Requiescat in pace.
Lengthy FT obit here; U of C News Office release here.
Economics & Finance
Quote of the Day
…what has helped the less fortunate is economic growth. Today’s elderly are affluent not because of Social Security, but because of all of the wealth created by private sector innovation over their lifetimes. Government involvement in health care and education is an impediment to progress in those fields. Job training and welfare are demonstrable failures. I think that treating a national community like a family is a grave intellectual error. A national unit is an institution that creates a legal framework for a large group of strangers to interact. A family is a small group that interacts on the basis of personal bonds. Strengthening government serves to weaken families and other vital civic institutions.
(You absolutley must RTWT. Mr. Kling puts terribly important ideas across in clear, plain English.)
You can’t ‘manage’ trade without huge costs
A while back Richard North posted this at EU Referendum :
Is there anything the EU has ever done that can be considered, unambiguously, an unalloyed success?
Well, if you are to believe the hype, one such is the Asia-Europe Meeting, or ASEM to its friends, a “cooperation forum” for Asian and European countries. It was initiated in 1996 “to strengthen dialogue and interaction between the two regions” and to promote “concrete cooperation that aims at sustainable economic and social development”.
Yet, via chron.com [the link doesn’t work anymore, the article can be found here, though] Associated Press writer Robert Weilaard puts a different spin on it. Normally, AP is the most Europhile of all the press agencies, but Weillaard is definitely not of the Kathy Gannon mould.
Heading his piece, “Unhappy Birthday for EU-Asia Relations”, he tells us that at a summit in Bangkok in 1996, European and Asian leaders pledged to boost economic, trade and political relations to offset America’s disproportionate weight in global affairs. Today, he adds, both sides agree that has failed miserably.
As so often, I disagree with Richard as to the merits or lack of same of the European Union, but I’ll leave that for another post.
Either way, attempts to manage trade politically always fail. I replied in the comment thread to the post in the EU Referendum forum, just arguing on general priciples, without going into the details too much:
It failed because the whole idea is wrong-headed, both in concept and in the idea “America’s disproportionate weight in global affairs” is a bad thing (I’m adding that last bit just for completeness’ sake, for it goes without saying).
We talk about “global trade” all the time, but the importance of trading partners increases more or less exponentially the closer they are to your own country. Since Asia is so far away from Europe, other trading partners take precedence, meaning that European countries necessarily trade mostly with each other as well as the United States (oil imports from Arab countries aside).
Class Warfare Statistics
Engram has compiled some data on the after-tax income levels of American taxpayers, comparing them from the last three years of the Clinton Administration and the first three years of the Bush Administration. The raw data seems to suggest that the top 20% of taxpayers kept more money after taxes under Clinton than they did under Bush. This would refute the common canard that the Bush tax cuts only benefitted that amorphous class referred to as “the rich”.
There is more to the facts than Engram presents; but there’s always more to it than meets the eye. One salient factor lost among all the talk of class struggle is the very real question of socioeconomic mobility. The membership of the top 20% isn’t always the same; neither is the membership of the bottom 20%. As we approach the margins, of course, the membership tends to solidify; but even so, such economic classes are far less unchanging, and far more fluid, in the United States than in most other places.
Although it’s pretty easy to pay lip service to class warfare, my gut instinct is that American voters intuitively understand this fluidity. Our general national aspiration toward “moving up and out” saves us from the worst parts of Marxist struggle.
Be sure to read the article for the charts, and the interesting notes in the comments. By the way, Engram is a registered Democrat.
(via Instapundit)
Clean Sweep Completed
(Ref Prizes Galore.) American wins 2006 Nobel for economics. I blame George Bush.
Edmund Phelps is a Chicago School monetarist.