From: The Independent Institute <[EMAIL PROTECTED]> To: Lighthouse list members <[EMAIL PROTECTED]> Subject: THE LIGHTHOUSE: March 29, 2000 THE LIGHTHOUSE "Enlightening Ideas for Public Policy..." VOL. 2, ISSUE 11 March 29, 2000 Welcome to The Lighthouse, the e-mail newsletter of The Independent Institute, the non-partisan, public policy research organization <http://www.independent.org>. We provide you with updates of the Institute's current research, publications, events and media programs. In this week's issue: 1. Gas Prices and Gas Taxes 2. Pro Team Sports: Are Politics and Corruption Winning? -- Transcript Available 3. "To Serve and Protect" Wins More Accolades GAS PRICES AND GAS TAXES The recent spike in gasoline prices has some lawmakers clamoring for a cut in gas taxes -- which now average 43 cents per gallon. Unfortunately, much of this chatter is more symbolic than sincere. In a new op-ed, titled "Gas Prices, Gas Taxes and Saddam Hussein," economist William F. Shughart (Research Fellow, The Independent Institute) argues that "there is no political will in Washington for reducing the federal gas tax, not because the effect on price would be small, but because there is a powerful political constituency that is happy with the run-up in the price of gas." "It is true that a modest reduction in the federal excise tax on gasoline will do nothing to increase supply, at least in the short run," Shughart continues. "But government does not have to stand idly by, impotently wringing its hands about the recent actions of the OPEC cartel." For William Shughart's analysis of how to reduce both gas prices and America's reliance on foreign oil, see his op-ed at http://www.independent.org/tii/lighthouse/LHLink2-11-1.html. For information about the politics and economics of excise taxes, see the Independent Institute book, TAXING CHOICE: The Predatory Politics of Fiscal Discrimination, edited by William F. Shughart, at http://www.independent.org/tii/lighthouse/LHLink2-11-2.html. Also see the Independent Institute book, TAXING ENERGY: Oil Severance Taxation and the Economy, by R. Deacon, S. DeCanio, H. E. Frech, and M. B. Johnson, at http://www.independent.org/tii/lighthouse/LHLink2-11-3.html. PRO TEAM SPORTS: Are Politics and Corruption Winning? Transcript Available Many sports fans assume that government-owned and -subsidized sporting stadiums for local professional teams are a good, if not "essential," investment for municipalities. Not so, according to sports economists Roger Noll (Stanford Univ.) and Rodney Fort (Washington State Univ.). At their recent talks at The Independent Institute, Noll and Fort argued that new municipal stadiums do not raise tax revenue for the surrounding area; they merely reallocate the source of tax revenues by shifting consumer spending away from other activities, such as purchasing theater or concert tickets or restaurant meals. Furthermore, government stadiums help monopolistic sports leagues charge sports fans high ticket prices. On average, the economists said, two-thirds of the ticket price for a pro baseball, basketball, football or hockey game go to the multi-millionaire athletes and team owners -- a far greater share than would result in a competitive market unsupported by government subsidized sports stadiums. For the transcript of Roger Noll's and Rodney Fort's talks, "Pro Sports Teams: Are Politics and Corruption Winning?," see http://www.independent.org/tii/lighthouse/LHLink2-11-4.html. "TO SERVE AND PROTECT" WINS MORE ACCOLADES Bruce L. Benson, Senior Fellow at The Independent Institute and a leading authority on the economics of crime and punishment, continues to receive accolades for his recent book, TO SERVE AND PROTECT: Privatization and Community in Criminal Justice. In the journal THE RESPONSIVE COMMUNITY (Winter 1999/2000), David R. Karp writes, "Benson argues forcefully for returning the crime victim to the center of the justice process, and this is wholly consistent with emerging community justice and restorative justice philosophies.... It is a substantial and coherent work that provides theory with evidence. This makes it a book that cannot be easily dismissed, even if one is not as inclined as Benson is to trust in the 'power' of the free market. The irony for me, and I suspect for communitarians more generally, is that Benson arrives at many seemingly communitarian conclusions, but travels quite a different path to get there." And in the esteemed journal PUBLIC CHOICE (Vol. 102: pp. 175-178), economist Morgan O. Reynolds (Texas A & M Univ.) also praises Benson's book. "Ultimately, because Benson's work is solidly anchored in historical reality, the logic in favor of a fully private justice system is surprisingly convincing, especially since he advocates it on an incremental and decentralized basis.... Perhaps Benson's most arresting evidence comes from Japan, Inc. Japan has the lowest crime rate among industrialized nations by far, and only Japan's crime rates have fallen continuously since World War II. A primary reason, claims Benson, is that the system is more privatized and victim-oriented than ours is.... Benson's daring conclusion -- privatize both the demand for and the supply of criminal justice services -- leaves us with a wealth of provocative diagnoses and examples for further research.... Benson has given us a breakthrough book." For more on Bruce Benson's book, TO SERVE AND PROTECT: Privatization and Community in Criminal Justice, see http://www.independent.org/tii/lighthouse/LHLink2-11-5.html. For information on becoming a member of The Independent Institute, see http://www.independent.org/tii/lighthouse/LHLink2-11-6.html. For information on books and other publications from The Independent Institute, see http://www.independent.org/tii/lighthouse/LHLink2-11-7.html. 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