...than why...
The linked article gives a series of statements with sources contesting the assertion that the economy is markedly improving.
Thursday, February 09, 2012
US Constitution
By now you have probably heard that a certain US Supreme Court Justice, in Cairo, has stated that the US Constitution is probably not the best model for countries developing their own constitutions currently.
There are two sides to this story, and her statement may have some credibility, but I don't think that is what she was talking about. Very interestingly, the statement has provoked much discussion.
Part of the discussion is this article in the NY Times.
As an economist, one thing stands out about the US constitution above pretty much all other constitutions. Our document does not "give" rights, merely states preexisting rights, and none of the rights stated require anything from anyone else. Nothing in the US Constitution, dealing with the rights of the people, requires action on the part of the government or anyone else to provide that right. This is far different from the majority of national constitutions, which, as the NYT article points out, typically assure their citizens of the "rights" to food, shelter, education, etc....
As an economist, one problem. Rights to food, shelter, and education require taking from someone else to provide these things. Who do you take from? Is that freedom?
There are two sides to this story, and her statement may have some credibility, but I don't think that is what she was talking about. Very interestingly, the statement has provoked much discussion.
Part of the discussion is this article in the NY Times.
As an economist, one thing stands out about the US constitution above pretty much all other constitutions. Our document does not "give" rights, merely states preexisting rights, and none of the rights stated require anything from anyone else. Nothing in the US Constitution, dealing with the rights of the people, requires action on the part of the government or anyone else to provide that right. This is far different from the majority of national constitutions, which, as the NYT article points out, typically assure their citizens of the "rights" to food, shelter, education, etc....
As an economist, one problem. Rights to food, shelter, and education require taking from someone else to provide these things. Who do you take from? Is that freedom?
Growth is the Answer
More and more I am simply convinced that, while the USA does need to get a handle on spending and there is no reason not to roll-back the 25% across the board increase in agency spending pushed through in 2009, the real solution to the current deficit issues to GROWTH.
An interesting article I ran across recently uses IRS data to explore the shrinking number of people filing taxes as "millionaires". Furthermore, those wealthiest among us have seen the greatest decline in their adjusted gross incomes over the last several years. Interesting. Really drives home the point that decrease in the income earned by Americans has dramatic effect on federal revenues.
An interesting article I ran across recently uses IRS data to explore the shrinking number of people filing taxes as "millionaires". Furthermore, those wealthiest among us have seen the greatest decline in their adjusted gross incomes over the last several years. Interesting. Really drives home the point that decrease in the income earned by Americans has dramatic effect on federal revenues.
Talking Points
Not a comprehensive look at the economy. Not each and every one of these is entirely the fault of BHO (thought many of them are). But the column is not supposed to assign blame to BHO, rather the intent is to provide talking points to respond to various claims by the left (particularly BHO) about things being "unfair".
Wednesday, February 08, 2012
Right-to-Work
Right-to-work laws are currently in vogue among conservatives, but they have been favored by economists for a long time. Essentially a right-to-work law makes "closed shops" illegal. A closed shop is a unionized company in which everyone employee is required to join the union, if you don't you cannot work there. This means that you can be interviewed, and hired, by the management of a closed shop, but if you refuse to join the union (perhaps you don't want to pay the dues or you don't like the political activism of the leadership) you can never start your new job.
This is one of the things Ron Klain, former Chief of Staff to Biden, gets very wrong in a recent column. In his efforts to paint right-to-work laws in a bad light, Klain not only uses a bad example to explain his topic, but uses misleading information to "prove" his point.
In attempting to prove that RTW laws don't have beneficial affects, he uses information from one state (Oklahoma) and one industry (manufacturing), to talk about how manufacturing jobs continue to leave OK. Interesting thing, as of right now, unemployment in OK is 6.1%. That number is 2.2% below the national number. Those people must be finding jobs somewhere. The thing about RTW laws is not that they protect one type of work, but that they protect all types of work - especially medium size businesses.
Oh, and Klain claims that the growth of the auto industry is proof that you don't need RTW laws. Nevermind that the majority of auto industry growth is taking place in RTW states....
This is one of the things Ron Klain, former Chief of Staff to Biden, gets very wrong in a recent column. In his efforts to paint right-to-work laws in a bad light, Klain not only uses a bad example to explain his topic, but uses misleading information to "prove" his point.
In attempting to prove that RTW laws don't have beneficial affects, he uses information from one state (Oklahoma) and one industry (manufacturing), to talk about how manufacturing jobs continue to leave OK. Interesting thing, as of right now, unemployment in OK is 6.1%. That number is 2.2% below the national number. Those people must be finding jobs somewhere. The thing about RTW laws is not that they protect one type of work, but that they protect all types of work - especially medium size businesses.
Oh, and Klain claims that the growth of the auto industry is proof that you don't need RTW laws. Nevermind that the majority of auto industry growth is taking place in RTW states....
Tuesday, February 07, 2012
Politicians Are People Too
A study by the Washington Post finds significant correlation between the legislative behavior of politicians and their personal interests (homes, family members' employment, businesses, etc...).
Shock.
You mean to tell me that politicians sometimes use their positions of power for their own personal gain?
Economists have actually been saying this since the early 60s. Frankly, I assumed someone had already done studies on this topic.
Shock.
You mean to tell me that politicians sometimes use their positions of power for their own personal gain?
Economists have actually been saying this since the early 60s. Frankly, I assumed someone had already done studies on this topic.
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