Earlier this month, the House of Representatives passed the Regulations from the Executive in Need of Scrutiny (REINS) Act. The bill, which passed with a vote largely along party lines by 237-187, would require certain executive regulations to be approved by a joint session in Congress. Republicans see the bill as a necessary check on the executive branch, while Democrats dismiss it as a way to gut much-needed regulations.

Calling the legislation “groundbreaking,” Rep. Jeff Duncan (R-SC) said the REINS Act will curb expensive regulations. “The outgoing Administration broke Constitutional restraints time and time again,” said Duncan, a co-sponsor of the bill. “Without passing the REINS Act, the boundaries for administrative rule making are endless.”

President Barack Obama used his executive authority to pass a historic number of regulations, much to the chagrin of the Republican-controlled Congress. President Donald Trump has promised to roll back a number of Obama’s executive actions, and it remains to be seen how he will use executive power. But if the REINS Act passes the Senate, it would hamstring Trump’s ability to unilaterally push regulations.

Trump has already indicated he will support the legislation. “I will sign the REINS Act should it reach my desk as President and more importantly I will work hard to get it passed,” he said last year. “The monstrosity that is the Federal Government with its pages and pages of rules and regulations has been a disaster for the American economy and job growth.”

The bill would require congressional approval for regulations that are deemed a “major rule” by the Office of Management and Budget. A “major rule” is a regulation that has costs $100 million or more, increases costs for consumers, and hurts U.S.-based companies in competition with foreign ones. A joint session in Congress would have 70 days to approve any proposed legislation by executive agencies.

Rep. John Conyers (D-MI), the top Democrat on the Judiciary Committee, said the REINS Act could “end rule-making as we know it.” Referring to the 2008 housing crises and recession, Conyers added: “Without question, it was the lack of regulatory controls that facilitated rampant predatory lending, which nearly destroyed our nation’s economy.”

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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The connection between prostitution, drug use, and crime has long been known, but a new horrifying story coming out of a small town in Ohio raises many concerns about how deep this connection is. Chillicothe, Ohio, a city afflicted by drugs, poverty, and unemployment, is now filled with citizens who are concerned for their safety after six women have disappeared in a little over a year.

Charlotte Trego, a mother of two, was the first to go missing about a year ago after being evicted by her roommate. She was not seen alive after. That same day Tameka Lynch, a mother of three and a friend of Trego, went missing as well. Next came Wanda Lemons who was last seen by her mother. A friend of Lemons told Chillicothe police she had talked about going with a truck driver to Texas where Lemons had family but has not heard from her since. Two months later Shasta Himelrick’s body was found floating in the Scioto River outside of Chillicothe. Himelrick was pregnant when she went missing on Christmas Day after promising to return to her grandmother’s house. In the same vein, Tiffany Sayre also went missing after promising her return. She was doing business at a local motel and told her friend that she would come back shortly but never made it. Lastly Timberly Claytor, a woman who was actually never reported missing, was found dead after she was shot in the head three times.

Four of the women have been found dead and officials are still working to locate Lemons and Trego. Each seemed to have a history of drug use, prostitution, and had connections to the same social circle. There also appeared to be a pattern of the bodies being dumped along waterways outside the city leaving officials to wonder if there is a serial killer involved. Staff Lt. Mike Preston of the Ross County Sheriff’s Department told The Washington Post:

I don’t want to come out and say ‘yes, we have a serial killer,’ but it’s a small community that we live in … and the number of females who have come up missing, and then the bodies that we’ve found, that’s quite a bit for our community.

Authorities have made one arrest so far involving the death of Timberly Claytor. Jason A. McCrary, 36, of Chillicothe, was convicted of unlawful sexual conduct with a minor more than ten years ago. He has not been charged with Claytor’s murder because investigators are waiting for results of DNA collected in a vehicle seized during a search warrant of McCrary’s home before filing charges. He still remains in the Ross County Jail on a charge that he failed to register his address as a sex offender. Authorities are still working hard to find information on the rest of the women despite the lack of leads that they have. Chillicothe Police Chief Keith Washburn said:

We’ve checked land, air and water for any signs of (the women). But the problem is you’re trying to find a needle in a haystack unless you have the information. The information we have is running dry on some of these cases.

Washburn said prostitution in the Chillicothe area appears to be driven by a need for quick money to purchase drugs. Lieutenant Preston acknowledged that the city is battling a heroin problem and there have been frequent arrests as a result. This leaves me to wonder what the town has done to stop this constant drug battle, and if that could have had an impact on these disturbing disappearances. This has to be a terrifying time for Chillicothe. With so few answers and arrests made, people are in fear for their lives. It is sad to see that a city once known as Ohio’s capital is now known as a city of such tragic events. Police have to crack down on finding information about these deaths and also curtail the drug and prostitution businesses to keep people safe before this tragedy continues.

Taelor Bentley

Taelor is a member of the Hampton University Class of 2017 and was a Law Street Media Fellow for the Summer of 2015. Contact Taelor at staff@LawStreetMedia.com.

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Unfortunately, it seems as though another law school is feeling the effects of the declining enrollment facing law schools across the country in recent years. George Kosko and Robert Carr, the owners of Charleston School of Law located in South Carolina, have recently announced that they might not enroll a new class of students this coming fall. The statement they put out read:

We cannot in good faith enroll another class when, like last year, the school is spending more money than is coming in; when we cannot assure the students that they will be able to use federal student loans for their full three years; and when we cannot be sure the school will be able to maintain its license and stay open

While this was not a formal announcement of closure, it does not look promising that the school is going to be able to turn things around.

Understandably, many of the students were shocked and confused by this news. The announcement came during the thick of finals season, a bizarre time to announce something that could rattle and greatly affect the futures of the school’s current students. Many students expressed that they were in disbelief that the administration would announce something of this magnitude during finals.

Other students expressed disappointment. Second-year law student Drew Waxler believed that he would finish his three years at Charleston School of Law and then head back home to Burlington, Vermont to start his career. However, it appears that his plans may have to change. He says that, “it is discouraging that you won’t have an alma mater to take pride in after graduation if they do decide to stop taking” new classes of students.

While many of the students were shocked by the news, the school has actually been in trouble since 2013 when its owners announced that a sale to the education company Infilaw was under consideration. At the time, many students and faculty members expressed their outrage with the sale. They explained how the three schools currently under Infilaw are of a lower caliber than Charleston. If the school were to become an Infilaw school, it would decrease the value of a Charleston Law degree. To the relief of many, the sale didn’t go through. However, it appears as though the process has done lasting damage to the school.

So, what does this mean for the students? According to the American Bar Association and state rules, a law school is not allowed to simply close its doors without doing anything for its students. If they decide to close, they will have to submit a “teach-out” plan that details how current students will finish their education programs. So, while certainly not ideal, at least the students can know that they won’t be left to figure things out for themselves.

The owners have stated that they expect to release a formal announcement at some point this week.

Brittany Alzfan

Brittany Alzfan is a student at the George Washington University majoring in Criminal Justice. She was a member of Law Street’s founding Law School Rankings team during the summer of 2014. Contact Brittany at staff@LawStreetMedia.com.

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India has long been an important nation on the international stage; its massive population and rapidly growing economy have the potential to propel it forward even further. While there have been ebbs and flows–the recent recession strongly impacted the sub-continent–things may be looking up. There’s a new Prime Minister and India is on the rise yet again. Read on to learn about India’s growth, the relationships it has with other nations, and the challenges that the country will face in coming years.

A Look Into the Past

Like China and Mesopotamia, India is often considered one of the birthplaces of civilization. The first civilization in India was founded over five thousand years ago. Since then, India saw the rise and fall of countless empires, invading forces, and ideas. Buddhism and Hinduism were also founded in India; and Islam, when it reached the area in the eighth century, came to exert a powerful influence, as well.

The story of modern India however, picks up at the beginning of the eighteenth century, when the declining Mughal Empire was conquered piecemeal by the British East India Company. The British outcompeted their French rivals and bit by bit took over the sub-continent. Yet British rule was not to last either, with a large-scale mutiny in the middle of the nineteenth century hinting at the rise of Indian nationalism.

This came to fruition after years of protest that featured leaders such as Mahatma Gandhi when India finally achieved independence in 1947. This independence, however, did not come about smoothly. The same year India became independent, it also broke into two separate nations, Hindu India and Muslim Pakistan. As many as 12.5 million people migrated to one country or the other depending on their religion. Up to one million people died in the ensuing chaos.

Rise of Modern India

After the end of colonial rule, India initially adopted a planned economic approach. The idea was to increase consumer savings, which would then lead to greater investment in the economy and growth. The plan was to create a prosperous India that was financed by its own economy and not beholden to outside forces.

While the plan had some success, however, growth remained limited in India at an average of four percent annually in the 1950s, 60s, and 70s. The plan was also plagued by unbridled population growth and inequality. The proverbial corner was turned beginning in the late 80s and early 90s when the economy was finally opened up. Growth shot up to over 6.5 percent annually, while the service sector in particular began to take off.

Move to a Market Economy

The key to the turn-around for India economically was when it moved from a series of five-year plans, as part of a planned economy adopted from its then-ally, the Soviet Union, to a market economy, which is similar to those of Western nations. Originally India adopted a socialist model as the means to improve its economy. This meant most industry, licensing, and investment infrastructure was controlled by the government. The whole idea behind this logic was to build strong home-grown industries in India, and in the process prevent the inequality notorious in capitalist societies from spreading there.

The planned economy proved ineffective. This was mainly due to low growth rates and the failure to generate high savings rates. In fact the state, far from succeeding in building up savings, actually began running up higher and higher deficits as its programs proved ineffective. Thus, spurred by this ineffectiveness and a rise of the price of oil as a result of the first gulf war which nearly caused the country to default, India made a change. The government did a complete 180, reducing state control and planning, liberalizing trade and investment, and reducing the deficit.

Following the success from the 1990s and with continued reforms, the Indian economy continued to hum along in the first decade of the 2000s, averaging greater than six percent growth annually. Rapid growth stalled, however, as it did in much of the rest of the world, following the Great Recession.

The reason that India was hit so hard was because of a failure to further liberalize policy concerning labor, energy, land reform, and infrastructure improvement. Namely the issue was in many ways the same that had been affecting India during its planned economy, despite the reforms the country had enacted in the past two decades. First labor laws were still very restrictive so it made it hard for people to move around in search of jobs.  Secondly, the infrastructure was not adequately developed in India so that its manufacturers could easily export their products. Third, the country was still plagued by shortages in essential goods, such as energy. This was all compounded by the government’s vain effort to prop up the country’s currency, the Rupee.  Not only has this led to a higher deficit, but also inflation, which eats away at people’s savings and makes them poorer. This led to growth rates closer to four or five percent during the recession.

After the Recession

Nevertheless, India’s economy has rebounded in the last two years and in 2014 outpaced China for the first time. This was due to several improvements. First, both the manufacturing and financial sectors improved dramatically. In addition, new Prime Minister Modi and other political leaders have worked diligently to reduce debt. Lastly, the drop in the price of oil has dramatically helped India, as most of its import deficits were due to the importation of oil to fuel its growing need.

While India has seemingly regained its status as a rapidly growing emerging market, this also comes with caveats. First, the growth figures that show it outpacing China had to be recalculated due to some errors, so many economists are treating them with skepticism. Secondly, according to a New York Times study from 2011-2012, 30 percent of Indians still live in extreme poverty, which translates approximately to 363 million people. That is more people than live in the United States. Thus, although India may recoup its status as a major, up-and-coming economy, there is still room for improvement. The following video gives an outlook on the impact reforms could have on India’s economy.

India’s Friends and Enemies

Pakistan

When discussing international concerns for India, the discussion always starts with Pakistan. The two nations were founded at the same time when British rule in India ended; however, the division of the two countries was plagued by extreme violence and a persistently strong feeling of animosity. The situation has in no way improved by the three wars and ongoing proxy war being waged over Kashmir. The conflict in Kashmir stems back to the separation of India and Pakistan.

At the time of independence, there were 562 princely kingdoms that were independent from either country and could choose which one they wanted to join. Both countries therefore were eager to recruit these principalities–Kashmir was one of the most coveted. Pakistan seemed to have the upper hand, as 70 percent of the population was Muslim; however, at the time, the ruler was Hindu so India claimed the area on that argument and still occupies it to this day. Aside from the direct conflicts there, Pakistan has also waged a guerrilla campaign to free the territory from India and incorporate it into the Muslim state of Pakistan.

On top of all that, both countries possess nuclear weapons and flaunt their capabilities, an example of which was the corresponding nuclear tests during the 90s. The video below provides a summary of the two nations’ conflict.

Nonetheless, hopes for thawed relations came when Prime Minister Modi was elected last year–one of his campaign promises was to improve relations between the two countries; however, lately Modi’s speeches have been full of aggressive rhetoric and the Pakistani military continues to support anti-India terror groups so change has yet to come. An example of this is when he suggested Pakistan was, “waging a proxy war” in Kashmir. He has also canceled several meetings with Pakistani officials, including one potential rendezvous at the United Nations.

China

India’s other major neighbor in Asia is China. Like Pakistan, India also fought a brief war with China in 1962 and has since maintained a relatively tense border with the country in the Himalayas. Tthe relationship with China has steadily improved in other areas as the countries have signed a number of trade agreements. The relationship was tested in 2013 with a Chinese incursion into Indian territory; however, no apparent serious harm came of it.

The lack of consternation may be rooted in how the countries view each other. In India, China is seen as a chief rival and also a source of emulation economically. For China, which is stronger militarily and economically, India is not regarded as much of a rival.

United States

Like its relationship with both Pakistan and China, India’s relationship with the U.S. is complicated. The countries originally shared strong ties, with the U.S. aiding India during the conflict with China. Relations were strained following America’s decision to side with Pakistan in its 1971 war with India. Things were further exacerbated by an arms treaty signed between India and the USSR and India’s testing of nuclear weapons in the 70s.

Relations seemed to be improving in the 1990s as India opened up its economy and moved to a free market approach. But once again ties between the nations weakened in 1998 when India again tested nuclear weapons, which drew condemnation and sanctions from the U.S. The sanctions were quickly repealed though and the two nations became close once more over a commitment to combat terrorism. The two sides have continued to grow closer since then, signing everything from trade to weapons agreements. In 2013 an Indian delegate was arrested for committing visa fraud, causing major waves. The two sides have seemed to yet again overcome this hiccup though, following the president’s recent trip to India where he reaffirmed the U.S. commitment to friendship.

The relationship with the U.S. also seems likely to continue to improve, despite numerous setbacks, many of which were over nuclear policy that now seem settled. While the U.S. may want to utilize India against a rising China, the two sides also value each other as trade partners. The relationship is further enhanced by the U.S.’s further distancing itself from Pakistan.

Domestic Concerns for India

While India navigates the dangerous game of international politics, it has internal issues to consider, as well. First and foremost is the status of women. While seemingly no country in the world can boast of total equality between men and woman, the situation is especially bad in India. While some women may enjoy access to lucrative lifestyles, there is a virtually systemic oppression of women in education, marriage, and the economy. A grisly example was the gang-rape of a woman by six men in Delhi in 2013 that resulted in the woman’s death. While four of the men were eventually sentenced to death, their crime highlighted a culture where women are often blamed for rape and where the courts are slow to act.

Women, of course, are not the only group to be institutionally marginalized in India. The caste system has existed for a long time. In this system people are born into and can expect to rise no further than a particular caste or class, which is often associated with some type of profession. While some efforts have succeeded at down-playing caste origins in jobs, castes still play a large role in social interactions and romantic relationships.

The persistence of discrimination, both against women and people of lower classes, speaks to the issue of inequality in the country. According to a report from the United Nations – Economic and Social Commission for Asia and Pacific (UNESCAP), income inequality actually increased in India from the 1990s to late 2000s.

India’s population is the second largest in the world at more than 1.2 billion people. With birth rates still outpacing death rates, that number is only going to continue to increase until it is expected to plateau in 2050. The population of India is also expected to surpass that of China for the world’s largest along the way, in 2025. All these extra people mean more food, housing, and jobs for a country that is already hard pressed to generate them at current levels. The accompanying video highlights the issues with poverty in India.

Domestically, though changes have been made incrementally, the sweeping changes necessary to fix many of India’s societal ills seem unlikely. As the infamous Delhi rape trial showed, while courts can be forced into action when thrust into the spotlight, they have been very slow to protect women. This also speaks to a problem of institutionalized marginalization for a large chunk of society, which has lasted for many years and thus is unlikely to simply go away now. Couple these issues with continued population explosion and the poverty that haunts India is likely to continue. Particularly with inequality rising and wealth being consolidated into the hands of the elites, much as it is in western nations.

Conclusion

After initially struggling following independence, India has enjoyed strong recent growth. While that growth was threatened by the great recession, India was able to pull through and even outpace China, if the numbers are to be believed. Going forward, Asia’s other potential superpower has many issues to deal with. Internationally, serious issues still exist concerning the relationship between India and Pakistan. India’s relationship with Asia’s affirmed rising super power is also in question as India moves closer to fellow democracy in the United States, while China seemingly drifts closer to fellow autocrat Russia.

Domestically it is more of the same, with concern over the economy dominating. Yet other issues also exist, namely an entrenched class system and the low status of women. Thus, while India has come very far, there is still a long way to go. Therefore while it is still possible for India to act on its superpower potential and one day rival China as Asia’s premier power, reforms and improvements are likely required along the way.

Resources

Primary 

Indian Embassy: U.S.-India Relations

Additional

Forbes: India Growth Now Beats China

Diplomat: India and Pakistan: A Debilitating Relationship

National Interest: China and India: The End of Cold Peace?

Council on Foreign Relations: Timeline U.S.-India Relations

Centre for Economic Policy Research: India’s Growth in the 2000s: Four Facts

Economist: How India Got Its Funk

BBC News: India Growth Figures Baffle Economists

The New York Times: Setting a High Bar for Poverty in India

Asia Society: India-Pakistan Relations: A 50-Year History

Saarthak: Women’s Situation in India

World Post: India Gang Rape Case: Four Men Sentenced to Death

Economist: Why Caste Still Matters in India

Financial Express: Income Inequality: Poor-Rich Gap Growing in India, Asia-Pacific

International Business Times: Partition of India and Pakistan: The Rape of Women on an Epic, Historic Scale

Michael Sliwinski

Michael Sliwinski (@MoneyMike4289) is a 2011 graduate of Ohio University in Athens with a Bachelor’s in History, as well as a 2014 graduate of the University of Georgia with a Master’s in International Policy. In his free time he enjoys writing, reading, and outdoor activites, particularly basketball. Contact Michael at staff@LawStreetMedia.com.

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TARP is the Troubled Asset Relief Program, created to help stabilize the financial system during the financial crisis of 2008. This program was the focus of significant debate when it was created. Read on to learn about the program, the different sides of the debate, and how it fares a few years after its inception.

What is TARP?

TARP was authorized by Congress through the Emergency Economic Stabilization Act of 2008 (EESA), and is overseen by the Office of Financial Stability at the U.S. Department of the Treasury. It was essentially a way for the government to address some of the problems of the 2008 subprime mortgage crisis. It allowed the government to buy some stocks from big banks and other financial institutions while those companies were struggling, with the understanding that in a few years they’d be sold back to the companies. The government would profit, and the companies would be able to get back on their feet. This is obviously a simplified explanation — there was much back and forth on what TARP should and could actually do.

Was TARP successful?

Yes and no — we don’t really know yet. The TARP program was instituted just a few years ago, and while the economy certainly appears to be be getting better, long-term effects are mostly unknown. If anything, programs like TARP are more frequently invoked as political talking points rather than economic topics of discussion. There is also some disagreement as to how much TARP actually cost taxpayers — with so many different moving parts, it’s difficult to calculate. What seems most striking however, is the ire that TARP and other “bailout” programs received.

What was the argument for TARP?

Proponents believe that TARP helped prevent a financial Armageddon by directly or indirectly injecting funds into banks that were on the brink of collapse. Even those who didn’t necessarily agree with the way that TARP was enacted agreed that it was essential to keep things afloat during such a turbulent period of American economic conditions. As former GOP Presidential nominee Mitt Romney put it:

The TARP program, while not transparent and not having been used as wisely it should have been, was nevertheless necessary to keep banks from collapsing in a cascade of failures. You cannot have a free economy and free market if there is not a financial system… The TARP program was designed to keep the financial system going, to keep money circulating in the economy, without which the entire economy stops and you would really have an economic collapse.

This reduced the number of lost jobs by approximately 85 million, reduced or displaced the number of housing foreclosures by approximately three million, and increased consumer confidence. It cost taxpayers $50 billion, which is 85 percent less than the Congressional Budget Office’s original estimate. Additionally, banks have returned at least 78 percent of their borrowed TARP funds with interest. Those in favor of TARP also praise its ability to infuse liquidity and flexibility into a struggling economy.

What is the argument against TARP?

Opponents believe that TARP was a rushed, ad hoc policy. Even if it helped prevent a complete financial meltdown, it did not live up to one of its major original goals of supporting struggling homeowners. Its Home Affordable Modification Program (HAMP) prevented less than half of the foreclosures that original estimates projected it would. TARP only helped the big banks grow bigger and did little to help the common man on Main Street. Such programs set a bad precedent and implicitly encourage banks to continue making risky choices.

Opponents also argued that because the United States is a democracy the American people shouldn’t have to support a program, like TARP, that received such intense backlash from the public. The political toxicity made it more dangerous, to the point where some politicians didn’t even want to discuss it. That could have prevented much-needed discussions to help improve the program, and make it even more effective. Even if it did work in some ways, it’s difficult to bill such a despised program as successful. As Anil Kayshyap of the University of Chicago put it:

The TARP was presented by former Treasury Secretary Hank Paulson in a misleading way, because buying toxic assets never made sense. That confusion led to the populist rhetoric that TARP was just a bailout for the banks. “The public’s frustration has led to a general rise in populist political rhetoric and has polluted the policy discussion in many other areas.” Also, it did nothing to forestall foreclosures.

 

Courtesy of CBO.gov. Click here for a bigger version.

Conclusion

TARP was an attempt to fix a huge problem — the monumental financial crisis that the United States was facing. Six years we still see some after-effects of the crisis, and whether or not we’re out of the woods completely is a topic that is still up for debate, but the long-term effects of programs like TARP probably won’t be known for a few years. The arguments will continue, however — look for economic arguments that invoke memories of TARP to be present in both the 2014 and 2016 elections.

Resources

Primary

Federal Reserve: TARP Information

Additional

CBS: Auto and Bank Bailouts Prove Effective

Seeking Alpha: The Five Most Effective Bailouts

The New York Times: Audit Finds TARP Program Effective

Pro Publica: Bailout Tracker

Phys Org: Are Corporate Bailouts Effective?

Congressional Oversight Panel: TARP Provided Critical Support But Distorted Markets and Created Public Stigma

TIME: Bailout Report Card: How Successful Have the Financial-Relief Efforts Been?

The New York Times: Where the Bailout Went Wrong

Reuters: Are Americans Really Benefiting From TARP Repayments?

Politico: Criticism of TARP Persists

Salome Vakharia

Salome Vakharia is a Mumbai native who now calls New York and New Jersey her home. She attended New York School of Law, and she is a founding member of Law Street Media. Contact Salome at staff@LawStreetMedia.com.

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