal objections and vowing a fight if the subpoena was not

withdrawn “Your demand on CEI is offensive, it is un-American, it is unlawful, and it will not stand,” CEI wrote in a letter to Walker

Media MENTIONS Policy Analyst Trey Kovacs discusses the Supreme Court deadlock in the Friedrichs case: “With

MediaMENTIONS

Policy Analyst Trey Kovacs discusses the Supreme Court deadlock in the Friedrichs case:

“With a divided court, thousands of public servants around the nation must still financially assist a government union that they disagree with,” said Trey Kovacs, an analyst with the Competitive Enterprise Institute, a libertarian group “Now it is up to state legislatures to pro- vide public employees with the freedom to choose whether or not to pay for union representation ” –MARCH 29, The New York Times

Reuters speaks with CEI Vice President for Strategy Iain Murray about the impact of Justice Scalia’s passing on a labor union case:

“The death of Justice Scalia has proved a disaster for public sector workers who have their paychecks raided by unions,” said Iain Murray, vice president for strategy at the Competitive Enterprise Institute, a con - servative think tank in Washington –MARCH 30, Reuters

General Counsel Sam Kazman explains why CEI is challenging an out-of-control federal agency:

The judge pointed out that [Consumer Financial Protection Bureau Chairman Richard] Cordray’s five-year term ends in 2018, meaning the next president will have to leave him in place for more than a year, even if the two disagree on policy That fact, combined with the CFPB’s independence from the congressional appropriations process, “creates a complete lack of accountability, which should be fatal to the agency,” says Sam Kazman, general counsel for the

advocacy group Competitive Enterprise Institute The institute filed a brief sup- porting [mortgage lender] PHH and is itself challenging the CFPB’s legitimacy in a separate lawsuit –APRIL 21, Bloomberg

The Financial Times editorial board denounces the global warming witch hunt against CEI and others:

The targets of the investigations, Exxon, the Competitive Enterprise Institute, a think-tank, and DCI Group, a PR and lobbying firm, are being pursued under various different laws, but the common theme is that they are suspected of having knowingly made false statements that played down the risks of climate change The legal basis for these actions seems flimsy: Exxon has no operations in the Virgin Islands Beyond that, the implications of the investigations for free speech on public policy issues are alarming Everyone ought to be able to take part in policy debates without worrying that their opponents will be able to use the law to go on fishing expeditions through their private com - munications, looking for embarrassing tit-bits that can be used against them –APRIL 25, The Financial Times

Congressional Quarterly profiles new CEI President Kent Lassman:

Most dinners benefiting Washington think tanks feel staid compared with the Competitive Enterprise Institute’s annual gala The libertarian group might treat its supporters to e-cigarettes, free rides on Uber, or T-shirts that sport the mes- sage, “Rachel was wrong,” deriding the famed conservationist, Rachael Carson “This is a place where people have fun,” says the group’s new president, Kent Lassman, who joined April 6 from the public relations outfit DCI Group The institute, which has been around for more than three decades and oper- ates on a $7 million annual budget, does a lot more than put on its annual dinner, though the shindig has helped CEI cultivate its brand as a hub for free-

market policy and advocacy Steering it is now Lassman’s job –APRIL 25, CQ Magazine

Media MENTIONS Policy Analyst Trey Kovacs discusses the Supreme Court deadlock in the Friedrichs case: “With

The Wall Street Journal’s edito - rial board blasts state AGs’ war on skeptics:

Sometimes we wonder if we’re still living in the land of the free Witness the subpoena from Claude Walker, attorney general of the U S Virgin Islands, demanding that the Competitive Enterprise Institute cough up a decade of emails and policy work, as well as a list of private donors Mr Walker is frustrated that the free-market think tank won’t join the modern church of climatology, so he has joined the rapidly expanding club of Democratic politicians and pros - ecutors harassing dissenters –APRIL 30, The Wall Street Journal

The Wall Street Journal high- lights the 2016 edition of Wayne Crews’s annual survey of the federal regulatory state:

Friday’s jobs report from the Labor Department brought the latest reminder that the U S economy isn’t creating opportunities like it used to A separate report released this week goes a long way toward explaining why On Wednesday Wayne Crews of the Competitive Enterprise Institute rolled out his annual report card on federal regulation, “Ten Thousand Commandments ” Beltway rules are now imposing $1 9 trillion of annual costs on the U S economy That’s the same level as last year, but when combined with on-the-books federal spending, which is $3 9 trillion, the feds are taking a record-setting bite out of private commerce and wealth – MAY 9, The Wall Street Journal

Nonprofit Org U S Postage PAID Permit 425 Southern MD ... END NOTES New York Senate
Nonprofit Org U S Postage PAID Permit 425 Southern MD ... END NOTES New York Senate
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Nonprofit Org U S Postage PAID Permit 425 Southern MD ... END NOTES New York Senate

New York Senate Proposes Criminalizing Machete Possession

The nannies in the New York State Senate have found another target of their tut-tutting: machetes Legislation passed in April would criminalize the procession of machetes with a penalty of up to a year in jail The vote was 54-5 and now awaits companion legislation from the Assembly The bill adds machetes to the list of deadly weapons in the state to include switchblades, gravity and ballistic knives, daggers, metal or plastic knuckles, and billy clubs and blackjacks “This oversight is surprising given the common knowledge that machetes have often been used as weapons and are actually defined as such in Webster’s dictionary— ‘Machete—a large heavy knife used for cutting sugarcane

and underbrush and as a weapon,’” said state Sen Tony Avella, a Queens Democrat leading the charge to outlaw the home and garden tool

Mayor Charged with Stealing 111 Road Signs

State police say an upstate New York mayor illegally provided his village with 111 road signs belonging to the state Department of Transportation (DOT) Frank Moracco was charged in April with official misconduct and petit larceny Investigators say Moracco works as a sign shop foreman for the New York DOT He’s accused of stealing the signs and giving them to the Herkimer County, New York, village of Frankfort Village clerk Karlee Tamburro told The Observer-Dispatch of Utica that Moracco will continue to serve as mayor and the Mohawk Valley village isn’t com- menting on the charges and Moracco did not comment on the charges

Film Censors Literally Watch Paint Dry for 10 Hours British filmmaker Charlie Lyne is well-known to contro - versy and recently decided to exact some revenge on the country’s film censors The British Board of Film Classification rates and classifies movies But unlike the U S , it is actually illegal to screen or sell an unrated film and the Board has veto power over all movie content Even worse, the Board forces filmmakers to pay for their censorship, with fees for feature films often running more than $1,000 Lyne decided to use crowdsourcing website Kickstarter to fund the most boring movie ever made As the price is based on the film’s runtime, the more money Lyne raised, the longer his pro- test film could be Over a month, 686 backers offered up $8,666 and the film, Paint Drying , is 607 minutes long

TSA Pays $47,400 for Randomizer App that Chooses Left or Right

Frequent travelers are aware of the two screening paths at U S airports: very invasive general screening with body scanners or less invasive PreCheck screening Those who haven’t enrolled in PreCheck are sometimes surprised to be “randomly” directed to the quicker lines by TSA personnel PreCheck enrollees are sometimes surprised, and angered, to be directed to general screening That’s where the Randomizer app comes in The app randomly directs travel- ers to go left or right, so fliers will not be able to figure out

how to get random checks However, the Randomizer comes at an astonishing cost According to government documents, the TSA paid IBM more than $47,400 to develop the app Programmers know that random number generators are one of the easiest applications to code and free coin flip pro - grams are widely available on the Internet