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Obama's Phony Federalism | Gene Healy | Cato Institute: Commentary: "Just a few years back, the Republicans — nominally the party of federalism — were busily wielding federal power to enforce red state values — prosecuting medical marijuana patients, punishing doctors participating in Oregon's 'Death with Dignity' initiative, and trying to overturn Florida court decisions that allowed Terry Schiavo to be removed from life support. In that odd political climate, you often heard liberals lamenting the decline of states' rights.
That strange new respect for the 10th Amendment lasted roughly as long as the blue team's exile from power.
Education Secretary Arne Duncan said recently that 'if we accomplish one thing in the coming years, it should be to eliminate the extreme variation in standards across America.' Diversity is bad, uniformity double-plus good; get with the program, comrade.
But one of federalism's core virtues is the enormous diversity it allows. Decentralization makes it easier for Americans to escape unwelcome state experiments with fiscal and social policy.
It enhances the political power of individual citizens by allowing important decisions of governance to be settled closest to where Americans live and work. And it avoids making politics a centralized war of all against all, where each contested issue is settled in a one-size-fits-all fashion at the level furthest from the people."
Thursday, December 03, 2009
The 'Stimulus' for Unemployment | Alan Reynolds | Cato Institute: Commentary
The 'Stimulus' for Unemployment | Alan Reynolds | Cato Institute: Commentary: "As Larry Summers, the president's top assistant for economic policy, noted in July, 'the unemployment rate over the recession has risen about 1 to 1.5 percentage points more than would normally be attributable to the contraction in GDP.' And the rate has moved nearly a percentage point higher since then, even though GDP increased. Countries with much deeper declines in GDP, such as Germany and Sweden, have unemployment rates far below ours.
Summers knows why the US rate is so high. He explained it well in a 1995 paper co-authored with James Poterba of MIT: 'Unemployment insurance lengthens unemployment spells.'
That is: When the government pays people 50 to 60 percent of their previous wage to stay home for a year or more, many of them do just that."
"Incidentally, the 'mercy' of longer benefits does no long-term favors: The literature is quite clear that a prolonged period on unemployment tends to depress income for years after you finally go back to work"
"Last August, Krueger and Andreus Miller of Princeton also found that 'job search increases sharply [from 20 minutes a week to 70] in the weeks prior to benefit exhaustion.'
Similarly, Meyer found 'the probability of leaving unemployment rises dramatically just prior to when benefits lapse.' In other words: If you extend benefits to 79 weeks, many people won't find an acceptable job offer until the 76th or 78th week."
"Katz also found that extended benefits, by making it easier for workers to wait and see whether they get their old jobs back, also makes it easier for employers to delay recalling laid-off workers. Just before unemployment benefits run out, Katz found 'large positive jumps in both the recall rate and new job finding rate.'"
Summers knows why the US rate is so high. He explained it well in a 1995 paper co-authored with James Poterba of MIT: 'Unemployment insurance lengthens unemployment spells.'
That is: When the government pays people 50 to 60 percent of their previous wage to stay home for a year or more, many of them do just that."
"Incidentally, the 'mercy' of longer benefits does no long-term favors: The literature is quite clear that a prolonged period on unemployment tends to depress income for years after you finally go back to work"
"Last August, Krueger and Andreus Miller of Princeton also found that 'job search increases sharply [from 20 minutes a week to 70] in the weeks prior to benefit exhaustion.'
Similarly, Meyer found 'the probability of leaving unemployment rises dramatically just prior to when benefits lapse.' In other words: If you extend benefits to 79 weeks, many people won't find an acceptable job offer until the 76th or 78th week."
"Katz also found that extended benefits, by making it easier for workers to wait and see whether they get their old jobs back, also makes it easier for employers to delay recalling laid-off workers. Just before unemployment benefits run out, Katz found 'large positive jumps in both the recall rate and new job finding rate.'"
Warning Label for Pelosicare | Michael F. Cannon | Cato Institute: Commentary
Warning Label for Pelosicare | Michael F. Cannon | Cato Institute: Commentary: "Millions who are satisfied with their current, low-cost health plans would have to switch to more expensive plans, solely because Congress decided they weren't buying enough coverage.
The legislation would increase premiums even further over time, as drug companies, chiropractors, acupuncturists, fertility specialists and other special interests lobby Congress to force you to purchase coverage for their services too."
"Medicare — by far the largest purchaser of medical services in the world — actually penalizes doctors and hospitals that reduce medical errors. The House bill would cement those deficiencies in place with yet another massive government program, and create new quality problems, like insurers skimping on care and customer service for the sickest patients."
"The bill purports to cut Medicare spending, but those cuts are not likely to happen. Want proof? At the same time House Democrats promise future spending cuts, they are gutting $210 billion of spending cuts promised by past Congresses.
And like most government health care programs, this bill's actual costs will exceed current projections. In 1967, Congress predicted that Medicare would cost $12 billion in 1990. Medicare's actual cost that year was $110 billion. Oops."
The legislation would increase premiums even further over time, as drug companies, chiropractors, acupuncturists, fertility specialists and other special interests lobby Congress to force you to purchase coverage for their services too."
"Medicare — by far the largest purchaser of medical services in the world — actually penalizes doctors and hospitals that reduce medical errors. The House bill would cement those deficiencies in place with yet another massive government program, and create new quality problems, like insurers skimping on care and customer service for the sickest patients."
"The bill purports to cut Medicare spending, but those cuts are not likely to happen. Want proof? At the same time House Democrats promise future spending cuts, they are gutting $210 billion of spending cuts promised by past Congresses.
And like most government health care programs, this bill's actual costs will exceed current projections. In 1967, Congress predicted that Medicare would cost $12 billion in 1990. Medicare's actual cost that year was $110 billion. Oops."
Copenhagen Climate Conference to Create 'Huge' Carbon Footprint - United Nations - FOXNews.com
Copenhagen Climate Conference to Create 'Huge' Carbon Footprint - United Nations - FOXNews.com: "The U.N. estimates the 12-day conference will create 40,584 tons of carbon dioxide equivalents, roughly the same amount as the carbon emissions of Morocco in 2006."
With the internet and teleconferencing, why can't this be done better?
With the internet and teleconferencing, why can't this be done better?
Official Gmail Blog: Spread some holiday cheer, one card at a time
Official Gmail Blog: Spread some holiday cheer, one card at a time: "This holiday season, as a token of our appreciation to our most enthusiastic fans, we'll snail-mail a free holiday postcard on your behalf."
Of the 6 card designs, only one is religious, and it is for Hanukkah. While they certainly have the right to do that, and it is very nice of them to provide this service, it does seem weird to not have at least one Christmas card.
Of the 6 card designs, only one is religious, and it is for Hanukkah. While they certainly have the right to do that, and it is very nice of them to provide this service, it does seem weird to not have at least one Christmas card.
Campaign For Liberty — An Answer to Bernanke | by Ron Paul
Campaign For Liberty — An Answer to Bernanke | by Ron Paul: "Today's dollar is now worth four cents compared to the dollar entrusted to the Federal Reserve in 1913.
Ninety-six years should have been plenty of time for the Fed to come up with a plan for preventing economic crises."
"The Fed has clearly failed on its mandate to maintain full employment and price stability. It's time to find out what's going on. Instead of assuming responsibility for the Fed's role in the crisis, Bernanke brags about 'arresting' the crisis. I would suggest to Mr. Bernanke that it's too early to brag.
Bernanke decries any effort to gain transparency of the Fed's actions to find out just who gets bailed out and who is left to fail. Instead, he proposes giving even more power to the Fed to regulate the entire financial system. What he does not recognize, or does not want to admit, is that he is talking about symptoms and ignoring the source of the crisis -- the Federal Reserve itself. "
Ninety-six years should have been plenty of time for the Fed to come up with a plan for preventing economic crises."
"The Fed has clearly failed on its mandate to maintain full employment and price stability. It's time to find out what's going on. Instead of assuming responsibility for the Fed's role in the crisis, Bernanke brags about 'arresting' the crisis. I would suggest to Mr. Bernanke that it's too early to brag.
Bernanke decries any effort to gain transparency of the Fed's actions to find out just who gets bailed out and who is left to fail. Instead, he proposes giving even more power to the Fed to regulate the entire financial system. What he does not recognize, or does not want to admit, is that he is talking about symptoms and ignoring the source of the crisis -- the Federal Reserve itself. "
Wednesday, December 02, 2009
A Fed Takeover by Any Other Name... | Michael D. Tanner | Cato Institute: Commentary
A Fed Takeover by Any Other Name... | Michael D. Tanner | Cato Institute: Commentary: "resident Obama has gone to great pains to deny that his proposed health-care reform is a government takeover of the health-care system.
'Nothing could be further from the truth,' he has said.
Yet it's hard to see the 1,994-page bill that the House passed last night as anything else. After all, the bill uses the command 'shall' -- as in 'you shall do this,' 'businesses shall do that' and 'government shall do some other thing' -- 3,345 times.
Not a great deal of choice or options there.
To make sure that we obey these 'shalls,' the bill would create 111 government agencies, boards, commissions and other bureaucracies -- all overseen by a new health-care czar bearing the Orwellian title 'commissioner of health choices.'"
"That means every time a doctor decides on a treatment, he or she would have to ask: 'Does the government think I'm doing this too much? Will I be penalized if I order this test?'
The government would also undertake comparative- and cost-effectiveness research and use the results to impose practice guidelines on providers."
"Given that the government has mismanaged everything from "cash for clunkers" to the swine-flu vaccine (not to mention the Iraq war and the response to Hurricane Katrina), how much of our health-care system do we really want it to control?"
'Nothing could be further from the truth,' he has said.
Yet it's hard to see the 1,994-page bill that the House passed last night as anything else. After all, the bill uses the command 'shall' -- as in 'you shall do this,' 'businesses shall do that' and 'government shall do some other thing' -- 3,345 times.
Not a great deal of choice or options there.
To make sure that we obey these 'shalls,' the bill would create 111 government agencies, boards, commissions and other bureaucracies -- all overseen by a new health-care czar bearing the Orwellian title 'commissioner of health choices.'"
"That means every time a doctor decides on a treatment, he or she would have to ask: 'Does the government think I'm doing this too much? Will I be penalized if I order this test?'
The government would also undertake comparative- and cost-effectiveness research and use the results to impose practice guidelines on providers."
"Given that the government has mismanaged everything from "cash for clunkers" to the swine-flu vaccine (not to mention the Iraq war and the response to Hurricane Katrina), how much of our health-care system do we really want it to control?"
Should We Believe the GDP? - Doug French - Mises Institute
Should We Believe the GDP? - Doug French - Mises Institute: "Murray Rothbard always made the point in his class lectures that GDP figures were suspect because government outputs are included. Of course, government doesn't produce anything that consumers will pay for willingly, thus it must take from the productive economy to provide these services. So there is at least double counting of the outputs."
Currency That Kills | Richard W. Rahn | Cato Institute: Commentary
Currency That Kills | Richard W. Rahn | Cato Institute: Commentary: "It has been well-known for decades that paper currency is a major source of disease transmission. During the life of the average dollar bill, it will be handled by hundreds, if not thousands, of people. It is hard to think of any physical object that is handled by more different people than paper currency."
Krugman's Magic Solution to Budgetary Woes - Robert P. Murphy - Mises Institute
Krugman's Magic Solution to Budgetary Woes - Robert P. Murphy - Mises Institute: "The real problem with my household finances wasn't that we were underearning or overspending. No, the real problem was that our superstitious bank decided to peg its unit of account rigidly to the dollar at 1:1."
"I informed [the managers of my local bank] — in case the boobs didn't already know — that Dr. Krugman not only teaches at Princeton, but is a Nobel (Memorial) laureate, for goodness' sake. Taking his advice, I henceforth want to devalue my checking account, so that when I write a check for 500 units, the bank only transfers $250 to the person whose goods I am purchasing."
" Immediately, my household's budget crisis is solved, for I now have double the effective reserves as I previously did. Making my mortgage payment is no longer a struggle!
But this isn't just about me. With my depreciated bank currency, I can spend more freely on local merchants, thus boosting business in my community. Before removing the absurd 1:1 dollar peg, my wife and I would have had to sharply curtail our consumption. This is no longer a concern, thanks to the magic of modern monetary analysis."
"I informed [the managers of my local bank] — in case the boobs didn't already know — that Dr. Krugman not only teaches at Princeton, but is a Nobel (Memorial) laureate, for goodness' sake. Taking his advice, I henceforth want to devalue my checking account, so that when I write a check for 500 units, the bank only transfers $250 to the person whose goods I am purchasing."
" Immediately, my household's budget crisis is solved, for I now have double the effective reserves as I previously did. Making my mortgage payment is no longer a struggle!
But this isn't just about me. With my depreciated bank currency, I can spend more freely on local merchants, thus boosting business in my community. Before removing the absurd 1:1 dollar peg, my wife and I would have had to sharply curtail our consumption. This is no longer a concern, thanks to the magic of modern monetary analysis."
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