Sunday, May 1, 2016

The Financial Cost of Hate

by Jeremiah Ho

Jeremiah Ho's faculty portrait.

The fall-out from the North Carolina anti-LGBT bill seems to continue. With the numerous businesses taking their ventures out of the state (including notables such as PayPal and Angie’s List) and big-name entertainers (Bruce Springsteen, the band Pearl Jam, and Ringo Starr) cancelling shows in North Carolina, the question of the economics of the business backlash is obviously inevitable.  According to a PBS Newshour’s piece that aired this week, the economic backlash based on cancelled conventions has cost the state at least $8 million dollars.  That’s not chump change, given that the bill (HB2) was passed only within the last two months.

The Williams Institute at the UCLA School of Law recently weighed in on the answer to the fiscal question for such anti-LGBT legislation—this time examining the fiscal impact of the Tennessee anti-LGBT bill (HB 2414) and the costs beyond the boycotts and backlash of private businesses. Instead, the Institute released a report this month that examines the fiscal impact from an administrative angle.  In sum, the researchers note that there are three major areas in which there would be negative financial impact to Tennessee with the bill in effect.  First the study notes that there might be a loss of federal educational funding of up to $1.2 billion annually as a result of Title IX violations.  Secondly, the loss of federal contracts to educational institutions could rise up to $3 million to $9 million annually as a result of violations of Executive Order 13672, which prohibits federal contractors that receive more than $10,000 in federal contracts annually from discriminating against their employees and job applicants based on gender identity.  Lastly, there likely will be costs incurred as a result of litigation and federal administrative enforcement.  The report can be found here.

If the report is accurate, then are these costs that both the citizens and the state of Tennessee will tolerate because of legislative intolerance? Is this a worthy cost of fear and hate?  

https://lawprofessors.typepad.com/human_rights/2016/05/the-financial-cost-of-hate.html

Economics, Jeremiah Ho, LGBT, Transgender | Permalink

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