WSJ.com - Opinion: Cap and Trade War
So in addition to all the other economic harm, a cap-and-trade tax will make foreign companies more competitive while eroding market share for
Tuesday, March 31, 2009
WSJ.com - Cap and Trade War
Friday, March 27, 2009
WSJ.com - National Health Preview
In Massachusetts's latest crisis, Governor Deval Patrick and his Democratic colleagues are starting to move down the path that government health plans always follow when spending collides with reality -- i.e., price controls. As costs continue to rise, the inevitable results are coverage restrictions and waiting periods. It was only a matter of time.
They're trying to manage the huge costs of the subsidized middle-class insurance program that is gradually swallowing the state budget.
Which brings us to Washington, where Mr. Obama and Congressional Democrats are about to try their own Bay State bait and switch: First create vast new entitlements that can never be repealed, then later take the less popular step of rationing care when it's their last hope to save the federal fisc.
The consequences of that deception will be far worse than those in Massachusetts, however, given that prior to 2006 the state already had a far smaller percentage of its population uninsured than the national average. The real lesson of Massachusetts is that reform proponents won't tell Americans the truth about what "universal" coverage really means: Runaway costs followed by price controls and bureaucratic rationing.
Thursday, March 26, 2009
WSJ.com - Europe Syndrome
Note: This article is longer than most (and so is my excerpt), but I highly recommend a thoughtful read of the several points made by the author.
Do we want the United States to be like Europe?
First, I will argue that the European model is fundamentally flawed because, despite its material successes, it is not suited to the way that human beings flourish--it does not conduce to Aristotelian happiness.
To become a source of deep satisfaction, a human activity has to meet some stringent requirements. It has to have been important (we don't get deep satisfaction from trivial things). You have to have put a lot of effort into it (hence the cliché "nothing worth having comes easily"). And you have to have been responsible for the consequences.
There aren't many activities in life that can satisfy those three requirements... If we ask what are the institutions through which human beings achieve deep satisfactions in life, the answer is that there are just four: family, community, vocation and faith...
It is not necessary for any individual to make use of all four institutions, nor do I array them in a hierarchy. I merely assert that these four are all there are. The stuff of life--the elemental events surrounding birth, death, raising children, fulfilling one's personal potential, dealing with adversity, intimate relationships--coping with life as it exists around us in all its richness--occurs within those four institutions.
Seen in this light, the goal of social policy is to ensure that those institutions are robust and vital. And that's what's wrong with the European model. It doesn't do that. It enfeebles every single one of them.
The 20th century was a very strange century, riddled from beginning to end with toxic political movements and nutty ideas. For some years a metaphor has been stuck in my mind: the twentieth century was the adolescence of Homo sapiens. Nineteenth-century science, from Darwin to Freud, offered a series of body blows to ways of thinking about human beings and human lives that had prevailed since the dawn of civilization. Humans, just like adolescents, were deprived of some of the comforting simplicities of childhood and exposed to more complex knowledge about the world. And 20th-century intellectuals reacted precisely the way that adolescents react when they think they have discovered Mom and Dad are hopelessly out of date. They think that the grown-ups are wrong about everything. In the case of 20th-century intellectuals, it was as if they thought that if Darwin was right about evolution, then Aquinas is no longer worth reading; that if Freud was right about the unconscious mind, the "Nicomachean Ethics" had nothing to teach us.
The nice thing about adolescence is that it is temporary, and, when it passes, people discover that their parents were smarter than they thought. I think that may be happening with the advent of the new century, as postmodernist answers to solemn questions about human existence start to wear thin--we're growing out of adolescence. The kinds of scientific advances in understanding human nature are going to accelerate that process. All of us who deal in social policy will be thinking less like adolescents, entranced with the most titillating new idea, and thinking more like grown-ups.
American exceptionalism is not just something that Americans claim for themselves. Historically, Americans have been different as a people, even peculiar, and everyone around the world has recognized it. I'm thinking of qualities such as American optimism even when there doesn't seem to be any good reason for it. That's quite uncommon among the peoples of the world. There is the striking lack of class envy in America--by and large, Americans celebrate others' success instead of resenting it. That's just about unique, certainly compared to European countries, and something that drives European intellectuals crazy. And then there is perhaps the most important symptom of all, the signature of American exceptionalism--the assumption by most Americans that they are in control of their own destinies. It is hard to think of a more inspiriting quality for a population to possess, and the American population still possesses it to an astonishing degree. No other country comes close.
The exceptionalism has not been a figment of anyone's imagination, and it has been wonderful. But it isn't something in the water that has made us that way. It comes from the cultural capital generated by the system that the Founders laid down, a system that says people must be free to live life as they see fit and to be responsible for the consequences of their actions; that it is not the government's job to protect people from themselves; that it is not the government's job to stage-manage how people interact with each other. Discard the system that created the cultural capital, and the qualities we love about Americans can go away. In some circles, they are going away.
...The drift toward the European model can be slowed by piecemeal victories on specific items of legislation, but only slowed. It is going to be stopped only when we are all talking again about why America is exceptional, and why it is so important that America remain exceptional. That requires once again seeing the American project for what it is: a different way for people to live together, unique among the nations of the earth, and immeasurably precious.
Tuesday, March 17, 2009
WSJ.com - Immigrants Can Help Fix the Housing Bubble
The Obama administration should seriously consider granting resident status to foreigners who buy surplus houses in this country. This makes more sense than the president's $275 billion housing bailout plan, which Americans greeted with a Bronx cheer.
America's relatively open immigration policy makes this country better off than many other developed lands whose governments also must fund the pensions and health care for growing numbers of retirees. Yet there's still a huge need for more productive and skilled people, both current residents and immigrants, who will produce enough goods and services to provide for their own needs and for those in retirement. Otherwise, entitlement spending eventually will touch off intergenerational warfare.
Granting permanent resident status to foreigners who buy houses in this country will curtail a primary driver of the deepening recession and financial crises -- excess house inventories and the resulting collapse of prices. Since the people who will buy these houses will tend to have money, education, skills and entrepreneurial talents, they will be substantial assets to America in both the short and long runs.
Monday, March 16, 2009
WSJ.com - Life Stories: Children Find Meaning in Old Family Tales
As parents cut budgets, many are finding family stories have surprising power to help children through hard times. Storytelling experts say the phenomenon reflects a growing national interest in telling tales, evidenced by a rise in storytelling events and festivals. New research bears out the value of family stories, linking teens' knowledge of them to better behavior and mental health.
An Emory University study of 65 families with children ages 14 to 16 found kids' ability to retell parents' stories was linked to a lower rate of depression and anxiety and less acting-out of frustration or anger, says Robyn Fivush, a psychology professor. Knowing family stories "helps children put their own experience in perspective,"
Friday, March 13, 2009
WSJ.com - Islam Should Prove It's a Religion of Peace
Many Muslims seem to believe that it is acceptable to teach hatred and violence in the name of their religion -- while at the same time expecting the world to respect Islam as a religion of peace, love and harmony.
Scholars in the most prestigious Islamic institutes and universities continue to teach things like Jews are "pigs and monkeys," that women and men must be stoned to death for adultery, or that Muslims must fight the world to spread their religion. Isn't, then, Mr. Wilders's criticism appropriate? Instead of blaming him, we must blame the leading Islamic scholars for having failed to produce an authoritative book on Islamic jurisprudence that is accepted in the Islamic world and unambiguously rejects these violent teachings.
While many religious texts preach violence, the interpretation, modern usage and implementation of these teachings make all the difference.
Wednesday, March 11, 2009
WSJ.com -Soccer Is Ruining America
I’m not sure I agree much with this article, but I found it very enjoyable to read!
WSJ.com - Opinion: Soccer Is Ruining America
Soccer is running
What other game, to put it bluntly, is so boring to watch? (Bowling and golf come to mind, but the sound of crashing pins and the sight of the well-attired strolling on perfectly kept greens are at least inherently pleasurable activities.) The linear, two-dimensional action of soccer is like the rocking of a boat but without any storm and while the boat has not even left the dock. Think of two posses pursuing their prey in opposite directions without any bullets in their guns. Soccer is the fluoridation of the American sporting scene.
For those who think I jest, let me put forth four points, which is more points than most fans will see in a week of games—and more points than most soccer players have scored since their pee-wee days.
WSJ.com -When Congress Spends, Worse Is Better
Politicians and citizens understand earmarks in different ways. Politicians understand that not all earmarks are pork, and not all pork comes in the form of an earmark. They also appreciate the ease of inserting pet projects into large spending bills without any debate or scrutiny.
The public understands that this way of handling taxpayer dollars is corrupting even when it doesn't lead to a federal indictment. In fact, since the Jack Abramoff scandals and the now-notorious "bridge to nowhere," earmark has become a dirty word. So when citizens see these earmarks exposed in the press and lampooned on late-night TV, they assume it makes it more difficult for our congresspersons to pass them.
What the public does not understand is that the more earmarks there are in a bill, the harder it will be to vote against it. The reason is simple: With every earmark, a congressman or senator gains a personal stake in the passage of a bill he or she might otherwise oppose.
Tuesday, March 10, 2009
WSJ.com - Who Pays for Cap and Trade?
Cap and trade is the tax that dare not speak its name, and Democrats are hoping in particular that no one notices who would pay for their climate ambitions. With President Obama depending on vast new carbon revenues in his budget and Congress promising a bill by May, perhaps Americans would like to know the deeply unequal ways that climate costs would be distributed across regions and income groups.
Politicians love cap and trade because they can claim to be taxing "polluters," not workers. Hardly. Once the government creates a scarce new commodity -- in this case the right to emit carbon -- and then mandates that businesses buy it, the costs would inevitably be passed on to all consumers in the form of higher prices. Stating the obvious, Peter Orszag -- now Mr. Obama's budget director -- told Congress last year that "Those price increases are essential to the success of a cap-and-trade program."
Hit hardest would be the "95% of working families" Mr. Obama keeps mentioning, usually omitting that his no-new-taxes pledge comes with the caveat "unless you use energy." Putting a price on carbon is regressive by definition because poor and middle-income households spend more of their paychecks on things like gas to drive to work, groceries or home heating.
Monday, March 9, 2009
WSJ.com - Health 'Reformers' Ignore Facts
If members of Congress slow down long enough to read the detailed reports of their own Congressional Budget Office (CBO) -- or even its director's recent Senate testimony -- they will understand that many of the slogans they use to justify government intervention are false.
Health care certainly plays a major role in the U.S. economy, and by almost any objective account a highly positive role. It employs 13 million Americans and accounts for one out of 10 jobs. But the assertion that the costs of providing health insurance cripples American corporations in the global economy is simply wrong.
CBO director Douglas W. Elmendorf explained this last week to the Senate Committee on Finance... The point is that for employers, health care is merely a part of total compensation: It reduces cash compensation for employees but it does not increase costs of employment.
A recent CBO report ("Key Issues in Analyzing Major Health Insurance Proposals, " December 2008) is clear on one issue: Working to achieve universal coverage through expanding government's role in health care will increase total costs and therefore either increase premiums or taxes, not reduce them.
WSJ.com - Packing Heat: The Firepower of the Lowly Caulk Gun
Cutting-Edge Energy Technologies Such as Solar Panels Don't Deliver as Much Bang as Plugging Leaky Homes
Marketers, politicians and consumers like to imagine a world of solar panels, wind turbines and cars fueled by wood chips. But none of that gadgetry packs the here-and-now punch of a decades-old option: plugging leaky homes with a caulk gun.
In the drive to curb the growth in fossil-fuel use and greenhouse-gas emissions, "it's the leaky holes that matter..."
By 2030, improving the energy efficiency of buildings could limit greenhouse-gas emissions more than ramping up either wind or solar power... And that energy-efficiency push would save more money than it costs while the renewable-energy alternatives would cost more than they save.
Wednesday, March 4, 2009
WSJ.com - The Obama Economy
...it's also true that the economy has fallen far enough, and long enough, that much of the excess that led to recession is being worked off. Already 15 months old, the current recession will soon match the average length -- and average job loss -- of the last three postwar downturns. What goes down will come up -- unless destructive policies interfere with the sources of potential recovery.
[Monday] the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997.
So what has happened in the last two months? The economy has received no great new outside shock. Exchange rates and other prices have been stable, and there are no security crises of note. The reality of a sharp recession has been known and built into stock prices since last year's fourth quarter.
What is new is the unveiling of Mr. Obama's agenda and his approach to governance. Every new President has a finite stock of capital -- financial and political -- to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his "stimulus" spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest.
Monday, March 2, 2009
WSJ.com - Oops! I'll Do It Again. And Again. And Again...
We do children no favors by teaching them that they have a right to a favorable outcome in all that they do. It used to be the case that education was thought of not just as the acquisition of knowledge -- still less as the acquisition of credentials -- but as a form of character building. And one of the ways to build character is to submit students to the same sorts of stresses and failures that adult life does, in order to teach them how to cope with such things.
If you fail, sooner or later that failure will have to be recognized, confronted and put to rights. Not to do so in a timely fashion is only to spread the consequences of failure much more widely -- to the whole educational system in the case of the SATs and the ordinary taxpayer in the case of the bailouts. Both deserve better.
Thursday, February 26, 2009
WSJ.com - Obama Needs a 'Not To Do' List
WSJ.com - Opinion: Obama Needs a 'Not To Do' List
Put away childish things, President Obama said during his inauguration. He couldn't have found a theme more suited to the moment. The preoccupations that he and most politicians are used to running on, and that still characterize too many of his administration's utterances, are being exposed in the global economic disaster as the soppy indulgences they always were.
Wednesday, February 18, 2009
WSJ.com - McCain's Vote Should Trouble Obama
WSJ.com - Opinion: McCain's Vote Should Trouble Obama
In a passage from his 2006 book, "The Audacity of Hope," [Obama] sounds like a Republican complaining about the stimulus. "Genuine bipartisanship," he wrote, "assumes an honest process of give-and-take, and that the quality of the compromise is measured by how well it serves some agreed-upon goal, whether better schools or lower deficits. This in turn assumes that the majority will be constrained -- by an exacting press corps and ultimately an informed electorate -- to negotiate in good faith.
"If these conditions do not hold -- if nobody outside Washington is really paying attention to the substance of the bill, if the true costs . . . are buried in phony accounting and understated by a trillion dollars or so -- the majority party can begin every negotiation by asking for 100% of what it wants, go on to concede 10%, and then accuse any member of the minority party who fails to support this 'compromise' of being 'obstructionist.'
"For the minority party in such circumstances, 'bipartisanship' comes to mean getting chronically steamrolled, although individual senators may enjoy certain political rewards by consistently going along with the majority and hence gaining a reputation for being 'moderate' or 'centrist.'"
For all of Mr. Obama's eloquence on the need for Democrats to be more respectful of religion, more willing to confront the teachers' unions, and more open to the opportunities of the market, when it comes time for action it's a different story. On issues from abortion to free trade, Mr. Obama's votes suggest a man careful not to do anything to offend the Democratic Party's most entrenched interest groups.
Tuesday, February 17, 2009
WSJ.com - Obama's Rhetoric Is the Real 'Catastrophe'
WSJ.com - Opinion: Obama's Rhetoric Is the Real 'Catastrophe'
Without his Recovery and Reinvestment Act, he says, the economy will fall back into that abyss and may never recover.
This fearmongering may be good politics, but it is bad history and bad economics. It is bad history because our current economic woes don't come close to those of the 1930s. At worst, a comparison to the 1981-82 recession might be appropriate.
Mr. Obama's analogies to the Great Depression are not only historically inaccurate, they're also dangerous. Repeated warnings from the White House about a coming economic apocalypse aren't likely to raise consumer and investor expectations for the future. In fact, they have contributed to the continuing decline in consumer confidence that is restraining a spending pickup. Beyond that, fearmongering can trigger a political stampede to embrace a "recovery" package that delivers a lot less than it promises. A more cool-headed assessment of the economy's woes might produce better policies.
Wednesday, February 4, 2009
WSJ.com -Tom Daschle's Washington
WSJ.com - Opinion: Tom Daschle's Washington
Mr. Daschle's embarrassment of riches is a typical story, and in fact is the result of the liberal ideology his critics have been advocating for decades. The main story of the Obama Presidency so far isn't the contradiction between Mr. Obama's campaign promises and the messier reality of his nominees. That was always inevitable. The real story is the massive transfer of power and wealth now underway from the private sector to the political class. Mr. Daschle could make so much money and achieve such prominence because he was expected to be a central broker in that wealth transfer.
What Mr. Daschle's lucrative career as influence peddler really illustrates is how much
Tuesday, February 3, 2009
WSJ.com - How Government Prolonged the Depression
Facts are stubborn things, aren't they. Let's hope D.C. pays attention to history in their rush to be seen "doing something."
The New Deal is widely perceived to have ended the Great Depression, and this has led many to support a "new" New Deal to address the current crisis. But the facts do not support the perception that FDR's policies shortened the Depression, or that similar policies will pull our nation out of its current economic downturn.
Some New Deal policies...violated the most basic economic principles by suppressing competition, and setting prices and wages in many sectors well above their normal levels. All told, these antimarket policies choked off powerful recovery forces that would have plausibly returned the economy back to trend by the mid-1930s.
The main lesson we have learned from the New Deal is that wholesale government intervention can -- and does -- deliver the most unintended of consequences.
Saturday, January 31, 2009
WSJ.com - Foreign Aid and Bad Government
WSJ.com - Opinion: Foreign Aid and Bad Government
Entrepreneurship, not aid, is essential to rejuvenate markets in the developing world and, in turn, help
During the Cold War, the
Tragically, the Cold War aid approach actually preserves suffering in poor countries. Aid empowers bureaucracies, promotes statism, and weakens government incentives to boost tax revenues through growth. Economic assets are often kept in the hands of the state, leading to monopolies, stagnation and extortion. All of this hurts entrepreneurs, who have the potential to create wealth and promote governmental accountability.
The history of Western economic and political advancement illustrates that it is the economic strength of citizens -- not governments -- that gives rise to checks and balances.
Friday, January 30, 2009
WSJ.com - Look at the Time
In Congress and the boardroom, failure to recognize a new era.
The party-line vote in favor of the stimulus package could have been more, could have produced not only a more promising bill but marked the beginning of something new, not a postpartisan era (there will never be such a thing and never should be; the parties exist to fight through great political questions) but a more bipartisan one forced by crisis and marked by—well, let's call it seriousness.
The final bill was privately agreed by most and publicly conceded by many to be a big, messy, largely off-point and philosophically chaotic piece of legislation. The Congressional Budget Office says only 25% of the money will even go out in the first year. This newspaper, in its analysis, argues that only 12 cents of every dollar is for something that could plausibly be called stimulus.
What was needed? Not pork, not payoffs, not eccentric base-pleasing, group-greasing forays into birth control as stimulus, as the speaker of the House dizzily put it before being told to remove it.
"Business as usual." "That's Washington." But in 2008 the public rejected business as usual. That rejection is part of what got Obama elected.
Tuesday, January 27, 2009
WSJ.com - How Modern Law Makes Us Powerless
Americans don't feel free to reach inside themselves and make a difference. The growth of litigation and regulation has injected a paralyzing uncertainty into everyday choices. All around us are warnings and legal risks. The modern credo is not "Yes We Can" but "No You Can't." Our sense of powerlessness is pervasive. Those who deal with the public are the most discouraged. Most doctors say they wouldn't advise their children to go into medicine. Government service is seen as a bureaucratic morass, not a noble calling. Make a difference? You can't even show basic human kindness for fear of legal action. Teachers across America are instructed never to put an arm around a crying child.
The idea of freedom as personal power got pushed aside in recent decades by a new idea of freedom -- where the focus is on the rights of whoever might disagree. Daily life in America has been transformed. Ordinary choices -- by teachers, doctors, officials, managers, even volunteers -- are paralyzed by legal self-consciousness. Did you check the rules?
All this law, we're told, is just the price of making sure society is in working order. But society is not working.
Monday, January 19, 2009
WSJ.com - Beware of the Big-Government Tipping Point
Socialized health care fundamentally changes the relationship between citizens and state.
For most of our nation's history, our approach to economics has favored enterprise, self-reliance and the free market. While the American economy has never been entirely laissez-faire, we have historically cared more about equality of opportunity than equality of results. And while Americans have embraced elements of the New Deal, the Great Society and progressive taxation, we have traditionally viewed welfare as a way to help those in dire need, not as a way of life for the middle class. We have grasped, perhaps more than any other nation, that there is a long-run cost to dependency on the state, including an aversion to risk that eventually enervates the entrepreneurial spirit necessary for innovation and prosperity.
This outlook, once assumed, is now under attack due to a recent series of political and economic events.
...if we do not succeed in resisting greater state involvement in the economy -- and health care is meant to be the beachhead of this effort -- we will move from a limited welfare state into a full-blown one. This will reshape, in deep and enduring ways, our nation's historic sensibilities. It will lead here, as it has elsewhere, to passivity and dependence on the state. Such habits, once acquired, are hard to shake.
Friday, January 16, 2009
WSJ.com - Suspend Your Disbelief
What is required for full enjoyment of an inauguration, from opening prayers to speeches to marching bands is, in the great 19th-century phrase, the willing suspension of disbelief. If you don't put your skepticism aside, you will not fully absorb and experience the drama. You must allow it to be real for you....
To believe, suspend disbelief. We have been through this before, the flags and fine speeches, the brass donkey paperweight, the glass elephant, the rise and fall of administrations, the coming and going of figures great and small. It's good to put that aside for a few days, to remove yourself from politics, partisanship and faction, to suspend your disbelief, to be grateful that the signs and symbols endure, as does the republic, and raise a toast: "To the president of the United States."
Thursday, January 15, 2009
WSJ.com - Theodore Roosevelt Was No Conservative
Progressives of both parties, including Roosevelt, were the original big-government liberals. They understood full well that the greatest obstacle to their schemes of social justice and equality of material condition was the U.S. Constitution as it was originally written and understood: as creating a national government of limited, enumerated powers that was dedicated to securing the individual natural rights of its citizens, especially liberty of contract and private property.
Looking ahead, conservatives hardly need to look back to progressives for inspiration. If there is a desire to "conserve" or restore something about our political tradition that has been lost with the rise of modern liberalism, how about the American founding as a model? It is with the founders that we can find the patriotic promotion of America as an exceptionally great nation -- a notion that attracts some conservatives to TR.
WSJ.com - Cutting Monthly Bills? Turn to the Web
At first blush, the individual savings seem too small to bother with.
They're not.
Ask yourself if it's worth changing cable or home Internet providers, say, or cellphone providers, in order to save just $10 a month.
Many people couldn't be bothered. It's no surprise. Ten bucks doesn't sound like much.
But one of the key themes of this column is that combining recurrent savings with compound interest has explosive power. It's the atomic fission of finance.
Slashing just $10 from each month's costs and investing it, instead, adds up to quite a bundle over the course of an adult lifetime. Someone who did that over fifty years would have an extra $54,000 when they retired. Not bad.
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