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In New Zealand, Farmers Don't Want Subsidies | Mark Ross and Chris Edwards | Cato Institute: Commentary: "New Zealand's government decided to eliminate nearly all farm subsidies. That was a dramatic reform because New Zealand farmers had enjoyed high levels of aid and the country's economy is more dependent on agriculture than is the U.S. economy.
[R]ather than passing another big government farm bill that taxpayers can't afford, the U.S. Congress should step back and explore the proven alternative of free market farming.
Despite initial protests, farm subsidies were repealed in 1984. Almost 30 different production subsidies and export incentives were ended. Did that cause a mass exodus from agriculture and an end to family farms? Not at all. It did create a tough transition period for some farmers, but large numbers of them did not walk off their land as had been predicted. Just one percent of the country's farmers could not adjust and were forced out."
"The vast majority of New Zealand farmers proved to be skilled entrepreneurs — they restructured their operations, explored new markets, and returned to profitability. Today, New Zealand's farming sector is more dynamic than ever, and the nation's farmers are proud to be prospering without government hand-outs."
"Measured agricultural productivity had been stagnant in the years prior to the reforms, but since the reforms productivity has grown substantially faster in agriculture than in the New Zealand economy as a whole."
"More efficient agricultural production in New Zealand has also spurred better environmental management. Cutting farm subsidies, for example, has reduced the previous overuse of fertilizer. And cutting subsidies has broadened farm operations to encompass activities such as rural tourism that bring management of the rural environment to the fore."
Wednesday, August 01, 2012
Romney's Chance to Embrace Outsourcing | Michael D. Tanner | Cato Institute: Commentary
Romney's Chance to Embrace Outsourcing | Michael D. Tanner | Cato Institute: Commentary: "Contrary to the president’s complaints, outsourcing is generally good for America.
As Friedman pointed out, economic policy is not about preserving every single job that currently exists at any cost. Rather, it should be about creating general prosperity. The United States once had a thriving buggy-whip industry. Would we be better off if we had blocked development of the automobile in order to preserve those jobs?
[E]conomic policy is not about preserving every single job that currently exists at any cost.
That’s not so farfetched. After all, President Obama has already blamed ATMs and self-service gas stations for unemployment.
Outsourcing is based on an unpleasant truth: Certain types of operations, such as call centers, for example, or unskilled product assembly, are simply too costly for companies to do in the United States. By having those jobs performed overseas, companies are able to preserve their resources for the things those companies do best, their “core competencies.”"
"Additionally, having some jobs done overseas makes it easier for U.S. companies to serve foreign markets, by shortening shipping distances, avoiding foreign trade barriers, and creating an on-the-ground presence in emerging markets. If Ford is going to sell cars in China, it makes sense for them to build those cars in China rather than build them here and ship them across the Pacific. Far more outsourcing occurs because of the need to serve foreign markets than because of a search for cheaper labor. In fact, studies suggest that more than 90 percent of outsourcing jobs involves foreign-market considerations rather than labor costs.
All of this makes U.S. companies that outsource more competitive in a world market, allowing them to hire more workers here at home. And generally the jobs created here are better paying than those unskilled jobs that have been forgone. Reduced production costs also mean lower prices for Americans, especially on basic goods such as clothing. One would think that a president who was concerned about the plight of the poor would favor policies that helped low-income Americans to stretch their dollars. And, finally, lower production costs increase profits and stock prices. And who benefits when stock values go up? Everyone who owns stocks, including all Americans with a 401(k), as well as institutional investors such as universities and charities."
As Friedman pointed out, economic policy is not about preserving every single job that currently exists at any cost. Rather, it should be about creating general prosperity. The United States once had a thriving buggy-whip industry. Would we be better off if we had blocked development of the automobile in order to preserve those jobs?
[E]conomic policy is not about preserving every single job that currently exists at any cost.
That’s not so farfetched. After all, President Obama has already blamed ATMs and self-service gas stations for unemployment.
Outsourcing is based on an unpleasant truth: Certain types of operations, such as call centers, for example, or unskilled product assembly, are simply too costly for companies to do in the United States. By having those jobs performed overseas, companies are able to preserve their resources for the things those companies do best, their “core competencies.”"
"Additionally, having some jobs done overseas makes it easier for U.S. companies to serve foreign markets, by shortening shipping distances, avoiding foreign trade barriers, and creating an on-the-ground presence in emerging markets. If Ford is going to sell cars in China, it makes sense for them to build those cars in China rather than build them here and ship them across the Pacific. Far more outsourcing occurs because of the need to serve foreign markets than because of a search for cheaper labor. In fact, studies suggest that more than 90 percent of outsourcing jobs involves foreign-market considerations rather than labor costs.
All of this makes U.S. companies that outsource more competitive in a world market, allowing them to hire more workers here at home. And generally the jobs created here are better paying than those unskilled jobs that have been forgone. Reduced production costs also mean lower prices for Americans, especially on basic goods such as clothing. One would think that a president who was concerned about the plight of the poor would favor policies that helped low-income Americans to stretch their dollars. And, finally, lower production costs increase profits and stock prices. And who benefits when stock values go up? Everyone who owns stocks, including all Americans with a 401(k), as well as institutional investors such as universities and charities."
A New Military Draft Would Revive a Very Bad Old Idea | Doug Bandow | Cato Institute: Commentary
A New Military Draft Would Revive a Very Bad Old Idea | Doug Bandow | Cato Institute: Commentary: "Even when the army was reducing its requirements during the worst of the Iraq years, its quality standards remained well above those of conscript forces. "
"The end of the draft also has dramatically improved commitment and morale in the armed forces."
"The end of the draft also has dramatically improved commitment and morale in the armed forces."
The Right to National Bankruptcy - Andrew Foy, MD - Mises Daily
The Right to National Bankruptcy - Andrew Foy, MD - Mises Daily: "Many who push the idea that healthcare is a right strive to eliminate all personal economic considerations that ultimately affect how an individual would balance health risks against other needs. They believe one should not have to balance such things. They strive to eliminate the distinction between health emergencies, which are insurable events, and health maintenance, which cannot be properly insured against. They incorrectly believe that all healthcare decisions are a matter of life and death. This is a tremendous boon to the medical-industrial complex."
"cost sharing consistently reduced spending because patients actually sought less treatment. Those who had free care spent an average of 50 percent more per person per year than those with the highest level of cost sharing. However, despite differences in treatment, cost sharing had no adverse health effects. There were no significant differences between those with free care and those with cost sharing on any major health outcomes"
"with few exceptions, paying for health maintenance upstream simply increases costs upstream without significantly impacting health downstream. This is true whether we are talking about primary or secondary prevention measures."
"one of the main reasons America enjoys the highest healthcare costs per capita and the most excessive healthcare-cost growth is because we have the most generous healthcare entitlement in the world: Medicare."
"cost sharing consistently reduced spending because patients actually sought less treatment. Those who had free care spent an average of 50 percent more per person per year than those with the highest level of cost sharing. However, despite differences in treatment, cost sharing had no adverse health effects. There were no significant differences between those with free care and those with cost sharing on any major health outcomes"
"with few exceptions, paying for health maintenance upstream simply increases costs upstream without significantly impacting health downstream. This is true whether we are talking about primary or secondary prevention measures."
"one of the main reasons America enjoys the highest healthcare costs per capita and the most excessive healthcare-cost growth is because we have the most generous healthcare entitlement in the world: Medicare."
Obama Plans to Fund Government for Eight Days | Richard W. Rahn | Cato Institute: Commentary
Obama Plans to Fund Government for Eight Days | Richard W. Rahn | Cato Institute: Commentary: "President Obama has called for a tax increase on job creators, which will only fund the government for eight days, while I have an economic growth program that will fund the government for eight years and beyond."
"The bumper sticker
Reagan tax rates + Clinton spending policies = high growth and full employment!"
"The bumper sticker
Reagan tax rates + Clinton spending policies = high growth and full employment!"
Let Them Eat Hope | Gene Healy | Cato Institute: Commentary
Let Them Eat Hope | Gene Healy | Cato Institute: Commentary: "Contemplating the policy wreckage that surrounds him, the president has concluded that what this country needs is a fresh injection of presidential hope."
"On the campaign trail last time around, Obama pledged, among other things, to provide "a cure for cancer in our time," to deliver "a complete transformation of the economy," "end the age of oil in our time," and, perhaps most quixotically, to "fundamentally change the way Washington works." "
"On the campaign trail last time around, Obama pledged, among other things, to provide "a cure for cancer in our time," to deliver "a complete transformation of the economy," "end the age of oil in our time," and, perhaps most quixotically, to "fundamentally change the way Washington works." "
Timber Payments Subisidize Counties at Taxpayers' Expense | Randal O'Toole | Cato Institute: Commentary
Timber Payments Subisidize Counties at Taxpayers' Expense | Randal O'Toole | Cato Institute: Commentary: "taxpayers in these counties (of which I am one) have been getting a free ride for decades. While federal lands impose little cost on counties, the payments out of timber receipts have been many times greater than the federal government would have paid if it had paid ordinary property taxes."
"these counties have some of the lowest property tax rates in the state. While the average Oregon property owner pays more than $2.80 per $1,000 in assessed value to the county, property owners in Curry and Josephine counties pay only 60 cents"
"Raising property taxes to somewhere around the statewide average would solve the problems in all of these counties except Lake and Lane. But Oregon law prevents counties from raising taxes without voter approval, and county commissioners suspect that few voters will be willing to double or quadruple their county tax burden."
"these counties have some of the lowest property tax rates in the state. While the average Oregon property owner pays more than $2.80 per $1,000 in assessed value to the county, property owners in Curry and Josephine counties pay only 60 cents"
"Raising property taxes to somewhere around the statewide average would solve the problems in all of these counties except Lake and Lane. But Oregon law prevents counties from raising taxes without voter approval, and county commissioners suspect that few voters will be willing to double or quadruple their county tax burden."
NYC Council Speaker Christine Quinn asks NYU to evict Chick-fil-A | Fox News
NYC Council Speaker Christine Quinn asks NYU to evict Chick-fil-A | Fox News: "A powerful New York politician claims she was just speaking as a private citizen when she tried to run Chick-fil-A out of town, but she used her official letterhead and even invoked her position as City Council speaker to apply pressure on the embattled chicken chain.
New York City Council Speaker Christine Quinn, who has mayoral aspirations, sent a letter to New York University president John Sexton on Saturday asking the school to immediately end their contract with the fast food restaurant. The Atlanta-based company's sole New York City outlet is in the school's food court.
"I write as the Speaker of the NYC Council, and on behalf of my family. "
New York City Council Speaker Christine Quinn, who has mayoral aspirations, sent a letter to New York University president John Sexton on Saturday asking the school to immediately end their contract with the fast food restaurant. The Atlanta-based company's sole New York City outlet is in the school's food court.
"I write as the Speaker of the NYC Council, and on behalf of my family. "
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