A better alternative to reparations

Instead of reparations, expand opportunities for African Americans: A California task force on reparations issued its final report to the state’s lawmakers this summer, calling for cash payments of up to $1.2 million for eligible African Americans. FREOPP Senior Fellow Michael Tanner digs into reparation proposals and argues that evidence shows that—whatever the moral justification for reparations—the practical difficulties of any large-scale reparations program would be virtually impossible to overcome, involving serious questions about who should be compensated, how much, and in what way. Michael’s paper suggests that, while reparations are unlikely to successfully address the history of unequal treatment for African Americans and eliminate disparities in economic opportunity, policies like criminal justice reform, greater educational choice, an end to exclusionary zoning, and increased economic development could go further. 

→ Check out Michael on The Federalist Radio Hour, where he discusses reparations and the forward-looking reforms that can make a greater difference in the lives of Black Americans today.

Much ado about de-dollarization: Thanks to the United State’s reserve currency status, American consumers enjoy lower interest rates than they otherwise would. This is especially true for lower-income households, which typically are more leveraged than higher-income households. That’s why the threat of “de-dollarization,” or a move to a multi-polar world currency regime, is of real importance to ordinary Americans. FREOPP Visiting Fellow Jon Hartley considers the risk of de-dollarization on OPPBlog. His conclusion? It is unclear what other countries would be the winners from such a move, and factors from geopolitics to the Federal Reserve’s ability to control inflation will be critical factors in determining the extent and speed of the change.

Cutting biosimilar red tape could save billions: The growing cost of biologic drugs—that is, drugs that are produced using a living system like a microorganism or plant or animal cells—makes them difficult for low-income Americans to access, a reality that leads to worse health outcomes and ever-more unaffordable health care. As FREOPP documented in original research back in 2020, barriers to competition in the biologic drug market increase patient costs by more than $30 billion. Now, a bipartisan legislative proposal aims to change that by making it easier for customers to access generic versions of biologic drugs, known as biosimilars. FREOPP Resident Fellow Gregg Girvan assesses the proposal and describes the importance of recognizing all rigorously tested biosimilars as interchangeable with original biologics. Interchangeable status would make it easier for pharmacists to use these lower-cost options when filling prescriptions and would give doctors greater confidence prescribing them in the first place. As Gregg notes, Europe has already taken this step; it’s time for the U.S. to do the same.

Tennessee law on encampments on public land forces hard choices: Last July, Tennessee made it a felony to camp on property owned by the state that is not specifically designated for camping. This first-of-its-kind law adds urgency to the challenges posed by encampments on public land, including one at a dangerous interchange in Memphis, which made news for the jurisdictional fight it prompted between the city and state over enforcement. As FREOPP Research Fellow Roger Valdez writes in Forbes, these camps create real safety and access issues both for those living there and for the public, but making them illegal can contribute to the problem by saddling individuals with criminal convictions that limit their future housing options. But reformers have options. Roger highlights the success of one Tennessee group that used a two-part strategy of outreach visits and clear jurisdiction in Memphis to illustrate how homeless encampments can be a solvable problem.

Thanks for keeping up with FREOPP, and have a great weekend! 

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