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February 21, 2006
Florida Legislature Bans Gifts
In a 2002 Public Choice paper, Russ Sobel and Tom Garrett tested theories of rent-seeking by comparing the composition of economic output in counties containing state capitals to similar counties that did not host a state government. They found, among other things, that capital counties had more eating and drinking establishments per capita than did non-capital counties. Events in Florida are consistent with their findings: TALLAHASSEE - It's happy hour in Florida's capital city, but you wouldn't know it. The outdoor bar near the Capitol that used to be crowded with lobbyists and legislators is virtually empty on a Tuesday evening. "Boy, this crowd is awfully thin," says House Speaker Allan Bense, R-Panama City, walking past the watering hole known as Clyde's & Costello's. "Where is everybody?" Those deserted tables are a consequence of a new state law that bans lobbyists from buying drinks, meals and gifts for legislators and staff members. Lawmakers passed the sweeping ban at the end of a four-day special session in December, in the wake of a controversial trip to Canada by four legislators at a gambling firm's expense and an unfolding lobbying scandal in Washington. The ban took effect Jan. 1, and brought an immediate lifestyle change for lawmakers long accustomed to having lobbyists pick up their tabs. Simply put, the law says: Dutch treat or don't eat. Story here; working paper version of Sobel and Garrett here. Posted by E. Frank Stephenson at 09:17 PM in Economics
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The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith
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