Tobacco Policy Debate

Since I haven’t blogged much outside of the weekly devotionals, I thought I’d share a short assignment that I recently completed for my Policy Formulation course. We were instructed to write about the “policy actors” involved in the tobacco debate, such as public health advocates and the court system.

We were also to give feedback on one scholar’s (Jonathan Turley) take on judicial activism (trying to direct policy from the judge’s bench) and any thoughts on issues related to tobacco policy. I received high marks (woohoo!), and my prof remarked that she liked the forward-thinking approach that I took concerning the issue.

So, what do you think? Is the tobacco industry too big to fail? Is it even the place of government to try to regulate people’s consumption of tobacco? If the answer is yes, then what’s to keep farmers from exporting the crop? If the answer is no, then what about similar debates concerning marijuana and even harder street drugs? It’s a complicated issue, no matter how you look at it.

Policy Actors in the Tobacco Debate­

From 1900 to present, per capita cigarette use peaked in the late-1970s to early-1980s, capping out at approximately 640 billion total cigarettes consumed in 1981 (CDC 2010). By 2006, the CDC reported that total cigarette consumption dropped to circa 1950s levels, or 380 billion. Although this 40.6 percent decline in cigarette use is a significant step toward positive improvements in Americans’ health, the tobacco issue remains embroiled in heated debate. The question at hand is whether or not the court system is the optimal route to take to address the problems.

Citing the Madisonian problem-solving perspective of how over what, Turley explained, “We are not immune to bad decisions, but our process protects the integrity of the system and gives it direction” (2000, 2). In essence, Turley stated that the three branches of government are designed to work in synchronization, not separate efforts to trump one another in a power play. When the court system is manipulated to serve as a policy-making entity, the process is known as judicial activism. In the case of tobacco-related litigation, public health advocates have purported that lawsuits could result in increased prices and subsequently decreased consumer demand for cigarettes; however, such judicial measures have yet to destroy the industry, entirely.

In fact, although tobacco use has markedly decreased in the U.S. in recent decades, demand abroad is extraordinarily high (Etter 2007). The industry remains strong, despite opposition. This concept of adjusting output to meet the worldwide demand for goods and services is dubbed comparative advantage. Kapstein (1996, 17) purported, “It is hardly sensationalist to claim that in the absence of broad-based policies and programs designed to help working people, the political debate in the United States and many other countries will soon turn sour.” When an industry – or, in this case, proactive farmers – modifies its output to meet the demand for a particular good or service, then the end result is mutually beneficial, at least economically speaking.

The concern with the tobacco debate (and similar debates occurring around the globe, such as poppy crops in nations such as Afghanistan, which contribute to illegal opium production and stand in stark contrast with the War on Drugs and War on Terror) is that the crop itself is dangerous to the consumer. Yet, the demand is real – and profitable. As Etter (2007) noted, the payout for tobacco is hard to compete with, when compared to other agricultural crops – even heavily subsidized corn. The incentive for farmers to continue to grow tobacco in the face of opposition supersedes the negative backlash that may arise domestically by political activists who seek to put an end to the tobacco industry, all together.

Practically speaking, the judicial branch may play a role in ameliorating a wrongdoing by one party against another. To use the examples provided by Jacobson and Soliman (2002), workers exposed to asbestos successfully filed suit against manufacturers for recompense due to pulmonary disease and other health complications. Similarly, dangerous contraceptive devices were eliminated from the market after litigation regarding women’s health risks. In each of these cases, the issue at hand concerned harm done to an individual (or a class action suit by numerous individuals).

Large damage awards and consumer backlash happened to put the manufacturers of the dangerous goods out of business, but policy creation was not necessarily the goal of the litigation. As Jacobson and Soliman noted, “Under almost any circumstances, the policy agenda is rarely determined exclusively by the courts” (2002, 225). The courts played a role, but they were not solely responsible for the outcome.

In contrast to Turley’s assertion, the judicial branch did not appear to usurp the other branches of government, in these instances. The court system weighed in on the issue, as it pertained to specific cases of interest, and such decisions do not necessarily make the judge a judicial activist. I believe that the courts have a valid role to play concerning claims of harm or wrongdoing, but the line in the sand is when a judge uses a lawsuit as a platform to make a political stance. The facts of the case must be considered at face-value, and the pieces fall into place, as they must. Turley raised a valid point concerning judicial activism as a rallying cry for policy change, yet it is important to note that not all judicial decisions are necessarily intended to direct policy, on the whole. They are designed – and should be treated – on a case-to-case basis.

On the whole, policy changes concerning tobacco could have far-reaching, long-term ramifications for similar issues. For example, tobacco-related policy will set a precedent on how the government addresses marijuana use. Although marijuana is currently classified as a Schedule I substance (meaning that it has a high likelihood of dependency with no recognized medical benefits) by federal standards, marijuana is available by prescription in 17 states, plus the District of Columbia (NCSL 2012).

Policies on other so-called “recreational” drugs may also look to tobacco as the trend setter. It will also be interesting to see how tobacco policy trickles down into related areas, such as nicotine supplements, electronic and “smokeless” cigarettes, and the like. Furthermore, the international demand for tobacco will be an important matter to track in coming years, as this presents an alternative avenue for U.S. farmers to benefit from exported crops.


Reference

Centers for Disease Control and Prevention. 2010. “Consumption Data.” Smoking and Tobacco Use. Retrieved from: http://www.cdc.gov/tobacco/data_statistics/tables/economics/consumption/index.htm.

Etter, Lauren. Sept. 19, 2007. “Farmers rediscover allure of tobacco No longer subsidized, crop gains acres in U.S.” The Wall Street Journal.

Kapstein, Ethan B. 1996. “Workers and the World Economy.” Foreign Affairs, May-June, 75(3): 16-37. Stable URL: www.jstor.org/stable/20047578.

Jacobson, Peter D.; Soheil Soliman. Summer 2002. “Litigation as public health policy: Theory or reality?” The Journal of Law, Medicine & Ethics. 30(2):224-238.

National Conference of State Legislatures. May 2012. “State Medical Marijuana Laws.” Issues & Research: Health. Retrieved from: http://www.ncsl.org/issues-research/health/state-medical-marijuana-laws.aspx.

Turley, Jonathan. Summer 2000. “A Crisis of Faith: Tobacco and the Madisonian Democracy.” Harvard Journal on Legislation. 37:433-481.

Wednesday Words: Pension Protection Act of 2006

… Sounds riveting, doesn’t it? It’s pretty fascinating to me, actually, but you already know that I’m a nerd. 🙂 I’m reading some interesting material about the various factors that come into play when formulating public policy for my summer courses, but I’ve also been busy reading/researching at work.

In addition to many other sections pertaining to corporations and whatnot, the Pension Protection Act of 2006 outlined some specific boundaries and criteria concerning donors and nonprofit organizations. Private foundations have come under a lot of scrutiny in recent years for misusing charitable dollars — whether for private use (“inurement” or “self-dealing”) or making so-called donations that offer kick-backs or other perks (“non-incidental benefits”) to the donor.

This is an especially important issue when an organization, such as a college or university, raises funds for athletics, the arts and other areas where ticketed events take place. Let’s say that a donor wants to buy a table at a fundraising dinner for her favorite charity. For the sake of illustration, let’s say that it only costs $100. The actual food cost of the dinner is $30, and the rest goes to the charity. Guidelines from the PPA of 2006 mandate that the donor cannot pay the $30 out-of-pocket and the other $70 from her family foundation. This  is called bifurcating, or cost-splitting.

Furthermore, that same donor cannot use her family foundation to buy the table and then attend the event … or even give the tickets to her family, friends or neighbors. This is considered self-dealing and is frowned upon by the IRS. The foundation may buy the table and give the seats back to the host charity, to disburse as they choose, and the foundation may receive recognition for their contribution, but they can’t actually attend the event.

It can get pretty sticky, as you can tell. The sad thing is that I don’t think a lot of donors, and even foundations, are aware of some of these stipulations. Many wealthy families create private foundations as a conduit for their philanthropic interests, and unless they have savvy financial advisors who are in the know concerning these issues, then they may find themselves in a pickle.

Wednesday Words: Grades

The summer term begins tomorrow, and I’m looking forward to the two classes I am taking (Comparative Public Policy and Public Policy Formulation). They count as “concentration” courses in my field, which you might have already guessed is Public Policy. 🙂 Instead of two brief summer terms, Valdosta has one long term, so it’s like another regular semester.

I finally got feedback last week on my term paper about the Art & Science of Strategic Philanthropic Management. I’ve mentioned before that this particular prof has some very interesting ways of looking at the world universe, and it would behoove you, as a student, to try to grasp his various trains of thought and hold on for dear life.

I had hoped that my topic would pique his interest because of the focus on technology and consideration of scholars outside of those we discussed in class. In the comments section for my grade, he remarked that my paper was good (hooray!), but its main flaw was that I referred to the “transformational” role that the nonprofit sector plays, yet I failed to consider the possibility that all nonprofit organizations may not, in fact, exist for the betterment of humanity. For instance, some terrorist cells masquerade as nonprofit organizations; therefore, I glossed over some potential ethical dilemmas. *sigh – fine. I’ll take my A- and be happy with it … besides, I made an overall A in the class! Wahoo!

Management Styles

There are tens of thousands of management books on the market, not to mention academic articles on the subject. One that came to my mind today was popularized by Kotkin and Kishimoto (1986), dubbed the “Theory F” style of management.

Theory F is different from micro-management, because the supervisor is not necessarily over the employees’ shoulders, though the staff are certainly under the manager’s thumb. Theory F is a fear-mongering style of management, one that means being concerned about losing your job for mistakenly ghostwriting a letter with the closing “Sincerely” instead of the preferred “Yours sincerely” (capital Y, never S). Theory F means saying yes to whatever is thrown your way, because the alternative is not having a job.

Except for rare cases in which one’s job is truly a matter of life and death, the implementation of Theory F management is generally dehumanizing and belittling and should be avoided.

Reference

Kotkin, J. and Y. Kishimoto. April 1, 1986. “Theory F.” Inc. Magazine. New York City, NY: Inc.

Wednesday Words: The Art & Science of Management

For my class on Human Resources Management this semester, we had to break up into teams of 4-5 for various group assignments and a huge collaborative term paper. The catch was that out of a list of about 8 topics, none of them could overlap (not the team topic nor our individual topics). So, with a team of five, that left little wiggle room for selections. At any rate, I ended up with Compare & contrast: the art & science of management.

We just finished our term paper in the last couple of days, which means now I can focus almost totally on my own paper. (We do have one more group assignment due in a week, but I opted to write the conclusion, so I don’t have to fret about it just yet.) I normally would begin working on term papers much sooner than now; in fact, I worked out a detailed schedule after the holidays in an effort to stay on track this semester. As it turned out, though, I made great headway on my assignments for my other class, so  I focused on finishing those early, rather than trying to do papers for two classes simultaneously. So, now I have less than three weeks to write 20+ pages.  O.o

I’m looking at perspectives on philanthropy from the “art” and “science” angles. Specifically, I’m exploring some management models that I think can be helpful for nonprofit organizations as they try to adapt to new technologies, which can impact their fundraising efforts. If you’ve followed my research at all (and I totally don’t blame you if you haven’t, even though I find it fascinating), then you know that I’ve been looking at emerging technologies and how they are used in charitable giving. For a paper that I originally thought might be a waste of my time, I’m now realizing that I might be able to approach it from an angle that will aid my future research!

So far, I just have an outline and one page of the introduction … I need a few thousand more words …

Virtual currency … in layman’s terms

I realize the idea of virtual currency sounds kinda like play money, so I’ll try to explain it a little more clearly. Let’s say that you go to a pizza arcade where they use tokens instead of quarters. Everything from games to food to prizes has to be redeemed in tokens. So, you find the coin machine and purchase 4 tokens for $1 (or 40 tokens for $10, etc.).

There is a stuffed animal behind the prize counter that you really like, and it costs 4 tokens. The difference between this pizza arcade and the ones you might be familiar with is that the person behind the counter doesn’t actually work for the arcade; she leases the booth space to sell her stuffed animals for tokens (like a flea market type of setup). You pay the 4 tokens, receive your new stuffed animal and go on about your merry way. The booth vendor has just made 4 tokens, but she can’t spend them outside of the pizza arcade, because regular stores only accept dollars, not tokens.

So, the question is: Did the booth vendor make income on that sale? If yes, how can you prove it? She has no dollars to show for her efforts, only tokens that aren’t worth anything in the outside world.

Ok, so let’s say the booth vendor takes the 4 tokens that she earned to the pizza arcade manager and asks him to exchange them for a $1 bill. Now, has she made income? Yes! She now has a dollar that is worth something in the outside world.

This example might seem like small potatoes in the grand scheme of global commerce, but let’s say that instead of selling just one stuffed animal, she sold 50 … or 500 … or 5,000. Now, the money starts to add up. The current position (of the U.S., that is … other countries have differing opinions) is that as long as she keeps her earnings in token form (maybe she treats herself to pizza and video games in the arcade), then it’s a wash. However, as soon as she converts her tokens to dollars, then she needs to be conscientious about taxable earnings.

The moral of the story is that virtual currency may not seem “real,” but it has real value.

Wednesday Words: Macro to micro

It seems like ages since I first started brainstorming about my dissertation topic, but I’m still a couple of semesters away from officially beginning it. I’m at the point now in my coursework, though, that my term papers should start pointing in that direction. In other words, if I gear the subject matter toward my topic, then that will be beneficial to my future research.

One of the classes I’m taking this semester is an Information Technology class (more about managing IT from a practitioner’s perspective than the nitty-gritty of programming, etc.), and our term paper is supposed to be a research proposal for a technology issue. Perfect! I thought this would be a great opportunity to test the waters with the case study that I started outlining last year.

A case study is just that: a study of a particular case, not a broad overview of an entire subject. Because of my familiarity with the virtual world of Second Life and the interesting (to me, at least) effort by the American Cancer Society to hold a virtual Relay for Life within Second Life, I thought that would make a great case study on how philanthropy is adapting to emerging technologies.

This subject matter is so new, so unique that there is very little (actually, I’ve found nothing, but that doesn’t mean that I’ve exhausted the entire body of work available in the world) on the topic of philanthropy via virtual currency. There are a few articles on virtual currency, in general, but I wanted to explore how this case with the ACS has potential to break the mold of traditional fundraising, while at the same time, cracking open the door for my future research on policy issues concerning virtual currencies. (There are some discussions about whether “virtual” transactions should be taxable events, even if they occur solely inworld, like a value-added tax, so to speak. This raises the issue that if you can tax it, you ought to be able to deduct it. In other words, charitable contributions made in a virtual economy should be deductible, if commercial transactions become taxable.)

If I haven’t put you to sleep yet, here’s what has ruffled my feathers. I asked a techie friend (not a classmate) to read my research proposal for a second set of eyes before I turned it in for a grade, and before he even read the paper, he made the off-handed remark, “I know you’re a big fan of Second Life, but you might also consider …” and then went on to make a couple of perfectly legit suggestions about other research angles. I guess it rankled me because it seemed like he didn’t take me seriously, as if I’m just goofing off researching about games (speaking of which, there is a slew of research on social, psychological and even economic influences of games, not to mention game theory applied to other subjects). But, that’s beside the point. I responded to my friend, “I’m not like a ‘rah-rah’ fan, but I think it has fascinating research potential.”

And, it does! The last thing we need is for policymakers to try to figure this out on their own; after all, they have a tendency to wield an axe in order to carve a toothpick. We need to explore the ins and outs of what it means to make transactions in a virtual economy and how that translates into the so-called “real” world. It’s not about one particular virtual environment; it has broadly sweeping impact on everything from Facebook credits to XBox Live Points to, yes, even Linden dollars (L$) in Second Life. Imagine if you had to start paying taxes on “income” from app games. Sounds outlandish? Perhaps not.

Even for such a new subject, the topic is too broad to say that I’m researching virtual currencies. What about currencies? What type of currencies? What country’s policies, for that matter? I have to drill down and focus on some micro-issues, rather than the big macro subject. To me, it’s like being a scientist who studies a particular aspect of the ester bonds of DNA polymers and someone says, “I know you like ester bonds, but you should not overlook nucleobases.” (<<Yeah, I totally pulled that from Wikipedia; I’m not a geneticist in my spare time.)

I guess the point is that I have to narrow my focus, and right now, I’m looking at one particular issue concerning virtual currencies in one particular venue. That’s what’s so neat about research … there are so many more issues to delve into over time!

Wednesday Words: Viruses

I have not gotten a darn thing accomplished school-wise for the last two nights. The reason is that my computer got sick. It still worked, but I could tell by some quirky behavior that it had contracted a virus. Unfortunately, I couldn’t shove a Sudafed in the USB port and make it all better. 😦

I normally use Malwarebytes Anti-Malware, but it didn’t detect this icky Trojan. Lesson No. 1: there’s a difference between malware and viruses. I guess it’s like an ear infection vs. a cold. (On a side note, I noticed as I was searching techie forums for advice that I started seeing condom ads in the sidebars. Classy, marketing gurus … not that kind of Trojan, sheesh.)

It’s times like these when I wish I could pick up the phone and call my uber-geek brother. Instead, I vented to a techie friend who recommended Microsoft Security Essentials (MSE) to check for viruses and CCleaner to get rid of extraneous files (basically a thorough cache purge). I added both, and MSE immediately turned red as it detected and purged the bug each time it cropped up … but that’s just the problem … it kept popping back up. I was still getting redirected from websites, and my computer didn’t want to shut down. MSE did a good job of immediately detecting the problem, but it only deleted it temporarily.

Finally, after reading several trustworthy recommendations, I ran the free scan from HitmanPro, which identified the same file that MSE had been, so I activated the free trial (30 days, if I recall correctly) to get rid of it. I rebooted and ran a few Google searches, and so far (knock on wood) – no redirects! MSE has also been nice & green for a while now, too. *Hopefully* it’s gone now.

I feel so … violated. 😦  I like to think that I’m a pretty tech-savvy person (for an end-user), and I maintain strict privacy settings, use Web of Trust for browsing, etc., so it ticks me off that I somehow got duped. Oh, well – I just have more catch-up work to do for my classes, but at least the papers aren’t due right away.

Pleasantly surprised (Prayer Devotional for the week of March 18, 2012)

It sure is nice when things work out the way we’d hoped they would, but sometimes we act surprised about things that we should have expected, all along. I can only speak for myself, but I think I act guarded and reserved in an attempt to keep from feeling disappointed if things don’t work out, after all. I imagine that others react similarly, whether consciously or not.

For example, when I study hard and do the best I can on a school assignment, I probably should expect to get a good grade. Yet, I always wonder what I might have forgotten to include … or if the professor won’t like my word choice or agree with my conclusions. So, I hope for the best and try to expect nothing. That way, if/when I receive an A, I can finally let myself feel confident that I really did do a good job.

I see that same tendency to second-guess myself as I read stories about the disciples in the New Testament. Time and time again, Jesus had to remind them to trust him and not doubt. Whether they were dealing with how to feed the masses (Matthew 14 & again in 15), survive a storm (Luke 8), or cope with Jesus’ death (Mark 16), they fell back into their old ways of trying to figure things out on their own instead of having faith in Christ. Several times in the Gospels, Jesus told his disciples flat-out that they had “little faith.”

It should not surprise us, then, that the disciples doubted the first-hand accounts of those who had seen the risen Christ. Luke 24 tells of several eyewitnesses who saw Jesus after his resurrection, and even though he had personally told the disciples before his death that he would rise again, they still doubted. When he finally appeared to them as a group, they thought he was a ghost (verse 37)!

One statement that I find really amazing in that chapter is verse 45. After going well beyond what should have been necessary to prove to the disciples that he had, indeed, returned from the grave, Jesus opened the disciples’ minds so that they could better understand the Scriptures. He equipped them to do the work that he was entrusting into their hands. Despite our doubt, our faithlessness, our incompetence, Christ calls us to continue his work. Do you trust that what he says is true?