discrimination

Political “commentator Andrew Bolt ‘was found guilty Wednesday of breaking Australian discrimination law by implying that fair-skinned Aborigines chose to identify as indigenous for profit and career advancement.’ A judge ‘said he will prohibit reproduction of the offending articles,’ and ‘Bolt and his publisher must meet with the plaintiffs to discuss appropriate court orders that would reflect the judgment.’”

This is an extremely damaging blow to free speech. The problem of fraud in affirmative action programs is neither new nor rare. People who are not minorities often pretend to be minorities in order to obtain benefits under affirmative-action programs and racial set-aside schemes. (The Massachusetts Supreme Court upheld the firing of two brothers who pretended to be black to receive preference in hiring). And people often push the envelope in claiming minority status when they have only a small fraction of non-white or minority ancestry. (For example, beneficiaries of affirmative action included people who were only one-quarter Hispanic, under a consent decree in the U.S. v. New York City Board of Education case.)

[click to continue…]

A monumentally-destructive Justice Department attack on banks may soon occur. Earlier, I wrote about how the Obama Justice Department is now forcing banks to make risky loans (in the name of “fair lending”), thus planting the seeds of a future financial crisis. In response, I received an e-mail from a former Justice Department lawyer who told me that the Justice Department’s HCE (Housing and Civil Enforcement Section, Civil Rights Division) is planning to block foreclosures across America (“across the whole [banking] sector”), even for irresponsible deadbeats who deserve to be foreclosed upon, citing racial disparities in foreclosure rates (which generally exist between black and white borrowers due to causes unrelated to intentional discrimination — as the Supreme Court has observed, racial disparities often occur for reasons completely unrelated to racist decision-making, as it has noted in cases like Richmond v. J.A. Croson Co., Watson v. Fort Worth Bank & Trust,  and United States v. Armstrong).

He wrote that “there is a unit in the HCE section headed by a nut running this. They are next going to BLOCK foreclosures based on this theory. It is part of an administration wide-strategy to stop foreclosures.  I’ve heard from people who have participated in the internal meetings.” He also asked that I not print his name yet, but allowed me to pass on the content of his e-mail.

[click to continue…]

The Wall Street Journal today writes about how the Obama administration is repeating the “mistakes of the past by intimidating banks into lending to minority borrowers at below-market rates in the name of combating discrimination.” Assistant Attorney General for Civil Rights Thomas Perez has argued that bankers who don’t make as many loans to blacks as whites (because they make lending decisions based on traditional lending criteria like credit scores, which tend to be higher among white applicants than black applicants) are engaged in a “form of discrimination and bigotry” as serious as “cross-burning.” Perez has compared bankers to “Klansmen,” and extracted settlements from banks “setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit,” treating welfare “as valid income in mortgage applications” and providing “favorable interest rates and down-payment assistance for minority borrowers with weak credit,” notes Investors Business Daily.

Under Perez’s “disparate impact” theory, banks are guilty of racial discrimination even if they harbor no discriminatory intent, and use facially-neutral lending criteria, as long as these criteria weed out more black than white applicants. The Supreme Court has blessed a more limited version of this theory in the workplace, but has rejected this “disparate impact” theory in most other contexts, such as discrimination claims brought under the Constitution’s equal protection clause; discrimination claims alleging racial discrimination in the making of contracts; and discrimination claims brought under Title VI, the civil-rights statute governing racial discrimination in education and federally-funded programs. Despite court rulings casting doubt on this “disparate impact” theory outside the workplace, the Obama administration has paid liberal trial lawyers countless millions of dollars to settle baseless “disparate impact” lawsuits brought against government agencies by minority plaintiffs, even after federal judges have expressed skepticism about those very lawsuits, suggesting that they were meritless.

[click to continue…]

Post image for Supreme Court Overturns Certification of Class-Action Lawsuit Against Wal-Mart in Multi-Billion Dollar Lawsuit

Yahoo! News reports that “the Supreme Court has ruled for Wal-Mart in its fight to block a massive sex discrimination lawsuit on behalf of women who work there.  The court ruled unanimously Monday that the lawsuit against Wal-Mart Stores Inc. cannot proceed as a class action, reversing a decision by the 9th U.S. Circuit Court of Appeals in San Francisco. The lawsuit could have involved up to 1.6 million women, with Wal-Mart facing potentially billions of dollars in damages. Now, the handful of women who brought the lawsuit may pursue their claims on their own, with much less money at stake and less pressure on Wal-Mart to settle.”

I earlier explained why the class-action lawsuit against Wal-Mart was baseless, how it was based on politically-correct junk science (like a sociology “expert” hired by the women’s lawyers falsely claiming that white male managers are somehow more sexist than managers of other races, which is hard to square with the fact that women have long had more legal rights in European countries than in the Third World, where practices like female infanticide and marriage by abduction occur), how it ignored the plain language of the Federal Rules of Civil Procedure, and was effectively a form of forum-shopping.

Letting a San Francisco judge and jury hear a class-action against Wal-Mart over its employment practices all over the country amounted to forum-shopping, in that the lawyers suing Wal-Mart deliberately picked one of the most liberal, anti-employer jurisdictions in which to file their lawsuit (the San Francisco Bay area) in order to have that idiosyncratic region effectively decide a national case against the company. This effectively deprives Wal-Mart of a representative jury and judge in the case against it, and it inflicts the jurisprudence of one region on an entire national company, to the exclusion of other regions, whose judges would effectively be unable to apply their long-established precedents limiting the use of junk science in discrimination cases, to the Wal-Mart stores within their region. (Judges vary a lot from region to region in how they handle discrimination cases and how they interpret the rules regarding class-action lawsuits.)

[click to continue…]

Have a listen here.

Carrie Lukas, Managing Director of the Independent Women’s Forum, argues that the pay gap between men and women isn’t due to discrimination. She also wrote about the issue last week in a Wall Street Journal op-ed.

As a lawyer who used to bring class-action discrimination lawsuits for a living, I am puzzled by press sympathy for the massive, meritless class-action lawsuit against Wal-Mart. In it, six female employees are suing for billions of dollars in a San Francisco court in the name of at least 500,000 other female employees across the nation whom they have never met and share little in common with other than gender (many of whom are perfectly happy with Wal-Mart).

The Supreme Court heard arguments Tuesday in the case, expressing skepticism about whether the case should be litigated as a class-action, rather than in individual lawsuits by those workers who allege discrimination.

The Justices should be skeptical: the case is being brought as a class-action not because it needs to be brought as a class action to give workers a fair shot, but rather as an excuse to let a liberal San Francisco jury hold Wal-Mart liable for discrimination when most courts in America would dismiss the lawsuit as baseless (and even if they didn’t, a jury in most regions in America would probably rule in favor of Wal-Mart). This lawsuit was filed in San Francisco, which is widely understood to be one of the most anti-employer, anti-business areas of the country, where courts have found employers guilty of discrimination based on junk science.

Lawsuits over discrimination are usually brought on an individual basis, because even victims of discrimination at a big company often have little in common with each other. They work in different stores under different managers, and have different jobs and salaries. Even if one manager is racist or sexist, managers in different stores may be totally fair and unbiased. By contrast, class-actions are supposed to be brought on the basis of a company-wide policy, and the employees are supposed to have a lot in common with each other.

In the Wal-Mart case, there is no company-wide policy of discrimination. In fact, Wal-Mart has written policies against discrimination.

The lawyers for the employees suing Wal-Mart don’t deny that, but claim that it has a practice of giving “discretion” to individual managers about who to hire. But that’s just a fancy way of saying it doesn’t have a policy: that “discretion” is the result of an absence of a comprehensive company policy on how to hire and promote (other than to avoid discrimination).

[click to continue…]

The Obama administration’s recent push against “bullying” resulted in a letter to school officials that undermines both free speech and due process. On October 26, a political appointee in the Education Department sent a “Dear Colleague” letter to the nation’s school boards claiming that many forms of homophobia and bullying violate federal laws against sexual harassment and discrimination. But those laws only ban discrimination based on sex or race — not bullying in general. The letter from the Assistant Secretary of Civil Rights Russlynn Ali defined “harassment” so broadly as to reach both speech protected by the First Amendment, and conduct the Supreme Court says does not legally qualify as harassment.

The letter left the incorrect impression with some reporters that federal statutes already ban bullying and sexual-orientation-based harassment. For example, Keen News Service reported that the Education Department “issued guidance to all school officials in October 2010, reminding them that federal law requires schools to take action against bullying,” including “sexual harassment of LGBT students.” The letter was part of the Obamas’ PR campaign against bullying, that featured a “a high-visibility conference on bullying prevention March 10, with the President and first lady” and the introduction by Obama backers of “several LGBT-inclusive bills designed to address bullying of students.”

[click to continue…]

Discrimination and politically-correct blinders can be deadly. It was obvious in the aftermath of the Fort Hood shootings that the killer was inspired by Islamic extremism. Obvious, that is, to anyone but officials in the Obama administration, who continue to cling tightly to a culture of political correctness and preferential treatment that helped make the shootings possible.

Nidal Hasan shot dead 12 soldiers and a civilian at Fort Hood, while shouting “Allahu Akbar.”  But the Obama administration’s inquiry into the shootings falsely suggested Islamic extremism was not a factor in the shootings.  Its report on the Fort Hood massacre did not even “mention the words ‘Islam’ or ‘Muslim’ once,” referring to the killer simply as the “alleged perpetrator.” Instead, it claimed the tragedy resulted from “bureaucratic shortcomings” in the “sharing of information.”

But now Senators like Joe Lieberman and Susan Collins are taking issue with that whitewash report: “the federal government needs to drop the political correctness and call violent Islamic extremism what it is, according to a newly released report on the Fort Hood shooting by the Senate Committee on Homeland Security and Governmental Affairs.”

The shooter’s Islamic extremism was obvious.  Prior to the shooting, he had said that Muslims should rise up against the military, “repeatedly expressed sympathy for suicide bombers,” was pleased by the terrorist murder of an army recruiter, and engaged in hate-speech against non-Muslims, publicly calling for the beheading or burning of non-Muslims, and talking “about how if you’re a nonbeliever the Koran says you should have your head cut off, you should have oil poured down your throat, you should be set on fire.”  “In addition, Hasan openly had suggested revenge as a defense for the 9/11 attacks, defended Osama bin Laden, and said his allegiance to his religion was greater than his allegiance to the constitution.”

But the military did nothing to remove him from a position where he could harm others. Although his views were common knowledge, “a fear of appearing discriminatory . . . kept officers from filing a formal written complaint,” the Associated Press noted. Moreover, “a key official on a review committee reportedly asked how it might look to terminate a key resident who happened to be a Muslim,” as NPR noted.  Instead, the military effectively exempted Hasan from rules of conduct that apply to everyone else, in order to promote its conception of “diversity.”

As military attorney Thomas Kenniff notes, there was a climate of “obsessive political correctness” in the military. As Major Shawn Keller pointed out, in a column entitled “An Officer’s Outrage Over Fort Hood.” “There was no shortage of warning signs that Hasan identified more with Islamic Jihadists than he did with the US Army. . .But just like September 11, those agencies and individuals charged with keeping America and Americans safe failed to connect the dots that would have saved lives. Jihadist rhetoric espoused by Hasan was categorically dismissed out of submissiveness to the concepts of tolerance and diversity. . . . the leaders in Hasan’s chain-of-command failed to act . . . out of fear of being labeled anti-Muslim and receiving a negative evaluation report.”

Indeed, even after the shootings, government officials worried more about the fate of “diversity” than about the lives of their troops:  “Our diversity, not only in our Army, but in our country, is a strength,” Army Chief of Staff George Casey told NBC’s Meet the Press. “And as horrific as this tragedy was, if our diversity becomes a casualty, I think that’s worse,” Casey said.

The military is not like the outside world.  In the civilian world, hate speech and anti-American speech are protected by the First Amendment (under Supreme Court decisions like R.A.V. v. St. Paul, and court rulings like Dambrot v. Central Michigan University).  But in the military, soldiers get punished for bigotry or disloyalty all the time – but not Nidal Hasan, who escaped any punishment due to obvious favoritism.

In court cases like Goldman v. Weinberger, the Supreme Court has said that soldiers have fewer First Amendment rights than civilians. The military cites this all the time when it wants to punish soldiers for politically-incorrect speech, like the soldier who was punished for a sexist insult about liberal Congresswoman Pat Schroeder (D-Colo.) in the aftermath of the Tailhook Scandal. But the military did not apply its policies against seditious speech and hate-speech to Hasan, because of political correctness. Instead, it kept him working with injured American veterans, a position for which he was manifestly unfit.

Obama could barely bring himself to mention the tragedy, much less express sympathy for the victims, in his initial remarks about it, in which he buried any expression of sympathy in the middle of a speech filled with “wildly disconnected” ramblings about an unrelated topic, starting with a “joking shout-out.”  Even for liberal journalists, President Obama’s initial response to the tragedy was embarrassing.  Even the liberal Boston Globe, which endorsed Obama in 2008, chided the President for a speech lacking in ”empathy” for the victims.  Despite the shooter’s open hatred towards America, the military, and America’s non-Muslim majority, Obama’s remarks insisted that the shooter’s motive for the killings was unknown.

The Obama Administration then did its best to hide the role of political correctness in spawning the tragedy by appointing two supporters of racial preferences in the military – former Army Secretary Togo West and Admiral Vernon Clark – to handle the federal inquiry into the tragedy. This was like appointing a fox to guard a henhouse. At the conclusion of their inquiry, West and Clark came out with a ridiculous report that did not even mention the word “Islam” or “Muslim,” much less address the Islamic extremism that motivated the shootings.  Based on these men’s track record, the Obama Administration expected – and wanted – exactly such a whitewash report.

“Clark was such an enthusiast for ‘diversity’” that “he redefined the Navy’s concept of special minorities to include religious (read Muslim)” groups, not just racial minorities. Similarly, Togo West,  a supporter of restrictions on politically-incorrect speech, “never saw an affirmative action policy or minority preference policy he didn’t like,” and  was such a diversity zealot that he filed an amicus brief in an affirmative-action case that didn’t even involve the military, unsuccessfully urging the Supreme Court to uphold racial quotas in the public schools – something it instead struck down in Parents Involved in Community Schools v. Seattle School District). Clark’s devotion to preferential treatment was reflected in his order “that the Navy increase the number of minority candidates for officer commissions by 25 per cent,” which “led to a double standard” at “places like the Naval Academy at Annapolis, where the entry standards for minorities are noticeably lower than for white applicants.”

Even today, military leaders remain wedded to the concept of “diversity” at the expense of equal treatment and the Constitution, engaging in racial discrimination at the military academies in the name of “diversity,” including mandating racial preferences in admissions. The Naval Academy illegally retaliated against a faculty member who criticized its use of racial preferences in admissions (the Naval Academy listed “diversity”as its “number one priority,” above learning), violating the First Amendment and anti-retaliation provisions contained in the civil-rights laws.

Military leaders, catering to liberal congressional leaders and the Obama administration, cling tightly to the “diversity” dogma, demanding that those in the military keep silent rather than saying things that might call into question their ”diversity” obsession:

“Naval Academy senior commanders decided during the World Series to remove two Midshipmen from the color guard that appeared. What was their offense? The color guard was deemed too white and too male.  .  .Two members of the color guard were removed and replaced by a Pakistani and a woman to achieve the requisite ‘diversity.’ The Pakistani unfortunately forgot his cap and shoes. He himself had to be replaced at the last minute by one of the two middies removed earlier. The midshipmen have reportedly been ordered not to speak of these events.”

I am definitely not arguing for a ban on Muslims in the military, or discrimination against them — quite the opposite. The military has a critical shortage of, and need for, translators who speak languages like Pashto (spoken in Afghanistan), Urdu (spoken in Pakistan) and Arabic. These translators are often Muslim, and they should be welcome in the military. But neither should the military exempt Muslims from the rules of conduct imposed on soldiers of other religions.  That is an insult to the principle of equality under the law. Hasan’s anti-American rants would not have been tolerated even in the armies of Muslim countries allied with the U.S., like Albania.

Once again ruling against America’s employers, the Supreme Court Monday broadened the reach of the 1964 Civil Rights Act’s ban on retaliation. It overturned a federal appeals court ruling against a worker who claimed he suffered unlawful retaliation for complaining about discrimination, when a business allegedly fired his fiancée.

As Ed Whelan notes, the Supreme Court’s unanimous decision in Thompson v. North American Stainless abrogated “all four” of the federal appeals court rulings on the subject, all of which had ruled in favor of the employer in similar cases. Indeed, the Supreme Court took a more expansive view of workers’ ability to sue businesses than 18 “of the 25 appellate judges to address the issue,” including even “Carter and Clinton appointees” like Judge Diana Murphy, who “decided it in favor of the employer.”

This is part of a long line of rulings against employers by the Supreme Court, which is not pro-business at all, contrary to the false claims of many liberal reporters who cover the Supreme Court. Many of these rulings against employers, like Lewis v. Chicago (2010), have been unanimous reversals of lower court decisions.

Slate’s Dahlia Lithwick falsely claimed in 2009 that in the Supreme Court, “big business always prevails, environmentalists are always buried, female and elderly workers go unprotected, death row inmates get the needle, and criminal defendants are shown the door.”

That false claim contradicts reality. Over the last dozen years, the death penalty has been dramatically cut back in cases like Roper v. Simmons (2005), as the Supreme Court has invalidated the death penalty when imposed on the “retarded” (even the mildly retarded) or juveniles (even 16 to 18 year-olds), or when imposed by judges rather than juries (as state laws long provided).

The Supreme Court tossed out thousands of sentences given to criminal defendants through decisions like U.S. v. Booker (2005) and Blakely v. Washington, based not on defendants’ innocence, but rather on the mere fact that judges, rather than juries, had made findings related to their sentences. The supposedly “right-wing” justices Roberts, Scalia, and Thomas joined in these decisions.

Environmentalists have won many cases, including one of the most economically-significant decisions ever — Massachusetts v. EPA (2007) — which arguably opened the door to EPA regulation of virtually every human activity, on the grounds that virtually all activity (from industrial production to farming to cars) emits carbon dioxide. That decision also created a special rule of standing to allow state attorneys general to bring lawsuits that would otherwise be thrown out as meritless for lack of standing.

The Supreme Court allowed businesses to be sued even for products the FDA deems to be safe and effective, in Wyeth v. Levine (2009), in a ruling that legal commentator Ted Frank called the most anti-business decision in 43 years.

The Supreme Court has repeatedly broadened employers’ liability for discrimination against women. It continuously expanded the definition of sexual harassment: it overturned earlier limits on vicarious liability (in Faragher v. Boca Raton (1998)), allowed institutions to be sued based on the acts of non-employees (in Davis v. Monroe County (1999)), and rejected limits on lawsuits where there is no economic or psychological harm (Harris v. Forklift Systems (1993)). All these rulings overturned lower court judgments against plaintiffs. The Supreme Court also made it easier for older workers to sue over unintentional discrimination, even after settling with their employer.

Thus, Dahlia Lithwick’s depiction of the Supreme Court bore no relation to reality. But similarly false depictions are peddled by court reporters at publications like the New York Times, the Washington Post, and the Los Angeles Times, fostering a misleading image of the Supreme Court.

Last week, I had the pleasure of discussing net neutrality with James Boyle, a Duke Law Professor and the co-founder of the Center for the Study of the Public Domain, and Paul Jones, the director of ibiblio, on WUNC’s The State of Things radio program. Our hour-long discussion touched on a number of important tech policy topics, and I highly recommend giving the show a listen (download the MP3 here) if you’re interested in hearing the insights of two very thoughtful scholars and critics of cyber-libertarianism.

I’m a big admirer of Boyle and Jones, who’ve both done a lot of excellent work studying copyright and public domain in the information age. While I don’t share their views on the merits of net neutrality regulation — or, perhaps, of government regulation in general — there’s much common ground between us on many issues, including intellectual property, free speech, and government surveillance.

For folks who don’t want to spend an hour listening to our discussion, I’ve typed up a brief summary of the questions we attempted to tackle in our discussion and the various arguments we raised. My apologies if I’ve mischaracterized any arguments or statements — if you want to know what was actually said, go listen to the whole interview!

  • What role should government play in regulating the Internet? I argue its proper role is to enforce voluntary arrangements (Terms of Service) and, when appropriate, enforce civil judgments against firms that have broken their promises. Boyle, on the other hand, argues that government should enforce not only contracts but also net neutrality rules because last-mile Internet service is a natural monopoly and consumers often don’t understand what they’re getting, which means that socially desirable contracts aren’t likely to emerge. I respond by citing Thomas DiLorenzo’s critique of the natural monopoly hypothesis and pointing out that government has obstructed ISP competition by allocating spectrum inefficiently and imposing excessive costs on wireline ISPs through burdensome rights-of-way and franchising rules.
  • Why did Google retreat on its commitment to net neutrality in joining with Verizon to exempt wireless services from neutrality? Boyle argues it’s because Google realized the future of communications is mobile and believed it needed to compromise with Verizon (America’s biggest wireless carrier). Jones points out that the Google-Verizon proposal isn’t a business agreement, but a compromise designed to address the conflicting interests of various stakeholders. I argue that Google recognized that government discrimination among competing business models and platforms is a greater danger to consumers than provider discrimination, and that innovation truly occurs when ‘walled gardens’ such as the iPhone co-evolve with open platforms like Android — the “Yin and Yang” of innovation, as Bret Swanson puts it). Boyle argues that proprietary platforms and exclusionary deals between content and service providers preclude disruptive innovation and digital generativity. He cites the financial crisis as an example of inadequate regulation resulting in poor outcomes that might have not have occurred had there been greater oversight.
  • Does collusion among large, powerful Internet corporations help or harm consumers and innovation? Jones cites Adam Smith’s The Wealth of Nations in arguing that, without government regulation, mega-corporations will collude and carve up the marketplace, hindering innovation and progress. I argue that leaving companies free to try to “carve up markets” actually spurs beneficial competitive responses and promotes destructive market entry, even if the process isn’t always pretty. I argue that the forces arrayed against today’s major companies–competitors, consumers, suppliers, downstream partners–make it impossible for any entity or group of entities to engage in any truly abusive practices without suffering harsh punishment.
  • Will entrepreneurs and innovators even be able to get off the ground if corporations have unlimited control over Internet applications and content? I argue that government policies, such as the DMCA’s anti-circumvention provisions, are a major part of the problem because they distort natural market outcomes and prop up bad business models. Boyle agrees that these provisions are seriously problematic, calling DMCA a “lawyers’ full employment act.” He points out that many of the most important innovations of the last couple of decades — Google, Facebook, Twitter, and so forth — came about precisely because of the Internet’s openness and dynamism. I argue that the openness that characterizes the Internet is indeed desirable in many ways, but that voluntary institutions can offer open platforms without being forced to do so by government. I point out that network operators who hinder the value of the content that traverses their pipes do so at their own peril, and that infrastructure and content companies actually have a symbiotic relationship, rather than an adversarial one. Jones argues that because many ISPs are also content companies, they have an incentive to privilege their own content at the expense of competing offerings. I point out that consumer demand for Internet video outlets (i.e. YouTube and Hulu) deters providers from slowing down Internet-delivered content. Boyle argues that the continued existence of the open Internet is crucial in ensuring that the ‘walls’ that enclose walled gardens don’t grow too tall.
  • Shouldn’t we treat the Internet like a public utility — a road on which all can travel? I argue that treating the Internet like a public utility, like we already treat roads, raises the dilemma of the tragedy of the commons. I point out that many private roads already exist today without the ‘tollbooths’ that neutrality advocates fear. Jones points out that the real tragedy is one of unregulated commons which lack adequate rules. Boyle argues that the economics of physical property (scarce goods) cannot readily be mapped to networks and calls the Internet a “comedy of the commons” (borrowing from Carol Rose). I argue that government-run commons have a poor track record, from highways to the wi-fi band, and that the success of network industries requires smart investment and innovation that government isn’t well-equipped to deliver. Boyle argues that not all resources must be owned if they’re to be efficiently utilized, citing the emergence of free trade with India and China in the 1700s and the subsequent collapse of state-chartered trading monopolies. Boyle argues that tomorrow’s “next great thing” may never emerge if the openness of today’s Internet isn’t enshrined in regulation.