‘What’s New’ A recent Nikkei survey has found that over 60 percent of Japanese in their late twenties and early thirties are planning to change jobs, and indeed, 62 percent of all respondees said that they had already switched jobs at least once. Clearly the old system of lifetime employment really is breaking down. Or is it? We believe that there are indeed some age-linked social factors at work, which are dislodging a large number of people from secure employment. The above 50s are getting sacked in droves — Mizuho just announced that they would be seeking “voluntary” retirement from up to 5,000, around 15 percent, of its staff. And the under 25s can’t get work and at least 60 percent of the 1.4 m or so new graduates next year are going to be stuck in Hello Work offices, trying to get anything to get their careers started. But we think that Nikkei’s survey is a bit misleading. A better predictor of whether Japan is truly changing would have been to survey people aged 35-45 years old. This is age group is the bedrock of the workforce. It’s when most Japanese are buying homes and having families — and if there was still a 60+ percent level of people wanting to switch jobs — then we’d be sitting up and taking notice. The fact is that a generation ago young Japanese wanted to start families in their twenties, but now they’re wealthy enough (well, their parents are anyway) to want to play around for 10 years or so longer before settling down and getting serious. So, if you read about that survey and were hoping to recruit some prime-time mid-career candidates, you probably shouldn’t rely on changing demographics to fix your staffing problems. We believe that most of the “prime-timers” are staying right where they are. Several weeks ago we announced that Japan Inc. has just started a new newsletter called MoneyWatch. This excellent weekly analysis of Japan’s macro fiscal policy — but written for the layman — is by the talented Darrel Whitten. Unfortunately, what we didn’t tell you is that there was a glitch on the sign-up Web form and if you subscribed, you didn’t get registered with the system. So, if you’d like to stay up to speed on what’s wrong with Japan’s banks and what the government needs to do to fix the current deflationary spiral, then head over to — https://www.japaninc.com/newsletters/index.html?list=mw to see the latest issue, and sign up. Like all of our other online publications, it’s free. on to” https://www.terrie.com/ ”Sent out every Monday, Terrie’s Take offers an insider’s comments on Japan’s high-tech business world, with a focus on strategies and financing. Writer Terrie Lloyd is publisher of J@pan Inc and president of LINC Media, a Tokyo-based digital incubator (offspring include Layer 8 Technologies, BiOS, J-Door, and DaiJob.com). Whereas J@pan Inc is an independent editorial product, this newsletter allows Lloyd to have his say and wheel and deal to his audience, which he’s built up over the past two years. To see the newsletter, log on to” https://www.terrie.com/

‘What’s New’ A recent Nikkei survey has found that over 60 percent of Japanese in their late twenties and early thirties are planning to change jobs, and indeed, 62 percent of all respondees said that they had already switched jobs at least once. Clearly the old system of lifetime employment really is breaking down. Or is it? We believe that there are indeed some age-linked social factors at work, which are dislodging a large number of people from secure employment. The above 50s are getting sacked in droves — Mizuho just announced that they would be seeking “voluntary” retirement from up to 5,000, around 15 percent, of its staff. And the under 25s can’t get work and at least 60 percent of the 1.4 m or so new graduates next year are going to be stuck in Hello Work offices, trying to get anything to get their careers started. But we think that Nikkei’s survey is a bit misleading. A better predictor of whether Japan is truly changing would have been to survey people aged 35-45 years old. This is age group is the bedrock of the workforce. It’s when most Japanese are buying homes and having families — and if there was still a 60+ percent level of people wanting to switch jobs — then we’d be sitting up and taking notice. The fact is that a generation ago young Japanese wanted to start families in their twenties, but now they’re wealthy enough (well, their parents are anyway) to want to play around for 10 years or so longer before settling down and getting serious. So, if you read about that survey and were hoping to recruit some prime-time mid-career candidates, you probably shouldn’t rely on changing demographics to fix your staffing problems. We believe that most of the “prime-timers” are staying right where they are. Several weeks ago we announced that Japan Inc. has just started a new newsletter called MoneyWatch. This excellent weekly analysis of Japan’s macro fiscal policy — but written for the layman — is by the talented Darrel Whitten. Unfortunately, what we didn’t tell you is that there was a glitch on the sign-up Web form and if you subscribed, you didn’t get registered with the system. So, if you’d like to stay up to speed on what’s wrong with Japan’s banks and what the government needs to do to fix the current deflationary spiral, then head over to — https://www.japaninc.com/newsletters/index.html?list=mw to see the latest issue, and sign up. Like all of our other online publications, it’s free. on to” https://www.terrie.com/ ”Sent out every Monday, Terrie’s Take offers an insider’s comments on Japan’s high-tech business world, with a focus on strategies and financing. Writer Terrie Lloyd is publisher of J@pan Inc and president of LINC Media, a Tokyo-based digital incubator (offspring include Layer 8 Technologies, BiOS, J-Door, and DaiJob.com). Whereas J@pan Inc is an independent editorial product, this newsletter allows Lloyd to have his say and wheel and deal to his audience, which he’s built up over the past two years. To see the newsletter, log on to” https://www.terrie.com/

A big thank you goes to our Web site advertisers.

”J.S. Services Inc., The Employee Leasing Professionals”

J.S. Services Inc., Hawaii’s Employee Leasing Professionals, enables companies to lease their employees rather than employ them directly — a service that has numerous benefits for business owners and managers.

The leasing process allows the principals of any given company to concentrate on expanding and enhancing their business, services and products, rather than being distracted by government filing requirements and managing payroll and employee benefits.

For example, J.S. Services pays all TDI Insurance and Workers’ Compensation Insurance, FICA Taxes, withholds State and Federal taxes and SUTA and FUTA Assessments, and files all required State and Federal Employee related reports. The company also provides year-end W-2 Forms and direct deposit of paychecks.

(Note: HawaiiReporter.com has been a client of J.S. Services for the last year, which has allowed the principals of the company to focus on reporting the news, building the subscriber base, providing better systems and services, and expanding the company).

One of the most popular benefits is the group medical coverage because J.S. Services has the ability to negotiate better rates through its group plan. Business owners in Hawaii have to pay medical care costs for employees who work more than 19 hours per week, a mandate on business owners since 1974 when the Hawaii’s Prepaid Health Care Act was passed by the state Legislature. However, many small business owners decline covering themselves in order to pay for their employees and their employees’ families coverage, while other small business owners cannot get affordable group coverage because their company is too small and the three remaining medical providers refuse to offer them comparable benefits.

J.S. Services President Jack Schneider says his leasing service gives employers freedom from government payments, forms and reports; reduction in bookkeeping and accounting costs; more capital conserved by not having to prepay required insurance coverage; and increased control over actual labor costs.

“We give employers more time to do what they do best –

A big thank you goes to our Web site advertisers. ‘J.S. Services Inc., The Employee Leasing Professionals’ J.S. Services Inc., Hawaii’s Employee Leasing Professionals, enables companies to lease their employees rather than employ them directly — a service that has numerous benefits for business owners and managers. The leasing process allows the principals of any given company to concentrate on expanding and enhancing their business, services and products, rather than being distracted by government filing requirements and managing payroll and employee benefits. For example, J.S. Services pays all TDI Insurance and Workers’ Compensation Insurance, FICA Taxes, withholds State and Federal taxes and SUTA and FUTA Assessments, and files all required State and Federal Employee related reports. The company also provides year-end W-2 Forms and direct deposit of paychecks. (Note: HawaiiReporter.com has been a client of J.S. Services for the last year, which has allowed the principals of the company to focus on reporting the news, building the subscriber base, providing better systems and services, and expanding the company). One of the most popular benefits is the group medical coverage because J.S. Services has the ability to negotiate better rates through its group plan. Business owners in Hawaii have to pay medical care costs for employees who work more than 19 hours per week, a mandate on business owners since 1974 when the Hawaii’s Prepaid Health Care Act was passed by the state Legislature. However, many small business owners decline covering themselves in order to pay for their employees and their employees’ families coverage, while other small business owners cannot get affordable group coverage because their company is too small and the three remaining medical providers refuse to offer them comparable benefits. J.S. Services President Jack Schneider says his leasing service gives employers freedom from government payments, forms and reports; reduction in bookkeeping and accounting costs; more capital conserved by not having to prepay required insurance coverage; and increased control over actual labor costs. “We give employers more time to do what they do best -? run their business,” Schneider says. He assures employers the process is simple: “We transfer employees to our payroll and then lease them back. The only thing employers have to do is provide us with the amounts for salaried personnel or the hourly amounts for hourly personnel, plus any changes that have occurred since the last pay period. Then J.S. Services will do all the rest.” For more information, call J.S. Services at (808) 596-2727 or Toll-Free at (800) 495-2323 or send email at: mailto:manager@jsservices-hawaii.com See the company’s Web site at https://www.JSServices-Hawaii.com ‘Small Business Hawaii, A Strong, Statewide, No-Nonsense Association with Business “Clout” and 28 Years Experience’ Small Business Hawaii (SBH) is unique in Hawaii and the U.S. Mainland among business and trade associations as it is the only completely private, independent, statewide small business association operated entirely by business owners, for business owners. Led by President Sam Slom, a Republican state Senator, SBH is known for its independent voice and for being Hawaii’s most effective small business advocacy organization, not afraid to take any position in support of its members. The organization was founded 28 years ago by local businessman Lex Brodie to provide effective advocacy for growing numbers of very small businesses, but has always accepted within its membership any size business interested in working to improve Hawaii’s business climate. Its influence in business issues, such as taxation, mandated benefits, health care, privatization and educational partnerships, has crossed America and gone international. Small Business Hawaii neither accepts, nor solicits, any government tax or grant money, nor does it take a financial interest in any benefit or group program offered. Reasonable voluntary member dues — $175 per year or $300 for two years — support the organization and active member participation determines the organization’s direction and effectiveness. A small, professionally-experienced business staff operates the association and delivers ever-increasing group member benefits to more than 2,500 businesses, and information to the public, throughout Hawaii. The staff is augmented by a dedicated volunteer Board of Directors and by members who give their time to help others. Small Business Hawaii operates as any small business and its business owner-members take an active leadership role in the community, working to make positive economic changes. Despite Hawaii’s current economic problems, SBH is optimistic for the future of the 50th State and is working for change. Slom, president and executive director of the non-profit organization, says Small Business Hawaii membership is open to any Hawaii business with a current Hawaii General Excise Tax License willing to actively support Small Business Hawaii’s basic principles: the private, competitive market system, and improvement of Hawaii’s business climate. “No firm is too small — or too large — to become a member and help achieve SBH objectives,” Slom says. Some of the benefits of membership are networking, information, education, business services and a choice of many kinds of group benefits. There also are advisory and consulting services for business problems at little or no additional cost to members; an active member referral service and annual Referral Directory; special member product and services discounts; and a full-time staffed office and Small Business Resource Services Center. Other benefits are Group Temporary Disability Insurance, Group Workers’ Compensation Plan and Group Business Auto Insurance. Membership dues include a subscription to the monthly Small Business News; invitations to “Share ‘n Tell” (TM) Business Forums, the SBH “Sunrise Networking Breakfasts,” special technical workshops/seminars, the Annual SBH Business Conference and co-sponsored professional business conferences throughout the year. More benefits are listed at https://www.smallbusinesshawaii.com For more information, call (808) 396-1724 or email at mailto:sbh@lava.net ‘Winners Camp’ Delorese Gregoire has dedicated the last 20 years of her life to what many parents dread — those teenage years. Since founding Winners? Camp two decades ago, Gregoire has taken 12,000 teenagers and 600 support staff and molded them into leaders through her 7-day camps by helping them find and use their talents. She also has helped coordinate similar events for corporations across the state whose executives feel they will benefit from such motivational retreats. Before 2001, Winners? Camp was located on the island of Kauai, but that year Gregoire convinced landowner Kamehameha Schools to let her move Winners? Camp to a three-and-a-half acre property on the edge of Kamehame Ridge. Once a Nike Missile Site, the dilapidated facility had four main buildings covered with cracks, weeds, graffiti; the buildings had broken windows and no doors; and the surrounding area was consumed by brush, rubbish and old tires. But Gregoire saw only the great potential of the camp, which sits on the edge of an emerald mountain range overlooking a stunning view of the sunrise over the Pacific Ocean. So she got to work, gathering volunteers from Small Business Hawaii, U.S. Military, Rotary, Elks, Winners? Camp graduates and local churches who helped with the clean-up effort and donations. Today, the camp sparkles with all of the potential she envisioned 5 years ago. Gregoire gave up her small business 20 years ago to focus full time on her family and running Winners’ Camp. She grew up in a series of abusive foster homes, and says she knows firsthand how important it is to enhance the lives of children, give them the tools they need to succeed and stay on the right path. Kids who participate in Winners? Camp learn to break through self-imposed limitations and learn goal setting, better study habits, memorization tips, visualization, creative thinking, quick note taking, self-management methods, team building and conflict resolution skills. To get involved or to sign up a child for Winners? Camp and the Hawaii Leadership Academy, call (808) 923-8844 or (808) 306-8008, email mailto:success@Winners?camp.com or log onto https://www.Winners?camp.com Camps are scheduled during Spring break and in the summer months. The next camps are March 19-25th and March 26-April 1st. ‘Catholicism without the Guilt’ Father Maurice G. McNeely, who headed Holy Family Catholic Academy and Church for nearly two decades, has just released his book, Catholicism Without the Guilt. McNeely?s charisma, words of wisdom, hope he offers his parishioners, and down-to-earth approach to Catholic teachings and the Catholic faith, attracted thousands of people to his masses in Waikiki, Holy Family and the Cathedral. A chaplain in Vietnam during the war, McNeely also gives interesting perspectives on military-related issues. Recently relocated to Las Vegas, NV., McNeely continues to touch the lives of many people from Hawaii as well as people from around the world who attend mass at the Shrine of the Most Holy Redeemer on 55 East Reno Avenue. His masses are so popular, sometimes there is standing room only in a church that can hold thousands of people. Now his words of wisdom are in print. Fr. Paul L. Bianchi, who reviewed the book, says: “A professor I once knew had this to say about the teaching of others: ‘Challenge them; make them think; cause them to laugh. That’s the atmosphere that leads to wisdom.’ If that’s true, Father McNeely has indeed provided the atmosphere. The wisdom part is up to us.” The 196-page book – Catholicism without the Guilt (ISBN: 1598007645) can be purchased for $25 through Amazon.com ? search for ?Maurice McNeely? or in the book store of Shrine of the Most Holy Redeemer in Las Vegas, Nevada (Phone: (702) 891-8600) ‘Association for Improved Healthcare on Maui’ Association for Improved Healthcare on Maui?s mission is to serve as an advocate for the creation of a system that will provide excellent healthcare services to all of the citizens and visitors of Maui County. Association for Improved Healthcare on Maui will first focus on our most acute needs of a private, state of the art, full service, teaching hospital in Kihei; and a private hospital in West Maui. * All of the people of Maui deserve equal and excellent healthcare. * Maui island needs two additional hospitals. * As Maui County is a healing place, we should diversify our economy with Medical Tourism. * Maui needs a healthcare system that will provide excellent healthcare services to all of the citizens and visitors of Maui County. * Governmental and political constraints are preventing a second hospital in Kihei or a satellite hospital in West Maui. * Facilities and services of MMMC should be improved. * Hospitals on Molokai and Lanai?i should be improved. * Remote areas of Maui County need outreach clinics. * Maui needs health link by telemedicine and rapid patient recovery by Air Helicopter Ambulance. For more information or to get involved with this organization (open to all islands), contact Jan Shields L.V.T., B.S.N., R.N.C. at the Association for Improved Healthcare on Maui, P.O. Box 11420, Lahaina, Maui, HI 96761-6420; by mailto:information@AIHM-maui.com or by phone at (Cell) 808-298-8886; (Fax) 808-573-5468

“Malia headshot Image”

”HawaiiReporter.com Launches New Interactive Government Watch Story

“Malia headshot Image”

”HawaiiReporter.com Launches New Interactive Government Watch Story

”Summary”

This report is submitted in response to Section 41 of Act 259, Session Laws of Hawaii (SLH) 2001, which directed the State Auditor to conduct a comprehensive study of the automated child support enforcement system (KEIKI) of the Department of the Attorney General. Act 259 also required that the study include the status and
measures of effectiveness of KEIKI’s implementation, effectiveness of the department’s Child Support Enforcement Agency in addressing client problems, a review of other states’ successfully implemented automated systems, and recommendations on an action plan to improve the agency.

The Legislature requested the study to explore ways to make KEIKI more responsive and accurate. In addition, the Legislature wanted to examine ways to improve and streamline the Child Support Enforcement Agency’s organizational structure and balance the agency’s customer service requirements with the primary responsibility of making payments to custodial parents. Through a
competitive bid process, Experio Solutions was selected as the consultant to conduct the study. This is a report of the consultant’s findings and recommendations.

The consultant found that KEIKI’s effectiveness is limited by the manner in which it is designed and used by the Child Support Enforcement Agency. The consultant stated that KEIKI has capabilities that are not being fully exploited by the agency and the agency is not converting data being captured into information to support management, planning, and operational control. For example, the agency has not developed a strategic plan and workflow planning and control information are not used effectively.

The consultant also found that the agency has made improvements in customer service but has not yet established a culture of customer service; customer service still needs numerous improvements. The agency administrator has not defined what constitutes adequate or excellent customer service or measures of effectiveness for customer service. In addition, telephone customer support continues to be
unacceptable. Fewer than 60 percent of callers entered the telephone queue and under 50 percent eventually talked to an agency representative.

The consultant further found that other states face similar challenges in information systems but some of these states are able to use their automated systems effectively to improve child support enforcement services. The consultant stated that Hawaii may benefit from adopting the best practices used by these states. These best practices primarily concern the use of automation to streamline formerly manual processes and with interfaces and access to data, such as Federal Case Registry, that was previously unavailable.

The consultant found that although the agency has attempted to address recommendations made by the Auditor in prior reports, the agency has yet to address key recommendations relating to leadership, strategic planning, information technology, and organizational and customer service strategies. The consultant
concluded that the agency’s failure to implement the Auditor’s recommendations has perpetuated many of the problems the agency currently faces.

Finally, the consultant identified three root causes within the Child Support Enforcement Agency that inhibit it from achieving its mission and goals.

*Root Cause 1: Lack of focus on strategic definition;

*Root Cause 2: Lack of full exploitation of system capabilities; and

*Root Cause 3: Deficiencies in training.

”Recommendations and Response”

The consultant recommended an action plan to provide the agency a road map for reducing or eliminating these root causes. The action plan includes recommendations, action steps, proposed completion dates, and estimated costs. In general, the consultant recommended that the agency establish an executive steering committee, reorganize the KEIKI steering committee under the executive steering committee, and establish a customer service committee. The consultant also recommended that each committee develop strategic plans with defined missions, roles, responsibilities, and performance expectations relevant to each committee’s areas. The consultant also recommended that the agency develop a training program, use industry best practices to implement a decision support system and replace its voice response system, install a new tape backup system,
and identify greater use of the Internet.

The department responded that overall it was pleased with the outcome of the report. The department concurred with the consultant’s findings and recommendations relating to strategic planning, the majority of the consultant’s action plan, using other states’ best practices, formalizing a training program, replacing its voice response unit system, and gathering more detailed information
on customer service needs. The department also provided clarifying information regarding conditional certification, certification statuses of other states, and the agency’s cost-effectiveness ratio. However, the department did not agree with statistical data cited in the background section of the report relating to addresses and with the audit finding that only 50 percent of callers received responses.
Agreeing with the agency’s methodology of calculating missing addresses, the consultant adjusted the data in the report related to missing addresses of custodial and noncustodial parents. However, the consultant stands by its numbers in reporting the percentage of telephone callers who receive responses from the agency.

For complete report, go to:
https://www.state.hi.us/auditor/Years/2003reports.htm

“Dick Rowland Image”

”Shoots (News, Views and Quotes)”

– Publicly Funded School Vouchers are Available to Few Students

In recent history, courts have worked to push religion out of public
life. Sectarian institutions, in fact, were admitted to the public
square only insofar as they secularized their activities and kept their
religion behind closed doors. Consequently, many now fear that publicly funded school choice will undermine religious schools’ missions.

However, observers conclude that given the extraordinary hullabaloo
surrounding school choice’s recent victory in the Supreme Court, it’s
surprising to realize how few choices are actually being made.

*Cleveland offers educational vouchers to just over 3,700 of the city’s 75,000 students.

*n Milwaukee, 10,739 students — about 10 percent of the city’s schoolchildren — attend a school of their choice with public support.

*And in Florida, which maintains the country’s first and only statewide school choice program, only 50 students currently receive vouchers.

*All told, the nation’s three publicly funded voucher programs offer educational options to about 0.0003 percent of American students.

Both the Cleveland and Milwaukee programs force participating schools to relinquish control of their admissions policies. Admissions decisions must be made by lottery, ensuring nondiscriminatory access. These regulations, and concern about further state intervention in school administration, prompted the Milwaukee Archdiocese to urge 37 parochial schools not to participate in the program. The Wisconsin Evangelical Synod’s 18 parish schools in Milwaukee are not, for the most part, accepting voucher children. In this way, Milwaukee is representative of a larger trend.

A 1998 report by the Department of Education found that 46 percent of religious schools in 22 urban areas nationwide would not participate in a school choice program that required a lottery system in admissions. Fully 86 percent of religious schools would refuse to participate in a program that required them to offer exemptions from religious activities.

Source: Steven Menashi, “The Church-State Tangle,” Policy Review,
August-September 2002, Hoover Institution.

For Hoover Institution text

https://www.policyreview.org/AUG02/menashi.html

For more on Vouchers
https://www.ncpa.org/iss/edu

– Federal Agencies’ Accounting Would Not be Tolerated in Private
Sector

Year after year, auditors studying the financial records of federal
departments find many of them so disorganized, even chaotic, that the agencies cannot account for tens of billions of dollars. So officials
simply enter multibillion-dollar balance adjustments — thereby writing off the money.

Mitchell E. Daniels Jr., director of the Office of Management and
Budget, has written to Congress that the government’s accounts “would never be tolerated in the private sector,” adding that “repair of a system so badly broken will not happen overnight.”

In part to embarrass the agencies, the budget office this year began
rating the 24 largest departments — scoring each green, yellow or red. Green indicates that the agency’s financial systems are acceptable, yellow that they are troubled but improving and red that there are serious, chronic problems.

*In June, only one agency was rated green — the tiny National Science Foundation.

*Twenty were rated red.

*In the fiscal year ended Sept. 30, 2000, the Department of Defense entered unsubstantiated balance adjustments totaling $1.1 trillion — down from $2.3 trillion the previous year.

*In addition to Defense, the books of the Agriculture Department, NASA and the Agency for International Development were in such chaos they were not auditable in 2000-2001.

The Internal Revenue Service is unable to produce a hard figure
for the amount of tax payments due the government — relying instead on a statistical sample of taxes due from which it derives an estimate.

All told, for the 2000-2001 fiscal year, the Treasury Department entered a balance deduction from the government’s general fund of $17.3 billion to make up for financial errors throughout the government.

Source: Joel Brinkley, “Auditors Say U.S. Agencies Lose Track of
Billions,” New York Times, October 14, 2002.

For text

https://www.nytimes.com/2002/10/14/politics/14ACCO.html

For more on Government Mismanagement
https://www.ncpa.org/iss/gov

”Roots (Food for Thought)”

– Liberal Academic Shoots Down the Precautionary Principle

Author: James M. Taylor

Published: The Heartland Institute 07/01/2002

The Precautionary Principle-a popular theory holding that speculative, unproven environmental risks are entitled to primacy in any environmental debate so long as any risks exist-has been harshly criticized in a just-released law and economics paper.

While a thoughtful analysis finding fatal flaws in the Precautionary Principle is neither a new development or unique, what makes “Beyond the Precautionary Principle” noteworthy is its author: University of Chicago law professor and prominent liberal theorist Cass Sunstein.

Reminiscent of Bjorn Lomborg’s groundbreaking book, The Skeptical
Environmentalist, Sunstein’s dismissal of the Precautionary Principle is a dagger in the heart of speculative claims made by left-wing
environmental activist groups.

Sunstein’s liberal leanings, as well as his academic credentials, are
strongly established. He is the Karl. N. Llewellyn Distinguished Service Professor of Jurisprudence in the Law School and Department of Political Science at the University of Chicago. He has taught law at Harvard and Columbia.

And, importantly, he has written such articles as “Originalism for
Liberals,” “Why We Should Celebrate Paying Taxes,” “The Courts’ Perilous Right Turn,” and “Environmentalism and Economics.”

Defining Terms

Sunstein begins the paper by clearing up some ambiguities about what the Precautionary Principle means.

In its most benign form, some interpret the principle simply to mean “that a lack of decisive evidence of harm should not be a ground for refusing to regulate.” This interpretation basically means that if the evidence is mixed we may still find it desirable to regulate.

Such an interpretation reflects common sense. However, environmental activists go much further in defining what the Precautionary Principle requires. According to the widely publicized Wingspread Declaration, from a meeting of environmental activist groups in 1998, “When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not established scientifically.”

A quick glance may call to mind the old saying, “better safe than
sorry.” But a closer examination of both the declaration’s language and its real-world application show a categorically more intrusive intent.

Decision-making Paralysis

The Wingspread Declaration of the Precautionary Principle, reasons
Sunstein, is undesirable because “the threshold is minimal, and once it is met, there is something like a presumption in favor of stringent
regulatory controls.”

“The principle is literally paralyzing,” explains Sunstein, “forbidding
inaction, stringent regulation, and everything in between.” Such
paralysis occurs because all societal decisions, including the decision
not to act at all, entail risks of harm. Sunstein offers several
illustrations:

*The justification for a reduced arsenic level in public drinking water is that by reducing arsenic from 50 parts per billion (ppb) to 10 ppb, over 100 lives per year might be saved. At first blush, the Precautionary Principle would seem to call for the stricter standard, as this would effectuate the principle’s bias toward preserving human health.

However, like virtually all decisions, there is a countervailing risk to the stricter standard. As water costs climb due to the added purification steps, rural and poorer citizens will increase the use of free well water. Ironically, by using more well water, these residents will be exposed to higher arsenic levels than if the 50 ppb standard were never abridged.

Either decision, therefore, runs afoul of the Precautionary Principle, resulting in a paralysis of decision.

*Many environmental activists cite the Precautionary Principle to justify a ban on genetic food enhancements. Even though no adverse effects of genetically enhanced foods have been discovered, such side effects may someday be found.

*1. The Precautionary Principle cuts both ways here, too. Genetically enhanced crops are more productive than the crops they replace, resulting in cheaper and more available food. Not allowing biotechnology to advance could cause more malnutrition, malnutrition-related health complications, and even third-world starvation.

*2. The Precautionary Principle can be invoked to prevent the low-but-theoretically-possible emergence of adverse human health effects … or to prevent over-regulation of promising new ways to relieve human suffering caused by malnutrition. Once again, the result is a paralysis of decision.

* Global warming may occur, resulting in a broad range of potential harms. Here, many environmental activists call for a drastic reduction in the emission of greenhouse gases, pursuant to the Precautionary Principle. However, reducing greenhouse gas emissions would entail stunning economic costs, diverting money from many health programs and putting at risk the lives of countless world citizens. Once again, the Precautionary Principle gives little guidance for policy decision-making.

*The use of nuclear power carries with it a small but theoretically possible risk of a plant meltdown and resulting tragedy. According to many environmental activists, the Precautionary Principle therefore prohibits the use of nuclear power. The cost of foregoing nuclear power, though, is greater reliance on fossil fuels, which cause their own environmental harms and pose greater safety risks to workers. The Precautionary Principle can be employed either on behalf of or against nuclear power.

Popular in Spite of its Flaws

According to Sunstein, there are several reasons why the Precautionary Principle has gained popularity despite its unavoidable contradictions. These include:

*Loss aversion. People are more concerned about losing what they have than missing out on what they might potentially gain. By seemingly supporting a presumption in favor of the status quo, the Precautionary Principle is marketed as a form of societal risk aversion.

*Visible versus less-visible concerns. The Precautionary Principle is generally invoked to deter high-visibility risks … often at the price of increasing less visible, but equally probable, risks. Even if two hazards pose a similar threat to human life, the one that captures more public concern will be the one defended by proponents of the Precautionary Principle.

*Probability neglect. People often invoke the precautionary principle against low-risk activities, when a proper probability analysis will show the invocation actually leads to greater risks in other contexts. A lack of issue awareness and education leads to the neglect of proper probability analysis.

*System neglect. Many people see only the harm that is to be prevented, ignoring the indirect and unintended consequences either of action or inaction. The problem is commonplace in economics: In the case of free trade, for example, people may see the jobs that move to Mexico but fail to understand how specialization and lower consumer prices create much greater long-term benefits for the U.S.

Risk Reduction by More Rational Means

Proponents of the Precautionary Principle fail to recognize that all resources-including the time, effort, and money available to reduce risk-are limited, Sunstein explains. Resources invested in deterring low-probability risks are not available to deter higher-probability risks.

The Precautionary Principle “is a crude and sometimes perverse way” of managing risk, Sunstein concludes. Policymakers “need to use more direct effective strategies to pursue the salutary goals of risk regulation.” That requires a “fair accounting of the universe of dangers,” says Sunstein: a careful balancing of the costs and benefits of inaction, regulation, and everything between.

Only after such an accounting has been made can risk-management resources be invested where they will achieve the most “bang for the buck” … and that should be the ultimate goal.

“A rational system of risk regulation certainly takes precautions,”
concludes Sunstein. But it does not adopt the precautionary principle.”

For more information …

Cass Sunstein’s University of Chicago working paper, “Beyond the Precautionary Principle,” is available through PolicyBot as document #2313446.

You can also search PolicyBot for the topic/subtopic combination
Environment/Cost Benefit Analysis and Risk Assessment. More than 80 documents are available on the topic.

Environment & Climate News has covered the precautionary principle often in past issues. See, for example, “Precautionary Principle at odds with science” (September 2001), “ICCS conference tackles the precautionary principle” (December 2000), and “Precautionary Foolishness” (December 2000).

Web Site of the Week

Reason Public Policy Institute (RPPI) has a long and close relationship to Hawaii. Bob Poole, founder of the Reason Foundation has visited numerous times to discuss transportation, privatization and other issues at seminars, meetings with legislators etc. The Executive Director of RPPI, Adrian Moore, was the speaker at last year’s Tax Foundation of Hawaii annual luncheon. Our own Cliff Slater is on adjunct scholar for RPPI. It is our plan to use RPPI extensively in counseling/advising the Lingle administration and County Councils on budget control, results based management, transportation and other critical policy issues. Visit the RPPI Web site at: https://www.rppi.org.

”Evergreen (Today’s Quote)”

If man is to continue his self-improvement, he must be free to exercise the powers of choice with which he has been endowed….He must be free to either enjoy or endure the consequences of each decision, because the lesson it teaches is the sole purpose of experience — the best of all
i.rr.com or (808) 487-4959.”’
– F.A. Harper

”’See Web site”’ https://www.grassrootinstitute.org ”’for further information. Join its efforts at “Nurturing the rights and responsibilities of the individual in a civil society. …” or email or call Grassroot of Hawaii Institute President Richard O. Rowland at mailto:grassroot@hawaii.rr.com or (808) 487-4959.”’

Dick Rowland Image ‘Shoots (News, Views and Quotes)’ – Publicly Funded School Vouchers are Available to Few Students In recent history, courts have worked to push religion out of public life. Sectarian institutions, in fact, were admitted to the public square only insofar as they secularized their activities and kept their religion behind closed doors. Consequently, many now fear that publicly funded school choice will undermine religious schools’ missions. However, observers conclude that given the extraordinary hullabaloo surrounding school choice’s recent victory in the Supreme Court, it’s surprising to realize how few choices are actually being made. *Cleveland offers educational vouchers to just over 3,700 of the city’s 75,000 students. *n Milwaukee, 10,739 students — about 10 percent of the city’s schoolchildren — attend a school of their choice with public support. *And in Florida, which maintains the country’s first and only statewide school choice program, only 50 students currently receive vouchers. *All told, the nation’s three publicly funded voucher programs offer educational options to about 0.0003 percent of American students. Both the Cleveland and Milwaukee programs force participating schools to relinquish control of their admissions policies. Admissions decisions must be made by lottery, ensuring nondiscriminatory access. These regulations, and concern about further state intervention in school administration, prompted the Milwaukee Archdiocese to urge 37 parochial schools not to participate in the program. The Wisconsin Evangelical Synod’s 18 parish schools in Milwaukee are not, for the most part, accepting voucher children. In this way, Milwaukee is representative of a larger trend. A 1998 report by the Department of Education found that 46 percent of religious schools in 22 urban areas nationwide would not participate in a school choice program that required a lottery system in admissions. Fully 86 percent of religious schools would refuse to participate in a program that required them to offer exemptions from religious activities. Source: Steven Menashi, “The Church-State Tangle,” Policy Review, August-September 2002, Hoover Institution. For Hoover Institution text https://www.policyreview.org/AUG02/menashi.html For more on Vouchers https://www.ncpa.org/iss/edu – Federal Agencies’ Accounting Would Not be Tolerated in Private Sector Year after year, auditors studying the financial records of federal departments find many of them so disorganized, even chaotic, that the agencies cannot account for tens of billions of dollars. So officials simply enter multibillion-dollar balance adjustments — thereby writing off the money. Mitchell E. Daniels Jr., director of the Office of Management and Budget, has written to Congress that the government’s accounts “would never be tolerated in the private sector,” adding that “repair of a system so badly broken will not happen overnight.” In part to embarrass the agencies, the budget office this year began rating the 24 largest departments — scoring each green, yellow or red. Green indicates that the agency’s financial systems are acceptable, yellow that they are troubled but improving and red that there are serious, chronic problems. *In June, only one agency was rated green — the tiny National Science Foundation. *Twenty were rated red. *In the fiscal year ended Sept. 30, 2000, the Department of Defense entered unsubstantiated balance adjustments totaling $1.1 trillion — down from $2.3 trillion the previous year. *In addition to Defense, the books of the Agriculture Department, NASA and the Agency for International Development were in such chaos they were not auditable in 2000-2001. The Internal Revenue Service is unable to produce a hard figure for the amount of tax payments due the government — relying instead on a statistical sample of taxes due from which it derives an estimate. All told, for the 2000-2001 fiscal year, the Treasury Department entered a balance deduction from the government’s general fund of $17.3 billion to make up for financial errors throughout the government. Source: Joel Brinkley, “Auditors Say U.S. Agencies Lose Track of Billions,” New York Times, October 14, 2002. For text https://www.nytimes.com/2002/10/14/politics/14ACCO.html For more on Government Mismanagement https://www.ncpa.org/iss/gov ‘Roots (Food for Thought)’ – Liberal Academic Shoots Down the Precautionary Principle Author: James M. Taylor Published: The Heartland Institute 07/01/2002 The Precautionary Principle-a popular theory holding that speculative, unproven environmental risks are entitled to primacy in any environmental debate so long as any risks exist-has been harshly criticized in a just-released law and economics paper. While a thoughtful analysis finding fatal flaws in the Precautionary Principle is neither a new development or unique, what makes “Beyond the Precautionary Principle” noteworthy is its author: University of Chicago law professor and prominent liberal theorist Cass Sunstein. Reminiscent of Bjorn Lomborg’s groundbreaking book, The Skeptical Environmentalist, Sunstein’s dismissal of the Precautionary Principle is a dagger in the heart of speculative claims made by left-wing environmental activist groups. Sunstein’s liberal leanings, as well as his academic credentials, are strongly established. He is the Karl. N. Llewellyn Distinguished Service Professor of Jurisprudence in the Law School and Department of Political Science at the University of Chicago. He has taught law at Harvard and Columbia. And, importantly, he has written such articles as “Originalism for Liberals,” “Why We Should Celebrate Paying Taxes,” “The Courts’ Perilous Right Turn,” and “Environmentalism and Economics.” Defining Terms Sunstein begins the paper by clearing up some ambiguities about what the Precautionary Principle means. In its most benign form, some interpret the principle simply to mean “that a lack of decisive evidence of harm should not be a ground for refusing to regulate.” This interpretation basically means that if the evidence is mixed we may still find it desirable to regulate. Such an interpretation reflects common sense. However, environmental activists go much further in defining what the Precautionary Principle requires. According to the widely publicized Wingspread Declaration, from a meeting of environmental activist groups in 1998, “When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not established scientifically.” A quick glance may call to mind the old saying, “better safe than sorry.” But a closer examination of both the declaration’s language and its real-world application show a categorically more intrusive intent. Decision-making Paralysis The Wingspread Declaration of the Precautionary Principle, reasons Sunstein, is undesirable because “the threshold is minimal, and once it is met, there is something like a presumption in favor of stringent regulatory controls.” “The principle is literally paralyzing,” explains Sunstein, “forbidding inaction, stringent regulation, and everything in between.” Such paralysis occurs because all societal decisions, including the decision not to act at all, entail risks of harm. Sunstein offers several illustrations: *The justification for a reduced arsenic level in public drinking water is that by reducing arsenic from 50 parts per billion (ppb) to 10 ppb, over 100 lives per year might be saved. At first blush, the Precautionary Principle would seem to call for the stricter standard, as this would effectuate the principle’s bias toward preserving human health. However, like virtually all decisions, there is a countervailing risk to the stricter standard. As water costs climb due to the added purification steps, rural and poorer citizens will increase the use of free well water. Ironically, by using more well water, these residents will be exposed to higher arsenic levels than if the 50 ppb standard were never abridged. Either decision, therefore, runs afoul of the Precautionary Principle, resulti
ng in a paralysis of decision. *Many environmental activists cite the Precautionary Principle to justify a ban on genetic food enhancements. Even though no adverse effects of genetically enhanced foods have been discovered, such side effects may someday be found. *1. The Precautionary Principle cuts both ways here, too. Genetically enhanced crops are more productive than the crops they replace, resulting in cheaper and more available food. Not allowing biotechnology to advance could cause more malnutrition, malnutrition-related health complications, and even third-world starvation. *2. The Precautionary Principle can be invoked to prevent the low-but-theoretically-possible emergence of adverse human health effects … or to prevent over-regulation of promising new ways to relieve human suffering caused by malnutrition. Once again, the result is a paralysis of decision. * Global warming may occur, resulting in a broad range of potential harms. Here, many environmental activists call for a drastic reduction in the emission of greenhouse gases, pursuant to the Precautionary Principle. However, reducing greenhouse gas emissions would entail stunning economic costs, diverting money from many health programs and putting at risk the lives of countless world citizens. Once again, the Precautionary Principle gives little guidance for policy decision-making. *The use of nuclear power carries with it a small but theoretically possible risk of a plant meltdown and resulting tragedy. According to many environmental activists, the Precautionary Principle therefore prohibits the use of nuclear power. The cost of foregoing nuclear power, though, is greater reliance on fossil fuels, which cause their own environmental harms and pose greater safety risks to workers. The Precautionary Principle can be employed either on behalf of or against nuclear power. Popular in Spite of its Flaws According to Sunstein, there are several reasons why the Precautionary Principle has gained popularity despite its unavoidable contradictions. These include: *Loss aversion. People are more concerned about losing what they have than missing out on what they might potentially gain. By seemingly supporting a presumption in favor of the status quo, the Precautionary Principle is marketed as a form of societal risk aversion. *Visible versus less-visible concerns. The Precautionary Principle is generally invoked to deter high-visibility risks … often at the price of increasing less visible, but equally probable, risks. Even if two hazards pose a similar threat to human life, the one that captures more public concern will be the one defended by proponents of the Precautionary Principle. *Probability neglect. People often invoke the precautionary principle against low-risk activities, when a proper probability analysis will show the invocation actually leads to greater risks in other contexts. A lack of issue awareness and education leads to the neglect of proper probability analysis. *System neglect. Many people see only the harm that is to be prevented, ignoring the indirect and unintended consequences either of action or inaction. The problem is commonplace in economics: In the case of free trade, for example, people may see the jobs that move to Mexico but fail to understand how specialization and lower consumer prices create much greater long-term benefits for the U.S. Risk Reduction by More Rational Means Proponents of the Precautionary Principle fail to recognize that all resources-including the time, effort, and money available to reduce risk-are limited, Sunstein explains. Resources invested in deterring low-probability risks are not available to deter higher-probability risks. The Precautionary Principle “is a crude and sometimes perverse way” of managing risk, Sunstein concludes. Policymakers “need to use more direct effective strategies to pursue the salutary goals of risk regulation.” That requires a “fair accounting of the universe of dangers,” says Sunstein: a careful balancing of the costs and benefits of inaction, regulation, and everything between. Only after such an accounting has been made can risk-management resources be invested where they will achieve the most “bang for the buck” … and that should be the ultimate goal. “A rational system of risk regulation certainly takes precautions,” concludes Sunstein. But it does not adopt the precautionary principle.” For more information … Cass Sunstein’s University of Chicago working paper, “Beyond the Precautionary Principle,” is available through PolicyBot as document #2313446. You can also search PolicyBot for the topic/subtopic combination Environment/Cost Benefit Analysis and Risk Assessment. More than 80 documents are available on the topic. Environment & Climate News has covered the precautionary principle often in past issues. See, for example, “Precautionary Principle at odds with science” (September 2001), “ICCS conference tackles the precautionary principle” (December 2000), and “Precautionary Foolishness” (December 2000). Web Site of the Week Reason Public Policy Institute (RPPI) has a long and close relationship to Hawaii. Bob Poole, founder of the Reason Foundation has visited numerous times to discuss transportation, privatization and other issues at seminars, meetings with legislators etc. The Executive Director of RPPI, Adrian Moore, was the speaker at last year’s Tax Foundation of Hawaii annual luncheon. Our own Cliff Slater is on adjunct scholar for RPPI. It is our plan to use RPPI extensively in counseling/advising the Lingle administration and County Councils on budget control, results based management, transportation and other critical policy issues. Visit the RPPI Web site at: https://www.rppi.org. ‘Evergreen (Today’s Quote)’ If man is to continue his self-improvement, he must be free to exercise the powers of choice with which he has been endowed….He must be free to either enjoy or endure the consequences of each decision, because the lesson it teaches is the sole purpose of experience — the best of all i.rr.com or (808) 487-4959.” – F.A. Harper ”See Web site” https://www.grassrootinstitute.org ”for further information. Join its efforts at “Nurturing the rights and responsibilities of the individual in a civil society. …” or email or call Grassroot of Hawaii Institute President Richard O. Rowland at mailto:grassroot@hawaii.rr.com or (808) 487-4959.”