Civitas Review

N&O Slays Straw Man to Avoid Actual Arguments


Rob Christensen in this article takes the typical progressive debate tactic of completely mischaracterizing an opposing viewpoint, and then addressing that conjured up caricature rather than the actual arguments presented.

In this case, the topic is unemployment insurance. In an article discussing a potential bill that would require unemployment benefit recipients to make five contacts inquiring about work per week – an increase from the current mandate of two per week – Christensen yet again plays "slay the imaginary straw man." First, the conjured up caricature:

There is also a view among some conservatives that unemployment insurance is, in the words of the Civitas Institute, “paying people not to work.’’

There are apparently some people who believe the American worker is a slug just waiting for a chance to sit on his or her duff.

Notice the leap he takes. The first part is true, I have described unemployment benefits as "paying people not to work." By definition, that's what UI benefits do. But to somehow conclude that making such a true statement transfers to a belief that "the American worker is a slug" is ridiculous.

By stating that UI benefits pay people not to work, we are merely underscoring the fact that incentives matter to human behavior. The old adage goes: "the more you subsidize something, the more of that activity you will get" rings true. Lobbyists for renewable energy get paid a lot of money to exploit this fact of human action. More subsidies for solar farms means more solar farms. In turn, more subsidies for unemployment means more unemployment.

Providing someone with, say $300 a week in UI benefits for zero hours of labor makes working 40 hours a week for, say, $350 a week far less attractive, relatively speaking. The marginal benefit comes out to $1.25 an hour for taking the job.

Moreover, there is plenty of scholarly evidence to back up what is basic common sense. I guess Christensen believes that former Obama economic advisor Larry Summers simply believes the American worker is a "slug" when Summers concludes: "The second way government assistance programs contribute to long-term unemployment is by providing an incentive, and the means, not to work. Each unemployed person has a 'reservation wage'—the minimum wage he or she insists on getting before accepting a job. Unemployment insurance and other social assistance programs increase that reservation wage, causing an unemployed person to remain unemployed longer."

Christensen is either too lazy or simply intellectually incapable of refuting the actual arguments that don't fit his narrative. Instead he goes down the well-worn path of arguing against a false narrative that he himself conjures up.

Ashley Madison Fallout Hits North Carolina


NC Capitol Connection was the first to uncover over 100 email addresses belonging to NC state government employees that turned up in a hack of the member database of the Ashley Madison website, which aims to arrange adulterous affairs.

Reporter Matt Caulder, who broke the story last week, has spent hours upon hours manually searching this database by domain name. Caulder is currently searching the database by municipality, starting with the most populous and working down, and more addresses continue to pop up.

Included in the hack are:

  • NC Dept. of Health and Human Services
  • NC Dept. of Transportation
  • Guilford County
  • Durham County
  • City of Raleigh
  • City of Charlotte
  • Multiple NC school districts

For most, possibly all, of these employees, using their government email account for any personal use whatsoever is a direct violation of official policy. Therefore, Caulder has been contacted by officials requesting specific names of individuals whose names and email addresses he uncovered in the Ashley Madison database.

Our policy thus far has been to keep the individuals’ names private unless requested by the owners of the domains in question. It remains to be seen what the consequences will be for these state and local employees, but so far we have had requests from Moore County, Bladen Co. Schools, and Beaufort County officials for a list of their employees who were in the database.

The media have widely covered our story, as shown in the clips below, including an ABC11 interview with Civitas President Francis De Luca.



Note a particular point he makes: A public employee accessing such web sites is exposing a trove of private information to hackers. Every time a government worker uses a taxpayer-funded computer and government email to log on to a sleazy website, he or she is making personal information vulnerable to thieves who have no scruples about using it to commit fraud, or publishing it for the world to see.

As we have said repeatedly, this scandal is not about individuals’ behavior, but about the misuse of the resources you pay for with your taxes and how the most intimate information about you may be exposed. This is why we are cooperating with governments investigating these incidents. And, ultimately, that’s why governments can and should be smaller and should meddle less in our lives.

Demi Dowdy

Second Budget Deadline Likely to be Missed


The chances for a state budget deal before the August 31 deadline are pretty slim. From WRAL:

With just a week left before their second extended deadline, state lawmakers appear no closer to reaching agreement on their $21.74 billion budget plan.  

House and Senate leaders and Gov. Pat McCrory announced last Tuesday they had finally agreed on the size of the budget – a crucial first step in the process. But as of Monday, they hadn’t yet agreed on the spending targets for the various areas of state government, such as education or health and human services.

The budget, due by law July 1, is already 55 days overdue as of Monday. Lawmakers first gave themselves a deadline extension of 45 days. When there was no agreement, they passed a second continuing resolution for an additional 16 days, pushing back the deadline to Aug. 31.

Sen. Tom Apodaca R-Henderson, the Senate's lead budget negotiator, said Monday that lawmakers will need another extension.

“I don’t think it’s humanly possible it can happen before the 31st, but we can really get down the road and get the budget moving,” Apodaca told reporters. “We should know more within the next 24 hours.

Medicaid reform, state employee pay, teacher assistants, the governor's bond package and corporate welfare programs are all major sticking points between the House and Senate.

The Real Point of 'Ashley' Revelations


It's important to keep the focus on the real issue of government email addresses uncovered at the online affair site Ashley Madison, even as Matt Caulder will continue to look at new developments.

Almost 100 North Carolina state and local government email addresses have been uncovered so far among the more than 10,000 government and military email addresses released as part of a hack of the  affair.

The real point in the publication of the addresses is those people are supposed to be working for you — the people of this state. How would you like it if you ran a business, and found one of your employees using your computers, and the time you were paying him, to conduct private business?

What they do on their own time is their business; what they do on the public's time (and dime) is the public's business.

Note that we have redacted the addresses. We aren't focused on individuals; we are focused on what government really does.

Also, we do think this one incident is just the tip of the iceberg. A great deal of government activity is useless, or even harmful. Pruning away the government staff and functions that aren't needed would return taxpayers' money to their pockets, and enable government to do its proper job and get out of the areas where it merely gets in the way.

If CCNC Saves NC Medicaid So Much $$, Why is NC Medicaid So Expensive?


In a report published this week by the Office of State Auditor, Community Care of North Carolina (CCNC) was found to have saved the state's Medicaid program millions of dollars.    

During a 10-year period between 2003 and 2012, Community Care of North Carolina, or CCNC, helped keep patients out of the hospital and saved about $78 per user per quarter, according to the report. That analysis comes as CCNC's future as a state contractor is in question because lawmakers are getting ready to remake the health insurance system that cares for 1.8 million poor and disabled residents.


Community Care of North Carolina helps coordinate the care all of those providers are giving to patients. The company helps ensure that patients keep their appointments, take their medications and aren't given conflicting treatment plans by different doctors.

In essence, CCNC is providing something akin to managed care to 1.4 million patients, or roughly 14 percent of North Carolina's population.

CCNC is fighting to remain a key player in the ongoing debate over how to reform NC's Medicaid program.

Past reports have credited CCNC with significant savings, but many difficult questions remain unanswered about the true value of CCNC.

Some critics have slammed the reports claiming that CCNC saves Medicaid billions of dollars, saying the reports ignore the overwhelming amount of data that contradicts their claims.

Indeed, this 2012 Civitas article called out CCNC's effectiveness with some tough questions:

If CCNC is producing such significant cost savings for Medicaid expenses, why are key categories of Medicaid expenses so much higher here than for North Carolina’s Southeastern neighbors? The group with the highest rate of CCNC enrollment is children, yet North Carolina’s average Medicaid expenditure for children is 15th highest in the nation and a whopping 27 percent higher than the average of our Southeastern neighbors. Furthermore, the other eligibility group to have CCNC oversight the longest is the adult population, of which North Carolina’s Medicaid expenses are 12th highest in the nation and 16 percent higher than regional states.

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