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In North Carolina, Gov. Roy Cooper has adopted the policy premise that anything done in the name of safety from the coronavirus trumps all other interests, including economic, religious, or other health considerations. Despite comparatively low numbers in the Tar Heel state, the ninth most populous state in the United States, and with no evidence of the healthcare system being overwhelmed, North Carolina has been in full lockdown for over a month.

It matters not if you live in the mountains or on the coast—rural or urban—all residents are required to shelter in place. Despite the crippling effect COVID-19 has had on the $25 billion tourism industry, the devastation to the small business community, and over a million job losses, “thou shalt not work” unless the good governor has deemed you “essential.”

In Mississippi, Gov. Tate Reeves has operated under an alternative premise: that medical safety is a major consideration, but so is allowing people to protest, or to fish, or to earn a living. The governor in the Magnolia State has taken a lot of heat for being slow to slam the economy shut and quick to discuss reopening it. He has also caught a lot of flak for allowing counties and cities to determine what works best in their own communities and for refusing to tell Mississippi churches how to conduct their affairs. Like North Carolina, Mississippi has relatively low numbers of COVID-19 deaths and no apparent strain on the healthcare system, despite having a very high rate of citizens with obesity, heart disease, and diabetes.

Small businesses are on life support across both states. Jobless claims have risen to historic levels in the state of the Dogwood and in the state of the Magnolia—now higher than during the financial crisis. Medical advisers in both states are giving warnings and covering all their bases at daily briefings as they stand beside their respective governors. There is no question that both governors have taken this disease seriously and offered intelligent advice about how we should protect ourselves. So, how do you explain the vastly different approach to the pandemic from two red states with similarly low coronavirus impact?

The difference is in the tone, in the language, and in the viewpoint of how best to mitigate risks and protect citizens. Cooper’s instincts are to restrict the personal freedoms of his citizens; Reeves’ instincts are to protect the personal freedoms of his. Cooper believes shutting down businesses won’t lead to shortages of food and paper products and that denying the constitutional rights of his residents won’t lead to a citizen uprising. (Note citizens are staging weekly protests at the state capital and the governor’s mansion in Raleigh.) By contrast, Reeves has moved to open retail shops, acknowledged the rights of protestors to peacefully assemble at the Capitol, and refused to accept the premise that we must choose between prudent healthcare measures and protecting our economy.

In the state of Michael Jordan, hospitals are losing revenue and laying off personnel because the governor won’t allow the treatment of non-coronavirus patients. In the state of Archie Manning, elective procedures have begun again because the governor recognizes cancer surgeries are pretty “essential” to the patient.

History will judge how these two governors, and the other 48, managed this pandemic. But as data comes in, it’s looking like the quarantines will not prevent us from getting sick. It appears we’re basically delaying the inevitable infection rate. As these long days go by, the models continue to indicate initial predictions were vastly overstated. However, the data on the destruction of our economies and on the hopes and dreams of our citizens may be far worse than ever imagined.

The American economy is the greatest in the world because of all of the interconnected and voluntary exchanges that take place every day, in every community. It remains to be seen if this economic miracle of free enterprise can survive the kind of body blows delivered by the heavy hand of government—especially by the kind of authoritarian governors who seem hellbent on taking a sledgehammer to our economies when a scalpel would have been more useful.

This column appeared in FEE on May 15, 2020.

"I am a hearing aid specialist and my company, I fear, is one to be 'left out' of relief funds! 

"I'm a sole proprietor, schedule C filer, no employees, take draws when I can. I filed for Economic Injury Disaster Loan assistance on April 6, confirmed and issued a number expecting funds to my account within three days as stated in the offer, made three worthless information phone calls, and finally received an email from the Small Business Administration that they are processing my request May 6.

"My company is a hearing aid sales, fitting, testing and service company so naturally we've had no face to face customers in two months. No income either, living on receivables and paying absolute must bills with no hope of reducing my payables. So now I'm receiving 90 day notices.

"Normally, February through May are my largest sales months. May is National Better Hearing Month. However, sales normally average over half my gross for entire year with the coming months of June through August being the worst.

"So how can any of this help me? I am all in with what I can contribute to my own business and have no income to make a draw. My personal finances have been tapped dry over the last five years since I started and I can not borrow anymore."

Bonnie Sisk
Hearing Solutions LLC
Hernando, Mississippi

After much anticipation – and, for some, consternation – the U.S. Department of Education has finally issued a new rule aimed at reforming Title IX regulations regarding sexual harassment complaints.

U.S. Secretary of Education Betsy DeVos announced the new rule here. According to a press release issued by the Department, the new regulation does the following:

Past Title IX revisions – most infamously, a 2011 “Dear Colleague” letter – have arguably circumvented the federal rulemaking process demanded by the Administrative Procedure Act.  

As articulated in an April 24, 2020 letter that I sent to the Department, however, the revision of the new rule strictly followed the proper process and provides for a transparent and fair implementation of Title IX. Attempts at delaying publication of the new rule, I argued, “would not only reinforce bad Title IX policy, it would also bring into question the legitimacy of the federal rulemaking process itself.”

By contrast, Title IX revisions advanced under the Obama (2011) and Clinton (2001) administrations evaded the formal rulemaking process, fueling ambiguity and inviting attempts at the state level to codify federal policies. The 2011 guidance, in particular, has been criticized for depriving the accused of due process and free speech rights. Here in Mississippi, the House has repeatedly passed legislation inspired by the Obama-era Dear Colleague letter. The latest iteration, passed in March 2020, is HB 158. This bill is double referred in the Senate. It is sponsored by House Judiciary A Chair Angela Cockerham.

Previous versions of the “Sexual Assault Response for College Students Act,” such as that passed by the House in 2017, included several problematic policies that mirrored the now-displaced federal guidance. These include: using a very low standard of evidence (preponderance) without proper procedural safeguards; limiting cross-examination of the accuser; and allowing institutions to restrict access to an attorney by the accused. 

Now that the federal guidance has been finalized, Mississippi has an opportunity to revisit this issue in 2021 by passing legislation that would codify the new federal rule.

In the meantime, schools need time to digest and implement the new guidance.

Every wondered about the true status of Mississippi's pension system and what reforms we need to make to turn those numbers around?

Or do we? After all, most in elected office act as though everything is just fine.

The Pension Integrity Project team at Reason Foundation did the in-depth research into the program, and its future, and provided details on their work in this webinar for Mississippi Center for Public Policy:

Saying for the second time that he is only allowing Jackson businesses to reopen because of an earlier order from Gov. Tate Reeves opening the state, Jackson Mayor Chokwe Antar Lumumba announced today that Jackson businesses can reopen Saturday, not Friday as originally stated. 

And he may again close businesses if cases surge. 

Among the regulations, the same social distancing orders that are in place statewide will also be in place in Jackson, along with the same sanitary guidelines.

But Lumumba is adding a curfew to the city, something that has been popular with a few other mayors across the state. In Jackson, all bars and restaurants must close by 10 p.m. and everyone must be home by 11 p.m. They can then leave their house at 5 a.m. the next morning. 

And all residents will be required to wear a mask when in public. 

Two months after youth baseball was put on hold in Brandon, the sounds and smells of young boys and girls hitting the diamond returned last night. Even if it’s in a slightly altered form. 

But for kids like our five-year old who had just one practice in his first year of organized baseball before the fields at Shiloh Park were closed, he couldn’t tell the difference. With his cleats laced up, bat bag packed, and Gatorade bottle filled, he was ready to field grounders, hit the ball, and run the bases. 

For kids who have been out of school since March and haven’t been able to attend other public gatherings, this was a chance to get out. To run around. To burn off energy. And just to do something normal. Even if that meant putting the glove on the wrong hand. Or running to third base. Or every kid chasing after the ball regardless of the position that were playing and where the ball went. Because that’s what you do when you’re five. That’s normal. 

There were high-fives and fist bumps, even if that is frowned upon these days. The dugout was roped off, but since the caution tape was higher than the kids, they likely didn’t notice and walked in just fine to put their bags down. But they didn’t spend much time in the dugout. No, last night was meant for being a kid. For the first time in a while. And that just felt good. 

I know it did for the parents. Though I can only speak for one parent. 

At the end of the night, it was just practice. There are no uniforms yet. Since capacity is limited to 20, there are no games yet. The hope is that will come next month and the season that normally runs from March through May will now run from May through July, if everything goes as planned. 

I’m ready for Major League Baseball to return, as seems likely at this point. But I’m even more excited for another season of the memories from youth baseball, for the kids, and for us parents.

“We were issued a citation for reopening our gym on Monday, April 27.

“Our gym was ordered to close by government order on April 3. At the time we had only anticipated a two-week shutdown. But when that order expired, the governor announced he was continuing the shelter in place order and was only opening retail businesses. 

“We then announced on Facebook that despite the governors orders we were opening April 27 anyway. We opened and were met with law enforcement officers and were issued a citation. 

“We asked the amount of the citation, but the officials were unable to give us a direct order.

“During our 37 days of forced shut down we had to cancel 93 memberships and suspend 13. All but five were coronavirus related cancellations and suspensions.”

Ryan Bramlett and Wesley Bray
300 Fitness
Pontotoc, Mississippi

Thanks to government action, and through no fault of their own, private sector companies have taken it on the chin for two months now. 

Mostly, those have been small companies. Mostly, these are companies that don’t employ lobbyists and don’t hold valuable government contracts. Some of these companies don’t even have employees – beyond owners who derive their incomes through profits, not salaries.

Many of them did not get a Payroll Protection Program loan from the SBA. These are the entrepreneurs, small business owners, and self-starters we should take care of immediately. They display the kind of personal responsibility and resilience we should hold up as an example to the rest of the world.

The small business owners and entrepreneurs are the lifeblood of thriving economies. They focus on serving consumers and developing superior business models in highly-competitive environments. Sometimes, they even create whole new categories with their creative ideas and execution. 

They don’t line up for government grants, tax incentives, or contracts. They don’t spend time trying to entertain or seek favors from our elected representatives. These are the folks on the front lines. They are creating new products and services to serve their fellow citizens. They are risking their own capital or the capital of private investors or banks. In other words, these small business owners know best how to get the greatest return on their money – because they have to. 

Let’s make sure they are the ones who receive not only the first monies allocated by the legislature, but also the largest portion of it.

According to the Tax Policy Center, Mississippi leads all of the Southeast in terms of its local tax burden as a percentage of personal income. It has been hovering at or above 10% since 1997, putting Mississippi on par with high tax states like California, Illinois, Minnesota, and New York. In terms of local business taxes, Mississippi companies contribute about 75% of the local tax revenue, which is higher than all of our surrounding states and roughly 50% more than the national average. This acts as a damper on small business development, expansion, and start-ups.

While we’re putting a “restrictor plate” on small businesses and the private sector not directly engaged with government, we double down on government spending. According to a 2018 study from the Cato Institute, Mississippi has the nation’s highest percentage of state and local spending as a percentage of GDP. Over the last three decades, the percentage of state and local spending has increased. Today, it stands at roughly 21% of our GDP. 

According to most economists who study it, that’s about twice the optimal rate of government spending in order for a state to maximize economic growth.

The federal government has sent Mississippi $1.25 billion, through the CARES Act, to be used to address the economic damage from COVID-19. The legislature and the governor have agreed, in some way, to work together on the allocation of that money. 

The devil will be in the details. 

I’m worried by some of the things I’ve heard about the initial plans. Right now, it looks like $100 million, or eight percent of the funds, will be designated for small businesses who got no relief from the PPP funds in April. I’ve heard the plan is to send as much as $300 million, or 24% of the total, to small businesses. It’s a nice start and the right place to begin helping the economic recovery. 

However, what are the plans with the other 76%, representing $950 million in relief funds? Keep in mind, healthcare facilities have already received federal monies, as have airports and the Mississippi Department of Education.

I’m hearing certain government agencies, counties, and cities are looking for money from the CARES Act funds. State and local governments should be the last to receive such funds and only after they can demonstrate pandemic-caused expenses to be reimbursed. Personally, I would recommend we ask State Auditor Shad White and his team of auditors to oversee the verification process. 

Keep in mind, almost all government workers continued to get paid during the shutdown. And those who were furloughed are eligible to receive unemployment or to receive back pay. Some legislators are even talking about providing “hazard pay” to certain government workers. While we appreciate and value the work of many civil servants, we need to appreciate the fact that most of our private sector members of the workforce didn’t go on unemployment, won’t get back pay or hazard pay, and don’t even know what a pension is.

Putting fairness aside, one of the most important reasons for allocating the majority of the funds to the private sector is because we have an overwhelming amount of evidence that shows us the private sector allocates money more efficiently and effectively than the public sector. If anyone doubts that rule applies in Mississippi, they only need to look at the way the Department of Human Services deployed resources it received from the federal government.

As this healthcare catastrophe winds down and our economy begins to wind up, let’s not prolong our economic pain by continuing to rely too much on government for our solutions. 

Let’s insist government stay limited to the functions it does well and allow small businesses, entrepreneurs, competition, and consumer choice to lead the way. Recognizing that private sector participants are in need, not government, and that small businesses are a core part of the path to economic recovery, we strongly support allocating a majority of the CARES Act funds to support recovery through the private sector.

Technology has done amazing things for us, as individuals and as a society. We take our ability to order items online and have them delivered to our front door for granted. 

We can order groceries online and either have them brought to our car in the parking lot without having to enter a store or have them delivered to our house. And that information we freely provide on Facebook and Instagram has allowed aspiring entrepreneurs to target us down to a specific niche with products we didn’t realize we wanted and most likely don’t need.  

But perhaps it takes a pandemic for us to appreciate this technology and expand it. Because there are many other areas of our lives that could be positively impacted by technology, if only we would allow it. 

As the coronavirus began to spread, two of the immediate healthcare concerns revolved around limited access to medical professionals and a fear of being in the same facility of someone who has the virus. After all, we’re supposed to be social distancing. Thankfully, telemedicine is available to provide you healthcare access in your living room. 

To expand access, we began to see states waive the requirement that you can only use an in-state physician in March. Mississippi did that. And then just as quickly walked back that change to only allow this if you have a prior patient-physician relationship, greatly limiting your options as a consumer. Mississippians should be able to access the doctor or nurse practitioner of their choosing, regardless of the state they are licensed and whether or not you have had a previous face-to-face visit.

The same story holds in education. As every school in the state was shut down, an order from Gov. Tate Reeves called for all school districts to adopt distance learning for their students. Prior to that, Mississippi has had a number of chances to make online learning a reality. Unfortunately, the decision makers have shown no interest in the idea. 

Mississippi has a virtual public school, but it’s simply a couple courses a student can take, not a full distance learning program. Every student in the state should have the ability to choose from a plethora of digital options to serve their needs. We are told how hard it is to bring teachers for specific subjects to the most rural or impoverished regions of the state. This could fill that void.

Moreover, virtual charter schools are prohibited in Mississippi’s limited charter law. Some states even have a hybrid mix of homeschool/ charter school facilities where students attend a couple days per week while still doing most of their education at home. Families are able to decide if and what is the best option for their children. Some do a 100 percent virtual program. But not here.  

And the renewal of the Education Scholarship Account program for students with special needs strips online learning from the inclusion of educational expenses families can be reimbursed for, a move that was championed by opponents of the program. It hasn’t exactly aged well. 

Where else do we limit technology? After healthcare regulations, the most commonly lifted regulations during the pandemic revolved around alcohol. Which makes sense because it is one of the most overregulated industries, often related to prohibition-era policies. 

In another move that hasn’t aged well, the Senate soundly defeated a bill to allow direct shipment of wine to your house just a couple days before the legislature originally recessed. We then saw some alcohol regulations lifted by the Department of Revenue, but having alcohol delivered to your door – either what you purchase from a winery in California or by using a delivery app like Drizly, which functions similar to Uber Eats or DoorDash – remains illegal. 

Is this the most important issue in the state? Obviously not. But it is symbolic of a state that often does not trust its citizens to make the best decision for themselves and rewards incumbents who play the political game. The technology is there, whether it’s for your child’s education, to sell food you make from home online, or something that an entrepreneur creates tomorrow, we just need to let it happen. Unleash technology and consumers will benefit. 

This column appeared in the Meridian Star on May 8, 2020.

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