Posts
What Does Being American Mean Now? | Nat Hentoff | Cato Institute: Commentary: 'And, despite George Washington's warning, this legislation also would "deny suspected terrorists, even U.S. citizens seized within the (U.S.) nation's borders, the right to trial and subject them to indefinite detention." This is America?'
'The Patriot Act itself passed the Senate 98-1. The only dissenter was Sen. Russ Feingold, D-Wis., who, on Oct. 11, 2001, on the floor of the Senate, said:
"There is no doubt that if we lived in a police state, it would be easier to catch terrorists. If we lived in a country where the police were allowed to search your home at any time for any reason; if we lived in a country where the government was entitled to open your mail, eavesdrop on your phone conversations, or intercept your email communications ... the government would probably discover and arrest more terrorists or would-be terrorists, just as it would find more lawbreakers generally"'
'In the present Congress, Rep. Paul is not the only defender of what we used to tell other countries were our fundamental value'
Saturday, December 31, 2011
Friday, December 30, 2011
Obama Officials Say We Don't Trust the Government Enough. Why Would We? | Michael D. Tanner | Cato Institute: Commentary
Obama Officials Say We Don't Trust the Government Enough. Why Would We? | Michael D. Tanner | Cato Institute: Commentary: 'No doubt we all make mistakes in our lives. But in the last few years, we’ve seen the government invade a country that turned out not to have weapons of mass destruction, ran up $15 trillion in debt, all but bankrupted Medicare and Social Security and nudged us toward a housing bubble that nearly brought down the economy. Should we really trust a government that thought shipping guns to Mexican drug lords and giving $535 million to a money-losing solar panel company were good ideas?'
Does Constitution Allow Supremes to Hide from Us? | Nat Hentoff | Cato Institute: Commentary
Does Constitution Allow Supremes to Hide from Us? | Nat Hentoff | Cato Institute: Commentary: 'If I were teaching a high-school civics class, I don't know how I would explain to the students that they, like the rest of us ordinary citizens, are banned by the court from seeing and hearing how these top interpreters of our rule of law decide cases, thereby preventing us from learning who they are and how they think.'
The Debacle of Margarine's Utility - Morgan A. Brown - Mises Daily
The Debacle of Margarine's Utility - Morgan A. Brown - Mises Daily: 'It is hard to believe that there ever was a time when uttering "I can't believe it's not butter" would have provided ample warrant to arraign a hapless margarine producer for crimes against the state.'
'Peonage laws were in effect in states like Mississippi, but had other protective measures not been in place — i.e., the federal protection of butter's sacred yellow coloring — southern blacks would have made longer strides for economic success through vertical integration despite the oppressive commercial restrictions of Jim Crow.'
'The Federal and State antimargarine laws increase the cost of margarine, a food product as good and nutritious as butter. In many instances, due to these discriminatory laws, families cannot buy margarine. As we have stated, when it is purchased, the discriminatory laws force them to spend extra time in the kitchen, mixing color into margarine and wasting margarine in the process.
On behalf of the 14,300,000 colored consumers in this country, we plead with you to do away with all punitive Federal laws aimed at margarine.
The proposed color ban against margarine is as unfair and unjust as discriminatory race and class laws.
'Peonage laws were in effect in states like Mississippi, but had other protective measures not been in place — i.e., the federal protection of butter's sacred yellow coloring — southern blacks would have made longer strides for economic success through vertical integration despite the oppressive commercial restrictions of Jim Crow.'
'The Federal and State antimargarine laws increase the cost of margarine, a food product as good and nutritious as butter. In many instances, due to these discriminatory laws, families cannot buy margarine. As we have stated, when it is purchased, the discriminatory laws force them to spend extra time in the kitchen, mixing color into margarine and wasting margarine in the process.
On behalf of the 14,300,000 colored consumers in this country, we plead with you to do away with all punitive Federal laws aimed at margarine.
The proposed color ban against margarine is as unfair and unjust as discriminatory race and class laws.
Who's to Blame for Washington Gridlock | Jeffrey A. Miron | Cato Institute: Commentary
Who's to Blame for Washington Gridlock | Jeffrey A. Miron | Cato Institute: Commentary: 'This shows that the current debate is not really over the payroll tax; it is over the size and scope of government. That is an important topic, but it is not one that will get resolved now. Both sides have too much to lose if they make concessions on policy issues that can be used against them in the upcoming elections.'
'It is tempting to blame this outcome on the "extreme" or misguided views of one party or the other (take your pick, depending on your own views). But that is too simple.
The key problem is that, in one crucial respect, all politicians are alike: They want to get re-elected. In attempting to do so, however, they face different constraints depending on the district they represent. Republicans, especially the more conservative ones, are from states or districts with conservative voters. Democrats the reverse.
Thus even if behind closed doors every member of Congress held the same views on good versus bad policies, gridlock is still likely. Given the current distribution of voter preferences in the United States, roughly half the elected politicians are going to support conservative positions and half the opposite on most issues. Democracy may be the least bad form of government, but it is far from perfect.
This stand-off will only change if voters convince politicians that, on average, their views have evolved in the direction of either bigger or smaller government. This is what the November 2012 elections may reveal. Until then, politics rather than economic common sense will dominate the policy debate.'
'It is tempting to blame this outcome on the "extreme" or misguided views of one party or the other (take your pick, depending on your own views). But that is too simple.
The key problem is that, in one crucial respect, all politicians are alike: They want to get re-elected. In attempting to do so, however, they face different constraints depending on the district they represent. Republicans, especially the more conservative ones, are from states or districts with conservative voters. Democrats the reverse.
Thus even if behind closed doors every member of Congress held the same views on good versus bad policies, gridlock is still likely. Given the current distribution of voter preferences in the United States, roughly half the elected politicians are going to support conservative positions and half the opposite on most issues. Democracy may be the least bad form of government, but it is far from perfect.
This stand-off will only change if voters convince politicians that, on average, their views have evolved in the direction of either bigger or smaller government. This is what the November 2012 elections may reveal. Until then, politics rather than economic common sense will dominate the policy debate.'
King Newt Takes on the Judges | Roger Pilon | Cato Institute: Commentary
King Newt Takes on the Judges | Roger Pilon | Cato Institute: Commentary: 'He claims, for example, that since the New Deal, the judiciary's power has "increased exponentially" at the expense of the political branches. Yet Franklin Roosevelt accomplished exactly what Gingrich is calling for: His infamous 1937 threat to "pack" the Supreme Court with additional justices intimidated it into discovering new congressional powers and approving New Deal legislation.'
Thursday, December 29, 2011
Voters Like Paul's Honesty | Michael D. Tanner | Cato Institute: Commentary
Voters Like Paul's Honesty | Michael D. Tanner | Cato Institute: Commentary: 'At a time when our country is drowning in debt, the other GOP candidates seem unwilling to venture much beyond the idea of cutting “fraud, waste, and abuse.” Paul, on the other hand, has a specific plan to cut $1 trillion from the federal budget next year, including abolishing five cabinet agencies. That may or may not be practical, but it speaks to those seeking a smaller, less costly, less intrusive government, in a way that other candidates, with their 59-point plans for carefully trimming this agency or that, do not.'
Some Additional Reflections on the Economic Crisis and the Theory of the Cycle - Jesus Huerta de Soto - Mises Daily
Some Additional Reflections on the Economic Crisis and the Theory of the Cycle - Jesus Huerta de Soto - Mises Daily: 'the best way to preserve the environment is to extend entrepreneurial creativity and the principles of the free market to all natural resources, which requires their complete privatization and the efficient definition and defense of the property rights that pertain to them. In the absence of these rights, economic calculation becomes impossible, the appropriate allocation of resources to the most highly valued uses is prevented, and all sorts of irresponsible behaviors are encouraged, as is the unjustified consumption and destruction of many natural resources.'
'the credit expansion that central banks orchestrate and cyclically inject into the economic process through the private banking system' ... 'ends up placing an unwarranted strain on the real economy by making many unprofitable projects appear profitable (Huerta de Soto 2009). The result is unnecessary pressure on the entire natural environment: trees that should not be cut down are cut down; the atmosphere is polluted; rivers are contaminated; mountains are drilled; cement is produced; and minerals, gas, oil, etc., are extracted in an attempt to complete overly ambitious projects that in reality consumers are not willing to demand, etc.'
'the credit expansion that central banks orchestrate and cyclically inject into the economic process through the private banking system' ... 'ends up placing an unwarranted strain on the real economy by making many unprofitable projects appear profitable (Huerta de Soto 2009). The result is unnecessary pressure on the entire natural environment: trees that should not be cut down are cut down; the atmosphere is polluted; rivers are contaminated; mountains are drilled; cement is produced; and minerals, gas, oil, etc., are extracted in an attempt to complete overly ambitious projects that in reality consumers are not willing to demand, etc.'
Wednesday, December 28, 2011
RAHN: Government spending jobs myth - Washington Times
RAHN: Government spending jobs myth - Washington Times: 'As can be seen in the accompanying chart, there is an inverse relationship between increasing the size of government and job creation.'
'there is an enormous tax extraction cost for the government to obtain each additional dollar. Estimates of this extraction cost typically run from $1.40 to well over $2.50 of lost output for each dollar the government obtains.'
'If additional government spending could create more jobs, it would be expected that over the long run, the socialist or semisocialist economies would have full employment and the smaller-government, developed economies would have higher unemployment. Again, the empirical evidence shows just the opposite.'
'there is an enormous tax extraction cost for the government to obtain each additional dollar. Estimates of this extraction cost typically run from $1.40 to well over $2.50 of lost output for each dollar the government obtains.'
'If additional government spending could create more jobs, it would be expected that over the long run, the socialist or semisocialist economies would have full employment and the smaller-government, developed economies would have higher unemployment. Again, the empirical evidence shows just the opposite.'
Tuesday, December 27, 2011
Do We Need Big Government? | Michael D. Tanner | Cato Institute: Commentary
Do We Need Big Government? | Michael D. Tanner | Cato Institute: Commentary: 'Government payouts now account for more than a third of all wages and salaries in the United States. Worse, if one includes government employees’ salaries, more than half of Americans receive a substantial portion of their income from the government.'
'People talk about America’s free-market health-care system, but government pays for more than half of all health-care spending in this country.
Federal-government spending now consumes roughly a quarter of all the goods and services produced in this country over the course of a year. Throw in state- and local-government spending, and it’s more than a third. And, according the Congressional Budget Office, unless there is a drastic change in our current policies, we are on course for government to consume nearly 60 percent of GDP by mid-century.'
'The Federal Register now stands at an all time high of 81,405 pages. Nearly every product you buy and everything you do is regulated by the federal government in some way.'
'People talk about America’s free-market health-care system, but government pays for more than half of all health-care spending in this country.
Federal-government spending now consumes roughly a quarter of all the goods and services produced in this country over the course of a year. Throw in state- and local-government spending, and it’s more than a third. And, according the Congressional Budget Office, unless there is a drastic change in our current policies, we are on course for government to consume nearly 60 percent of GDP by mid-century.'
'The Federal Register now stands at an all time high of 81,405 pages. Nearly every product you buy and everything you do is regulated by the federal government in some way.'
This Is No Middle Class Tax Cut | Alan Reynolds | Cato Institute: Commentary
This Is No Middle Class Tax Cut | Alan Reynolds | Cato Institute: Commentary: 'Calling this perennial payroll tax holiday a “middle class tax cut” is an outright hoax.
Former Census Bureau economists at Sentier Research, John Coder and Gordon Green, estimate that more than half of this year’s payroll tax cuts went to the most affluent 20%, while only 15% went to those with incomes below the median.'
Former Census Bureau economists at Sentier Research, John Coder and Gordon Green, estimate that more than half of this year’s payroll tax cuts went to the most affluent 20%, while only 15% went to those with incomes below the median.'
No Free Lunch in Subsidy Programs | Chris Edwards | Cato Institute: Commentary
No Free Lunch in Subsidy Programs | Chris Edwards | Cato Institute: Commentary: 'any stimulus from UI benefits will be counteracted by the anti-stimulus of the higher taxes needed to pay for them. Many states have been raising their UI taxes on businesses in order to replenish their unemployment funds, and these tax increases are surely harming job creation.
Another negative effect of UI benefits is that they increase unemployment because they reduce the incentive for people to find work. Higher UI benefits delay the need for people to make tough choices about their careers, such as switching industries, taking lower pay, or moving to a different city. It's a basic rule that when the government subsidizes something, we get more of it.'
'Larry Summers, a former top economist to Presidents Clinton and Obama, concluded in his academic work that unemployment benefits contribute to long-term unemployment.
Our UI system causes other problems. It suppresses personal savings because people expect the government to care for them when they are unemployed. That is harmful because personal savings are a key source of economic growth—savings get channeled into capital investment, which ultimately raises productivity and wages.
Another problem is the waste and fraud in the current UI system stemming from people getting benefits that they are not entitled to. The Department of Labor estimated that improper UI payments totaled $17 billion in 2010. As UI benefits expand, the waste grows.'
Here is another idea: Decrease UI amount by 1% each week. It would avoid the hard cliff of completely losing benefits while gradually increasing the incentive to find a job. After 1 year, the compound effect would be a 41% decrease.
Another negative effect of UI benefits is that they increase unemployment because they reduce the incentive for people to find work. Higher UI benefits delay the need for people to make tough choices about their careers, such as switching industries, taking lower pay, or moving to a different city. It's a basic rule that when the government subsidizes something, we get more of it.'
'Larry Summers, a former top economist to Presidents Clinton and Obama, concluded in his academic work that unemployment benefits contribute to long-term unemployment.
Our UI system causes other problems. It suppresses personal savings because people expect the government to care for them when they are unemployed. That is harmful because personal savings are a key source of economic growth—savings get channeled into capital investment, which ultimately raises productivity and wages.
Another problem is the waste and fraud in the current UI system stemming from people getting benefits that they are not entitled to. The Department of Labor estimated that improper UI payments totaled $17 billion in 2010. As UI benefits expand, the waste grows.'
Here is another idea: Decrease UI amount by 1% each week. It would avoid the hard cliff of completely losing benefits while gradually increasing the incentive to find a job. After 1 year, the compound effect would be a 41% decrease.
Obama and Teddy Roosevelt: Both Progressives, Both Clueless about the Economy | Jim Powell | Cato Institute: Commentary
Obama and Teddy Roosevelt: Both Progressives, Both Clueless about the Economy | Jim Powell | Cato Institute: Commentary: 'Since the rise of industrial capitalism, however, the greatest fortunes generally have been made by serving millions of ordinary people.'
'TR confused the size of businesses with the size of markets. Many businesses were big, but markets were bigger, they were growing faster, and even the biggest businesses were losing market share.
Far from being monopolistic, the American economy of TR's time was intensely competitive.'
'TR confused the size of businesses with the size of markets. Many businesses were big, but markets were bigger, they were growing faster, and even the biggest businesses were losing market share.
Far from being monopolistic, the American economy of TR's time was intensely competitive.'
How Bad Economies Recover Fast When Governments Get out of the Way | Jim Powell | Cato Institute: Commentary
How Bad Economies Recover Fast When Governments Get out of the Way | Jim Powell | Cato Institute: Commentary: 'A new currency, however, wouldn't buy anything as long as chronic shortages persisted, so Erhard announced that price controls and rationing regulations would be abolished. Price controls simultaneously (1) discourage suppliers from providing more goods and (2) encourage consumers to line up for whatever might be available, which is why such controls cause shortages. U.S. commander Gen. Lucius Clay reportedly warned Erhard, "My advisers tell me you're making a terrible mistake." Erhard said, "Don't listen to them, General. My advisers tell me the same thing."
Within hours after Erhard's announcement, goods that had been reserved for black market deals began to reappear on long-empty store shelves. During the 1950s, West Germany's industrial production soared 225 percent. West Germany became a leading exporter. Overall, West Germany turned in the best economic performance of any developed country during this period. West Germany charged through the 1970s without the stagflation that afflicted the United States and other countries.
Although it's well-known that a devastated economy like Germany's could grow at above-average rates, the fact is nobody predicted the German economic miracle.'
Within hours after Erhard's announcement, goods that had been reserved for black market deals began to reappear on long-empty store shelves. During the 1950s, West Germany's industrial production soared 225 percent. West Germany became a leading exporter. Overall, West Germany turned in the best economic performance of any developed country during this period. West Germany charged through the 1970s without the stagflation that afflicted the United States and other countries.
Although it's well-known that a devastated economy like Germany's could grow at above-average rates, the fact is nobody predicted the German economic miracle.'
In Third White House Bid, Paul's Message The Same | Fox News
In Third White House Bid, Paul's Message The Same | Fox News: His pledge to "never vote for legislation unless the proposed measure is expressly authorized by the Constitution" earned him a nickname: Dr. No.
He refused to vote for any tax increase or any budget that was not balanced, and eschewed most "pork barrel" projects for his district. He even voted against awarding Congressional Gold Medals to Mother Teresa, Nancy and Ronald Reagan, and civil rights icon Rosa Parks — though he suggested his colleagues "each put in 100 bucks" to pay for the $30,000 cost of a medal for Parks.
He has refused to enroll in the House pension program, saying it would be "hypocritical and immoral" to accept a benefit unavailable to the taxpayers who fund it. He also discouraged his five children — including the future Kentucky U.S. senator and tea party darling Rand Paul — from applying for government-backed student loans.
He refused to vote for any tax increase or any budget that was not balanced, and eschewed most "pork barrel" projects for his district. He even voted against awarding Congressional Gold Medals to Mother Teresa, Nancy and Ronald Reagan, and civil rights icon Rosa Parks — though he suggested his colleagues "each put in 100 bucks" to pay for the $30,000 cost of a medal for Parks.
He has refused to enroll in the House pension program, saying it would be "hypocritical and immoral" to accept a benefit unavailable to the taxpayers who fund it. He also discouraged his five children — including the future Kentucky U.S. senator and tea party darling Rand Paul — from applying for government-backed student loans.
Police Aim To Crack Down On Violent New Trend, 'Knock Out' | Fox News
Police Aim To Crack Down On Violent New Trend, 'Knock Out' | Fox News: 'It isn't clear how long Knockout King has been around, nor is the exact number of attacks known. The FBI doesn't track it separately, but Slay said he has heard from several mayors about similar attacks and criminologists agree versions of the game are going on in many places.
St. Louis Police Chief Dan Isom said the city has had about 10 Knockout King attacks over the past 15 months.'
St. Louis Police Chief Dan Isom said the city has had about 10 Knockout King attacks over the past 15 months.'
Thursday, December 22, 2011
Wis. Gov. Has Hard Time Living Up To Jobs Pledge | Fox News
Wis. Gov. Has Hard Time Living Up To Jobs Pledge | Fox News: 'A recent report by the nonpartisan Wisconsin Taxpayers Alliance backed up complaints about the national economy dragging down job creation in the state. The report found job growth and unemployment in Wisconsin has been closely tied with the national economy both during recessions like the one that began in 2008, and economic booms like when Thompson was governor in the 1990s.
State officials can change attitudes about the economy, but because it is so closely tied to national and global forces, there's little they can do to affect the actual direction of the economy, said Taxpayers Alliance President Todd Berry.'
State officials can change attitudes about the economy, but because it is so closely tied to national and global forces, there's little they can do to affect the actual direction of the economy, said Taxpayers Alliance President Todd Berry.'
Deja Voodoo: Detroit Repeats Big City Rail Mistakes | Randal O'Toole | Cato Institute: Commentary
Deja Voodoo: Detroit Repeats Big City Rail Mistakes | Randal O'Toole | Cato Institute: Commentary: 'Although promoters often call light rail "rapid transit," it is actually very slow.
Nationally, light-rail lines average little more than 20 miles per hour. When operating in city streets such as Woodward, they average less than 15 mph. Such slow speeds entice few people out of their cars. The $60 million-per-mile cost of building light rail is enough to build a four-lane freeway. But the average light-rail line carries only about one-fifth of a freeway lane. Since most of those people would have ridden a bus, light rail offers little congestion relief.'
'Nor is light rail good for the environment. Nationally, light-rail operations use slightly less energy, per passenger mile, than the average car. But building light rail requires enormous amounts of energy that will never be repaid by the annual energy savings.'
'Buses can do anything light rail can do except spend lots of your money, but buses are faster, safer, and more flexible than trains. If traffic patterns change, bus routes can change overnight while moving a rail line takes years of planning and construction.
Rail advocates say you need rail transit to be a world-class city. The truth is that cities that use 1930s technologies to solve 21st century transportation problems are world-class chumps.'
Nationally, light-rail lines average little more than 20 miles per hour. When operating in city streets such as Woodward, they average less than 15 mph. Such slow speeds entice few people out of their cars. The $60 million-per-mile cost of building light rail is enough to build a four-lane freeway. But the average light-rail line carries only about one-fifth of a freeway lane. Since most of those people would have ridden a bus, light rail offers little congestion relief.'
'Nor is light rail good for the environment. Nationally, light-rail operations use slightly less energy, per passenger mile, than the average car. But building light rail requires enormous amounts of energy that will never be repaid by the annual energy savings.'
'Buses can do anything light rail can do except spend lots of your money, but buses are faster, safer, and more flexible than trains. If traffic patterns change, bus routes can change overnight while moving a rail line takes years of planning and construction.
Rail advocates say you need rail transit to be a world-class city. The truth is that cities that use 1930s technologies to solve 21st century transportation problems are world-class chumps.'
Team O's Denial on College-Cost Crisis | Neal McCluskey | Cato Institute: Commentary
Team O's Denial on College-Cost Crisis | Neal McCluskey | Cato Institute: Commentary: 'Only about 57 percent of people who start four-year programs finish within six years, and most of the remaining 43 percent will probably never graduate. So lots of people will gamble for $1 million, but few will win.'
'The Obama administration has set the goal of leading the world in the percentage of the population possessing a college degree.
But the reality is that we've already got armies of people in college who'll never finish. There's little reason to think we could get even more people in and through.'
'The Obama administration has set the goal of leading the world in the percentage of the population possessing a college degree.
But the reality is that we've already got armies of people in college who'll never finish. There's little reason to think we could get even more people in and through.'
Pa.'s Rhyming Justice Pens Insurance Fraud Opinion | Fox News
Pa.'s Rhyming Justice Pens Insurance Fraud Opinion | Fox News: 'Part of his opinion reads: "Sentenced on the other crimes, he surely won't go free, but we find he can't be guilty of this final felony."'
The Back Story: Santa Claus | Fox News
The Back Story: Santa Claus | Fox News: 'Although skeptics abound, the spirit of every Santa Claus is rooted in a real saint; St. Nicholas, a third-century bishop in the Byzantine Empire, or modern-day Turkey. The relics of some of his bones rest in New York's Greek Orthodox Cathedral.
"He was known as a giver of gifts, but he gave them secretly," says Father Mark Arey, of the Greek Orthodox Archdiocese.
"He redeemed people from slavery, but he did it secretly. He gave dowry's to women, but he gave them secretly. He helped the poor, but secretly, never to embarrass anyone or glorify anyone but to glorify God."
The stories go that St. Nicholas also dropped coins through windows, some landing in children's shoes or stockings hung out to dry.'
"He was known as a giver of gifts, but he gave them secretly," says Father Mark Arey, of the Greek Orthodox Archdiocese.
"He redeemed people from slavery, but he did it secretly. He gave dowry's to women, but he gave them secretly. He helped the poor, but secretly, never to embarrass anyone or glorify anyone but to glorify God."
The stories go that St. Nicholas also dropped coins through windows, some landing in children's shoes or stockings hung out to dry.'
Wednesday, December 21, 2011
Why Do GOP Bosses Fear Ron Paul? | The Nation
Why Do GOP Bosses Fear Ron Paul? | The Nation: 'Even if it were desirable, America is not strong enough to police the world by military force. If that attempt is made, the blessings of liberty will be replaced by coercion and tyranny at home. Our Christian ideals cannot be exported to other lands by dollars and guns. Persuasion and example are the methods taught by the Carpenter of Nazareth, and if we believe in Christianity we should try to advance our ideals by his methods. We cannot practice might and force abroad and retain freedom at home. We cannot talk world cooperation and practice power politics.'
Tuesday, December 20, 2011
Democracy versus Bureaucracy | Richard W. Rahn | Cato Institute: Commentary
Democracy versus Bureaucracy | Richard W. Rahn | Cato Institute: Commentary: 'One provision of the new health care law empowers unelected panels of technocrats to make reductions in Medicare benefits each year in order to hit budget targets. This enables the politicians to claim they are not responsible for the cuts, but someone behind the tree is.'
'Control by the electorate in the United States will continue to diminish as long as the people demand more from government than they (not someone else) are willing to pay for and the economy can support.'
'Control by the electorate in the United States will continue to diminish as long as the people demand more from government than they (not someone else) are willing to pay for and the economy can support.'
Monday, December 19, 2011
Back to Bush's Big-Government Conservatism | Michael D. Tanner | Cato Institute: Commentary
Back to Bush's Big-Government Conservatism | Michael D. Tanner | Cato Institute: Commentary: 'Both Gingrich and Romney have long supported more federal involvement and spending in education. Both backed No Child Left Behind. In fact, both endorsed the same strange idea of having the federal government buy a laptop computer for every child in America.'
'In fact, both are even opposed to cuts in farm price supports or ethanol subsidies. Gingrich was last seen suggesting that anyone who wanted to cut ethanol subsidies must hate farmers, while Romney believes food subsidies are a matter of national security, as if al-Qaeda is going to corner the wheat market.'
'Romney is the quintessential better manager, a "turn-around specialist," someone who can make government run more like a business. And Gingrich's new ideas are nearly all about making government work better. For example, he doesn't oppose a national ID system (E-Verify); he wants it "run by MasterCard or Visa." He doesn't want to get government out of health care; he wants to use "Lean Six Sigma" business strategy to make it less wasteful.
Nowhere in their rhetoric is there a recognition that big government is bad because it makes us less free.'
'In fact, both are even opposed to cuts in farm price supports or ethanol subsidies. Gingrich was last seen suggesting that anyone who wanted to cut ethanol subsidies must hate farmers, while Romney believes food subsidies are a matter of national security, as if al-Qaeda is going to corner the wheat market.'
'Romney is the quintessential better manager, a "turn-around specialist," someone who can make government run more like a business. And Gingrich's new ideas are nearly all about making government work better. For example, he doesn't oppose a national ID system (E-Verify); he wants it "run by MasterCard or Visa." He doesn't want to get government out of health care; he wants to use "Lean Six Sigma" business strategy to make it less wasteful.
Nowhere in their rhetoric is there a recognition that big government is bad because it makes us less free.'
Let the Boss Decide What to Do | Patrick Basham | Cato Institute: Commentary
Let the Boss Decide What to Do | Patrick Basham | Cato Institute: Commentary: 'If the nation's public health mandate is to produce a significantly lower level of obesity in the near term, the use of discrimination by employers is a perfectly logical and defensible instrument to employ in such a war on fat. The painful and inconvenient truth is that any rapid reduction in the number of obese Americans would require the private sector to discriminate against, rather than in favor of, the obese.
Instead of expensive lawsuits, counterproductive fat taxes and endless lists of (ignored) nutritional information, we should allow employers, insurers and other institutions to act toward the obese as they see fit.'
Instead of expensive lawsuits, counterproductive fat taxes and endless lists of (ignored) nutritional information, we should allow employers, insurers and other institutions to act toward the obese as they see fit.'
Down Syndrome Genocide | Nat Hentoff | Cato Institute: Commentary
Down Syndrome Genocide | Nat Hentoff | Cato Institute: Commentary: '"Today, 92 percent of mothers who get a definitive diagnosis of Down syndrome choose to abort, surveys show." These parents are told by their physicians that this child will not live a meaningful life.'
'However, a considerable number of families, instead of killing the child, provide their youngsters with regulated forms of therapy and tutoring. As a result, sizable numbers of these Americans graduate from high school and college and — as my next column demonstrates — enjoy meaningful lives.'
'However, a considerable number of families, instead of killing the child, provide their youngsters with regulated forms of therapy and tutoring. As a result, sizable numbers of these Americans graduate from high school and college and — as my next column demonstrates — enjoy meaningful lives.'
High-Tax Advocates Are Either Credulous or Envious of Wealthy | Richard W. Rahn | Cato Institute: Commentary
High-Tax Advocates Are Either Credulous or Envious of Wealthy | Richard W. Rahn | Cato Institute: Commentary: 'If you think increasing tax rates on the "rich" is the correct economic policy, then you also need to believe the following:
That most government spending is cost-effective, and cutting 3 percent of it (approximately $110 billion out of the current $3.7 trillion budget) would be more damaging than increasing taxes by $100 billion on many of those who create jobs.'
'That getting rid of the huge amount of waste and fraud in government programs, whether it is Medicare, Medicaid or defense, would do more damage to the economy than increasing tax rates on many highly productive people. Every year, many studies by government agencies and nongovernment groups show billions of dollars of waste and fraud within government, yet few government employees are fired or sent to jail, and little is done to correct the problems.'
'That being "rich" or "wealthy" is the same thing as having a high income. Many wealthy people generate much of their income from nontaxable sources, such as state and local bonds, and would not be affected by the higher tax rates being proposed. But some people with high incomes, such as young doctors, may have negative net worth because of the debt they incurred to obtain their education, and yet they would be hit by these proposed taxes.'
That most government spending is cost-effective, and cutting 3 percent of it (approximately $110 billion out of the current $3.7 trillion budget) would be more damaging than increasing taxes by $100 billion on many of those who create jobs.'
'That getting rid of the huge amount of waste and fraud in government programs, whether it is Medicare, Medicaid or defense, would do more damage to the economy than increasing tax rates on many highly productive people. Every year, many studies by government agencies and nongovernment groups show billions of dollars of waste and fraud within government, yet few government employees are fired or sent to jail, and little is done to correct the problems.'
'That being "rich" or "wealthy" is the same thing as having a high income. Many wealthy people generate much of their income from nontaxable sources, such as state and local bonds, and would not be affected by the higher tax rates being proposed. But some people with high incomes, such as young doctors, may have negative net worth because of the debt they incurred to obtain their education, and yet they would be hit by these proposed taxes.'
Friday, December 16, 2011
Should the Government Narrow the Income Gap? | Alan Reynolds | Cato Institute: Commentary
Should the Government Narrow the Income Gap? | Alan Reynolds | Cato Institute: Commentary: 'The grander estimates of Piketty and Saez are frequently cited as a rationale for increased tax rates on the rich and increased transfer payments to the rich. This is an irrational rationale. Even doubling tax rates and transfer payments would have no direct effect on those estimates, because they explicitly ignore taxes and transfers.'
'the top 1 percent's share always falls in recessions and rises during periods of rapid economic growth such as 1983-89 and 1997-2000. This cyclicality of the top 1 percent's share makes that share a preposterous definition of "inequality" because poverty rises in recessions. Are the unemployed supposed to welcome recessions and stock market crashes simply because such crises demolish top incomes from capital gains, dividends, interest, and small business?'
'the top 1 percent's share always falls in recessions and rises during periods of rapid economic growth such as 1983-89 and 1997-2000. This cyclicality of the top 1 percent's share makes that share a preposterous definition of "inequality" because poverty rises in recessions. Are the unemployed supposed to welcome recessions and stock market crashes simply because such crises demolish top incomes from capital gains, dividends, interest, and small business?'
We Don't Need a Balanced Budget Amendment | Tad DeHaven | Cato Institute: Commentary
We Don't Need a Balanced Budget Amendment | Tad DeHaven | Cato Institute: Commentary: 'The Constitution already places strict limits on what the federal government can and cannot do. The problem is that those limits have become stretched over the years to the point that the federal government can do pretty much what it pleases.'
'Most Republicans are about as enthusiastic to confront this reality as most Democrats are in reversing it. Thus, the convenient resurgence in popularity for a balanced budget amendment on the part of Republicans has been driven by an unwillingness — or inability — to flesh out exactly what federal agencies and programs would have to go in order to bring the budget into balance without raising taxes.
Indeed, it's not a coincidence that the balanced budget amendment wasn't a priority for Republicans when they were jacking up spending and debt during George W. Bush's tenure.'
'Republicans who support the balanced budget amendment cannot cite it as evidence that they're serious about cutting spending unless they're prepared to detail what they would cut in order to bring the budget into balance.
While proponents of the balanced budget amendment argue that it would also reign in spending, almost all the states possess balanced budget requirements and that hasn't stopped state spending from continuing to increase. In fact, the balanced budget amendment would actually end up solidifying the oversized and overbearing federal government we have today. Therefore, policymakers who truly desire a federal government that is smaller in size and scope should concentrate their efforts on convincing the American people that the country would be better off.'
'Most Republicans are about as enthusiastic to confront this reality as most Democrats are in reversing it. Thus, the convenient resurgence in popularity for a balanced budget amendment on the part of Republicans has been driven by an unwillingness — or inability — to flesh out exactly what federal agencies and programs would have to go in order to bring the budget into balance without raising taxes.
Indeed, it's not a coincidence that the balanced budget amendment wasn't a priority for Republicans when they were jacking up spending and debt during George W. Bush's tenure.'
'Republicans who support the balanced budget amendment cannot cite it as evidence that they're serious about cutting spending unless they're prepared to detail what they would cut in order to bring the budget into balance.
While proponents of the balanced budget amendment argue that it would also reign in spending, almost all the states possess balanced budget requirements and that hasn't stopped state spending from continuing to increase. In fact, the balanced budget amendment would actually end up solidifying the oversized and overbearing federal government we have today. Therefore, policymakers who truly desire a federal government that is smaller in size and scope should concentrate their efforts on convincing the American people that the country would be better off.'
Thursday, December 15, 2011
Mandatory Medical Malpractice Caps Hurt Patients | Shirley Svorny | Cato Institute: Commentary
Mandatory Medical Malpractice Caps Hurt Patients | Shirley Svorny | Cato Institute: Commentary: 'Support for caps comes from individuals who see the medical malpractice system as broken, largely based on anecdotal observations. Everyone seems to have heard a story of a high verdict to a plaintiff whose claim was not valid. Yet, careful studies suggest these cases are anomalies, and the court system generally works. While there are no statistics for the country as a whole, based on the existing evidence, we can say confidently that a good chunk of initial claims (likely more than three-quarters) do not move forward because no negligence was involved. The vast majority of cases that do move forward settle.
This means that court signals from earlier trials are clear. If court awards were random, one would expect many more cases to go to court as there would be an expectation of an award even where there was no negligence. Many cases go to court because plaintiffs think they have a case when they do not. We know this because plaintiffs rarely win; less than a quarter of all cases that go to court are resolved in favor of the plaintiff. At least one study found court findings of negligence lined up with assessments by impartial reviewing physicians.'
'every review has found claims are concentrated among a very small subset of physicians; less than five percent of physicians are responsible for the overwhelming share of claims. Even if a large percentage of negligent actions are not reported, it would seem that the present system works in identifying physicians whose practice patterns put patients at risk.'
This means that court signals from earlier trials are clear. If court awards were random, one would expect many more cases to go to court as there would be an expectation of an award even where there was no negligence. Many cases go to court because plaintiffs think they have a case when they do not. We know this because plaintiffs rarely win; less than a quarter of all cases that go to court are resolved in favor of the plaintiff. At least one study found court findings of negligence lined up with assessments by impartial reviewing physicians.'
'every review has found claims are concentrated among a very small subset of physicians; less than five percent of physicians are responsible for the overwhelming share of claims. Even if a large percentage of negligent actions are not reported, it would seem that the present system works in identifying physicians whose practice patterns put patients at risk.'
It's Time to Gut, Not Cut, the Federal Government | Doug Bandow | Cato Institute: Commentary
It's Time to Gut, Not Cut, the Federal Government | Doug Bandow | Cato Institute: Commentary: 'But there is no line item in the budget for "waste, fraud, and abuse." Part of the problem is management, which has never been Washington's strong suit. A lot of money is lost due to incompetence or theft. Putting in place the right people and procedures isn't easy.
More basic, however, is the fact that one man's waste is another man's priority. The basic purpose of the national government today is to allow everyone to live off of everyone else. The intent is to give away trillions of dollars. What matters most is giving it away, not giving it away efficiently.'
'The big spending boulders are Social Security, Medicare, Medicaid, the Pentagon, and interest. Cuts here would cause much political pain, which is why politicians prefer not to talk about such possibilities. The people must decide not to have the government do certain things.'
'First, Social Security and Medicare should be narrowed to focus on the poor. No more middle class welfare. If you can afford to care for yourself, you collect no more federal checks. And the young should be allowed to opt out of the programs, putting money aside for their own retirement and health care. Over the long-term this will cut trillions of dollars in unfunded liabilities.
Second, Medicaid should be turned into a competitive voucher program that shares cost savings with frugal recipients. It will never be cheap to provide health care for the poor, but only by changing the program's underlying incentives can much money be saved. Reforming Medicaid is important for state governments as well as Washington.
Third, the U.S. government should focus defense spending on defense. No more social engineering around the world. No more subsidies for rich states and nation-building in poor ones. No more interventions here, there, and everywhere for no good purpose. Then military outlays could be cut substantially.
Fourth, take these steps and the government would borrow less, reducing interest payments naturally. That would create a "virtuous cycle" of falling outlays, deficits, and debts.
Fifth, toss in big reductions in domestic discretionary spending for good measure. Let people spend their own money for their families and communities. Then government would be left doing the few things that it really should do.'
More basic, however, is the fact that one man's waste is another man's priority. The basic purpose of the national government today is to allow everyone to live off of everyone else. The intent is to give away trillions of dollars. What matters most is giving it away, not giving it away efficiently.'
'The big spending boulders are Social Security, Medicare, Medicaid, the Pentagon, and interest. Cuts here would cause much political pain, which is why politicians prefer not to talk about such possibilities. The people must decide not to have the government do certain things.'
'First, Social Security and Medicare should be narrowed to focus on the poor. No more middle class welfare. If you can afford to care for yourself, you collect no more federal checks. And the young should be allowed to opt out of the programs, putting money aside for their own retirement and health care. Over the long-term this will cut trillions of dollars in unfunded liabilities.
Second, Medicaid should be turned into a competitive voucher program that shares cost savings with frugal recipients. It will never be cheap to provide health care for the poor, but only by changing the program's underlying incentives can much money be saved. Reforming Medicaid is important for state governments as well as Washington.
Third, the U.S. government should focus defense spending on defense. No more social engineering around the world. No more subsidies for rich states and nation-building in poor ones. No more interventions here, there, and everywhere for no good purpose. Then military outlays could be cut substantially.
Fourth, take these steps and the government would borrow less, reducing interest payments naturally. That would create a "virtuous cycle" of falling outlays, deficits, and debts.
Fifth, toss in big reductions in domestic discretionary spending for good measure. Let people spend their own money for their families and communities. Then government would be left doing the few things that it really should do.'
Laws Shouldn't Supersede Free Speech | John Samples | Cato Institute: Commentary
Laws Shouldn't Supersede Free Speech | John Samples | Cato Institute: Commentary: 'Political scientists have found that contributions explain little about lawmaking once ideology, party, and constituency are accounted for. One scholarly study of lobbying concluded that "the direct correlation between money and outcomes that so many political scientists have sought simply is not there."'
'Even as they fail to deliver benefits, campaign-finance regulations impose costs. The incumbents who write them are tempted to make it harder for challengers to raise money. Scholars have also found that reducing campaign spending leads to fewer and less informed voters.
In addition, those engaged in politics seek to legally evade regulations. So reformers constantly demand new regulations to close "loopholes," producing a complex body of law. Legal advice becomes vital for electoral engagement, discouraging participation — a perverse result for rules purporting to advance democracy.
Finally, the rhetoric of campaign finance reform has poisoned public debate. Instead of arguments, voters hear accusations of corruption. Not surprisingly, many attribute problems to malevolent "moneyed interests."
But our fiscal challenges, for example, come from popular and inadequately funded entitlement programs. No surprise there: Voters' desire for benefits without costs is a very democratic failing. But it is a failing Americans have refused to face; it's easier to blame moneyed interests for our problems.'
'Even as they fail to deliver benefits, campaign-finance regulations impose costs. The incumbents who write them are tempted to make it harder for challengers to raise money. Scholars have also found that reducing campaign spending leads to fewer and less informed voters.
In addition, those engaged in politics seek to legally evade regulations. So reformers constantly demand new regulations to close "loopholes," producing a complex body of law. Legal advice becomes vital for electoral engagement, discouraging participation — a perverse result for rules purporting to advance democracy.
Finally, the rhetoric of campaign finance reform has poisoned public debate. Instead of arguments, voters hear accusations of corruption. Not surprisingly, many attribute problems to malevolent "moneyed interests."
But our fiscal challenges, for example, come from popular and inadequately funded entitlement programs. No surprise there: Voters' desire for benefits without costs is a very democratic failing. But it is a failing Americans have refused to face; it's easier to blame moneyed interests for our problems.'
Wednesday, December 14, 2011
Redeeming the Industrial Revolution - Wendy McElroy - Mises Daily
Redeeming the Industrial Revolution - Wendy McElroy - Mises Daily: '"Free-labor children lived with their parents or guardians and worked during the day at wages agreeable to those adults. But parents often refused to send their children into unusually harsh or dangerous work situations." Reed notes, "Private factory owners could not forcibly subjugate 'free labour' children; they could not compel them to work in conditions their parents found unacceptable."
By contrast, parish children were under the direct authority of government officials.' 'The Poor Law replaced outdoor relief (subsidies and handouts) with "poor houses" in which pauper children were virtually imprisoned. There, the conditions were made purposely harsh to discourage people from applying. Nearly every parish in Britain had a "stockpile" of abandoned workhouse children who were virtually bought and sold to factories; they experienced the deepest horrors of child labor.'
'Thus, in advocating the regulation of child labor, social reformers asked government to remedy abuses for which government itself was largely responsible. Once more, government was a disease masquerading as its own cure.'
' To modern ears, the working and living conditions were terrible with many women turning to prostitution on the side in order to keep a roof over their heads. As terrible as the conditions might have been, however, a fundamental fact must not be ignored. The women themselves believed that flight into the city was in their self-interest, otherwise they would have never made the journey or they would have returned home to farm life in disillusionment. To say factory work "harmed" 18th- or 19th-century women is to ignore the demonstrated preference that they themselves expressed. It ignores the voice of their choices; clearly, the women believed it was an improvement.'
'An employer wants to maximize the profit on every dollar he or she spends. This creates a strong incentive to be blind to everything but the merit of an employee, to be blind to race, sex, religion or other characteristics other than productivity. A skilled woman who works for $1 less than a similarly skilled man will usually get the job. If she doesn't, then the unbiased competitor down the street will hire her and the biased one will lose a competitive edge. When this dynamic occurs on a massive scale, women workers are gradually able to demand increasingly higher wages and whittle down that $1 differential. The "leveling" factor does not happen immediately, it does not happen perfectly. But over time, out of pure self-interest, employers become blind to race and sex because it is in their self-interest. They do so in the name of profit, and everyone benefits.'
By contrast, parish children were under the direct authority of government officials.' 'The Poor Law replaced outdoor relief (subsidies and handouts) with "poor houses" in which pauper children were virtually imprisoned. There, the conditions were made purposely harsh to discourage people from applying. Nearly every parish in Britain had a "stockpile" of abandoned workhouse children who were virtually bought and sold to factories; they experienced the deepest horrors of child labor.'
'Thus, in advocating the regulation of child labor, social reformers asked government to remedy abuses for which government itself was largely responsible. Once more, government was a disease masquerading as its own cure.'
' To modern ears, the working and living conditions were terrible with many women turning to prostitution on the side in order to keep a roof over their heads. As terrible as the conditions might have been, however, a fundamental fact must not be ignored. The women themselves believed that flight into the city was in their self-interest, otherwise they would have never made the journey or they would have returned home to farm life in disillusionment. To say factory work "harmed" 18th- or 19th-century women is to ignore the demonstrated preference that they themselves expressed. It ignores the voice of their choices; clearly, the women believed it was an improvement.'
'An employer wants to maximize the profit on every dollar he or she spends. This creates a strong incentive to be blind to everything but the merit of an employee, to be blind to race, sex, religion or other characteristics other than productivity. A skilled woman who works for $1 less than a similarly skilled man will usually get the job. If she doesn't, then the unbiased competitor down the street will hire her and the biased one will lose a competitive edge. When this dynamic occurs on a massive scale, women workers are gradually able to demand increasingly higher wages and whittle down that $1 differential. The "leveling" factor does not happen immediately, it does not happen perfectly. But over time, out of pure self-interest, employers become blind to race and sex because it is in their self-interest. They do so in the name of profit, and everyone benefits.'
My Life in the BLS - Shawn Ritenour - Mises Daily
My Life in the BLS - Shawn Ritenour - Mises Daily: 'If the BLS really wanted to save on meeting costs, they would hold every national conference in Kansas City, where the government hotel rates are among the cheapest, the food per diem is the lowest, and, being a central location, air fares are lower. In reality, I was told where the bureau was having the conference and it was up to me to find two other cities where it would be even more expensive for comparison. With New York City and Los Angeles as foils, I could justify any other location my superiors wanted.'
Tuesday, December 13, 2011
Global Oil and Gas Markets, Our Best Energy Security | Jim Powell | Cato Institute: Commentary
Global Oil and Gas Markets, Our Best Energy Security | Jim Powell | Cato Institute: Commentary: 'From a practical standpoint, there's really no such thing as a U.S. oil market. There's a global oil market, and oil shipments tend to go where the best prices are offered. Once a tanker leaves a port loaded with oil, the producing country no longer has control over it. In 1973, oil producing countries continued shipping to European countries that weren't involved with the Yom Kippur War, but much of that oil was re-shipped to the U.S. Some of the OPEC oil shipped to the Caribbean was also re-shipped to the U.S.
In addition, OPEC has experienced the chronic cheating that generally afflicts cartels: it's in the interest of each member to have everybody else cut back sales so that prices will be pushed up, while each member sells as much as possible "under the table" at high prices, making it difficult to maintain those prices. Algeria, Gabon, Indonesia, Iraq, Kuwait, Nigeria, Qatar, the United Arab Emirates and Venezuela reportedly have been among the most notorious OPEC cheaters, selling as much as 40 percent more oil than their assigned quotas.'
'It makes as little sense to worry about our "dependence" on foreign oil as it does to worry about our "dependence" on private enterprise, computers and other wonders. We would be worse off doing things that cost more or don't work as well. We should make the most of our comparative advantages.
Keep in mind that major oil producers have strong incentives to sell their oil. In most cases, it dominates their economies and generates a substantial percentage of government revenues. Moreover, many of these countries live beyond their means. They have spent huge sums on weapons, wars, palaces, religious police and money-losing nationalized industries. Generally the major oil producers have failed to diversify their revenue sources by providing an attractive business climate where different industries could develop.'
In addition, OPEC has experienced the chronic cheating that generally afflicts cartels: it's in the interest of each member to have everybody else cut back sales so that prices will be pushed up, while each member sells as much as possible "under the table" at high prices, making it difficult to maintain those prices. Algeria, Gabon, Indonesia, Iraq, Kuwait, Nigeria, Qatar, the United Arab Emirates and Venezuela reportedly have been among the most notorious OPEC cheaters, selling as much as 40 percent more oil than their assigned quotas.'
'It makes as little sense to worry about our "dependence" on foreign oil as it does to worry about our "dependence" on private enterprise, computers and other wonders. We would be worse off doing things that cost more or don't work as well. We should make the most of our comparative advantages.
Keep in mind that major oil producers have strong incentives to sell their oil. In most cases, it dominates their economies and generates a substantial percentage of government revenues. Moreover, many of these countries live beyond their means. They have spent huge sums on weapons, wars, palaces, religious police and money-losing nationalized industries. Generally the major oil producers have failed to diversify their revenue sources by providing an attractive business climate where different industries could develop.'
Monday, December 12, 2011
Smashing Protectionist "Theory" (Again) - Murray N. Rothbard - Mises Daily
Smashing Protectionist "Theory" (Again) - Murray N. Rothbard - Mises Daily: 'The best way to look at tariffs or import quotas or other protectionist restraints is to forget about political boundaries. Political boundaries of nations may be important for other reasons, but they have no economic meaning whatever. Suppose, for example, that each of the United States were a separate nation. Then we would hear a lot of protectionist bellyaching that we are now fortunately spared. Think of the howls by high-priced New York or Rhode Island textile manufacturers who would then be complaining about the "unfair," "cheap labor" competition from various low-type "foreigners" from Tennessee or North Carolina, or vice versa.
Fortunately, the absurdity of worrying about the balance of payments is made evident by focusing on interstate trade. For nobody worries about the balance of payments between New York and New Jersey, or, for that matter, between Manhattan and Brooklyn, because there are no customs officials recording such trade and such balances.
If we think about it, it is clear that a call by New York firms for a tariff against North Carolina is a pure rip-off of New York (as well as North Carolina) consumers, a naked grab for coerced special privilege by less-efficient business firms. If the 50 states were separate nations, the protectionists would then be able to use the trappings of patriotism, and distrust of foreigners, to camouflage and get away with their looting the consumers of their own region.'
'American labor is more costly than Taiwanese because it is far more productive. What makes it productive? To some extent, the comparative qualities of labor, skill, and education. But most of the difference is not due to the personal qualities of the laborers themselves, but to the fact that the American laborer, on the whole, is equipped with more and better capital equipment than his Taiwanese counterparts. The more and better the capital investment per worker, the greater the worker's productivity, and therefore the higher the wage rate.
In short, if the American wage rate is twice that of the Taiwanese, it is because the American laborer is more heavily capitalized, is equipped with more and better tools, and is therefore, on the average, twice as productive. In a sense, I suppose, it is not "fair" for the American worker to make more than the Taiwanese, not because of his personal qualities, but because savers and investors have supplied him with more tools. But a wage rate is determined not just by personal quality but also by relative scarcity, and in the United States the worker is far scarcer compared to capital than he is in Taiwan.'
'the fact that American wage rates are on the average twice that of the Taiwanese, does not make the cost of labor in the United States twice that of Taiwan. Because US labor is twice as productive, this means that the double wage rate in the United States is offset by the double productivity, so that the cost of labor per unit product in the United States and Taiwan tends, on the average, to be the same. One of the major protectionist fallacies is to confuse the price of labor (wage rates) with its cost, which also depends on its relative productivity.'
'The problem faced by less efficient US textile or auto firms is not so much cheap labor in Taiwan or Japan but the fact that other US industries are efficient enough to afford it, because they bid wages that high in the first place.
So, by imposing protective tariffs and quotas to save, bail out, and keep in place less efficient US textile or auto or microchip firms, the protectionists are not only injuring the American consumer. They are also harming efficient US firms and industries, which are prevented from employing resources now locked into incompetent firms, and who could otherwise be able to expand and sell their efficient products at home and abroad.'
'The alleged "deficit" was paid for by foreigners investing the equivalent amount of money in American dollars: in real estate, capital goods, US securities, and bank accounts.
In effect, in the last couple of years, foreigners have been investing enough of their own funds in dollars to keep the dollar high, enabling us to purchase cheap imports. Instead of worrying and complaining about this development, we should rejoice that foreign investors are willing to finance our cheap imports. The only problem is that this bonanza is already coming to an end, with the dollar becoming cheaper and exports more expensive.'
Fortunately, the absurdity of worrying about the balance of payments is made evident by focusing on interstate trade. For nobody worries about the balance of payments between New York and New Jersey, or, for that matter, between Manhattan and Brooklyn, because there are no customs officials recording such trade and such balances.
If we think about it, it is clear that a call by New York firms for a tariff against North Carolina is a pure rip-off of New York (as well as North Carolina) consumers, a naked grab for coerced special privilege by less-efficient business firms. If the 50 states were separate nations, the protectionists would then be able to use the trappings of patriotism, and distrust of foreigners, to camouflage and get away with their looting the consumers of their own region.'
'American labor is more costly than Taiwanese because it is far more productive. What makes it productive? To some extent, the comparative qualities of labor, skill, and education. But most of the difference is not due to the personal qualities of the laborers themselves, but to the fact that the American laborer, on the whole, is equipped with more and better capital equipment than his Taiwanese counterparts. The more and better the capital investment per worker, the greater the worker's productivity, and therefore the higher the wage rate.
In short, if the American wage rate is twice that of the Taiwanese, it is because the American laborer is more heavily capitalized, is equipped with more and better tools, and is therefore, on the average, twice as productive. In a sense, I suppose, it is not "fair" for the American worker to make more than the Taiwanese, not because of his personal qualities, but because savers and investors have supplied him with more tools. But a wage rate is determined not just by personal quality but also by relative scarcity, and in the United States the worker is far scarcer compared to capital than he is in Taiwan.'
'the fact that American wage rates are on the average twice that of the Taiwanese, does not make the cost of labor in the United States twice that of Taiwan. Because US labor is twice as productive, this means that the double wage rate in the United States is offset by the double productivity, so that the cost of labor per unit product in the United States and Taiwan tends, on the average, to be the same. One of the major protectionist fallacies is to confuse the price of labor (wage rates) with its cost, which also depends on its relative productivity.'
'The problem faced by less efficient US textile or auto firms is not so much cheap labor in Taiwan or Japan but the fact that other US industries are efficient enough to afford it, because they bid wages that high in the first place.
So, by imposing protective tariffs and quotas to save, bail out, and keep in place less efficient US textile or auto or microchip firms, the protectionists are not only injuring the American consumer. They are also harming efficient US firms and industries, which are prevented from employing resources now locked into incompetent firms, and who could otherwise be able to expand and sell their efficient products at home and abroad.'
'The alleged "deficit" was paid for by foreigners investing the equivalent amount of money in American dollars: in real estate, capital goods, US securities, and bank accounts.
In effect, in the last couple of years, foreigners have been investing enough of their own funds in dollars to keep the dollar high, enabling us to purchase cheap imports. Instead of worrying and complaining about this development, we should rejoice that foreign investors are willing to finance our cheap imports. The only problem is that this bonanza is already coming to an end, with the dollar becoming cheaper and exports more expensive.'
Tariff Lesson for Obama – and Us | Daniel J. Ikenson | Cato Institute: Commentary
Tariff Lesson for Obama – and Us | Daniel J. Ikenson | Cato Institute: Commentary: 'Trade barriers and subsidies, while burdensome to foreign companies, are foremost matters of domestic economic policy. Australia's experience affirms that the most compelling case for dismantling trade restrictions is not that they are "concessions" to exchange for foreign market access, but domestic reforms that benefit the domestic economy, regardless of what other countries do with their own trade barriers.'
Friday, December 09, 2011
Mustangs Mistreated But Not Inhumanely | Fox News
Mustangs Mistreated But Not Inhumanely | Fox News: 'The U.S. Bureau of Land Management's internal review of a wild horse roundup in Nevada found some mustangs were whipped in the face, kicked in the head, dragged by a rope around the neck, and repeatedly shocked with electrical prods, but the agency concluded none of the mistreatment rose to the level of being inhumane.'
Thursday, December 08, 2011
Better Education Through Lower Taxes | Andrew J. Coulson | Cato Institute: Commentary
Better Education Through Lower Taxes | Andrew J. Coulson | Cato Institute: Commentary: 'for every dollar the education tax credit reduces state revenues, it saves the state $1.49 — according to an official study by the legislature's accountability agency. That is because educating children in the private sector is quite a bit less expensive than doing so in the public sector. So the program not only improves educational outcomes for all concerned, it generates a 50 percent annual return on investment — a remarkable boon in difficult economic times.'
Wednesday, December 07, 2011
Opinion: The answer is: Spend less. Period. - Grover G. Norquist and Mike Needham and Phil Kerpen and Al Cardenas and Duane Parde and Daniel J. Mitchell - POLITICO.com
Opinion: The answer is: Spend less. Period. - Grover G. Norquist and Mike Needham and Phil Kerpen and Al Cardenas and Duane Parde and Daniel J. Mitchell - POLITICO.com: 'Let’s be balanced, they insist, and promise to cut some spending and raise some taxes. Having pushed spending way up, they now want to pretend this spending is normal or, at least, inevitable. It isn’t.'
'In 1990, the same trick was played out — this time at the expense of President George H.W. Bush and the American people. A two-to-one promise brought higher taxes and higher spending. When tax hikes are on the table, the talk about spending cuts evaporates. Oddly enough, the tax hikes remain.'
'In 1990, the same trick was played out — this time at the expense of President George H.W. Bush and the American people. A two-to-one promise brought higher taxes and higher spending. When tax hikes are on the table, the talk about spending cuts evaporates. Oddly enough, the tax hikes remain.'
Tuesday, December 06, 2011
Referendum Initiatives Prevent Eminent Domain Abuse | Ilya Somin | Cato Institute: Commentary
Referendum Initiatives Prevent Eminent Domain Abuse | Ilya Somin | Cato Institute: Commentary: 'In reality, economic development condemnations often destroy local economies by wiping out neighborhoods, small businesses and schools. Moreover, the new owners are usually not required to actually produce the development they promised. In the Poletown case, the new factory produced only about half as many new jobs as were promised. In Kelo, nothing has been built on the condemned property six years after the Supreme Court upheld the takings.
Private developers who have a genuinely valuable project should be able to acquire the land they need through voluntary purchase. One of the strongest indications that their proposed project really is more valuable than current uses of the same land is their willingness to pay the current owners a price high enough to persuade them to sell. Economic development takings also undermine growth by reducing the security of property rights. If landowners fear that their land might be condemned, they are less likely to invest in it.'
Private developers who have a genuinely valuable project should be able to acquire the land they need through voluntary purchase. One of the strongest indications that their proposed project really is more valuable than current uses of the same land is their willingness to pay the current owners a price high enough to persuade them to sell. Economic development takings also undermine growth by reducing the security of property rights. If landowners fear that their land might be condemned, they are less likely to invest in it.'
The Real "1 Percent" | Michael D. Tanner | Cato Institute: Commentary
The Real "1 Percent" | Michael D. Tanner | Cato Institute: Commentary: 'Roughly 80 percent of millionaires in America are the first generation of their family to be rich. They didn't inherit their wealth; they earned it. How? According to a recent survey of the top 1 percent of American earners, slightly less than 14 percent were involved in banking or finance.'
'since 2007, there has been a 39 percent decline in the number of American millionaires.
Among the "super-rich," the decline has been even sharper: The number of Americans earning more than $10 million a year has fallen by 55 percent. In fact, while in 2008 the top 1 percent earned 20 percent of all income here, that figure has declined to just 16 percent. Inequality in America is declining.'
'since 2007, there has been a 39 percent decline in the number of American millionaires.
Among the "super-rich," the decline has been even sharper: The number of Americans earning more than $10 million a year has fallen by 55 percent. In fact, while in 2008 the top 1 percent earned 20 percent of all income here, that figure has declined to just 16 percent. Inequality in America is declining.'
Friday, December 02, 2011
A Lesson on the Laffer Curve for Barack Obama | Daniel J. Mitchell | Cato Institute: Commentary
A Lesson on the Laffer Curve for Barack Obama | Daniel J. Mitchell | Cato Institute: Commentary: 'The key takeaway is that the IRS collected fives times as much income tax from the rich when the tax rate was far lower. This isn't just an example of the Laffer Curve. It's the Laffer Curve on steroids and it's one of those rare examples of a tax cut paying for itself.
Folks on the right, however, should be careful about over-interpreting this data. There were lots of factors that presumably helped generate these results, including inflation, population growth, and some of Reagan's other policies. So we don't know whether the lower tax rates on the rich caused revenues to double, triple, or quadruple. Ask five economists and you'll get nine answers.
But we do know that the rich paid much more when the tax rate was much lower.'
Folks on the right, however, should be careful about over-interpreting this data. There were lots of factors that presumably helped generate these results, including inflation, population growth, and some of Reagan's other policies. So we don't know whether the lower tax rates on the rich caused revenues to double, triple, or quadruple. Ask five economists and you'll get nine answers.
But we do know that the rich paid much more when the tax rate was much lower.'
Executive Privilege Claim Ahead on Solyndra | Gene Healy | Cato Institute: Commentary
Executive Privilege Claim Ahead on Solyndra | Gene Healy | Cato Institute: Commentary: 'as is so often the case in politics, the real scandal is what's gone on in broad daylight. Solyndra is a perfect illustration of the dangers of government/business "partnership."
"We're all in this together," has been Obama's continual refrain this fall while pushing his $449 billion jobs bill. Sure, it's a collectivist notion that's hard to reconcile with a country dedicated to the individual pursuit of happiness. But he doesn't really mean it.
In this half-socialized, corporatist sector of privatized profit and socialized loss, we're only "all in it together" if a federally favored company goes belly up — as Solyndra did, sticking the taxpayer with tab. "One has to take risks in order to promote innovative manufacturing," as Energy Secretary Steven Chu put it last week.'
'Today, with unprecedented levels of money and power flowing to Washington, more and more Americans fear that the game is rigged. Can you blame them?'
"We're all in this together," has been Obama's continual refrain this fall while pushing his $449 billion jobs bill. Sure, it's a collectivist notion that's hard to reconcile with a country dedicated to the individual pursuit of happiness. But he doesn't really mean it.
In this half-socialized, corporatist sector of privatized profit and socialized loss, we're only "all in it together" if a federally favored company goes belly up — as Solyndra did, sticking the taxpayer with tab. "One has to take risks in order to promote innovative manufacturing," as Energy Secretary Steven Chu put it last week.'
'Today, with unprecedented levels of money and power flowing to Washington, more and more Americans fear that the game is rigged. Can you blame them?'
Keynes Was No Liberal - Allen McDaniels - Mises Daily
Keynes Was No Liberal - Allen McDaniels - Mises Daily: 'Keynes called his theory "general" because he claimed it would work not only in a laissez-faire setting but also, and more easily, in a totalitarian one.'
The Immorality of Democratic Voting - Kel Kelly - Mises Daily
The Immorality of Democratic Voting - Kel Kelly - Mises Daily: 'How is it that people are outraged when a CEO steals from his company, or a street thug steals a car, but they are not upset with themselves and their poorer neighbors for stealing from those who rightfully earned more money than they?'
'In 2008, congresswoman Maxine Waters threatened, on behalf of "society," to nationalize (i.e., to steal) the privately owned companies in the oil industry[9] due to the "large" profits they were making, since oil was at the highest price in years. But Congress itself brought about the high profits by
sanctioning the printing of money by the Fed (increased demand) and
preventing new oil drilling and refining (reduced supply).
One hundred fifty years ago, oil was a worthless substance. Companies voluntarily extracted and refined it, and made it useful, significantly improving our lives in the process. But by threatening nationalization, the government now threatens to take away the property of the millions of individuals who own these companies, by force, against their will. Americans should have been shocked and aghast that this government threat could happen in their own "free" country; instead, most agreed with her sentiments. If this is moral, then virtually anything could be argued as being moral.'
'In 2008, congresswoman Maxine Waters threatened, on behalf of "society," to nationalize (i.e., to steal) the privately owned companies in the oil industry[9] due to the "large" profits they were making, since oil was at the highest price in years. But Congress itself brought about the high profits by
sanctioning the printing of money by the Fed (increased demand) and
preventing new oil drilling and refining (reduced supply).
One hundred fifty years ago, oil was a worthless substance. Companies voluntarily extracted and refined it, and made it useful, significantly improving our lives in the process. But by threatening nationalization, the government now threatens to take away the property of the millions of individuals who own these companies, by force, against their will. Americans should have been shocked and aghast that this government threat could happen in their own "free" country; instead, most agreed with her sentiments. If this is moral, then virtually anything could be argued as being moral.'
Thursday, December 01, 2011
More Ratings, Not Fewer | Mark A. Calabria | Cato Institute: Commentary
More Ratings, Not Fewer | Mark A. Calabria | Cato Institute: Commentary: 'In the midst of a crisis, politicians and regulators all too often believe they can restore "confidence" by silencing the bearers of bad news. Witness the common banning of short selling whenever bank stocks take a tumble, as if speculators were to blame for the problems at Lehman or Fannie Mae.'
Tuesday, November 29, 2011
How to Fix the Housing Crisis - Doug French - Mises Daily
How to Fix the Housing Crisis - Doug French - Mises Daily: 'These plans keep people chained to underwater mortgages, keeping them from moving to where there are more and better job opportunities.
Unemployed heavy-equipment operator Charles Mills wanted to leave North Las Vegas for Oklahoma and a job, but he is $200,000 underwater on a home he bought at the peak of the housing market in 2006. The plans mentioned by Blinder and Feldstein would relieve Mills of roughly $190,000 of the debt, but the principal reduction won't put him back to work.'
'All of these plans are not really aid to underwater homeowners as much as another bailout for the banks — not to mention Fannie and Freddie.'
'Those looking for mortgages should expect to put 20 percent down. Values in a bankruptcy sale would reflect this reality and then some. Based on the liquidation prices received by the FDIC and other distressed debt sellers, this mortgage paper would likely be scooped up for half or a third of the home's value.
Buyers of the paper would immediately negotiate with borrowers to create loans that are conforming (80 percent LTV) and performing.'
'"Around 90% of Selene's loan modifications involve reducing the principal," James R. Hagerty wrote in the WSJ, "compared to less than 2% of the modifications done by federally regulated banks in the first quarter."
And while many upside-down borrowers can't even find a human to talk to about their loan, let alone sit down and renegotiate terms that will benefit both parties, Selene immediately tries to contact the borrowers on the notes they have purchased, "sometimes sending a FedEx package with a gift card that can be activated only if the borrower calls a Selene debt-workout specialist."
It's hard to imagine Fannie and Freddie being so proactive.'
Unemployed heavy-equipment operator Charles Mills wanted to leave North Las Vegas for Oklahoma and a job, but he is $200,000 underwater on a home he bought at the peak of the housing market in 2006. The plans mentioned by Blinder and Feldstein would relieve Mills of roughly $190,000 of the debt, but the principal reduction won't put him back to work.'
'All of these plans are not really aid to underwater homeowners as much as another bailout for the banks — not to mention Fannie and Freddie.'
'Those looking for mortgages should expect to put 20 percent down. Values in a bankruptcy sale would reflect this reality and then some. Based on the liquidation prices received by the FDIC and other distressed debt sellers, this mortgage paper would likely be scooped up for half or a third of the home's value.
Buyers of the paper would immediately negotiate with borrowers to create loans that are conforming (80 percent LTV) and performing.'
'"Around 90% of Selene's loan modifications involve reducing the principal," James R. Hagerty wrote in the WSJ, "compared to less than 2% of the modifications done by federally regulated banks in the first quarter."
And while many upside-down borrowers can't even find a human to talk to about their loan, let alone sit down and renegotiate terms that will benefit both parties, Selene immediately tries to contact the borrowers on the notes they have purchased, "sometimes sending a FedEx package with a gift card that can be activated only if the borrower calls a Selene debt-workout specialist."
It's hard to imagine Fannie and Freddie being so proactive.'
Tuesday, November 22, 2011
How Cutting Pentagon Spending Will Fix U.S. Defense Strategy | Benjamin H. Friedman | Cato Institute: Commentary
How Cutting Pentagon Spending Will Fix U.S. Defense Strategy | Benjamin H. Friedman | Cato Institute: Commentary: 'Far bigger savings are possible if the Pentagon is recast as a true defense agency rather than one aimed at something far more ambitious.'
'the U.S. military is currently structured to exercise power abroad, not provide self-defense. The U.S. Navy patrols the globe in the name of protecting global commerce, even though markets easily adapt to supply disruptions and other states have good reason to protect their own shipments. Washington maintains enormous ground forces in order to conduct nation-building missions abroad — despite the fact that such missions generally fail at great cost. Garrisons in Germany and South Korea have become subsidies that allow Cold War-era allies to avoid self-reliance.
Not only are these missions unnecessary, they are counterproductive. They turn economically capable allies into dependents, provoke animosity in far-flung corners of the globe, and encourage states to balance U.S. military power, often with nuclear weapons. A strategy based on restraint would allow Washington to save at least about $1.2 trillion over a decade, three times what the Obama administration is now asking for.'
'the U.S. military is currently structured to exercise power abroad, not provide self-defense. The U.S. Navy patrols the globe in the name of protecting global commerce, even though markets easily adapt to supply disruptions and other states have good reason to protect their own shipments. Washington maintains enormous ground forces in order to conduct nation-building missions abroad — despite the fact that such missions generally fail at great cost. Garrisons in Germany and South Korea have become subsidies that allow Cold War-era allies to avoid self-reliance.
Not only are these missions unnecessary, they are counterproductive. They turn economically capable allies into dependents, provoke animosity in far-flung corners of the globe, and encourage states to balance U.S. military power, often with nuclear weapons. A strategy based on restraint would allow Washington to save at least about $1.2 trillion over a decade, three times what the Obama administration is now asking for.'
Is Debt Necessary for Recovery? - Robert P. Murphy - Mises Daily
Is Debt Necessary for Recovery? - Robert P. Murphy - Mises Daily: 'The old-school, commonsense solution to an economy plagued by excessive debt is for people to work hard and save more. Keynesian economists have been saying throughout our current crisis that this folk wisdom overlooks basic accounting tautologies, but these pundits are smuggling in a Keynesian theory without realizing it.
Contrary to the assertions of these pundits, an economy does not need mountains of debt — whether government or private — in order to grow. Corporations can still raise needed financing through issuing equity. There are pros and cons to debt financing, but it isn't necessary for a strong economy.'
Contrary to the assertions of these pundits, an economy does not need mountains of debt — whether government or private — in order to grow. Corporations can still raise needed financing through issuing equity. There are pros and cons to debt financing, but it isn't necessary for a strong economy.'
EXCLUSIVE: Lena Taylor, Property Accessory To Voter Fraud | Media Trackers
EXCLUSIVE: Lena Taylor, Property Accessory To Voter Fraud | Media Trackers: 'According to a Media Trackers open records request with the City of Milwaukee Election Commission, the property at 1018 N 35th St. in Milwaukee currently has 36 active voter registrations and at least 23 individuals voted using the address.'
'Senator Lena C. Taylor owns the property at 1018 N. 35th St. in Milwaukee. The property has 6 units'
'Senator Lena C. Taylor owns the property at 1018 N. 35th St. in Milwaukee. The property has 6 units'
Thursday, November 17, 2011
Congressional Quarterly: House Panel Ready to Move Bill That Would Trim Federal Workforce - In the News - Newsroom - Ron Johnson, United States Senator for Wisconsin
Congressional Quarterly: House Panel Ready to Move Bill That Would Trim Federal Workforce - In the News - Newsroom - Ron Johnson, United States Senator for Wisconsin: '“It’s a bad way to manage. It doesn’t distinguish between programs that need cuts and those that are doing a great job,” said John Palguta, vice president for policy at the Partnership for Public Service, an organization that advocates better management of federal agencies. Palguta said the measure could increase pressure to hire outside contractors.'
Correct, it has problems, but what is his plan?
Correct, it has problems, but what is his plan?
ObamaCare — The Way of the Dodo | Michael F. Cannon | Cato Institute: Commentary
ObamaCare — The Way of the Dodo | Michael F. Cannon | Cato Institute: Commentary: 'Let's pick one of Congress's accounting frauds at random: the "sustainable growth rate" (SGR) formula.
This little gremlin cuts Medicare payments to physicians every year on January 1. Or it would, except every year these cuts have come due, Congress has postponed them. But so long as hundreds of billions of dollars of future cuts remain on the books, future deficits and debt appear that much smaller.
Everyone knows Congress is going to postpone those cuts when docs and seniors start complaining. But by pretending that it won't, Congress makes the federal government's finances look better. (The real genius of the SGR is that the cumulative effect of pushing all postponed cuts into future years both preserves the SGR's debt-concealing power and ensures that physicians will grow increasingly desperate to make campaign contributions with each passing year.)'
'When ObamaCare's first batch of mandates took effect in September 2010, carriers notified their customers how much premiums would be raised as a result of these mandates. One Connecticut insurer put the hidden ObamaCare tax in the range of 20-30 percent of premiums. Naturally, HHS Secretary Kathleen Sebelius threatened carriers with bankruptcy if they continued furnishing cost estimates 21. The notifications stopped.'
'With many states balking, Politico revealed that the law doesn't actually provide any funding for HHS to create exchanges 23. And there is exactly zero chance of any such funding emerging from the GOP House.'
'If the Obama administration provides unauthorized premium assistance through federally created exchanges, then some of those subsidies will, under the law's employer mandate, trigger penalties against employers. Employers would then have standing to challenge the unauthorized subsidies in court 25. In states that decline to create exchanges, those lawsuits could scuttle not only the unauthorized premium assistance but also the employer mandate.'
How can a law that is that long and was passed that quickly be expected to be consistent and logical?
This little gremlin cuts Medicare payments to physicians every year on January 1. Or it would, except every year these cuts have come due, Congress has postponed them. But so long as hundreds of billions of dollars of future cuts remain on the books, future deficits and debt appear that much smaller.
Everyone knows Congress is going to postpone those cuts when docs and seniors start complaining. But by pretending that it won't, Congress makes the federal government's finances look better. (The real genius of the SGR is that the cumulative effect of pushing all postponed cuts into future years both preserves the SGR's debt-concealing power and ensures that physicians will grow increasingly desperate to make campaign contributions with each passing year.)'
'When ObamaCare's first batch of mandates took effect in September 2010, carriers notified their customers how much premiums would be raised as a result of these mandates. One Connecticut insurer put the hidden ObamaCare tax in the range of 20-30 percent of premiums. Naturally, HHS Secretary Kathleen Sebelius threatened carriers with bankruptcy if they continued furnishing cost estimates 21. The notifications stopped.'
'With many states balking, Politico revealed that the law doesn't actually provide any funding for HHS to create exchanges 23. And there is exactly zero chance of any such funding emerging from the GOP House.'
'If the Obama administration provides unauthorized premium assistance through federally created exchanges, then some of those subsidies will, under the law's employer mandate, trigger penalties against employers. Employers would then have standing to challenge the unauthorized subsidies in court 25. In states that decline to create exchanges, those lawsuits could scuttle not only the unauthorized premium assistance but also the employer mandate.'
How can a law that is that long and was passed that quickly be expected to be consistent and logical?
GOP Wastes Obamacare Opportunity | Michael D. Tanner | Cato Institute: Commentary
GOP Wastes Obamacare Opportunity | Michael D. Tanner | Cato Institute: Commentary: 'According to the poll by the Kaiser Family Foundation, which has traditionally found more support for the health-care law than other groups, just 34 percent of Americans now support the law. In fact, barely half of Democrats support the signature achievement of a Democratic president.'
'Yet Republicans have seemed strangely quiet about the issue of late. So much so, in fact, that the Washington Times was led to wonder if Republicans have "given up" on repeal. There certainly does not appear to be much evidence that Republicans are still making repeal a top priority. The House hasn't taken a vote on Obamacare since trying to change the bill's graduate-medical-education funding back in May. There isn't even an all-out effort to get behind a repeal of the CLASS Act, despite Democratic defections on the issue.
And the Republican presidential candidates have relatively little to say as well.'
'Yet Republicans have seemed strangely quiet about the issue of late. So much so, in fact, that the Washington Times was led to wonder if Republicans have "given up" on repeal. There certainly does not appear to be much evidence that Republicans are still making repeal a top priority. The House hasn't taken a vote on Obamacare since trying to change the bill's graduate-medical-education funding back in May. There isn't even an all-out effort to get behind a repeal of the CLASS Act, despite Democratic defections on the issue.
And the Republican presidential candidates have relatively little to say as well.'
Wednesday, November 16, 2011
William Niskanen, Wise and Principled | Richard W. Rahn | Cato Institute: Commentary
William Niskanen, Wise and Principled | Richard W. Rahn | Cato Institute: Commentary: 'After careful analysis of the data, he concluded that the marginal cost of government spending and taxes in the United States likely ranged between $2.75 and $4.50 per additional dollar of tax revenue. He wrote, "One wonders whether there are any government programs for which the marginal value is that high." To put what he was saying more simply, GDP is reduced by roughly three or four dollars for every additional dollar the government taxes and spends.'
Why We Can't Escape the Eurocrisis | Gerald P. O'Driscoll Jr. | Cato Institute: Commentary
Why We Can't Escape the Eurocrisis | Gerald P. O'Driscoll Jr. | Cato Institute: Commentary: 'The Fed maintains they cannot lose money because the ECB promises to repay the swaps in dollars. And yet, with the world awash in greenbacks, it is unclear why the Fed and the ECB even needed to engage in these transactions—except that it suggests funding problems at some EU banks. And if neither EU banks nor the ECB can secure enough needed dollars in global markets, there is a serious counterparty risk to the Fed.'
Give Us Your Engineers, Yearning to Innovate | Daniel Griswold | Cato Institute: Commentary
Give Us Your Engineers, Yearning to Innovate | Daniel Griswold | Cato Institute: Commentary: 'For the government, educated immigrants are pure gravy. Because of their higher salaries and low unemployment rates, they pay more in taxes than they consume in government services from Day One. According to an authoritative study by the National Research Council, each college-educated immigrant and his or her descendants represent a $198,000 fiscal gain (in net present value) for the United States. That means a boost of 50,000 such immigrants in a year would be equivalent to retiring almost $10 billion in government debt.'
'foreign students account for three-fourths of doctorates awarded by U.S. universities in mathematics, computer science and engineering, three-fifths of doctorates in physical sciences, and one-half of doctorates in life sciences. "Today, the difficulty is not in attracting top foreign students to America," Mr. Hanson writes, "but in keeping them here after they graduate."'
'America's immigration system sends the signal to those foreign-born students with valuable skills that we would really prefer that they return to China or India to start companies and file international patents rather than remain here in the United States. And if U.S. companies cannot hire the workers they need here, they eventually will relocate their productive facilities to nations where they can.'
'foreign students account for three-fourths of doctorates awarded by U.S. universities in mathematics, computer science and engineering, three-fifths of doctorates in physical sciences, and one-half of doctorates in life sciences. "Today, the difficulty is not in attracting top foreign students to America," Mr. Hanson writes, "but in keeping them here after they graduate."'
'America's immigration system sends the signal to those foreign-born students with valuable skills that we would really prefer that they return to China or India to start companies and file international patents rather than remain here in the United States. And if U.S. companies cannot hire the workers they need here, they eventually will relocate their productive facilities to nations where they can.'
Tuesday, November 15, 2011
I Don't Know - Leonard Read - Mises Daily
I Don't Know - Leonard Read - Mises Daily: 'A person can no more explain how the free market would attend to mail delivery than his great-grandfather could have explained how television could ever emerge from free-market forces!'
'How would the free market attend to mail delivery were the postal service desocialized? I don't know! Nor could anyone have known 100 years ago how the free market would develop the means to deliver the human voice from city to city. But take note of these facts: we have maintained mail delivery as a socialized operation; its service is getting worse, not better; its costs and prices are increasing, not decreasing; since 1932 it has accumulated an acknowledged deficit of $10 billion, and the deficits increase annually.[4]
Voice delivery, on the other hand, has been improving. Just a century ago the human voice could be delivered at the speed of sound, but only the distance two people could understand each other's shouting. Today, the human voice is delivered at the speed of light; and as to distance, it's any place on earth — you name it! The service has improved enormously; and the cost has decreased steadily.
In human-voice delivery, free-market forces have been more or less operative. No one could have predicted in 1865 what form these forces would take during the next hundred years. Even more remarkable, no one can describe how the miracles were performed after the fact. Once we realize that we cannot explain what has happened, it becomes obvious that we can never explain what will happen.'
'How would the free market attend to mail delivery were the postal service desocialized? I don't know! Nor could anyone have known 100 years ago how the free market would develop the means to deliver the human voice from city to city. But take note of these facts: we have maintained mail delivery as a socialized operation; its service is getting worse, not better; its costs and prices are increasing, not decreasing; since 1932 it has accumulated an acknowledged deficit of $10 billion, and the deficits increase annually.[4]
Voice delivery, on the other hand, has been improving. Just a century ago the human voice could be delivered at the speed of sound, but only the distance two people could understand each other's shouting. Today, the human voice is delivered at the speed of light; and as to distance, it's any place on earth — you name it! The service has improved enormously; and the cost has decreased steadily.
In human-voice delivery, free-market forces have been more or less operative. No one could have predicted in 1865 what form these forces would take during the next hundred years. Even more remarkable, no one can describe how the miracles were performed after the fact. Once we realize that we cannot explain what has happened, it becomes obvious that we can never explain what will happen.'
Four Policies: The Original Intent - Brian Anderson - Mises Daily
Four Policies: The Original Intent - Brian Anderson - Mises Daily: 'In the Politics, Aristotle explains the character of law well. He recommends that there be as few laws as possible, and that they be altered as seldom as possible. The reason for this is that law should be an extension of our normal sense of right and wrong, so that people can observe it, for the most part, simply by living what they regard as morally upright lives.… The less frequently it changes and the more permanence it has, the more citizens will feel reverence for it.'
'Sustainable Planning' Is Not So Sustainable | Randal O'Toole | Cato Institute: Commentary
'Sustainable Planning' Is Not So Sustainable | Randal O'Toole | Cato Institute: Commentary: 'Since 1980, Portland has spent more than $3 billion building light-rail lines. Far from improving transit, the share of commuters taking transit to work has fallen from 9.8 percent in 1980 to 7.5 percent today, mainly because the region cut bus service to pay for the trains. Traffic congestion quadrupled between 1984 and 2004, which planners say was necessary to get people to ride transit.
The region's housing policies made single-family homes so expensive that most families with children moved to distant suburbs where they can afford a house with a yard. Residents of subsidized high-density housing projects drive just about as much as anyone else in the Portland area, and developers have learned to their sorrow that if they follow planners' guidelines in providing less parking for these projects, they will end up with high vacancy rates.
Despite these problems, Portland has received lots of positive publicity. The reason for this is simple: By forcing out families with children, inner Portland is left mainly with young singles and childless couples who eat out a lot, making Portland a mecca for tourists who like exciting new restaurants. This makes Portland a great place to visit, but you wouldn't want to live there unless you like noisy, congested streets.'
The region's housing policies made single-family homes so expensive that most families with children moved to distant suburbs where they can afford a house with a yard. Residents of subsidized high-density housing projects drive just about as much as anyone else in the Portland area, and developers have learned to their sorrow that if they follow planners' guidelines in providing less parking for these projects, they will end up with high vacancy rates.
Despite these problems, Portland has received lots of positive publicity. The reason for this is simple: By forcing out families with children, inner Portland is left mainly with young singles and childless couples who eat out a lot, making Portland a mecca for tourists who like exciting new restaurants. This makes Portland a great place to visit, but you wouldn't want to live there unless you like noisy, congested streets.'
Are Government Jobs Productive? - Ryan P. Long - Mises Daily
Are Government Jobs Productive? - Ryan P. Long - Mises Daily: 'Thus, the impact of paying government employees is to transfer economic resources from the production of economic goods and services to the performing of services for which there is no market demand.'
DOJ: Lying on Match.com needs to be a crime | Privacy Inc. - CNET News
DOJ: Lying on Match.com needs to be a crime | Privacy Inc. - CNET News: 'the Justice Department argues that it must be able to prosecute violations of Web sites' often-ignored, always-unintelligible "terms of service" policies.'
Should violating a TOS be a federal felony?
Should violating a TOS be a federal felony?
Friday, November 11, 2011
Call to Action | Docs | NYC General Assembly # Occupy Wall Street
Call to Action | Docs | NYC General Assembly # Occupy Wall Street: 'Occupy Wall Street is a people’s movement. It is party-less, leaderless, by the people and for the people.'
'Any statement or declaration not released through the General Assembly and made public online at www.nycga.net should be considered independent of Occupy Wall Street.'
'Any statement or declaration not released through the General Assembly and made public online at www.nycga.net should be considered independent of Occupy Wall Street.'
Thursday, November 10, 2011
Visible Projects, Hidden Destruction - Ralph Reiland - Mises Daily
Visible Projects, Hidden Destruction - Ralph Reiland - Mises Daily: 'In fact, once creating jobs is viewed as the chief purpose of government spending, said Hazlitt, a project with more waste and more inefficiency in its implementation, and less labor productivity, will be viewed as superior to a less wasteful project. The "more wasteful the work, the more costly in manpower," he explained, "the better it becomes for the purpose of providing more employment."
A key fallacy in this thinking, Hazlitt explained, is that it ignores the incomes, the wealth, and the jobs that are "destroyed by the taxes imposed to pay for that spending." What's visible is the new school or new road, but what is unseen are those things that were lost through higher taxation, the unbuilt homes and unbuilt cars that don't exist because of the money that was redistributed away from those who earned it in order to pay for inefficient make-work projects. What is unseen are the unbuilt stores and unbuilt factories, the uninvested funds and the new enterprises that would have been created.'
'Rep. Don Young (R-Alaska), for instance, likes the idea of the rest of us paying $315 million to build a useless and costly bridge in rural Alaska to an island with only 50 residents, an island that's already sufficiently accessible via a seven-minute ferry ride.
Giving a free $2 million yacht to every man, woman, and child on the island would have been $215 million cheaper than the bridge, but Rep. Young was chairman of the House Transportation and Infrastructure Committee, not the owner of a yacht company.'
A key fallacy in this thinking, Hazlitt explained, is that it ignores the incomes, the wealth, and the jobs that are "destroyed by the taxes imposed to pay for that spending." What's visible is the new school or new road, but what is unseen are those things that were lost through higher taxation, the unbuilt homes and unbuilt cars that don't exist because of the money that was redistributed away from those who earned it in order to pay for inefficient make-work projects. What is unseen are the unbuilt stores and unbuilt factories, the uninvested funds and the new enterprises that would have been created.'
'Rep. Don Young (R-Alaska), for instance, likes the idea of the rest of us paying $315 million to build a useless and costly bridge in rural Alaska to an island with only 50 residents, an island that's already sufficiently accessible via a seven-minute ferry ride.
Giving a free $2 million yacht to every man, woman, and child on the island would have been $215 million cheaper than the bridge, but Rep. Young was chairman of the House Transportation and Infrastructure Committee, not the owner of a yacht company.'
When Does a Baby Become a Person? | Doug Bandow | Cato Institute: Commentary
When Does a Baby Become a Person? | Doug Bandow | Cato Institute: Commentary: 'Abortion is not a choice to be made. Rather, it is flight from responsibility for a choice previously made.'
Obama's New War in Uganda | Doug Bandow | Cato Institute: Commentary
Obama's New War in Uganda | Doug Bandow | Cato Institute: Commentary: 'President George H.W. Bush had Panama and Iraq. President Bill Clinton intervened in Somalia, Haiti, Bosnia, and Kosovo. President George W. Bush invaded Afghanistan and Iraq. President Obama adopted Afghanistan as his own, before adding Libya and now Uganda.
These conflicts had surprisingly little to do with American security. Only Afghanistan — the initial phase, targeting al-Qaeda for 9/11 and punishing the Taliban regime for hosting Osama bin Laden — was a defensive action. The first Gulf War responded to aggression, but not against the U.S.
Most of the other interventions were militarized social work, intervening where the U.S. had little or no plausible security interest. Unfortunately, rarely did the humanitarian consequences match the initial expectations.'
These conflicts had surprisingly little to do with American security. Only Afghanistan — the initial phase, targeting al-Qaeda for 9/11 and punishing the Taliban regime for hosting Osama bin Laden — was a defensive action. The first Gulf War responded to aggression, but not against the U.S.
Most of the other interventions were militarized social work, intervening where the U.S. had little or no plausible security interest. Unfortunately, rarely did the humanitarian consequences match the initial expectations.'
Wednesday, November 09, 2011
Let's Prize Climate Skepticism | Swaminathan S. Anklesaria Aiyar | Cato Institute: Commentary
Let's Prize Climate Skepticism | Swaminathan S. Anklesaria Aiyar | Cato Institute: Commentary: 'We keep hearing that 95 percent or 98 percent of scientists believe catastrophic, man-made global warming is proven. Climate skeptics are widely denounced as science deniers. However, as Schechtman showed, 99 percent of scientists can be and have been wrong.
Science proves nothing beyond all doubt. Rather, it progresses by knocking down existing theories in favor of better ones, which in turn are subject to fresh attacks. Skepticism is at the very heart of the scientific method. The scientific approach is at odds not with climate-change skeptics, but with those who claim global warming is completely proven, contestable only by madmen and blackguards paid by oil companies.'
Science proves nothing beyond all doubt. Rather, it progresses by knocking down existing theories in favor of better ones, which in turn are subject to fresh attacks. Skepticism is at the very heart of the scientific method. The scientific approach is at odds not with climate-change skeptics, but with those who claim global warming is completely proven, contestable only by madmen and blackguards paid by oil companies.'
Why Politicians Lose So Much Money Trying to Pick Winners | Jim Powell | Cato Institute: Commentary
Why Politicians Lose So Much Money Trying to Pick Winners | Jim Powell | Cato Institute: Commentary: 'If business is challenging when entrepreneurs make decisions for sound business reasons, it's doomed when politicians become involved, because they make decisions for political reasons. Politicians like to pay off big campaign contributors by steering government contracts their way, regardless of how dubious the campaign contributors might be as business executives.
Politicians want projects they can brag about during an election campaign, whether or not the projects make business sense. Politicians demand that projects be located in their districts or states, even when such locations create problems like higher costs.
And of course, politicians expect that those who receive government funding will help their re-election campaigns. No surprise that many businesses have chief executives best known for their ability to find a place at the public trough, rather than boosting sales in free markets.
Government attempts to pick winners are most likely to increase the amount of money lost betting on losers. This is because with the power to tax, subsidize and mandate, politicians are able to pour money into unprofitable projects that private investors would never touch voluntarily.'
'Precisely because one never knows where innovators might come from, free markets are open to all comers, foreign and domestic. Market economies are more flexible and dynamic than government-run economies.
Unlike taxpayers who are dragooned into paying for political schemes, private investors are volunteers risking their own money or money they worked hard to raise. If they make mistakes, it will be harder for them to raise more. Investors constantly revise their estimates of business performance in light of the latest information. Investors pull capital away from laggards, which can help discipline them if anything will. Investors reward solid performers with more capital, helping them do more good work.'
Politicians want projects they can brag about during an election campaign, whether or not the projects make business sense. Politicians demand that projects be located in their districts or states, even when such locations create problems like higher costs.
And of course, politicians expect that those who receive government funding will help their re-election campaigns. No surprise that many businesses have chief executives best known for their ability to find a place at the public trough, rather than boosting sales in free markets.
Government attempts to pick winners are most likely to increase the amount of money lost betting on losers. This is because with the power to tax, subsidize and mandate, politicians are able to pour money into unprofitable projects that private investors would never touch voluntarily.'
'Precisely because one never knows where innovators might come from, free markets are open to all comers, foreign and domestic. Market economies are more flexible and dynamic than government-run economies.
Unlike taxpayers who are dragooned into paying for political schemes, private investors are volunteers risking their own money or money they worked hard to raise. If they make mistakes, it will be harder for them to raise more. Investors constantly revise their estimates of business performance in light of the latest information. Investors pull capital away from laggards, which can help discipline them if anything will. Investors reward solid performers with more capital, helping them do more good work.'
Tuesday, November 08, 2011
Turn the Problem of North Korea Over to Its Neighbors | Doug Bandow | Cato Institute: Commentary
Turn the Problem of North Korea Over to Its Neighbors | Doug Bandow | Cato Institute: Commentary: 'Even if the Republic of Korea's defense then was worth three years of war, the peninsula matters much less to America today. A North Korean attack would no longer be the assumed harbinger to regional or global aggression. Neither Russia nor China would aid an aggressive Pyongyang. And the ROK is well able to defend itself, in contrast to 1950, when Washington had refused to arm its ally after Seoul threatened to invade the north.
There's no reason for the U.S. to remain entangled on the peninsula through its promise to defend the South backed by the deployment of 27,000 military personnel.'
'However, the U.S. government should provide no aid, food or financial, to Pyongyang. Tragically, millions of North Koreans are hungry, and UN Undersecretary-General Valerie Amos has been lobbying for more international food assistance. But it is impossible to keep politics out of even "humanitarian" aid. Government-to-government assistance boosts the Kim regime, which has turned the entire nation into a deadly prison camp.'
There's no reason for the U.S. to remain entangled on the peninsula through its promise to defend the South backed by the deployment of 27,000 military personnel.'
'However, the U.S. government should provide no aid, food or financial, to Pyongyang. Tragically, millions of North Koreans are hungry, and UN Undersecretary-General Valerie Amos has been lobbying for more international food assistance. But it is impossible to keep politics out of even "humanitarian" aid. Government-to-government assistance boosts the Kim regime, which has turned the entire nation into a deadly prison camp.'
The CLASS Act: This Is Confidence-Inspiring? | Michael F. Cannon | Cato Institute: Commentary
The CLASS Act: This Is Confidence-Inspiring? | Michael F. Cannon | Cato Institute: Commentary: 'Congress required CLASS to set each applicant's premiums according to the average applicant's risk of needing such long-term care, rather than her individual risk. But averaged premiums are only attractive to people with above-average risks. Since few people with below-average risks would enroll, the average premium would rise. That would encourage more people with below-average risks not to enroll, and the vicious cycle would continue until the program collapsed.'
'It is a virtue, say supporters, that Obamacare raises taxes (amid high unemployment, no less) to encourage people to buy something they would not voluntarily purchase with their own money.'
'It is a virtue, say supporters, that Obamacare raises taxes (amid high unemployment, no less) to encourage people to buy something they would not voluntarily purchase with their own money.'
Fed Created a Recipe for Disaster in Housing Market | Mark A. Calabria | Cato Institute: Commentary
Fed Created a Recipe for Disaster in Housing Market | Mark A. Calabria | Cato Institute: Commentary: 'Using the Fed balance sheet to absorb the losses that should have been borne by creditors and shareholders is not conducting monetary policy. It is fiscal policy, on a massive scale.'
Monday, November 07, 2011
Smash Capitalism and You Destroy Civilization - Art Carden - Mises Daily
Smash Capitalism and You Destroy Civilization - Art Carden - Mises Daily: 'Even in its present corrupted and cronyized form, "modern capitalism" — which Deirdre McCloskey defines loosely as "private property and unfettered exchange" — is a goose that lays golden eggs, and not merely for the super rich. If you disagree, ask yourself how many of those claiming to speak for "the 99 percent" have smart phones, which Louis XIV couldn't have bought for all the gold in France. The problems the occupiers blame on "capitalism" were not caused by "private property and unfettered exchange." They were caused by institutionalized interference with "private property and unfettered exchange."'
Friday, November 04, 2011
The State Is the 1 Percent - Llewellyn H. Rockwell Jr. - Mises Daily
The State Is the 1 Percent - Llewellyn H. Rockwell Jr. - Mises Daily: In the end, we end up with about 3 million people who constitute what is commonly called the state. For short, we can just call these people the 1 percent.
The 1 percent do not generate any wealth of their own. Everything they have they get by taking from others under the cover of law. They live at our expense. Without us, the state as an institution would die.
The 1 percent do not generate any wealth of their own. Everything they have they get by taking from others under the cover of law. They live at our expense. Without us, the state as an institution would die.
Libya: Costs Outweigh Benefits | Doug Bandow | Cato Institute: Commentary
Libya: Costs Outweigh Benefits | Doug Bandow | Cato Institute: Commentary: 'Libya gave the lie to the dubious doctrine of Responsibility to Protect. This was no humanitarian operation. Yes, the Qaddafi regime was brutal, but its forces had massacred no civilians before the campaign to "save" the Libyan people. Like other civil wars in Third World countries, this one generated most of its killing through the fighting itself.'
'Western governments thought a few days of bombing would topple Qaddafi. Last week, eight months after the uprising began, Lt. Gen. Ralph Jodice II, commander of NATO's air campaign, conceded that "We're all surprised by the tenacity of the pro-Qaddafi forces." Alliance spokesman Col. Roland Lavoie was even more befuddled: "It just does not make sense to see what these few remaining forces are doing."'
'The North Korean Foreign Ministry opined: "Libya's nuclear dismantlement, much touted by the U.S. in the past, turned out to be a mode of aggression whereby the latter coaxed the former with such sweet words as 'guarantee of security' and 'improvement of relations' to disarm and then swallowed it up by force." The allied agreement was "an invasion tactic to disarm the country." What state, finding itself in Washington's gunsights, is likely to voluntarily disarm?'
'Amnesty International estimates that the NTC is holding more than 2,500 people without charges — detainees who, NTC officials admit, often are beaten in order to extract confessions. Black Africans have been arrested en masse on the assumption that they were Qaddafi supporters. Russia's UN ambassador Vitaly Churkin emerged from a briefing by the head of the UN Support Mission to Libya citing "violations of human rights and international humanitarian law." The NTC may eventually create a liberal democracy, but the outcomes in Kosovo and Iraq suggest otherwise. There are plenty of historical examples when good guys who helped oust dictators ultimately lost to bad guys with guns; Iran and Nicaragua come to mind.'
'Western governments thought a few days of bombing would topple Qaddafi. Last week, eight months after the uprising began, Lt. Gen. Ralph Jodice II, commander of NATO's air campaign, conceded that "We're all surprised by the tenacity of the pro-Qaddafi forces." Alliance spokesman Col. Roland Lavoie was even more befuddled: "It just does not make sense to see what these few remaining forces are doing."'
'The North Korean Foreign Ministry opined: "Libya's nuclear dismantlement, much touted by the U.S. in the past, turned out to be a mode of aggression whereby the latter coaxed the former with such sweet words as 'guarantee of security' and 'improvement of relations' to disarm and then swallowed it up by force." The allied agreement was "an invasion tactic to disarm the country." What state, finding itself in Washington's gunsights, is likely to voluntarily disarm?'
'Amnesty International estimates that the NTC is holding more than 2,500 people without charges — detainees who, NTC officials admit, often are beaten in order to extract confessions. Black Africans have been arrested en masse on the assumption that they were Qaddafi supporters. Russia's UN ambassador Vitaly Churkin emerged from a briefing by the head of the UN Support Mission to Libya citing "violations of human rights and international humanitarian law." The NTC may eventually create a liberal democracy, but the outcomes in Kosovo and Iraq suggest otherwise. There are plenty of historical examples when good guys who helped oust dictators ultimately lost to bad guys with guns; Iran and Nicaragua come to mind.'
In Praise of the Capitalist 1 Percent - George Reisman - Mises Daily
In Praise of the Capitalist 1 Percent - George Reisman - Mises Daily: 'Contrary to such beliefs, in the modern world in which we actually live, the wealth of the capitalists is simply not in the form of consumers' goods to any great extent. Not only is it overwhelmingly in the form of means of production, but those means of production are employed in the production of goods and services that are sold in the market. Totally unlike the conditions of self-sufficient farm families, the physical beneficiaries of the capitalists' means of production are all the members of the general consuming public who buy the capitalists' products.
For example, without owning so much as a single share of stock in General Motors or Exxon Mobil, everyone in a capitalist economy who buys the products of these firms benefits from their means of production'
'irst, the fortunes that are accumulated in this way generally serve in the larger-scale production of the very sort of products that provided the profits out of which their accumulation took place. Thus, for example, Jobs's billions serve largely in the production of Apple's products.'
'the accumulation of great business fortunes generally requires the introduction of a series of improvements in products or methods of production. This is what is required to maintain a high rate of profit in the face of competition. For example, Intel's ability to maintain its high rate of profit over the years has depended on its ability to introduce one substantial improvement in its computer chips after another. The net effect has been that computer users have gotten the benefit of improvement after improvement not only at no rise but a drastic decline in the prices of computer chips.'
'Thus, however ironic it may be, it turns out that virtually all of the problems the Occupy Wall Street protesters complain about are the result of the enactment of policies that they support and in which they fervently believe.'
For example, without owning so much as a single share of stock in General Motors or Exxon Mobil, everyone in a capitalist economy who buys the products of these firms benefits from their means of production'
'irst, the fortunes that are accumulated in this way generally serve in the larger-scale production of the very sort of products that provided the profits out of which their accumulation took place. Thus, for example, Jobs's billions serve largely in the production of Apple's products.'
'the accumulation of great business fortunes generally requires the introduction of a series of improvements in products or methods of production. This is what is required to maintain a high rate of profit in the face of competition. For example, Intel's ability to maintain its high rate of profit over the years has depended on its ability to introduce one substantial improvement in its computer chips after another. The net effect has been that computer users have gotten the benefit of improvement after improvement not only at no rise but a drastic decline in the prices of computer chips.'
'Thus, however ironic it may be, it turns out that virtually all of the problems the Occupy Wall Street protesters complain about are the result of the enactment of policies that they support and in which they fervently believe.'
The Consumption Tax: A Critique - Murray N. Rothbard - Mises Daily
The Consumption Tax: A Critique - Murray N. Rothbard - Mises Daily: 'For what the higher-income person is really objecting to is not the mythical robbery inflicted upon him by "the poor"; his problem is the very real amount being extracted from him by the State. The wealthier man's real complaint, then, is not how badly he is being treated relative to someone else, but how much money is being extracted from his own hard-earned assets. We submit that progressivity of taxes is a red herring; that the real problem and proper focus should be on the amount that any given individual is obliged to surrender to the State.'
' To say, therefore, that only consumption should be taxed and not savings is to challenge the voluntary preferences and choices of individuals on the free market, and to say that they are saving far too little and consuming too much, and therefore that taxes on savings should be removed and all the burdens placed on present as compared to future consumption. But to do that is to challenge free-market expressions of time preference, and to advocate government coercion to forcibly alter the expression of those preferences, so as to coerce a higher saving-to-consumption ratio than desired by free individuals.'
'More specifically, savings and consumption, it is alleged, are not really symmetrical. All saving is directed toward enjoying more consumption in the future. Potential present consumption is foregone in return for an expected increase in future consumption. The argument concludes that therefore any return on investment can only be considered a "double counting" of income, in the same way that a repeated counting of the gross sales of, say, a case of Wheaties from manufacturer to jobber to wholesaler to retailer as part of net income or product would be a multiple counting of the same good.'
'It is therefore incorrect to say that an income tax levies an extra burden on savings and investment; it penalizes an individual's entire standard of living, present and future. An income tax does not penalize saving per se any more than it penalizes consumption.'
'The best scheme of [public] finance is, to spend as little as possible; and the best tax is always the lightest.'
' To say, therefore, that only consumption should be taxed and not savings is to challenge the voluntary preferences and choices of individuals on the free market, and to say that they are saving far too little and consuming too much, and therefore that taxes on savings should be removed and all the burdens placed on present as compared to future consumption. But to do that is to challenge free-market expressions of time preference, and to advocate government coercion to forcibly alter the expression of those preferences, so as to coerce a higher saving-to-consumption ratio than desired by free individuals.'
'More specifically, savings and consumption, it is alleged, are not really symmetrical. All saving is directed toward enjoying more consumption in the future. Potential present consumption is foregone in return for an expected increase in future consumption. The argument concludes that therefore any return on investment can only be considered a "double counting" of income, in the same way that a repeated counting of the gross sales of, say, a case of Wheaties from manufacturer to jobber to wholesaler to retailer as part of net income or product would be a multiple counting of the same good.'
'It is therefore incorrect to say that an income tax levies an extra burden on savings and investment; it penalizes an individual's entire standard of living, present and future. An income tax does not penalize saving per se any more than it penalizes consumption.'
'The best scheme of [public] finance is, to spend as little as possible; and the best tax is always the lightest.'
The Keystone XL Energy Project Is Much More Than a Pipe Dream | Robert L. Bradley Jr. | Cato Institute: Commentary
The Keystone XL Energy Project Is Much More Than a Pipe Dream | Robert L. Bradley Jr. | Cato Institute: Commentary: 'The projections for employment are so low one wonders if the study examined the right pipeline project. But the study changes the game by calculating how many "green" jobs are foregone by the pipeline project to reach its conclusion.'
Why stop there? Why not compute how many jobs would be created if we required the oil to be carried in jugs on the back of porters the whole way? Just think of how much our economy would soar if we outlawed every labor-saving device!
Why stop there? Why not compute how many jobs would be created if we required the oil to be carried in jugs on the back of porters the whole way? Just think of how much our economy would soar if we outlawed every labor-saving device!
Rethinking the Gold Bubble - James E. Miller - Mises Daily
Rethinking the Gold Bubble - James E. Miller - Mises Daily: 'In reality, there is no QE1, QE2, TARP, etc. These are not separate stimulus efforts that actually started and concluded independent of one another. They are all a part of one long fiat injection into our economy that never ended.
The Fed is ALWAYS creating fiat. Some of it is reported, most of it is not. Ask yourself this: Are interest rates still at near zero? If the answer is yes, then the fiat still flows.'
The Fed is ALWAYS creating fiat. Some of it is reported, most of it is not. Ask yourself this: Are interest rates still at near zero? If the answer is yes, then the fiat still flows.'
Thursday, November 03, 2011
Despite Flaws, U.S. Health Care the Best | Michael D. Tanner | Cato Institute: Commentary
Despite Flaws, U.S. Health Care the Best | Michael D. Tanner | Cato Institute: Commentary: 'They come here because they know that despite its flaws, the U.S. health care system still provides the highest quality care in the world. Whether the disease is cancer, pneumonia, heart disease or AIDS, the chances of a patient surviving are far higher in the U.S. than in other countries.
According to a study published in the British medical journal The Lancet, the U.S. is at the top of the charts when it comes to surviving cancer. For example, more than two-thirds of women diagnosed with cancer will survive for at least five years in the U.S. That's 6 percentage points better than the next best country, Sweden.'
According to a study published in the British medical journal The Lancet, the U.S. is at the top of the charts when it comes to surviving cancer. For example, more than two-thirds of women diagnosed with cancer will survive for at least five years in the U.S. That's 6 percentage points better than the next best country, Sweden.'
When Will Your Time Come? | Richard W. Rahn | Cato Institute: Commentary
When Will Your Time Come? | Richard W. Rahn | Cato Institute: Commentary: 'Notice that the president, when arguing that his "jobs" bill is going to increase jobs, quotes the same economists who also said his "stimulus" would keep unemployment under 8 percent, rather than referring to those economists who were correct in saying it would fail.'
And Now for Obama's Ugandan Military Adventure | Gene Healy | Cato Institute: Commentary
And Now for Obama's Ugandan Military Adventure | Gene Healy | Cato Institute: Commentary: 'The Obama team has embraced the U.N. doctrine known as "Responsibility to Protect," which holds that the "international community" has an obligation to protect civilians from crimes against humanity — by force, if necessary — when their own governments cannot or will not.
That doctrine is at odds with the U.S. Constitution, which empowers Congress to set up a military establishment for the singular end of "the common defence ... of the United States."'
That doctrine is at odds with the U.S. Constitution, which empowers Congress to set up a military establishment for the singular end of "the common defence ... of the United States."'
It's Time to Declare Peace in the War against Drugs | Doug Bandow | Cato Institute: Commentary
It's Time to Declare Peace in the War against Drugs | Doug Bandow | Cato Institute: Commentary: 'Banning drugs raises their price, creates enormous profits for criminal entrepreneurs, thrusts even casual users into an illegal marketplace, encourages heavy users to commit property crimes to acquire higher-priced drugs, leaves violence the only means for dealers to resolve disputes, forces government to spend lavishly on enforcement, corrupts public officials and institutions, and undermines a free society. All of these effects are evident today and are reminiscent of Prohibition (of alcohol) in the early 20th Century.'
Wednesday, November 02, 2011
Why Government Spending Is Bad for Our Economy | Jim Powell | Cato Institute: Commentary
Why Government Spending Is Bad for Our Economy | Jim Powell | Cato Institute: Commentary: 'there isn't any net gain from government spending since it's offset by the taxes needed to pay for it, taxes that reduce private sector spending.'
'Our findings indicate that a 10% increase in government expenditures as a percent of GDP results in approximately a 1 percentage point reduction in GDP growth."'
'Our findings indicate that a 10% increase in government expenditures as a percent of GDP results in approximately a 1 percentage point reduction in GDP growth."'
Tuesday, November 01, 2011
Patently Absurd - Copyright Law Can Meet the Needs of Software Developers | Timothy B. Lee | Cato Institute: Commentary
Patently Absurd - Copyright Law Can Meet the Needs of Software Developers | Timothy B. Lee | Cato Institute: Commentary: It takes a systematic campaign of reeducation to persuade those engineers that filling out patent paperwork is a higher priority than improving the company's products.
Friday, October 28, 2011
Ron Paul’s ‘Plan to Restore America’ | Cato @ Liberty
Ron Paul’s ‘Plan to Restore America’ | Cato @ Liberty: 'Republican policymakers – including the current GOP field of presidential candidates – talk a good game about reducing spending, but very few are willing to spell out exactly what they’d cut. As NRO’s Kevin Williamson puts it in the title of his write-up on the plan, “Ron Paul Dropping a Reality Bomb on the GOP Field.”'
Bad for Taxpayers and Whales | Mark A. Calabria | Cato Institute: Commentary
Bad for Taxpayers and Whales | Mark A. Calabria | Cato Institute: Commentary: 'The destruction of Gulf Coast wetlands, which had acted as a buffer from hurricanes, magnified the impact of Hurricane Katrina. We can debate the role of Washington in protecting the environment, but at a minimum we can all agree we should not be actively subsidizing its destruction with tax dollars.
The flood insurance program not only places the environment in harm's way, but does the same to the very people it attempts to benefit. By under-pricing flood risk, the program makes it cheaper to live in a flood plain than it would be otherwise. Unquestionably, that distortion gives families who would not have done so an incentive to live in the path of a potential flood.'
The flood insurance program not only places the environment in harm's way, but does the same to the very people it attempts to benefit. By under-pricing flood risk, the program makes it cheaper to live in a flood plain than it would be otherwise. Unquestionably, that distortion gives families who would not have done so an incentive to live in the path of a potential flood.'
Abolish the Air Marshals | David Rittgers | Cato Institute: Commentary
Abolish the Air Marshals | David Rittgers | Cato Institute: Commentary: 'The air marshals' deterrent effect has largely withered away because of a change in al Qaida tactics. The would-be shoe- and underwear-bombers were merely trying to blow up aircraft, not take control of the cockpit. Both were tackled by the passengers and crew of their target flights, not shot or apprehended by air marshals.'
The Current Wisdom: Imitation, Flattery and More Bad News for Climate Models | Patrick J. Michaels | Cato Institute: Commentary
The Current Wisdom: Imitation, Flattery and More Bad News for Climate Models | Patrick J. Michaels | Cato Institute: Commentary: 'But, no matter how you spin it, or where the analysis appears, this fact remains: over the last three decades, the climate model projections offered up thus far, have been, and continue to be, sizeable overestimates of reality. Give me all the excuses that you want, but if the excuses are indeed real, then obviously they are important drivers of the climate systems and therefore must be considered when offering up future climate projections. Failing to do so, as we have seen, leads to failing forecasts. And until significant improvements are made in the models (improvements that may very well result in a determination of a lower climate sensitivity), I see no compelling reason why we should bank on existing climate model projections for the future state/behavior of the climate.'
Wednesday, October 26, 2011
Poor Choices | James A. Dorn | Cato Institute: Commentary
Poor Choices | James A. Dorn | Cato Institute: Commentary: Poverty is often blamed on high taxes, onerous regulations, barriers to occupational entry and other economic factors. But poverty is also affected by people's choices. For individuals who wait to have children, get married and stay married, obtain more education, and stay out of jail, poverty rates diminish greatly.
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