Economy

Another Square-Peg-Round-Hole Task Force

By Justin Katz | December 23, 2008 |

Obama’s “task force to bolster the standard of living of middle-class and working families in America” can’t possibly succeed at its stated objectives, because the ideas and priorities that constitute its basis for formation are deeply flawed, even inimical to the goal that it professes. Here’s a bit of ready evidence (emphasis added): The effort,…

Forcing Opportunity into the Mix

By Justin Katz | December 22, 2008 |

My emphasis is always on increasing opportunity. Because it’s the situation in which I find myself, for example, I believe that many (maybe most) of the people with credit card problems didn’t sink into debt living lavishly with their few thousand dollars of Monopoly credit, but rather because life has continually thrown obstacles at them,…

“Bigger Government isn’t Stimulus”

By Marc Comtois | December 17, 2008 |

Using Immigration Law Toward an End

By Justin Katz | December 17, 2008 |

Yeah, I’m aware that a politically noisy segment of our society views immigration more as a social work process than a set of policies intended for the benefit of the country, but Dori Segal and Brian Lee Crowley have a worthy (if politically infeasible) idea: … America should immediately offer fast-track immigration to foreigners willing…

Don’t Believe the Worst-Case

By Justin Katz | December 16, 2008 |

Andrew Redleaf and Richard Vigilante’s argument for letting the automakers (and the union that feeds off them) face bankruptcy should definitely be on your reading list for today: Over the past couple of decades, the suppliers – actually systems makers – have taken over most manufacturing of American cars. The “hollowed out” Big Three now…

How did the Big 3 and UAW Get to this point?

By Marc Comtois | December 16, 2008 |

In his most recent column, Ed Achorn cites information from Investors Business Daily, which states that “U.S. automakers pay their average worker just over $70 an hour in total compensation, compared with about $45 an hour for Toyota, Nissan, Hyundai and other transplants.” However, the way the information is presented has led to some confusion.…

Minimum Wage, EITC and Poverty

By Marc Comtois | December 15, 2008 |

One of President-elect Obama’s solutions to fighting poverty is to “raise the minimum wage to $9.50 an hour by 2011.” In their forthcoming book Minimum Wages, M.I.T. professor David Neumark and William L. Wascher of the Federal Reserve Board make the following conclusions (PDF): First, minimum wages reduce employment opportunities for less-skilled workers, especially those…

Trying to Predict the Economy

By Justin Katz | December 12, 2008 |

Dan Yorke had an economic back-and-forth with Richard from Tiverton, just before 5:00, that points to a consideration of which we ought all be in awe: The economic big picture is just too complicated to predict or guide (hence the genius of the free market). Dan argued that ancillary industries to the Big Three would…

Deja Vu

By Donald B. Hawthorne | December 7, 2008 |

As the master of malaprops, Yogi Berra, once said: This is like deja vu all over again. I guess it isn’t enough to pull out all the old books which tackled the realities around the Great Depression and FDR’s New Deal versus the commonly held myths. It now looks like the time to also pull…

Real Stimulus

By Justin Katz | December 6, 2008 |

I suspect that this idea from Congressman Louie Gohmert (R-TX) would have broad support among the Republican Assembly members and sympathizers with whom I’m spending time this evening: Where the Pelosi-Paulson plan takes the taxpayers’ money and puts it under the government’s thumb so that predatory politicians and micromanaging bureaucrats have more and more control…