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How Government Corruption Hurts Economic Growth
How Government Corruption Hurts Economic Growth

Forbes

time4 days ago

  • Business
  • Forbes

How Government Corruption Hurts Economic Growth

Young woman holding a poster against corruption. Human rights and democracy concept. Government corruption of any magnitude is a problem. It erodes citizens' trust in government, fosters animosity between voters and public officials, and hinders economic activity. One study that looks at country-level corruption finds that a 1% increase in the level of corruption reduces the rate of economic growth by 0.72%. The authors attribute most of the negative impact corruption has on growth to the political instability corruption causes, which generates uncertainty for businesses. Another study finds that countries with more corruption receive less foreign direct investment and experience higher inflation, both of which reduce growth. There is evidence that corruption reduces economic growth in America, too. One study finds that more state-level corruption reduces investment and the growth of output per worker. Another study finds that states with more corruption convictions from 1976 to 1980 experienced slower income growth over the next 20 years. This study also finds that states with more educated populations are less corrupt on average. To explain this finding, the authors suggest that educated voters are more inclined and better able to monitor public officials which reduces opportunities for corruption. In a recent analysis, Chris Edwards of the Cato Institute examines corruption in the United States by federal judicial district. To measure the level of government corruption in America, Edwards' examines Department of Justice data on public corruption convictions across the country's 94 federal judicial districts. He orders the districts by the average annual number of convictions per 100,000 people from 2004 to 2023. Washington, D.C. has the highest conviction rate, and three U.S. territories are in the top five. In the contiguous United States, districts in Louisiana, Montana, Oklahoma, Kentucky, South Dakota, and Tennessee have the highest conviction rates. The least corrupt areas according to this measure are the state of New Hampshire and the Middle District of North Carolina, where Greensboro is located. Both have annual conviction rates of only 0.05. Closer inspection of the economic data in places with the most convictions reveals the adverse economic effects corruption can have on local economies. Take Louisiana and Illinois: Both states have reputations for being corrupt that are supported by the convictions data and recent stories. In Louisiana, federal officials recently arrested and indicted several former Louisiana law enforcement officials and businessmen allegedly involved in a U-visa scam. In Illinois, the corruption case around former Illinois House Speaker Michael Madigan is still playing out. A former CEO of Illinois utility company ComEd was sentenced just this week. In addition to high levels of corruption, both Illinois and Louisiana had personal income growth below the national average over the last year according to the most recent data from the Bureau of Economic Analysis (BEA). Income growth was 5.4% in Illinois, 5.9% in Louisiana, and 6.7% for the entire country. In the two states with the least corruption, New Hampshire and Utah, income growth was 6.6% and 7.2%, respectively. These are just a few observations, of course, but they are consistent with the studies discussed earlier. While government corruption in the United States is far below the levels of autocratic countries, it is still a problem that needs to be addressed. There are plenty of ideas, including strengthening the Inspectors General who oversee audits and investigations in government agencies. One recent study that examines political corruption in Brazil finds that strengthening government audits can reduce corruption. Other policies include better enforcement of anti-corruption laws already on the books; more investigative journalism to uncover corruption; and greater protection and rewards for whistleblowers that reveal corruption. None of these are a silver bullet, but in combination they would help reduce corruption. Voters should also emphasize character when evaluating political candidates to reduce the number of dishonest people elected to office. Monitoring public corruption is important since we cannot address a problem we do not know about. The Cato Institute analysis is a reminder that government corruption is alive and well in America. Reducing it will improve local economies and cultivate more trust between voters and elected officials.

Trump supporter charged with making threats against US lawmaker
Trump supporter charged with making threats against US lawmaker

Al Arabiya

time6 days ago

  • Politics
  • Al Arabiya

Trump supporter charged with making threats against US lawmaker

US federal authorities have arrested a man accused of sending dozens of threatening and violent messages to public officials he viewed as hostile to President Donald Trump's agenda, charging him with threatening a member of Congress. Geoffrey Giglio, a Trump supporter who has previously been questioned by at least four federal law enforcement agencies over similar conduct, was charged this week with threatening a member of US Congress, transmitting interstate threats and making anonymous harassing communications, according to a federal complaint. The charges stem from violent and profane messages Giglio allegedly left for US Representative Eric Swalwell, a California Democrat and frequent Trump critic. According to the complaint, Giglio left a voicemail for Swalwell in March warning, 'If you want to keep fighting, then we will come get you.' He referenced a .308 caliber rifle, saying, 'I'll just set up behind my .308 and I'll do my job,' and ended the message with sexually explicit remarks about Swalwell's wife. In a follow-up call to Swalwell's office in mid-June, after already being questioned by the FBI, Giglio told a staff intern, 'Tell Eric Swalwell that we are coming and that we are going to handle everyone. We are going to hurt everyone,' according to the complaint. The complaint also details threats Giglio made to Michigan Secretary of State Jocelyn Benson, a Democrat, and to an FBI agent investigating the matter. In a message to Benson, he said, 'We are coming for you,' using explicit language and threatening to 'put her in a hole.' Giglio acknowledged sending the message during a June 3 interview with the FBI, the complaint said. On June 26, the day before his arrest, Giglio sent several hostile messages to the FBI agent, writing, 'Now I'm coming for you.' the complaint said. Giglio was arrested in California but was not charged over the threats to Benson or the FBI agent, the complaint said. The US Attorney's Office for the Northern District of California, which is prosecuting the case, and the FBI declined to comment. A public defender listed in court records as representing Giglio did not respond to requests for comment. The offices of Swalwell and Benson also did not immediately respond. The White House condemned the threats against Swalwell. 'As a survivor of multiple assassination attempts, the president takes these matters extremely seriously,' said White House spokesperson Harrison Fields. 'Anyone engaging in such behavior will be held accountable to the fullest extent of the law.' The complaint cites a 2024 Reuters investigation that identified Giglio as a persistent source of threats against public officials, including judges, lawmakers and state election officials. Despite multiple investigations by federal agencies, including the FBI and the Secret Service, Giglio had not previously been charged, as his messages often stopped short of the legal threshold for prosecution under the First Amendment, according to the Reuters report. The arrest comes amid the most sustained wave of US political violence since the 1970s, including two assassination attempts against Trump last year and the murder in June of a former Democratic speaker of the Minnesota House of Representatives and her husband.

Trump supporter charged with making threats against U.S. lawmaker
Trump supporter charged with making threats against U.S. lawmaker

Reuters

time6 days ago

  • Politics
  • Reuters

Trump supporter charged with making threats against U.S. lawmaker

July 23 (Reuters) - U.S. federal authorities have arrested a man accused of sending dozens of threatening and violent messages to public officials he viewed as hostile to President Donald Trump's agenda, charging him with threatening a member of Congress. Geoffrey Giglio, a Trump supporter who has previously been questioned by at least four federal law enforcement agencies over similar conduct, was charged this week with threatening a member of U.S. Congress, transmitting interstate threats and making anonymous harassing communications, according to a federal complaint. The charges stem from violent and profane messages Giglio allegedly left for U.S. Representative Eric Swalwell, a California Democrat and frequent Trump critic. According to the complaint, Giglio left a voicemail for Swalwell in March warning, 'If you want to keep fighting, then we will come get you.' He referenced a .308 caliber rifle, saying, 'I'll just set up behind my .308 and I'll do my job,' and ended the message with sexually explicit remarks about Swalwell's wife. In a follow-up call to Swalwell's office in mid-June, after already being questioned by the FBI, Giglio told a staff intern, 'Tell Eric Swalwell that we are coming and that we are going to handle everyone. We are going to hurt everyone,' according to the complaint. The complaint also details threats Giglio made to Michigan Secretary of State Jocelyn Benson, a Democrat, and to an FBI agent investigating the matter. In a message to Benson, he said, 'We are coming for you,' using explicit language and threatening to 'put her in a hole.' Giglio acknowledged sending the message during a June 3 interview with the FBI, the complaint said. On June 26, the day before his arrest, Giglio sent several hostile messages to the FBI agent, writing, 'Now I'm coming for you.' the complaint said. Giglio was arrested in California but was not charged over the threats to Benson or the FBI agent, the complaint said. The U.S. Attorney's Office for the Northern District of California, which is prosecuting the case, and the FBI declined to comment. A public defender listed in court records as representing Giglio did not respond to requests for comment. The offices of Swalwell and Benson also did not immediately respond. The White House condemned the threats against Swalwell. "As a survivor of multiple assassination attempts, the president takes these matters extremely seriously,' said White House spokesperson Harrison Fields. 'Anyone engaging in such behavior will be held accountable to the fullest extent of the law." The complaint cites a2024 Reuters investigation that identified Giglio as a persistent source of threats against public officials, including judges, lawmakers and state election officials. Despite multiple investigations by federal agencies, including the FBI and the Secret Service, Giglio had not previously been charged, as his messages often stopped short of the legal threshold for prosecution under the First Amendment, according to the Reuters report. The arrest comes amid the most sustained wave of U.S. political violence since the 1970s, including two assassination attempts against Trump last year and the murder in June of a former Democratic speaker of the Minnesota House of Representatives and her husband.

South Korean, Filipino officials rebuked for poor flood response and misjudgment
South Korean, Filipino officials rebuked for poor flood response and misjudgment

South China Morning Post

time7 days ago

  • Politics
  • South China Morning Post

South Korean, Filipino officials rebuked for poor flood response and misjudgment

As floods devastate communities across South Korea and the Philippines, their presidents have rebuked officials for indulging in merrymaking and political publicity instead of focusing on disaster management. South Korean President Lee Jae-myung on Tuesday ordered a 'strict crackdown on the careless public officials who went about drinking and dancing or acted thoughtlessly' during a recent devastating rainfall, which claimed at least 19 lives nationwide. Lee said it was important to punish misconduct by civil servants during a cabinet meeting, referring to incidents involving Guri Mayor Baek Kyung-hyeon and North Chungcheong Governor Kim Young-hwan. Baek had been filmed singing at a restaurant in Hongcheon while neighbouring areas in northern Gyeonggi were battling flood damage. Kim came under fire for drinking with councillors on the second anniversary of the 2023 Osong underpass flooding in Cheongju, which killed 14. On the other hand, Lee has praised frontline responders, urging ministries to 'identify and promote exemplary cases to serve as models', according to a report by the Korea JoongAng Daily. He has also directed agencies to prioritise efforts on search for the missing, designate special disaster zones and swiftly distribute grants to flood-hit communities, including Sancheong county in South Gyeongsang, which reported 10 fatalities.

Reader poll: See what people think are the biggest Myrtle Beach area issues
Reader poll: See what people think are the biggest Myrtle Beach area issues

Yahoo

time12-07-2025

  • Yahoo

Reader poll: See what people think are the biggest Myrtle Beach area issues

The Sun News asked its readers what they felt is the biggest issue facing the area. Here's how they answered. Almost half, or 48%, of the 63 people who responded to the poll said crime is the biggest issue in the Myrtle Beach area because of over development and lack of action from its cities and counties. The reader poll was published on July 2 and is still available for responses. One respondent who has lived in the area for 20 years said that tourists have been out of control and committing crimes. He said that Myrtle Beach needs a broader curfew. Another local who has lived in Myrtle Beach for 18 years said crime is out of control compared to the country, adding 'the excuse that it's a tourist area is bogus.' Another respondent who moved to the area for golf said all he reads about is crime in the two weeks he has lived there. Many respondents, 22% of them, also indicated they were concerned with over development of the area, some indicating that over development is entwined with the crime they see. Almost all readers concerned most with over development in the area said infrastructure can't keep up. Readers said over development puts a burden on the medical care system and police in Horry County, 14% of respondents indicated traffic is the biggest issue in the Myrtle Beach area. Four percent also talked politics, some stating that public officials are self-interested and neglect real issues. Six percent indicated reputation was their biggest concerns, and many readers discussed other issues harming Myrtle Beach's reputation and tourism, the area's biggest industry. Other concerns included housing, finding a good job and the environment each poling at 2% as the biggest issue facing the area according to readers. Does this sound right to you? We still want to hear from more of our readers. See the reader poll here and let us know what you think is the biggest issue in the Myrtle Beach area. Note: this is not a scientific poll.

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