Cliff Winston has written a lengthy response to my critique of his views on judges and justices. It came on July 4 but I was busy, as Bob Cratchit said to Ebenezer Scrooge, “making rather merry” yesterday. I marched in the local July 4 parade and our group carried Betsy Ross flags and a Libertarians for Peace banner.
Thinking through Cliff’s response and replying to much of it will take time. So, for now I’m going to do what Bryan Caplan often did when someone had a lengthy response: print it in whole and respond later.
Cliff’s response is titled “The Supreme Court and Government Failure.”
Here it is:
The intent of my comments was to motivate assessing Supreme Court Justices and their rulings in the same way that we assess other policymakers and their policies. Assessment of the latter often leads to findings of government failure. I have not seen SCOTUS assessed in this manner and I acknowledge the topic still requires more thought and discussion about the methodological issues involved.
To the best of my knowledge, economists have not reached a consensus on defining government failure. A plausible definition of a government failure, which is useful for my purposes because it lends itself to empirical measurement and does not limit its scope, is a policy intervention that significantly wastes resources. Those resources include firms’ compliance costs and the cost of taxpayers’ funds to pay for government’s implementation and enforcement of the policy.
Economists tend to think of government failure as applying to elected officials in the legislative and executive branches who formulate and implement public policies at various levels of government. I have synthesized many studies (see the following books free and free in certain cases) that have assessed the effects of those policies and found enormous evidence of government failure. Such studies have been useful for policy debates. For example, evidence on the effects of Civil Aeronautics Board regulation of airline fares on interstate routes that found those regulated fares were higher than comparable unregulated routes in California and Texas supported the case for deregulating the airline industry to correct government’s regulatory failure.
Although economic efficiency is important for policymaking, there are far more counterexamples to the airline case. For these, empirical evidence identifies a government failure that supports an efficient policy reform, but policymakers are unwilling to consider that reform. For example, agricultural subsidies to farmers and Agri-business are hard to justify on economic grounds and urban rail transit’s social benefits are exceeded by its huge subsidies, yet money continues to be funneled into those enterprises. Apparently, there is something more important than efficiency that enables those subsidies to grow. That “something” causes government failure and impedes any efforts to reform policy to significantly reduce that failure. It is certainly possible to speculate on what that “something” is, but I don’t know of any causal evidence to support such speculations.
Of course, elected officials and their surrogates are not the only people in government who make policy. Judges and Justices also make policy. For example, policy toward abortion over the last fifty years was not the result of an act passed by Congress and signed by the President. The nation’s abortion policy was shaped first by the Supreme Court’s decision on Roe v. Wade and more recently by the Dobbs decision. Similarly, affirmative action policies by public and private colleges and universities will have to conform to the Supreme Court’s recent decision to undo the Bakke decision.
Thus, in the context of government failure, how should we assess SCOTUS decisions and determine if they are likely to result in government failure? How can we reduce the chance that the decisions are likely to result in government failure? Two immediate objections to this exercise are that SCOTUS is supposed to be narrowly constitutional providing a check within the structure of governance, and that SCOTUS makes legal not economic decisions. In other words, it is inappropriate to assess SCOTUS rulings as possibly failing like we have assessed other government policy failures.
However, I agree with Richard Posner’s perspective that a case is just a policy (my insert) dispute, which opens up the playing field to assessing the case by cost-benefit analysis and by other empirical approaches that are commonly used to assess government policies. To be sure, Justices are not trained in economics, but does that mean economics should be ignored in assessing their decisions, especially if it could identify a more socially desirable resolution of a policy dispute? Economic efficiency considerations are not ignored in assessments of other government policies; what makes assessments of the public policies facing SCOTUS different?
If the constitution gave unambiguous guidance that was aligned with socially desirable outcomes, then it would be dispositive. However, the constitution is not always unambiguous; Justices interpret it in different ways and have increasingly done so in accordance with their ideologies (see chapter 7 free in certain cases for empirical evidence); and the Constitution, just like transit operations, has not kept pace with changing demographics and other societal changes.
Unlike other areas of economic policy, there is not accumulated evidence that SCOTUS rulings have added to government failures. As noted, I have not seen SCOTUS rulings assessed using that benchmark. One might speculate that because elected officials’ policies fail so often, when SCOTUS has a case involving the government, it is likely to reduce a government failure.
In any case, my view is that empirical economic analysis could and should be used to help reduce the chance that SCOTUS decisions will result in government failure. As noted, Justices are not trained in economics or empirical methods, so expert panels could and should be formed to help Justices to reach more informed decisions. The paper I sent to David raises and responds to several objections to expert panels: (1) Economists also are ideological; (2) Economist and non-economist experts may disagree; (3) Experts can submit amicus curiae briefs; (4) Expert panels are inconsistent with the role of the Supreme Court; (5) The Supreme Court makes legal not economic decisions; (6) The legislative branch should convene expert panels; (7) Lawyers control the evidentiary process; (8) Expert panels would amount to academic seminars; and (9) Other reforms of the Supreme Court are available.
Assuming expert panels were advising the Supreme Court and the Justices respected their insights and took their advice seriously, could those panels bring evidence to a case that might affect the Justices’ thinking and understanding of arguments and amicus briefs so as to reduce the likelihood of government failure? Let me first add that the cause of government failure is probably better understood in polices that arise from Supreme Court cases than from policies instituted by elected officials. That is, I do not have evidence that explains why policymakers assign a large welfare weight to farmers and transit operators, but I do have evidence suggesting that some Justices’ ideologies could enable them to justify assigning a dispositive welfare weight to a woman who does not want to provide her services to a gay couple, or providing a higher welfare weight to a pregnancy than to the fate of that baby post-birth.
That said, in the web designer case, the expert panel would stress the economic costs to all the parties involved, the non-economic benefits to the web designer, the bargaining issues involved, and consider any spillover effects of either allowing or disallowing the web designer’s discrimination. This is not a straightforward exercise, and it could reveal some important effects. In the final analysis, I don’t know where the assessment would land, but I think it could clarify the relevant welfare effects of the policy dispute and the most desirable resolution and scope of application for the decision among a set of options (e.g., subcontracting the web design or cake, what types of services constitute speech, and which don’t).
In the Dobbs case, it would have been useful for Justices to hear from an expert panel that attempts to resolve a variety of relevant issues, many of which can and have been addressed empirically, such as: (1) the effect of abortion access on women’s lives and health; (2) risks to women who cannot get timely and appropriate healthcare in case of urgent medical issues like miscarriages or ectopic pregnancy; and (3) risks to women due to confusion and legal doubt among health care providers after Dobbs. The expert panel also could provide insights on the difficult problems of assessing the effects of abortion on the unborn child as well as the fates of children resulting from un-terminated pregnancies after Dobbs.
Finally, the education loans and college admissions cases are ripe for an expert panel’s empirical analyses of the effects of those policies and assessments of alternative policies that might be more socially desirable.
In sum, my view is that the Supreme Court is making public policies, which like other policies have economic and non-economic effects; thus, Justices should have the benefit of assessments by experts of those possible effects, which may reduce the chances that the justices’ rulings result in government failure.
David’s objections to my initial email and my responses are as follows:
▪ I leave out the possibility of looking at the Constitution, seeing what it says, and judging accordingly. My response: I indicate my reasons above that relying on the Constitution alone is not necessarily going to lead to desirable outcomes. In particular, I agree with Posner’s 1987 article that “law is not a self-contained field of knowledge whose methods of reasoning can by themselves solve human problems in ways that best serve our society.” Expert panels are not necessarily appropriate for every case before SCOTUS, but I think Justices often could benefit from more effective help by experts. In cases where the Constitution is explicitly silent or ambiguous on the matter, neither determining judicial intent nor ascertaining original meaning is an exact science that must be practiced only by Justices.
▪ On the web designer case, although I say that the economic benefits of greater output should be compared with the costs of not allowing the web designer to exercise her religious preferences, that, in theory, is what the web designer is doing. Accordingly, we don’t need a government agency, whether a court or a regulatory agency, to make that assessment. If a government agency were to require her to trade, we know that there would be net losses: the loss to her from being forced to trade would be greater than the gain to the consumers who miss out on the trade. If that weren’t so, they could raise their offer and she would accept.
My response: The argument is that there is no price that could result in a mutually beneficial trade because of the infinite loss to the web designer, so any ruling by SCOTUS that dictates otherwise would produce a net welfare loss and there is no need for the court to get any advice. That is certainly true if the web designer requires an infinite price. But my understanding is that the case was brought without an actual gay couple wanting the designers’ services. I therefore have no idea what tradeoffs the web designer made with an imagined consumer and consumer base. In any case, the role of the expert panel would be to guide the Justices about what we know about dispute resolution when the participants are extremely far apart. I would be more comfortable with the Justices’ ruling if they concluded, based on the insights of the expert panel, that the dispute could never be resolved more constructively after considering a plausible set of options instead of relying solely on their subjective interpretation of the constitution. It is important to be right for the right reasons. At this point in the debate about SCOTUS decisions, both sides are content to be right for the wrong or at least highly questionable reasons.
▪ Generally, policies with the primary intent of redistributing income instead of improving efficiency are taken by economists as given, meaning democracies support them or reject them at the ballot box. Economists assess those policies from an efficiency perspective on whether they are least cost solutions to achieving the social goals they are trying to achieve by redistributing income. So, on the education loans and college admissions cases, I agree that Biden has not subjected his education loan policy to the ballot box, but that policy would influence voters’ preferences for or against him if it were maintained. In any case, I speculated on what the motivation is for Biden’s and the universities’ polices because I didn’t see a market failure. So, the economic issues are what are the least cost ways of achieving the policies’ goals? To that end, I think an expert panel would provide useful information on what we know about the effects of suspending the education loans and of admissions policies that favor certain applicants based on their race and ethnicity. Again, the objective is to be right for the right reasons.
Bottom line: I certainly don’t want judges and Justices to be central planners. However, they are policymakers who can advance policies that fail, just like other policymakers’ policies have often failed. Just like I wish other policymakers were better informed about the effects of their policies before they enacted them and learned from their mistakes, I wish Justices were better informed about the effects of their de-facto policies and learned from their mistakes. I don’t know if any of the recent rulings by the Justices will be assessed retrospectively as government failures. However, the Justices’ siloed approach to policymaking strikes me as likely to result in government failures.
I probably don’t need to tell commenters that they should feel free to comment on Cliff’s points before I get around to doing so. But I will do so in the next day or two. It might not be totally comprehensive but I won’t cherry pick either. I guarantee, though, that I will show why he’s wrong about the web designer.
READER COMMENTS
MarkW
Jul 6 2023 at 8:46am
Of course, elected officials and their surrogates are not the only people in government who make policy. Judges and Justices also make policy.
No, no, no. Judges and justices should not be making policy.
For example, policy toward abortion over the last fifty years was not the result of an act passed by Congress and signed by the President. The nation’s abortion policy was shaped first by the Supreme Court’s decision on Roe v. Wade and more recently by the Dobbs decision.
In both cases the justices ruled on what was required by the constitution, not what was good or efficient policy. The Roe justices ruled that a right to abortion was (always) implicitly contained in the constitution. Dobbs justices overruled that. In neither case were they making decisions about what was the best policy (or should not have been doing so — that is not their role).
Similarly, affirmative action policies by public and private colleges and universities will have to conform to the Supreme Court’s recent decision to undo the Bakke decision.
Yes, government policies will have to conform to the constitution and court rulings interpreting them. That does not make the court (nor the nation’s founders) the authors of those conforming policies.
The fundamental problem with Winston’s approach is that it turns the Supreme Court into just another political branch of government — effectively it would be an American ‘House of Lords’. Their role would be the same as the House and Senate except for the fact that their members are appointed rather than elected and that they could only veto legislation/policy rather than propose it. That way lies madness. Or at least the destruction of our system as we have known it.
Garrett
Jul 6 2023 at 9:08am
My simplified model of government is: legislature makes law, executive enforces law, judiciary interprets law. The supreme court’s job is to interpret if a law contradicts the constitution, which is the supreme law of the land.
nobody.really
Jul 6 2023 at 10:30am
I like this characterization! But I read Winston to imply that, regardless of what SCOTUS should do in theory, in practice SCOTUS behaves like the House of Lords—and if it’s going to behave that way, it should at least do so efficiently.
Clifford Winston
Jul 6 2023 at 11:03am
Yes, that is my point!
MarkW
Jul 6 2023 at 12:23pm
That’s clarifying — thanks! I can’t see that we’re that far gone and our new Federalist Society judge appear to me to have pulled us back farther from the brink. Perhaps I’m seeing through libertarian glasses, but I do not see any recent decisions where a plain reading of the constitution required outcome A, but the majority chose B instead — favoring their own politics over the law.
Beside that, I agree with others that judges would do a terrible job of cost-benefit analysis. That is foreign to their training and outlook. Under such a regime, I fully expect judges would construct whatever cost-benefit analysis needed to get the desired result (much in the way the government manages to argue that pretty much anything and everything right down to breathing has a potential effect on interstate commerce and, therefore, falls under federal authority. Or judges would choose the cost-benefit analyses provided by partisan think tanks to get the desired results — the effect would be the same.
If we get to the point where we accept that the court is (and should be) just another political body, wouldn’t it make more sense to simply abolish it (along with the constitution and bill of rights) and go full bore majoritarian?
Aaron M.
Jul 6 2023 at 4:55pm
Right. However, I think one of the concerns is that by implementing the changes you propose, it will move the court in practice farther from where it should be functioning in theory. If this does occur, it is less than clear that the marginal benefits from the analysis you suggest will exceed the marginal cost associated with this shift.
Clifford Winston
Jul 6 2023 at 1:09pm
OK, but the role of expert panels of economists is to help Justices. I also think that deregulating the legal profession will reduce the profession’s siloed culture and will expose lawyers and judges to other approaches to analyzing legal policy issues.
Mark Brady
Jul 6 2023 at 2:37pm
Clifford Winston, Robert Crandall and Vikram Maheshri, First Thing We Do, Let’s Deregulate All the Lawyers (Brookings, 2011). This sounds like a good starting point for a (separate) post on EconLog!
Clifford Winston
Jul 6 2023 at 2:43pm
The following is more recent: https://www.brookings.edu/books/trouble-at-the-bar/
It was discussed on Volokh: https://reason.com/volokh/2021/04/25/clifford-winston-brookings-guest-blogging-on-trouble-at-the-bar-an-economics-perspective-on-the-legal-profession-and-the-case-for-fundamental-reform/
Jon Leonard
Jul 6 2023 at 4:12pm
Fundamentally the court isn’t where those economic decisions should be made. In the ideal case, we have rule-of-law, meaning that I as a citizen or business owner can (mostly) predict the legal consequences of various courses of action. I’ll then presumably decide appropriately; the alternative view that the court should (and could) solve the socialist calculation problem is not particularly viable. Maybe we need a more explicit path by which the court says “The law looks wrong; Congress please fix.”, but if we’re setting up the rules for optimizing economic results, the court still isn’t the right place to do economic optimization.
Max Roberts
Jul 6 2023 at 4:36pm
Winston makes many good points.
The key problem is judges are given too many problems to legislate, but once they do, their law hangs around a long time. At one time a key legal principle was that a decision had to meet common sense.
Now the law has become as Justice Holmes put it ‘whatever lawyers do’. At the Federal level and in many states judges who serve for life answer to no one once they are made judges. That is a good provision, but not if judges can bypass basic common sense, can pull conclusion out of the air, and write laws that range widely on matters very likely beyond the the judges’ competence.
I have read that Justice Blackmun had doubts about his Roe v. Wade decision. And well he should. Making up grounds to show the Constitution gave women a right to abortions is baloney. I am for women having that right, but providing it was Congress’s responsibility. After the Warren Court, law-making has become less and less what Congress does.
Next, Winston’s response is too wordy
Capt. J Parker
Jul 6 2023 at 5:07pm
Mr. Winston’s case seems thoughtfull and well reasoned to me. That’s not so say Mr. Henderson’s objections aren’t also well reasoned. In particular David’s response that the personal benefit (or lack thereof) we get from an exchange can’t be measeured in dollars alone, resonates with me.
Moreover, I think the debate shaping up between Mr. Winston and Mr. Henderson mirrors the debate that has already taken place in policy circles about cost benefit analysis as a policy evaluation tool. The result of that earlier debate seems to be: Cost Benefit Analysis – objective in principle, subjective (or worse) in fact. See for example here, here (for the “or worse” bit), here, or here.
So, why is The Economic Expert Panel cost benefit analysis going to work any better when overlayed in some form on supreme court decisions?
Clifford Winston
Jul 6 2023 at 8:49pm
The key consideration is whether the Justices think an expert panel could help them make more informed decisions that reduce doubts that the Court’s decisions primarily reflect the ideological preferences of the Justices. If they take the panel seriously, then they can learn a lot from a thorough characterization of the costs and benefits associated with alternative rulings or policy options. Let me stress that I don’t know whether an expert panel could or should have affected the Justices’ views in the recent cases. I do know that an explanation of why the evidence provided by an expert panel did or did not influence the Justices’ views could potentially reduce concerns about their decision making process. Again, see chapter 7 of our book for evidence about their decision making process, which increasingly reflects ideological preferences.
Richard Fulmer
Jul 7 2023 at 2:33am
The advantage of SCOTUS-made law is that it doesn’t have to go through the sausage grinder that is Congress. If a panel of experts gets a policy “right,” the policy has a chance of making it cleanly into a Court decision without having to make concessions to this Congressman, that Senator, or the special interests lobbing campaign funds into the mix.
The disadvantage of SCOTUS-made law is that the Court has near dictatorial power. Its decisions can be overturned only by a Constitutional amendment, a later Court decision, and only occasionally by an act of Congress. So, if the panel of experts gets it wrong, we’re screwed.
Also, who gets to decide who is on the panel? Given the panel’s power, we could expect appointment battles that rival those for the justices themselves.
Saying that the Court is going to legislate anyway so they might as well get it right throws in the towel just as originalists are in the ascendancy. It also removes any remaining barriers to legislation by the Court. Today, even the most activist judges try to find a Constitutional basis, no matter how weak, for their decisions.
Mactoul
Jul 6 2023 at 9:37pm
And who or what determines what outcomes are socially desirable?
nobody.really
Jul 7 2023 at 5:42am
Since we’re discussing civil rights policies and economic efficiency, let me propose the Market Power Affirmative Defense.
Once again, I’ll trot out my proposal for altering the balance between anti-discrimination laws and autonomy: the Market Power Affirmative Defense.
The theory underlying this defense is that civil rights laws should defend a person’s ability to obtain the best goods, services, housing, employment, and public accommodations (hereinafter public accommodations) on the best terms. But the law would not defend a person’s right to dictate from whom she receives these public accommodations. And, most significantly, it would not protect a person from being exposed to a businessperson’s speech/religion/association—which some people may experience as an affront to dignity.
Roughly, under current law, if 1) a vendor holds herself out as a provider of some public accommodation, 2) a would-be customer acts in reliance of that offer, 3) the vendor reneges, and 4) the would-be customer is harmed by the inability to obtain the public accommodation in question, then the vendor may be liable. Under the proposed affirmatie defense, if the vendor can show that she informed the would-be customer where comparable public accommodations are available nearby at comparable terms, then the fourth element of the claim would fail: the would-be customer would not be deprived of access to the public accommodation, and so no compensable harm would arise.
For a further discussion, see the lengthy comments starting here.
BS
Jul 7 2023 at 10:51am
Wrong branch. The economic and moral issues are for the legislature to sort out. That is where the attention of “assessors” ought be directed. The judicial branch isn’t a backstop for well-meaning technocrats to insert their opinions.
Clifford Winston
Jul 7 2023 at 11:48am
Please see my comment on the new post by David replying to me.
I don’t see why SCOTUS policies can’t be determined to fail.
Comments are closed.