Skip to main content

States that spend less on health, education and welfare are more prone to bribery, and Tennessee is no exception.

 

A few weeks ago, I took a trip to Tennessee — a state that has been called the most corrupt in the country. That’s right, according to a 2010 Daily Beast analysis compiling data about convictions on charges of public corruption, racketeering, extortion, forgery, counterfeiting, fraud and embezzlement, the Volunteer State is America’s single most corrupt. Similarly, a 2012 Harvard study lists Nashville as one of the nation’s most corrupt capitals.

Since I was traveling to the state for a conference about technology and innovation, I had a simple question on my mind: How does such rampant corruption shape state policy?

One analysis comes from researchers at Indiana University and University of Hong Kong. They compared data from 25,000 convictions in public corruption cases with state spending data. As Governing magazine reports, the researchers document that the most corrupt states like Tennessee “tended to spend money on construction, highways, and police protection programs, which provide more opportunity for corrupt officials to use public money for their own gain.” Governing adds that those “states spend less on health, education, and welfare, which provide less opportunity for officials to collect bribes.”

Tennessee’s budget appears to confirm these findings. According to various studies over the last few years, Tennessee has ranked near the bottom for per capita spending on education. Additionally, the Center on Budget and Policy Priorities reports that Tennessee has enacted some of the deepest cuts to higher education funding of any state in the country.

Of course, an earlier study found one other major way corruption can shape state policy: through taxpayer subsidies. According to that 2011 analysis from researchers at the Federal Reserve Bank and the University of Michigan, “Cities and counties in states with troubled political cultures demonstrate the greatest willingness to offer business development incentives.” And again, comparing Tennessee’s corruption with its economic development policies seems to confirm this.

According to the watchdog group Good Jobs First, Tennessee is at the top of the list of states offering so-called “megadeal” subsidies to corporations. Likewise, the Nashville City Paper reports that in the name of economic development, the city has been dramatically increasing its subsidies to corporations, including a $65 million outlay for a minor league baseball stadium.

Do those subsidies result in job-creating technology and innovation hubs? While many locales ramping up their subsidies certainly hope so, the jury is still out — and that’s being generous. Indeed, there’s plenty of evidence that subsidies do not create the economic development their boosters promise, and instead they merely cannibalize already-existing economies. Meanwhile, a lot of those subsidies end up being awarded to politically connected firms, calling into question whether they are really designed with any kind of coherent economic development plan in mind.

None of this means a place like Tennessee should be abjectly deemed “Too Corrupt to Fail” — or not yet, anyhow. The state is, after all, the home of Chattanooga. That city developed a publicly owned fiber optic system that delivers some of the world’s fastest Internet speeds — and does so at relatively affordable rates for businesses and consumers. As a result, Fortune calls Chattanooga “a center for innovation” and Wired says it may be the next Silicon Valley.

Any state with that potential in its midst can have a bright economic future, and the encouraging news is that Tennessee’s dirty politics didn’t stop Chattanooga’s efforts. But an exception to a rule is not a rule unto itself. In general, corruption’s deleterious effect on public policy is a serious problem — and not just a purely political problem either. It is a destructive force that can make or break an entire local economy.

 

David Sirota is a senior writer for the International Business Times and the best-selling author of the books "Hostile Takeover," "The Uprising" and "Back to Our Future." E-mail him at ds@davidsirota.com, follow him on Twitter @davidsirota or visit his website at www.davidsirota.com.

Original Post

Replies sorted oldest to newest

jtdavis posted:

Yall keep trying to keep the spot light off Alabama. There's probably some some where that believe you.

That’s right, according to a 2010 Daily Beast analysis compiling data about convictions on charges of public corruption, racketeering, extortion, forgery, counterfeiting, fraud and embezzlement, the Volunteer State is America’s single most corrupt. Similarly, a 2012 Harvard study lists Nashville as one of the nation’s most corrupt capitals.

The problem is that there is corruption in EVERY facet of the government.  Every state, and especially Washington is filled with these loons who think that they can do what they want, when they want, on the taxpayers dime.  We have created this by continuing to send people to the capitals who promise to "bring the pork back home" to their constituents.

If every one of these bums would just insist on doing what is right and follow the law, this entire argument would be futile (not that it is not futile already). Anyone who thinks the Dems are clean is crazy, and Republicans can certainly not point fingers either.  They are all out for themselves, like a nest of vipers.  You cannot trust them no matter which letter follows their name.

jtdavis posted:

Gifted, Trump is rich enough to get into Harvard, as for smart enough, he didn't have to go to Harvard, he started his own university. He recently paid a multi million dollar lawsuit because of it.

Did Trump attend his own university? I guess now you will tell us you helped build the house you were born in. Trump is absolutely smart enough to attend Harvard, and he wouldn't have to rely on a pack of Muslims to get him in, like your pal Obama had to do. You do understand the pay outs have nothing to do with Trump's education don't you? Too, on another note, Ted Kennedy was kicked out of Harvard for cheating, and paid his way back in.

Last edited by giftedamateur
giftedamateur posted:
jtdavis posted:

Gifted, Trump is rich enough to get into Harvard, as for smart enough, he didn't have to go to Harvard, he started his own university. He recently paid a multi million dollar lawsuit because of it.

Did Trump attend his own university? I guess now you will tell us you helped build the house you were born in. Trump is absolutely smart enough to attend Harvard, and he wouldn't have to rely on a pack of Muslims to get him in, like your pal Obama had to do. You do understand the pay outs have nothing to do with Trump's education don't you? Too, on another note, Ted Kennedy was kicked out of Harvard for cheating, and paid his way back in.

I can see that too. Old jt, in the throes of his tall tale telling saying he built the house he was born in! Perfect!!

I can see that too. Old jt, in the throes of his tall tale telling saying he built the house he was born in! Perfect!!

Best, the above is your post and your lie. Gifted said that I would tell that I helped build the house that I was born in. I did not say that I helped build the house that I was born in. She didn't say I built it, you lied and said that I said that I built it. You really should read and understand these posts before lying and trying to put someone in a bad way.

You are the most ridiculous person I have ever seen, along the lines of betternnun and old man gray. When a person tells tall tales like you do, and posts things from fake "news" sites and argues that they are true, they earn a reputation. Yours is that you will say anything and you don't care if it's true or not, as long as you like the story, and even when proven wrong you will keep posting the lie. The remark she made, "next you will be telling us", means that telling that whopper about the house would be in your nature. NOT that you did it. My rely, "I can see that too" means I agree that it is in your nature and I wouldn't be surprised if you made that claim. As for lying, you did that by saying Trump started his own university because he wasn't smart enough to get into Harvard.  The insinuation being he attended his own university. A pure dumb a** post that shows you will post any ridiculous thing that pops into your thick head.

Add Reply

Post

Untitled Document
×
×
×
×
Link copied to your clipboard.
×