[HN Gopher] Federal judges or their brokers traded stocks of lit...
       ___________________________________________________________________
        
       Federal judges or their brokers traded stocks of litigants during
       cases
        
       Author : colinprince
       Score  : 164 points
       Date   : 2021-10-23 05:37 UTC (17 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | ramesh31 wrote:
       | The US needs a blanket federal law, perhaps even a constitutional
       | amendment, that precludes any publicly elected official or
       | appointee at any level from directly owning individual stocks.
       | How could anyone possibly argue against that?
        
         | noja wrote:
         | Why make it so confined? Do not allow them to profit from their
         | position.
        
         | elvischidera wrote:
         | Naive question: If you preclude a politician from owning
         | stocks, can't they execute such trades via an off-the-radar
         | friend? And receive profits via "gifts".
         | 
         | I imagine this is already illegal? But isn't it harder to prove
         | if done right?
        
         | mchusma wrote:
         | No business owner could be in office? Like someone who owned
         | stock for 20 years with no plans to sell couldn't run? Seems
         | harsh. I think limited trading is what you mean (buying and
         | selling).
         | 
         | Insiders at companies have limited windows to trade. Makes more
         | sense.
        
         | sokoloff wrote:
         | I don't need the local dog catcher to be blocked from owning
         | shares in Apple if they want to.
         | 
         | I don't want my local Google employees to be prohibited from
         | running for city council or school committee.
        
         | lisper wrote:
         | I can think of at least three plausible counter-arguments:
         | 
         | 1. That's overly restrictive. Why not let them own individual
         | stocks in, say, a blind trust?
         | 
         | 2. It's a free country. It's up to the voters to decide if they
         | want to elect someone who profits from their position. What is
         | needed is a law requiring public disclosure, not prohibition.
         | 
         | 3. If you force people to divest their portfolios before taking
         | public office you will reduce the pool of people willing to
         | serve.
         | 
         | This is not to say that I disagree with the policy position,
         | only that it's not the slam-dunk you seem to think it is.
        
           | hellbannedguy wrote:
           | "3. If you force people to divest their portfolios before
           | taking public office you will reduce the pool of people
           | willing to serve."
           | 
           | Great! America needs politicians whom are not wealthy boys,
           | and girls.
        
           | RandomLensman wrote:
           | A lot of high-powered jobs come with strong restrictions and
           | controls around stock ownership/trading. Does not seem to
           | dissuade people from pursuing careers in banking or strategy
           | consulting, for example.
           | 
           | They are not blanket total bans in most cases, but single
           | name stuff is often very restricted, broad market less so.
           | Also does come with transparency requirements.
        
           | csee wrote:
           | 2. Think of it like term limits. We don't let people sit in
           | office forever just because it's a free country. No, these
           | are constraints implemented democratically by voters to
           | protect against bad outcomes that aren't well addressed by
           | future direct voting.
           | 
           | 3. You would reduce the pool of people who have corrupt
           | intent. Owning individual stocks isn't more profitable than
           | owning ETFs.
        
             | sokoloff wrote:
             | Owning individual stocks (even temporarily or unvested) is
             | a substantial fraction of compensation of many people that
             | I want to be able to participate in local politics.
        
               | csee wrote:
               | Owning individual stocks is the same expected value than
               | owning ETFs for almost all retail investors who are non-
               | corrupt. Studies have looked at this and shown that
               | regular investors in single stocks consistently
               | underperform. So there's no real financial reason (in
               | expectation terms) to do so unless they have corrupt
               | intent. Of course someone that just got rich off NIO or
               | GME probably differs but that doesn't speak to expected
               | value which is all that matters for decision making.
        
               | sokoloff wrote:
               | Many FAANG(-N) employees receive more in compensation in
               | the form of shares of an individual company than they do
               | in cash. I don't want to force them to quit their job (or
               | cut their comp by more than 50%) if they want to
               | contribute in local politics.
               | 
               | If this were broadly adopted, companies would be forced
               | to switch to all-cash offers, to create long-term
               | incentive plans that don't use something the legislation
               | defines as shares, or just be content to exclude
               | politically active people from being employees. Some
               | might be happy with that last outcome.
        
               | DFHippie wrote:
               | The original phrasing wasn't "contribute in local
               | politics" but "take public office". Presumably if you
               | take public office you give up your FAANG employment. I
               | don't think anyone is saying you can't vote or petition
               | government for the redress of grievances if you own
               | individual stocks.
        
               | sokoloff wrote:
               | Unless it's been edited in the meantime*, the text above
               | is "precludes any publicly elected official or appointee
               | at any level from directly owning individual stocks".
               | 
               | Many publicly elected or appointed roles are part-time
               | (school board/committee, city council, etc.) Even MA
               | state legislators make only $70.5K/yr and MA is one of
               | the highest-paying states for that job. Many of them
               | maintain another full-time job.
               | 
               | https://ballotpedia.org/Comparison_of_state_legislative_s
               | ala...
               | 
               | * https://news.ycombinator.com/item?id=28966192 (edit
               | window is 2 hours)
        
               | csee wrote:
               | Yeah, you make a good point. I'd be pretty happy if they
               | just implemented it for full time office holders only
               | (senate, congress, judges) which aren't going to be
               | having jobs on the side that pay equity.
        
               | indymike wrote:
               | I own my own company. That is a very specific stock and
               | you are saying I can't own my business and run for
               | office? Stocks aren't just for trading on the nyse.
        
           | ramesh31 wrote:
           | >If you force people to divest their portfolios before taking
           | public office you will reduce the pool of people willing to
           | serve.
           | 
           | Dissuading the wealthy from seeking office sounds like a
           | feature, not a bug to me.
        
             | unmole wrote:
             | > Dissuading the wealthy from seeking office sounds like a
             | feature, not a bug to me.
             | 
             | Around 55% of Americans own stock.
        
               | murphyslab wrote:
               | "The wealthiest 10% of Americans own a record 89% of all
               | U.S. stocks" -- CNBC
               | 
               | https://www.cnbc.com/2021/10/18/the-wealthiest-10percent-
               | of-...
               | 
               | If you aren't one of that "wealthiest 10%" it would not
               | be difficult to divest your stock holdings in exchange
               | for an index fund.
        
               | PeterisP wrote:
               | I would presume that _almost everyone_ qualified to be a
               | federal judge to be among the wealthiest 10% - the median
               | lawyer income is approximately 90-th percentile, and I
               | would presume that the seniority and skills needed for
               | such a position would disqualify most of the less
               | experienced and /or weaker lawyers.
        
               | DFHippie wrote:
               | Income is not the same as wealth. They are correlated,
               | but you're blurring lines. The wealthiest individuals
               | accrue a negligible amount of their wealth from income.
               | And the power law relationship between wealth and stock
               | ownership doesn't end when you cross the 90th percentile
               | either.
        
               | mattficke wrote:
               | That includes things like index funds. The vast majority
               | of people do not own individual equities.
        
           | actually_a_dog wrote:
           | Well...
           | 
           | 1. Too bad. There are plenty of other good investments out
           | there.
           | 
           | 2. Too bad. The removal of incentives to do slimy things like
           | the ones that are subject of this article is the greater good
           | here.
           | 
           | 3. Too bad. Maybe those people who choose to serve will be
           | those who aren't in it to fleece the system of every dollar
           | they can.
           | 
           | I'm not sure you'd find my "counterarguments" any more
           | persuasive than I find yours. I'm more interested in what the
           | systemic consequences of such a policy would be, and, it
           | seems to me that they tip in a direction that removes
           | incentives to be corrupt, which sounds pretty darn good to
           | me. I care a lot less about the effects on people who are
           | currently in the position to exploit the system.
        
           | Broken_Hippo wrote:
           | 1. There is no way for a fairly normal person working a
           | fairly normal job (probably service industry) to verify any
           | of the blind trust stuff and past politicians have helped
           | make a mockery of the whole thing. To be fair, though, there
           | are other ways. You can reform things so that there are
           | minimum holding times for stocks alongside rules that make
           | selling stocks take more time. If you need to hold onto the
           | stocks for 6 weeks after you say you want to sell, you are
           | going to have a harder time selling. You can also restrict
           | times officials can sell.
           | 
           | 2. Again, how is a normal person - say, a retail employee -
           | ever going to find out about this? Even with public
           | disclosure, all folks need to do to hide their doings is to
           | make the language in the disclosure full of technical jargon
           | instead of everyday language.
           | 
           | 3. That's a bonus, not a feature. Maybe it'll encourage
           | normal folks to take office more often - but of course, we'd
           | have to do other changes to make that happen.
        
         | systemvoltage wrote:
         | One argument that I can think of is talented people will
         | instead gravitate towards private industry and are
         | disincentivzed to become public servants. Not owning invidual
         | stock can be common shares is pretty broad. Or otherwise we
         | would have to define what class of investment instrument should
         | be banned. Do we also prevent buying private company shares?
         | What about other financial derivates such as options and
         | futures where you technically don't own the underlying stock?
         | Do we limit real estate investments as well? If they earn a
         | salary, where could they invest their savings? If we allow real
         | estate investment, then public servants (1.8M US Citizens)
         | would blow up the real estate market. There are so many
         | secondary and tertiary effects, that would have major
         | consequences to the economy and the functioning of the
         | government. Not allowing any investment opportunity means they
         | would sucuumb to the inflation rate and cannot retire.
        
           | irrational wrote:
           | Have you even seen the kind of people who become public
           | "servants"? Who exactly would you classify as talented?
        
             | markvdb wrote:
             | Both my bosses. They each head a public art academy. Both
             | are incredibly talented, motivated people. They serve the
             | public as best as they can. The same goes for several of my
             | colleagues.
        
             | lazyasciiart wrote:
             | My father, my grandfather, my brother, many of my
             | friends...
        
         | closeparen wrote:
         | Just as soon as we prohibit homeowners from serving in local
         | governments.
        
         | topspin wrote:
         | > How could anyone possibly argue against that?
         | 
         | Arguing against that is easy.
         | 
         | The elite have so many better ways to profit from their
         | positions that outlawing stock ownership is laughably naive.
         | Trading stocks against knowledge you obtained from your
         | government position is an easy way to get busted, so you may
         | assume the people caught up in this represent merely the
         | profoundly stupid; the smart elites don't get nabbed in such
         | simple minded schemes. Yes, there are very stupid federal
         | judges; their appointments are a product a political haymaking
         | that has their actual competence _way_ down the list of
         | priorities.
         | 
         | So the best reason I can think of to oppose your plan is simply
         | that it's a futile waste of time. If you're serious about
         | meaningful efforts to hinder corruption think in terms of
         | transparency. Give the electorate the means to know who is
         | bought and paid for by whom. Without that you're wasting your
         | time.
        
           | DFHippie wrote:
           | > So the best reason I can think of to oppose your plan is
           | simply that it's a futile waste of time.
           | 
           | Time is a pretty small consideration here.
           | 
           | One can and should apply many means to lessen corruption.
           | Transparency is certainly important, but no means is going to
           | cover all cases or be 100% effective. Reduce the possibility
           | of conflict of interest _and_ increase transparency.
           | 
           | The problem with transparency, if you're relying on democracy
           | to do the rest, is that any sufficiently clever corruption
           | scheme is simply not going to be understood by the public
           | you're relying on to oppose it. If you give them an
           | explanation in detail they mostly see simply that it's
           | detailed. It looks no different from a conspiracy theory to
           | most people, who will barely be following the issue anyway.
           | Most voters are low information voters. The information they
           | need is which party backs which position. They in effect vote
           | as they're told, not because they're stupid but because none
           | of this interests them.
        
         | indymike wrote:
         | > How could anyone possibly argue against that?
         | 
         | The very basis of self government (citizens being in charge) is
         | allowing people to run for office who are every day people.
         | This idea would require anyone who is even a part owner af a
         | tiny business to divest in order to run. Additionally, a lot of
         | common small businesses have no real value if the owner doesn't
         | come with the business (a solo law practice is an example)...
         | oh, and trusts are corporations... so this idea sounds
         | wonderful but is very exclusionary.
        
         | Consultant32452 wrote:
         | If we just get the people who write and enforce the laws to
         | pass a law that stops them from being corrupt the corruption
         | will end.
        
         | m0zg wrote:
         | Guess who writes the laws? People who are neck deep in insider
         | trading to the point where the speaker of the House outperforms
         | some of the best performing hedge funds. Don't hold your breath
         | on this one. And the law would need to be signed by a dude
         | whose son "sells art" for $75K apiece and takes jobs he himself
         | admits are only offered to him because he has the right last
         | name. And finally, if by miracle such a law were to be passed
         | and signed, to enforce it you'd need to go to a judge who's
         | also corrupt as fuck and trading stocks from the bench, and
         | whose mortgage on his third beach home would be jeopardized if
         | he was to agree with you. It's rotten all the way through now.
        
           | NicoJuicy wrote:
           | The husband of the person you mentioned was already well off
           | before she was in politics.
           | 
           | Better yet, it was because her husband success that she
           | worked for 20 years for free for the party.
        
             | m0zg wrote:
             | He's much better off now. A genius grade trader. It's a
             | goddamn miracle. Warren Buffet doesn't even come close to
             | such prowess. What's funny is everyone knows these are
             | pretty damning facts that are not good for the country in
             | the long term. And yet my posts will be flagged anyway.
        
               | NicoJuicy wrote:
               | Waren Buffet doesn't even invest in tech.
               | 
               | Something her husband did before she was speaker and he
               | already had much success before.
        
               | m0zg wrote:
               | He does. Berkshire owns a ton of Apple (114 billion
               | dollars worth) and some other tech/pharma companies. But
               | hey, if you think insider trading is so wonderful and
               | ethical, let's make it "fine" for everyone and abolish
               | stock trading windows at major corporations, as well as
               | restrictions on execs. Why should only congresspeople be
               | able to partake?
        
               | craftinator wrote:
               | Not only unhinged, but whiney too. A true Renaissance
               | man!
        
         | dataflow wrote:
         | Ban trades while they have the position, not ownership. If they
         | had it long before they got the position they shouldn't have to
         | sell it just for the sake of serving the country.
        
         | markvdb wrote:
         | As others have said, a blanket stocks prohibition might make
         | the public sector uncompetitive.
         | 
         | Blind trusts seem to be quite a bit too permissive to me.
         | 
         | Offer them the performance of a stock index fund on their stock
         | holdings, for the duration of their public mandate.
        
       | web2sucks wrote:
       | This is why small government is so important.
        
         | adrr wrote:
         | Small government isn't immune from corruption. City level has
         | some of the worst corruption.
        
         | [deleted]
        
       | tzs wrote:
       | How about treating judges and legislators as if they were
       | insiders of every public company and applying Section 16 of the
       | Securities Exchange Act of 1934 to them?
       | 
       | Section 16 currently applies to officers, directors, and anyone
       | who holds 10% of the stock of a company.
       | 
       | These people have to disclose all of their trades, and they are
       | not allowed to make any profitable "short-swing" trades in the
       | stock. A trade is a short-swing trade if it occurs within 6
       | months of a trade in the opposite direction.
       | 
       | Section 16 is brilliant in how it is enforced. It allows any
       | shareholder to sue the short-swing trader. The plaintiff does not
       | have to have been a shareholder at the time of the trade. They
       | only have to be a shareholder at the time of the suit.
       | 
       | If the plaintiff wins the trader has to return all short-swing
       | profits to the company and pay the plaintiff's attorney fees.
       | Because the people covered by Section 16 have to report their
       | trades, and because there isn't really a defense for short-swing
       | trading, it is an open and shut case.
       | 
       | The data is available from the SEC in electronic form, and there
       | are lawyers who get it and do automated checks to find short-
       | swing trades. Then it is an easy matter for them to buy a share
       | if they don't already have one, sue the short-swing trader,
       | trivially win the open and shut case, and collect attorney fees.
       | 
       | If that wasn't enough to discourage insiders from short-swing
       | trading, Section 16 provides more discouragement by being brutal
       | in how it defines profit from a short-swing trade. Consider this
       | sequence of trades by a Section 16 insider:                 Jan
       | 1: buy N shares at $100/share       Feb 1: sell N shares at
       | $90/share       Mar 1: buy N shares at $80/share       Apr 1:
       | sell N shares at $70/share
       | 
       | The person is clearly a terrible trader. That sequence of trades
       | has lost them $20/share.
       | 
       | But Section 16 doesn't look at the overall results. It just looks
       | it individual trades and tries to match them with individual
       | trades going the other way within 6 months (before or after) and
       | if the sell is higher than the buy that is short-swing profit.
       | 
       | Section 16 sees the above trades as a short-swing profit of $10 x
       | N from the purchase on Mar 1 and the sale on Feb 1.
       | 
       | The net result then for the insider who made those ill conceived
       | trades is that they lose $20/share on the trades themselves, and
       | they end up having to pay an additional $10/share to the company,
       | and pay the attorney fees of whoever managed to file first to sue
       | them.
        
         | Consultant32452 wrote:
         | Okay, but first send the judges and politicians who did this to
         | gitmo.
        
         | nerdponx wrote:
         | I love this idea.
        
       | h2odragon wrote:
       | They do this whole ritual about Jury Selection, you can't be a
       | Juror if you've got family in law enforcement, etc etc.
       | 
       | Could we have a Jury, once assembled, apply those same rules tot
       | he rest of the Court? "Your Honor have you ever held ownership in
       | the companies involved in this case? Ever been married or
       | intimate with any of the parties in this case?"
        
         | colejohnson66 wrote:
         | There are ethics laws for lawyers and judges. The problem is:
         | the enforcer of those ethics laws are partially the judges
         | themselves. It's the same issue with cops breaking the law;
         | cops don't rat on/arrest other cops.
        
           | h2odragon wrote:
           | It seems like we have a lot of social problems like that; we
           | _have_ laws about them, but the enforcement became spotty
           | somehow... _Some_ people can start an online bank, or have a
           | "taxi app"; and it's OK; but everyone else has the laws
           | against it enforced.
           | 
           | Perhaps some of the conspiracy theorists talking about the
           | undermining of the prosecutor and court systems since the
           | 90's have been onto something.
        
       | stevespang wrote:
       | Title should be: OBVIOUS CORRUPTION: Federal Judges or Their
       | Brokers Traded Stocks of Litigants During Cases
        
       | lordnacho wrote:
       | The real problem is you have a culture where people think the law
       | is the edge of what is acceptable. Whether it is legal or not, I
       | would not be punting on stocks that I was a judge for, it simply
       | stinks and shouldn't be done.
       | 
       | There's probably a lot of things that are formally legal but
       | corrosive to society.
        
         | lend000 wrote:
         | It's nice to be able to blame something on a culture, but the
         | reality is that some percentage of people are somewhere on the
         | spectrum of morality where they are prone to doing this. I
         | don't imagine judges are a particularly amoral group, despite
         | being lawyers, but politicians certainly are. I'm always
         | dumbfounded when people want to give politicians more power.
        
           | lixtra wrote:
           | >> think the law is the edge of what is acceptable. >
           | particularly amoral group, > but politicians certainly are.
           | 
           | To be fair, if all politicians were always morally rooted in
           | the center of the law, nothing would ever change. No
           | marijuana, no gay marriage.
           | 
           | Or more appropriate: There's a certain overlap of laws (and
           | constitutional rights) that blur the edge of law (here:
           | pursuit of happiness for the judge's vs. corruption of
           | justice).
        
         | MrBuddyCasino wrote:
         | > There's probably a lot of things that are formally legal but
         | corrosive to society.
         | 
         | Plus the process of corruption is slow and creeping. A
         | generation doesn't know whats it like growing up a generation
         | or two before, so the current state of affairs is taken for
         | granted. At some point, the idea of a high-trust society where
         | people don't need to lock their doors and children can just
         | roam the neighbourhood freely becomes a faint memory and unreal
         | utopia. Starting a family in their twenties, the prospect of
         | home ownership, and being able to do so on a single income has
         | already become unimaginable.
        
           | sokoloff wrote:
           | The latter is not unimaginable to (and done regularly by)
           | millions of people living in lower cost areas of the country.
        
       | harry8 wrote:
       | Matt Levine has noted in modern America everything is securities
       | fraud; the most egregious of crimes are being prosecuted as
       | securities fraud rather than whatever the actual crime was.
       | 
       | How does security fraud apply to this? Or is that why it happens?
       | You can't point to a "shareholder loss" and all other
       | stakeholders in the company, the legal system and society don't
       | get enforcement when they are the victims of this kind of crime?
       | The company can't be held responsible if a corrupt judge acts
       | corruptly (or impersonates someone who is corrupt displaying a
       | stupidity that should bar them from any position of
       | responsibility), if that judge did not involve the company
       | directly in that corruption.
        
       | Jerry2 wrote:
       | Everything's corrupted. Pretty much every branch of government is
       | rife with corruption. Even the enforcement is corrupt. Money has
       | infiltrated everything and justice is now truly blind.
       | 
       | And if by some miracle you're tried and found guilty, you can
       | even buy your way out of serving any time and you can even buy a
       | presidential pardon and have your crime expunged.
       | 
       | If you're rich, vast majority of laws simply don't apply to you.
       | Yet there's so many laws on books and many of those laws are so
       | vague that an average person commits several felonies every day.
       | [1]
       | 
       | [1]
       | https://www.wsj.com/articles/SB10001424052748704471504574438...
        
         | 2OEH8eoCRo0 wrote:
         | Kenneth Lay, Bernie Madoff, Martin Skreli, and countless others
         | served hard time.
         | 
         | There is no such thing as a corruption-free government because
         | it is made of human beings but I think that the US Govt has
         | definitely trended in the right direction over time. I hope the
         | trend continues, more transparency is a good thing.
        
           | goldenkey wrote:
           | You've got it backwards. Shkreli served time because of
           | public opinion and the things he revealed about the medicare
           | drug pricing [1,2,3]
           | 
           | Shkreli's case shows the partiality, politics and bias
           | embedded in our justice system. He was unable to even serve
           | the remainder of his sentence under house arrest as very
           | reasonable covid safety precautions despite his crime being
           | entirely nonviolent.
           | 
           | The justice system is in many ways the government's
           | instrument of vengeance. You can clearly see this with O.J.
           | Simpson's 33 year sentence in 2008 for armed robbery.
           | Essentially, a new fluff case was used to dole out an
           | improportionate sentence. as retribution for the murder of
           | Nicole Brown and Ron Goldman. [4,5]
           | 
           | The truth is that Shrkeli pissed off a lot of people in
           | powerful places. None of the investors wanted him tried
           | because he ended up making them all a lot of money.
           | 
           | [1] https://youtu.be/L-U1MMa0SHw
           | 
           | [2] https://youtu.be/2PCb9mnrU1g
           | 
           | [3] https://youtu.be/hjAQOWSP3Cc
           | 
           | [4] https://youtu.be/BB4ss7q5X08
           | 
           | [5] https://en.wikipedia.org/wiki/O._J._Simpson_robbery_case
        
             | sam2426679 wrote:
             | Agreed. Shkreli was dumb/honest enough to say "this is what
             | I've done with your broken system." If he had pulled a
             | Sackler-style, "I did this for your own good" lie (complete
             | with the requisite bribes/speaking_fees for industry
             | "experts"), he wouldn't have earned the same ire from the
             | media or regulators, imo.
        
               | goldenkey wrote:
               | Indeed, moreso pride and lack of wisdom. Perhaps a bit of
               | martyrdom. Shkreli liked playing around with these people
               | who literally wanted to slay him. I don't think he
               | understood how seriously evil and petty boomers can be,
               | and how most judges are from that generation. He took one
               | for the team in a sense, showing how the justice system
               | serves as the instrument of vengeance for the executive
               | and legislative branches. He's by no means dumb [1,2] but
               | yes, honest to the point of being blunt. Very much in the
               | spirit of Mike Tyson who is also extremely intelligent
               | but often portrayed as a dolt. [3,4,5]
               | 
               | [1] https://youtu.be/VI_riscmviI
               | 
               | [2] https://youtu.be/poyf3Cnb-MQ
               | 
               | [3] https://youtu.be/B9abU6r80P4
               | 
               | [4] https://youtu.be/OOhdx1TLutw
               | 
               | [5] https://youtu.be/KaMb3GqKXb0
        
         | ralusek wrote:
         | It's not just money, it's also ideology. Rule of law is
         | increasingly looked at with distain in favor of rule by
         | arbitrary authority. At some point deontological liberalism has
         | been overtaken by utilitarian pragmatism. The thing is that
         | deontological rule of law is the exception throughout human
         | history, and utilitarian pragmatism is the norm among
         | unremarkable populations. It's not exactly easy to reclaim.
         | 
         | When I hear people around me thinking it's a good thing when a
         | judge rules in a way that nets the outcome they want,
         | regardless of whether or not it was done so in accordance with
         | the law, it hurts. Somehow, people fail to realize that rule of
         | law is the single greatest defense against tyranny that we
         | have. Short sighted pragmatism.
        
           | 2OEH8eoCRo0 wrote:
           | > Rule of law is increasingly looked at with distain in favor
           | of rule by arbitrary authority.
           | 
           | This happens right here on HN. It seems that nobody here
           | wants trials for Snowden or Assange for instance.
        
           | FpUser wrote:
           | Laws are imperfect and often there are situations when
           | applying the law as written / by precedent will ruin person's
           | life in very humanely unjust way. In this case if I was a
           | juror I would say fuck the law and go with the nullification.
           | Unfortunately it does not happen often enough.
           | 
           | Also I think if every law was strictly enforced the
           | functioning of society would stop. This tells something about
           | the whole system. Some fixing is required.
        
             | ralusek wrote:
             | Bad laws should be fixed by legislation, not by arbitrary
             | judicial authority.
        
               | FpUser wrote:
               | That is a nice theory that sometimes work and sometimes
               | does not
        
               | ralusek wrote:
               | Same is true for arbitrary judicial authority.
        
           | bluejekyll wrote:
           | > people fail to realize that rule of law is the single
           | greatest defense against tyranny that we have.
           | 
           | This purist view ignores the fact that not all laws are good.
           | Many laws are in fact bad, and it's important for them to be
           | challenged.
           | 
           | As an example, many here would agree that the DMCA is a bad
           | law. It's a law that is generally only enforceable by wealthy
           | players.
           | 
           | There are many bad laws on the books. Those laws do not get
           | equally applied to everyone in society. The fact that we have
           | bad laws, implies that applying them will lead to bad
           | outcomes. This is partly why having an unbiased appellate
           | court to review the laws and throw out the bad ones is so
           | important. Sadly much of the appellate court has also become
           | corrupted, but at least the system is there to ideally
           | correct bad laws and allow for blind application of justice.
        
             | ralusek wrote:
             | Blind application of justice _is_ rule of law. And nobody
             | is saying there aren 't bad laws; there are plenty. We just
             | have a system in place which dictates where the law is
             | created, where the law is modified, and where the law is
             | carried out. Our legislative branch is writing the code,
             | theoretically downstream from our democracy, theoretically
             | constrained by the meta layer that is the constitution. I
             | don't want my code to be compiled only for the execution
             | layer to suddenly decide that the code I wrote isn't what I
             | meant. What if the execution layer is a racist? What if
             | they stand to benefit financially from a particular ruling,
             | as the OP says? What we should want is the judiciary acting
             | like a compiled executable. If we're going to argue that a
             | law is fair or not, let's do it with our democracy through
             | some pull requests, and not give our executable the leeway
             | to decide if they personally like the code they're meant to
             | carry out.
        
         | saurik wrote:
         | > ...justice is now truly blind.
         | 
         | (I think you are misunderstanding this metaphor, as Justice
         | being blind is actually supposed to be good: it means Justice
         | makes decisions without bias or regard for who the parties are,
         | only able to analyze the facts. A corrupt court that benefits
         | some people over others based on connections or group
         | affiliation would imply Justice _not_ being blind.)
        
           | jwatt wrote:
           | Indeed. See also
           | https://en.wikipedia.org/wiki/Lady_Justice#Blindfold
        
           | Aethylia wrote:
           | Time to start popularising 'Justice is 20/20' then!
        
         | grecy wrote:
         | > _Money has infiltrated everything_
         | 
         | Worse, money is protected speech, and using it to buy influence
         | is protected by the law!
        
           | refurb wrote:
           | Exactly! Bloomberg spent $1B on his nomination for president
           | and... it failed entirely.
        
             | plebianRube wrote:
             | I don't think he had any expectation or interest in
             | winning. He bought his way in to divert votes from other
             | nominees. Spend a billion to save 10 billion.
        
               | hellbannedguy wrote:
               | How would he save money?
        
             | Invictus0 wrote:
             | Hardly evidence of anything... It's one thing to spend
             | money, another thing entirely to spend it properly.
        
           | throwawaylinux wrote:
           | When that happens, people will have even less recourse
           | against media, internet and social media companies using
           | their power to influence.
        
             | lazyasciiart wrote:
             | What do you mean, "when that happens"? It's the law today.
        
               | throwawaylinux wrote:
               | I must have intended to reply to one of the replies to
               | you calling for it to be outlawed.
        
           | throwaway6734 wrote:
           | The negative influence of Big Money in politics has been
           | proven to be vastly overblown. Small dollar donations ar much
           | more dangerous as they tend to come from the most engaged &
           | partisan members of society and encourage pols to be much
           | more extreme in their rhetoric
        
             | Frost1x wrote:
             | Where is the proven evidence of this? I find this very
             | difficult to believe, otherwise.
        
               | throwaway6734 wrote:
               | Big money pulled their donations from the GOP after 1/6.
               | 
               | Look at [Marjorie Taylor Greene's
               | fundraising](https://www.opensecrets.org/members-of-
               | congress/marjorie-tay...)
        
             | akudha wrote:
             | Are you not watching Sinema and Manchin? Two people (maybe
             | another half dozen, quietly) holding up legislation that
             | much of the country wants to pass
        
               | rsj_hn wrote:
               | It's very radical and divisive legislation opposed by
               | much, if not the majority of the nation.
               | 
               | Blocking this type of radicalism is why the Senate
               | exists. You saw the same thing happen during President
               | Trump's administration, when an extremist tax bill was
               | proposed, and much of the radicalism in _that_
               | legislation was removed by the same senate, with the same
               | howls about obstructionism being levied at moderate
               | Republican senators from the GOP base.
               | 
               | Basically go down the line of the major legislative
               | efforts and you see extremist stuff being passed by the
               | house, and then toned down or dropped in the Senate. And
               | not only legislative efforts, but the entire history of
               | the two bodies, the Senate is usually the moderating
               | force.
               | 
               | Thank God for the Senate.
        
               | akudha wrote:
               | Can you explain what is radical and divisive about the
               | legislation?
               | 
               | Negotiating drug prices is bad? Asking corporations (that
               | are making record profits) pay their fair share of taxes
               | is radical? Two years of free community college is
               | divisive? Including dental, vision in medicare is bad?
               | 
               | Can you point out and explain what parts of the bill is
               | divisive and bad? And why?
               | 
               | And please don't say the amount is too high. 3.5T is over
               | _10 years_ , the US govt spends 750B on military, in a
               | _single_ year.
        
               | rsj_hn wrote:
               | > Negotiating drug prices is bad?
               | 
               | No, that's fine. It's the 3.5 Trillion in pork and
               | expansion of government powers that's the problem.
               | 
               | > Asking corporations (that are making record profits)
               | pay their fair share of taxes is radical?
               | 
               | This is a weird soundbyte. Please stop it with "pay their
               | fair share". Increasing IRS snooping powers on all bank
               | accounts of private citizens is bad and does nothing to
               | promote corporations "paying their fair share". There are
               | lot of orwellian aspects to this reform. A simple VAT tax
               | and elimination of corporate taxes would be more fair and
               | also less intrusive. That would also bring us more inline
               | with a european style tax system and eliminate corporate
               | tax avoidance. It's also a proven system that works well
               | in Europe.
               | 
               | One thing the left needs to understand is that corporate
               | taxes are basically sales taxes. So if you are going to
               | be applying a national sales tax, do a VAT. That will
               | immediately solve your foreign tax shelter problems
               | because you are taxing sales and not "profits", which are
               | subject to all sorts of accounting gimmicks. Sales are
               | clear and they happen in a specific geographic area. Just
               | tax sales net of domestic input costs. This is actually
               | one of the policies floated in the Trump administration
               | but was of course never adopted seeing as how
               | corporations opposed it (for obvious reasons).
               | 
               | > Two years of free community college is divisive?
               | 
               | It's terrible policy. We need to cut government subsidies
               | of higher education in half and finally open up a system
               | of trade schools for the majority that shouldn't attend
               | college. Trade schools, and not two years of community
               | college, is what we need.
               | 
               | The problem with US education spending, like with US
               | healthcare spending, is that we are spending twice as
               | much as the OECD (as a share of GDP) and _still_ the
               | private sector is left with huge bills. And we have _bad
               | outcomes_ , graduating students without marketable skills
               | and that do not match the needs of our economy. Again,
               | here we should follow the European model rather than
               | giving more subsidies to our system.
               | 
               | That means free higher education and free trade school,
               | and this can be funded by slashing university budgets by
               | 2/3 and diverting funds towards the establishment of
               | trade schools, banning schools from charging anything to
               | students if they accept government vouchers. Each voucher
               | should be for 11K/year. Students must complete their
               | degree in three years, and standards should be raised so
               | only qualified students attend university rather than
               | teaching remedial subjects in our expensive university
               | system. Non-academic staff should be reduced from the
               | current levels of 3 non-academic staff per academic staff
               | to 3 academic staff per non-academic staff. That
               | reduction in non-academic staff and reduction in required
               | courses would allow for a massive slashing of university
               | budgets, bringing them inline with what is spent in
               | Europe. And we'd get smaller class sizes and free
               | universal education to boot. None of that requires a
               | dollar of extra spending beyond current levels.
               | 
               | But merely subsidizing a bad system now entrenches it and
               | makes it harder to reform in the future. You have the
               | same problem with healthcare.
               | 
               | > And please don't say the amount is too high. 3.5T is
               | over 10 years,
               | 
               | It's not the amount, it's that it's all deficit spending
               | and the actual programs are mostly harmful rather than
               | helpful.
               | 
               | One problem with the left is they think it's always 1933.
               | The only economic model in their mind is one where there
               | is deflation and millions of unemployed with nothing to
               | do, so they always call for a "New Deal". Well, we are in
               | a tight labor market and an inflationary economy, so now
               | is not the time to run expansionary fiscal policy. You
               | would think this would be obvious, but alas it doesn't
               | stop anyone from calling for projects that create "more
               | jobs". Now if you want to reduce defense spending and
               | increase spending on something else, we can discuss that.
               | I'd like to reduce defense spending as well, but another
               | 3.5 Trillion in stimulus is a terrible policy in the
               | current economy, and the objects of this spending are the
               | corrupt bureaucracies that need to be cut, not increased.
               | 
               | So yeah, it's really a terrible bill that takes us in the
               | wrong direction. I'm OK with negotiating for cheaper
               | drugs, and few other things, but the actual spending of
               | money and most of the policies are just awful.
               | 
               | Now I understand that a lot of my proposals are also
               | radical. But we need radical reform. And I also
               | understand you can't get a radical bill passed when you
               | have only a three seat majority in the house and a 50-50
               | Senate. It's insane to think you can. You won't be able
               | to. So in this current stalement it's much better to pass
               | no bill than to pass a bad stimulus bill in an overheated
               | economy. At least passing no bill would avoid making
               | things worse, which is what this bill does. The reason we
               | do not have education or healthcare reform is because
               | there are too many people employed in these industries
               | who wield too much political power and are able to block
               | reform. Therefore I oppose anything that increases
               | employment in already bloated fields, as it makes the
               | reform problem that much harder.
        
               | sedivy94 wrote:
               | I learned a lot from this comment. Thank you.
        
               | Jotra7 wrote:
               | You learned one person's unproven assertions.
        
               | throwaway6734 wrote:
               | You think they're the only two Democratic Senators or
               | house members that don't want this legislation?
               | 
               | I don't. They're cover and the lightning rods for other
               | reps in swing states.
               | 
               | Also, a large chunk of the country does not want this
               | legislation to pass (I'd even go as far as to say
               | potentially a majority).
        
               | akudha wrote:
               | _Two people (maybe another half dozen, quietly)_
               | 
               | No, I believe it is more than two democratic senators, I
               | don't know how many. That is why I put half dozen, in
               | parenthesis.
               | 
               | Poll after poll shows the legislation is popular, even in
               | Manchin's own state. Same in Arizona. What provisions of
               | the bill do you disagree with?
        
               | throwaway6734 wrote:
               | Individual components polling well does not necessarily
               | mean the package as a whole will poll well. Also
               | Americans are incredibly fickle (look at polling
               | associated with remaining in Afghanistan).
               | 
               | I don't support expansion to medicare or medicaid
               | (although the ability to negotiate on drug prices seems
               | reasonable). We are already facing a looming funding
               | crisis for social security & medicare and I don't think
               | it's reasonable to put even more debt on future
               | generations.
               | 
               | If the US wants a European style social safety net, the
               | US middle class is going to need to help pay for it which
               | I don't think they're willing to do.
        
               | Jotra7 wrote:
               | Lol. No. The rich need to start paying up.
        
           | EastOfTruth wrote:
           | bribes/lobbying should be illegal... please get a referendum
           | going on this subject
        
             | TheFreim wrote:
             | Lobbying is essentially a constitutionally protected right,
             | right? Comes from the right to petition our government.
        
             | grecy wrote:
             | The challenge that the USA faces is the people who have the
             | power to change it are the very ones who benefit the most
             | from it.
             | 
             | There are MANY established institutions in the USA that
             | will fight tooth and nail not to change, because the
             | established players are getting exceedingly rich the way
             | things are now, to the detriment of everyone else.
        
               | matheusmoreira wrote:
               | Yeah. How is change supposed to come when they control
               | the system that's supposed to bring it about? If you try
               | to fix things outside the system, you essentially become
               | a terrorist and the government gives itself license to do
               | unspeakable things to you.
        
               | trollski wrote:
               | revolution. does not mean blood on the streets. like
               | soviet block circa 1989-1990.
        
             | jimktrains2 wrote:
             | Why do you want to make it illegal for me to contact my
             | representative and voice my opinion on upcoming legislation
             | -- that's also lobbying.
        
               | FpUser wrote:
               | As long as id does not involve money direct or indirect
               | between "lobbyist" and the official sure go and convince
               | your rep. Just do not promise cushy job later or for
               | relatives or any other creative ways to buy your
               | politicians.
        
           | bitwize wrote:
           | It's time to repeal the First Amendment. It's probably time
           | to repeal the entire Bill of Rights, and replace it with a
           | framework that allows the government to restrict the exercise
           | of rights when and as much as required to protect public
           | safety or the mechanism of democracy.
           | 
           | All functioning democracies (which the USA is not) have such
           | a framework in place. In Canada it's famously called the
           | Notwithstanding Clause.
           | 
           | Well, maybe not all. We can keep the Third Amendment as a
           | souvenir.
        
             | FpUser wrote:
             | In case your message is not sarcasm - The way
             | Notwithstanding Clause was used and / or threatened to be
             | used by Ford for example had nothing to do with the
             | democracy but everything with the Government pushing their
             | agenda.
        
             | eloisius wrote:
             | I can't tell if this is sarcasm. The solution to corruption
             | in government is to give even more powers to the government
             | to restrict the exercise of rights?
        
               | colejohnson66 wrote:
               | The fact that they're suggesting we keep the Third
               | Amendment (which is, for all intents and purposes,
               | useless), but get rid of the rest leads me to believe
               | it's sarcasm. If someone was serious about "repealing"
               | the Bill of Rights, they probably haven't read it and
               | don't know anything more than the First and Second.
        
               | bitwize wrote:
               | Oh no, I think the entire Constitution actually needs to
               | be rethought if we intend to do something about
               | corruption in the system. It's clear that the USA is a
               | failed state -- the Constitution hampers the government
               | from doing good, necessary things (like implementing
               | universal health care, strong consumer and worker
               | protections, protecting against hate speech, etc.) while
               | allowing corruption to run rampant. It needs to be
               | replaced. Something like a proportional representation,
               | multiparty parliamentary system. While we're at it we may
               | as well rejoin the Commonwealth, because the Crown has
               | one non-ceremonial power that can be used to fight
               | corruption, that no person or body has in the U.S.
               | government: the power to disband the government and force
               | the institution of another by democratic means.
               | 
               | If you think this sounds familiar, you're right: New
               | Zealand is practically an ideal model of how to form a
               | modern, practical, democratic government that reasonably
               | respects personal freedom _and_ public safety and
               | security. Their example should be followed elsewhere,
               | especially in the USA.
        
         | mlindner wrote:
         | Hyperbole doesn't contribute to the discussion.
        
           | CapitalistCartr wrote:
           | None of the prior comment is hyperbole. Everything has
           | happened, multiple times that we know of.
           | 
           | "Three Felonies a Day"
           | 
           | https://www.amazon.com/Three-Felonies-Day-Target-
           | Innocent/dp...
        
       | tonmoy wrote:
       | Technically these judges should have recused themselves, but is
       | it really a big deal that the judges (or their families) had
       | financial advisors or stock brokers held shares in companies they
       | were probably not even aware of was a defendant? The real
       | question would be how much did these judges make by buying or
       | selling those stocks during the cases compared to rest of their
       | portfolio. I would imagine it'd be negligible
        
       | heythere22 wrote:
       | https://archive.md/j7Tkh
        
       | aomobile wrote:
       | Needs to be regulated Asap. Corruption is cancer.
        
       ___________________________________________________________________
       (page generated 2021-10-23 23:02 UTC)