Citizens Property Insurance Corporation is Regressive and Risky

In a 2015 paper, Kyle D. Logue of The University of Michigan and Omri Ben-Shahar of the University of Chicago show that the amount of subsidy a household receives from Citizens increases with wealth. Insurance premiums for more expensive beachside properties are actually the most subsidized, turning the political justification for Citizens’ existence on its head.

The DeVoe L. Moore Center Blog

By Matt Kelly

Citizens Property Insurance Corporation was formed by the Florida Legislature in 2002 for the purpose of serving Florida’s residual property insurance market. Its creation was justified by the argument that middle-income residents have a tough time purchasing insurance in a hurricane-prone state like Florida, and public subsidies were needed to even the playing field for these struggling families. Recent economic research, however, has shown that Citizens is actually a regressive program that disproportionately benefits the wealthy.

Logue and Ben-Shahir map Dark green areas are the most subsidized. From Logue and Ben-Shahir (2015).

In a 2015 paper, Kyle D. Logue of The University of Michigan and Omri Ben-Shahar of the University of Chicago show that the amount of subsidy a household receives from Citizens increases with wealth. Insurance premiums for more expensive beachside properties are actually the most subsidized, turning the political justification for Citizens’ existence on its head. Figure 1…

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Property-tax hike in Tallahassee reveals broken budget process

Do we really need to increase property taxes for a few more police officers? We can’t cut some excess spending elsewhere to make room for extra law enforcement.

The DeVoe L. Moore Center Blog

By Samuel R. Staley, Ph.D.

Citizensgroup,14pointsLocal Tallahassee activists have proposed $9.5 million in budget cuts and savings after city commissioners agreed to consider a 23% increase in property taxes justified to fund additional police officers. Last week, commissioners reduced the increase to 13%, but many, including the editors of the Tallahassee Democrat, are not convinced that even this modest increase is necessary. The details of the 14-point plan along with full coverage of the proposal can be found at Tallahassee Reports, a newspaper that serves as a local government watchdog.

Citizens for Responsible Spending, the architect of the spending and savings plan, is an umbrella group formerly known as the Budget Hawks. The new group attempts to do what city staff have been reluctant to: find modest savings in other parts of the city budget to stave off a property tax increase. Florida TaxWatch CEO Dominic…

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Oil Cartels and Those Damn Dirty Pizza Dealers

International oil cartel OPEC is back at its shady ways, but, thankfully, the organization is doomed to fail.

Whenever we hear the term “cartel” there is always a negative connotation involved with its use. We tend to correspond the term with the drug cartels of Mexico and people like “El Chapo,” the leader of the Sinaloa Cartel who escaped a maximum-security prison in July.

Less talked about are groups like taxicab cartels, which have been involved in passive-aggressive disputes with Uber and other ridesharing companies. Well maybe not in France after cab drivers essentially rioted because of Uber. These are just a few examples of cartels, but one that affects our lives quite a bit and has recently engaged in some fishy economics, is the oil cartel, known as the Organization for Petroleum Exporting Countries, (OPEC).

Oil is not only the magic juice that makes our cars run, it essentially makes the world run, which is why some key oil producers banded together to form a cartel.

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Economic Productivity vs. “I Was Productive!”

The Year Has Begun

Ah! The sweet, piney smell of untapped knowledge from the crisp, new textbooks – or the fabulous sensation of purchasing a used book with all the crucial points highlighted from the previous owner. The unnerving feeling of walking on to the college campus for the first time in awhile, or ever. You think to yourself, “I’ve got to make sure I’m productive this year, but what does it really mean to be productive?” Is it diving into your textbook for five hours a day? Is it cutting back on the Netflix binge? Is it not having poker nights with my roommates? Maybe…

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