Foundation for Economic Education » In brief

Obama Orders Executive Pay Cuts at Bailed-Out Banks

Sheldon Richman — Thu, 22 Oct 2009 12:29:28 +0000

“The Obama administration slammed Wall Street by ordering pay cuts of an average of 50 percent and caps on benefits for top executives at companies owing the government billions of dollars from taxpayer-funded bailouts.” (Bloomberg, Thursday)

We should want the people mad enough to demand no more bailouts.

FEE Timely Classic
“Bailing Out Statism” by Sheldon Richman

Senate Stops Rise in Medicare Reimbursements

Sheldon Richman — Thu, 22 Oct 2009 12:28:13 +0000

“With budget anxieties pervading the congressional healthcare debate, the Senate on Wednesday sidetracked popular legislation that would have increased Medicare payments to doctors by nearly $250 billion over the next decade.” (Los Angeles Times, Thursday)

Why does government set prices?

FEE Timely Classic
“Rights Versus Entitlements” by Steven Yates

Environmentalists Fight among Selves over Wind Power

Sheldon Richman — Thu, 22 Oct 2009 12:27:00 +0000

“Workers atop mountain ridges are putting together 389-foot windmills with massive blades that will turn Appalachian breezes into energy. Retiree David Cowan is fighting to stop them. Because of the bats. Cowan, 72, a longtime caving fanatic who grew to love bats as he slithered through tunnels from Maine to Maui, is asking a federal judge in Maryland to halt construction of the Beech Ridge wind farm. The lawsuit pits Chicago-based Invenergy, a company that produces ‘green’ energy, against environmentalists who say the cost to nature is too great.” (Washington Post, Thursday)

Agendas in conflict.

FEE Timely Classic
“Mandating Renewable Energy: It’s Not Easy Being Green” by Michael Heberling

Bailout Overseer Warns of Surprise Price Tag

Sheldon Richman — Wed, 21 Oct 2009 12:02:20 +0000

“The $700 billion bailout will ultimately cost taxpayers billions of dollars, but the government stands to lose much more than the money it’s pouring into companies. Neil Barofsky, special inspector general for Treasury’s financial sector rescue, wrote in a report released Wednesday that the bailout has several hidden costs.” (CNN Money, Wednesday)

Anyone see that coming?

FEE Timely Classic
“The Financial Bailouts: ‘See the Needle and the Damage Done’” by Lawrence H. White

House Health Bill Called Deficit Reducer

Sheldon Richman — Wed, 21 Oct 2009 12:01:23 +0000

“A preliminary estimate from the Congressional Budget Office projects that the House Democrats’ health care plan that includes a public option would cost $871 billion over 10 years, according to two Democratic sources. CBO also found that the Democrats’ bill reduces the deficit in the first 10 years.” (CNN, Wednesday)

Yo, I gotta nice bridge here. Ya wanna buy a bridge?

FEE Timely Classic
“Obama’s Impossible Healthcare Reform Promises” by Sheldon Richman

Volcker Clashes with Obama over Banking Regs

Sheldon Richman — Wed, 21 Oct 2009 12:00:28 +0000

“[Former Fed chairman Paul Volcker] wants the nation’s banks to be prohibited from owning and trading risky securities, the very practice that got the biggest ones into deep trouble in 2008. And the administration is saying no, it will not separate commercial banking from investment operations.” (New York Times, Wednesday)

How about free banking?

FEE Timely Classic
“Commercial Banking in a Free Society” by Steven Horwitz

Obama Administration Freezes out Chamber

Sheldon Richman — Tue, 20 Oct 2009 13:35:41 +0000

“The White House is moving aggressively to remove the U.S. Chamber of Commerce from its traditional Washington role as the chief representative for big business, the latest sign of a public feud ignited by disagreement over the administration’s effort to overhaul the health-care system. Instead of working through the Chamber, President Obama has reached out to business executives, meeting repeatedly with small groups of CEOs in his private White House dining room.” (Washington Post, Tuesday)

Beware any close relationship between business and State.

FEE Timely Classic
“Economic Fascism” by Thomas J. DiLorenzo

Zero-Waste Recycling Coming into Vogue

Sheldon Richman — Tue, 20 Oct 2009 13:33:27 +0000

“Across the nation, an antigarbage strategy known as ‘zero waste’ is moving from the fringes to the mainstream, taking hold in school cafeterias, national parks, restaurants, stadiums and corporations. The movement is simple in concept if not always in execution: Produce less waste. Shun polystyrene foam containers or any other packaging that is not biodegradable. Recycle or compost whatever you can.” (New York Times, Tuesday)

Wasting time is apparently okay.

FEE Timely Classic
“Recycling Myths” by Lawrence W. Reed

Justice Department Changes Policy on Medical Marijuana

Sheldon Richman — Tue, 20 Oct 2009 13:32:36 +0000

“People who use marijuana for medical purposes and those who distribute it to them should not face federal prosecution, provided they act according to state law, the Justice Department said Monday in a directive with far-reaching political and legal implications.” (New York Times, Tuesday)

Medical marijuana strengthens government power, but the federal crackdown was outrageous nonetheless.

FEE Timely Classic
“Benjamin Rush and ‘Medical Marijuana’” (pdf) by Thomas Szasz

Guaranteed Mortgage Lending Goes on

Sheldon Richman — Mon, 19 Oct 2009 12:40:57 +0000

“So you thought easy-money mortgages with little or no down payment for people with bad credit was a thing of the past? Think again. You can get just such a loan today — and it’s guaranteed by the federal government. Loans insured by the Federal Housing Administration (FHA) have become ‘the new subprime,’ and these loans are exposing taxpayers to the same kinds of soaring default rates and losses that brought down Fannie Mae and Freddie Mac as well as destroyed many banks and the private market for mortgage loans.” (Washington Times, Monday)

Nothing has changed.

FEE Timely Classic
“A Crisis of Political Economy” by Chris Matthew Sciabarra

CBO’s Guesses Guide Policymaking

Sheldon Richman — Mon, 19 Oct 2009 12:38:45 +0000

“As Democrats embark on a plan to reorder one-sixth of the U.S. economy, the CBO [Congressional Budget Office] is the umpire, charged by Congress with assessing the effect on the federal budget and the potentially profound impact on American lives. The Senate majority leader has vowed to hold no vote on a health plan until the CBO passes judgment. But the agency, while almost universally praised for honest and impartial analyses, does not have a crystal ball…. Inside the estimates Much of what the CBO does is akin to trying to forecast your grocery bill in 10 years.” (Washington Post, Monday)

Never believe the government’s numbers.

FEE Timely Classic
“Mencken’s Wisdom” by Donald J. Boudreaux

Obama Can Take or Leave “Public Option”

Sheldon Richman — Mon, 19 Oct 2009 12:37:49 +0000

“Obama continues to support the concept of a government-sponsored insurance option, but ‘he is not demanding that it is in’ the final legislation, Valerie Jarrett, a senior White House adviser, said on NBC’s ‘Meet the Press.’” (Washington Post, Monday)

Since Washington would control the insurance business in any case, the “public option” is window dressing.

FEE Timely Classic
“Obama’s Health-Insurance Cartel “ by Sheldon Richman

Judge Denies Marriage License to Interracial Couple

Sheldon Richman — Fri, 16 Oct 2009 11:21:17 +0000

“A white Louisiana justice of the peace said he refused to issue a marriage license to an interracial couple out of concern for any children the couple might have.” (Herald, Friday)

Why is marriage even a concern of the State?

FEE Timely Classic
“The Politics of Freedom” by David Boaz

Raw Milk Sparks Controversy

Sheldon Richman — Fri, 16 Oct 2009 11:20:07 +0000

“A national battle is heating up between proponents of drinking raw milk for health benefits and food safety advocates such as the Food and Drug Administration. Drinkers of raw, or unpasteurized, milk say it tastes better, helps with digestive problems and boosts immunity. The FDA warns the milk is ‘inherently dangerous.’ It can be a host for potentially harmful germs, FDA spokesman Michael Herndon says.” (USA Today, Friday)

Are we children?

FEE Timely Classic
“Raw Milk and the Sour State” by William E. Pike

Minimum Wage to Shrink in Colorado

Sheldon Richman — Wed, 14 Oct 2009 12:02:21 +0000

“Colorado will become the first state to reduce its minimum wage because of a falling cost of living.” (Associated Press, Wednesday)

An inkling that minimum-wage laws have bad consequences.

FEE Timely Classic
“The Minimum Wage: Good Intentions, Bad Results” by Roger Koopman

Industry Fears Tax on Medical Devices

Sheldon Richman — Wed, 14 Oct 2009 12:01:36 +0000

“As it turns out, the day the Senate Finance Committee voted to approve its health-care reform bill was the same day that about 1,400 workers and executives in the medical-device industry convened in Washington to talk shop. Under the bill approved on Tuesday, the medical-device industry would pay a total of $40 billion over 10 years. Players big and small in the industry, which makes items from tongue depressors to artificial hearts, warned that the tax would harm their ability to innovate.” (Washington Post, Wednesday)

Do the senators think we have too many devices?

FEE Timely Classic
“The Power to Tax Is the Power to Destroy” by Clarence B. Carson

Dollar Plumbs the Depths

Sheldon Richman — Wed, 14 Oct 2009 12:00:38 +0000

“The U.S. dollar plumbed a 14-month low against the euro on Wednesday, sending gold prices to record highs and pushing up oil for a fifth day to a 2009 high of $75.12 a barrel.” (New York Times, Wednesday)

A sign of things to come?

FEE Timely Classic
“The Future of the Dollar” by Henry Hazlitt

Obama Adviser Defends Economic Record

Sheldon Richman — Tue, 13 Oct 2009 13:22:09 +0000

“The White House’s top economic adviser took aim at Republican criticism of President Obama’s economic recovery policies on Monday, delivering a sharply worded letter to lawmakers that credited the administration with pulling the nation back from an ‘abyss’ and faulted the record of recent GOP presidents on the economy.” (Washington Post, Tuesday)

Neat: Proof of their success is that things could be worse.

FEE Timely Classic
“A Microeconomist’s Protest” by Mario Rizzo

Tax on Health Plans Ignites Controversy

Sheldon Richman — Tue, 13 Oct 2009 13:20:31 +0000

“A proposed tax on high-cost, or ‘Cadillac,’ health insurance plans has touched off a fierce clash between the Senate and the House as they wrestle over how to pay for legislation that would provide health benefits to millions of uninsured Americans. Supporters, including many senators, say that the tax is essential to tamping down medical spending and that over 10 years it would generate more than $200 billion, nearly a fourth of what is needed to pay for the legislation. Critics, including House members and labor unions, say the tax would quickly spiral out of control and hit middle-class workers, people more closely associated with minivans than Cadillacs.” (New York Times, Tuesday)

Good diagnosis, bad medicine.

FEE Timely Classic
“What Hunger Insurance Could Teach Us About Health Insurance” by Joseph Bast

Obama Administration Steps Up Regulation

Sheldon Richman — Tue, 13 Oct 2009 13:19:31 +0000

“The Obama administration is taking on Cheerios. And popular cold remedies and swimming pool drains and rhinestones on children’s clothing. With much of Washington focused on efforts to revamp the health-care system and address climate change, a handful of Obama appointees have been quietly exercising their power over the trappings of daily life. They are awakening a vast regulatory apparatus with authority over nearly every U.S. workplace, 15,000 consumer products, and most items found in kitchen pantries and medicine cabinets.” (Washington Post, Tuesday)

Rule by an elite.

FEE Timely Classic
“Regulation Red Herring” by Sheldon Richman

Healthcare Bill Looks Cheaper than It Is

Sheldon Richman — Mon, 12 Oct 2009 13:20:36 +0000

“Lawmakers use a 10-year accounting window to assess new programs. Starting the Medicare cuts and some of the taxes in the early years — and pushing the bulk of new spending into the latter years — helps keep the cost of the health care overhaul within Obama’s $900 billion limit.” (Associated Press, Sunday)

“Reality is negotiable.”

FEE Timely Classic
“Political Accounting” by James Bovard

What Happened to Global Warming?

Sheldon Richman — Mon, 12 Oct 2009 13:19:29 +0000

“This headline may come as a bit of a surprise, so too might that fact that the warmest year recorded globally was not in 2008 or 2007, but in 1998. But it is true. For the last 11 years we have not observed any increase in global temperatures. And our climate models did not forecast it, even though man-made carbon dioxide, the gas thought to be responsible for warming our planet, has continued to rise.” (BBC News, Friday)

Did we need more reason not to cripple the economy by raising energy prices through intervention?

FEE Timely Classic
“Unprecedented Global Warming?” by Michael Heberling

Medical Malpractice Costs Overstated, Report Says

Sheldon Richman — Mon, 12 Oct 2009 13:15:28 +0000

“Curbing medical malpractice litigation isn’t the ’silver bullet’ that’s needed to slay the werewolf of rising health care costs, a panel of academics said Tuesday.” (McClatchy, Tuesday)

Easy answers are often wrong.

FEE Timely Classic
“Dos and Don’ts of Tort Reform” by Robert A. Levy

FHA on Deck for Bailout

Sheldon Richman — Fri, 09 Oct 2009 12:10:23 +0000

“A year after Fannie Mae and Freddie Mac teetered, industry executives and Washington policy makers are worrying that another government mortgage giant could be the next housing domino. Problems at the Federal Housing Administration, which guarantees mortgages with low down payments, are becoming so acute that some experts warn the agency might need a federal bailout.” (New York Times, Friday)

Somehow the free market will get blamed.

FEE Timely Classic
“Nationalization of the Mortgage Market” by Robert P. Murphy

Bernanke’s Anti-inflation Remarks Spur Dollar

Sheldon Richman — Fri, 09 Oct 2009 12:09:33 +0000

“The dollar rose against the yen and the euro and government bonds fell after Federal Reserve Chairman Ben S. Bernanke said the bank will tighten monetary policy once the economy improves…. The Fed will need to raise rates ‘at some point’ to control inflation, Bernanke said at a Board of Governors conference yesterday in Washington. ” (Bloomberg, Friday)

And risk squelching the “recovery”?

FEE Timely Classic
“Inflation in One Page” by Henry Hazlitt

Budget Office Says Senate Finance Health Bill Won’t Hike Deficit

Sheldon Richman — Thu, 08 Oct 2009 12:08:35 +0000

“Congressional budget analysts gave an important political boost Wednesday to a Senate panel’s health-care overhaul, projecting that the $829 billion measure would dramatically shrink the ranks of the uninsured and keep President Obama’s pledge that doing so would not add ‘one dime’ to federal budget deficits.” (Washington Post, Thursday)

If you believe that they’ll cut costs as promised and that higher taxes will mean increased revenues.

FEE Timely Classic
“The Growth of Government in the United States” by Robert Higgs

Green Subsidy Seekers Hit Capitol

Sheldon Richman — Thu, 08 Oct 2009 12:07:41 +0000

“Hundreds of green-energy company executives, including many from Silicon Valley, descended on Washington this week to urge members of Congress to pass a sweeping climate change bill, which they predicted would spur billions of dollars in clean-energy investments and ease the nation’s dependence on foreign oil.” (San Jose Mercury News, Thursday)

No special pleading here.

FEE Timely Classic
“Creating Jobs vs. Creating Wealth” by Dwight R. Lee

Homebuyer Tax Credit May Live on

Sheldon Richman — Thu, 08 Oct 2009 12:06:57 +0000

“Democratic Congressional leaders are working with the White House to extend an expiring $8,000 tax credit for first-time home buyers, and aides said Wednesday that they were considering making it available to current homeowners who purchase a new residence.” (New York Times, Thursday)

They just can’t keep hands off.

FEE Timely Classic
“Can the Feds Save the Housing Market?” by Robert P. Murphy

Job Tax Credit Gains Popularity

Sheldon Richman — Wed, 07 Oct 2009 12:27:28 +0000

“The idea of a tax credit for companies that create new jobs, something the federal government has not tried since the 1970s, is gaining support among economists and Washington officials grappling with the highest unemployment in a generation.” (New York Times, Wednesday)

More “creative” tinkering when it’s retrenchment that is needed.

FEE Timely Classic
“Human Ignorance and Social Engineering” by Wendy McElroy

Immigrant Detention to Get Facelift

Sheldon Richman — Wed, 07 Oct 2009 12:26:41 +0000

“The Obama administration will review the procedures under which the United States detains about 380,000 illegal immigrants a year, exploring the use of converted hotels and nursing homes as it seeks to transform a prison-based system into one tiered according to the risk posed by individual detainees, officials said yesterday.” (Philadelphia Inquirer, Wednesday)

Prettifying the prisons hardly constitutes “change.”

FEE Timely Classic
“What About Immigration?” by Julian L. Simon

Czar Hearing Falls Flat

Sheldon Richman — Wed, 07 Oct 2009 12:25:44 +0000

“In a city where power is carefully hoarded and monitored, President Barack Obama has drawn complaints from Congress about his use of so-called czars, or officials he has appointed to coordinate environmental, health and other policy areas among various departments. Lawmakers in both parties have sent letters to the White House challenging Obama’s appointment of the czars, saying their appointment circumvents Congress’s authority to confirm top executive branch officials and subject those officials to oversight hearings. But when senators called a hearing on the legality of the czars, the panel of experts they convened did not support their cause.” (Chicago Tribune, Wednesday)

Why isn’t that word offensive to more people?

FEE Timely Classic
“No More Czars, Please” by Lawrence W. Reed

“Stimulus” Extension in the Works

Sheldon Richman — Tue, 06 Oct 2009 13:14:36 +0000

“With unemployment expected to rise well into next year even as the economy slowly recovers, the Obama administration and Democratic leaders in Congress are discussing extending several safety net programs as well as proposing new tax incentives for businesses to renew hiring…. But officials emphasized that a decision was still far off and that in any event the effort would not add up to a second economic stimulus package, only an extension of the first.” (New York Times, Tuesday)

Does the “safety net” prolong unemployment?

FEE Timely Classic
“Benefit Mandates Cause Unemployment” by Hans F. Sennholz

Government-Created Exchanges: Wildcard in Health-Care Debate

Sheldon Richman — Tue, 06 Oct 2009 13:13:36 +0000

“Despite all the disagreement in Washington, every proposal now before Congress to overhaul the nation’s health care system includes creation of an insurance ‘exchange’ — a marketplace that would operate something like a Travelocity Web site for insurance policies.” (New York Times, Tuesday)

Markets preceded government, so why would government be needed to create markets?

FEE Timely Classic
“The Market and Political Freedom” by John Marangos

FTC Imposes Penalties for Bloggers’ Nondisclosure

Sheldon Richman — Tue, 06 Oct 2009 13:12:38 +0000

“Bloggers who offer endorsements must disclose any payments they have received from the subjects of their reviews or face penalties of up to $11,000 per violation, the Federal Trade Commission said Monday.” (Washington Post, Tuesday)

Out of control.

FEE Timely Classic
“Regulation by Reputation on the Net” by Aaron Steelman

Senator Says Cap and Trade Is Ticket to Growth

Sheldon Richman — Mon, 05 Oct 2009 12:35:26 +0000

“President Barack Obama should consider legislation to limit greenhouse gas emissions as he looks for new ways to speed the U.S. economy’s recovery from the recession, said Senator Barbara Boxer, a California Democrat.” (Bloomberg, Monday)

Illogic 101: economic growth through higher energy prices.

FEE Timely Classic
“Climate Change: What if They’re Right?” by Max Borders

Government-Business Coalition to Start Buying Troubled Assets

Sheldon Richman — Mon, 05 Oct 2009 12:32:47 +0000

“The Treasury Department said on Sunday that its scaled-down program to help banks unload their troubled mortgages and mortgage securities would begin operating at full strength by the end of this month, more than a year after Congress authorized $700 billion for that purpose. Treasury officials said that five out of the nine money-management firms it selected to buy up unwanted mortgage-backed securities had raised the minimum amount of money from private investors — $500 million each — to qualify for matching investments and loans from the federal government.” (New York Times, Monday)

What an opportunity to dispense privileges.

FEE Timely Classic
“Transforming America: The Bush-Obama Stimulus Programs” by Randall G. Holcombe

Sanctions More Easily Declared than Imposed

Sheldon Richman — Mon, 05 Oct 2009 12:31:44 +0000

“[A]s the focus on sanctions intensifies, a review of the United States’ experiences in enforcing its own longstanding restrictions on trade with Iran suggests it would be difficult to truly quarantine the Iranian economy. Black market networks have sprouted up all over the globe to circumvent the sanctions.” (New York Times, Monday)

Actually, it’s a tribute to the prowess of the market.

FEE Timely Classic
“The Folly of Economic Warfare” by Doug Bandow

Unemployment Hits 9.8 Percent

Sheldon Richman — Fri, 02 Oct 2009 13:03:16 +0000

“The unemployment rate rose to 9.8 percent in September as employers cut far more jobs than expected, evidence that the longest recession since the 1930s is still inflicting widespread pain.” (Washington Post, Friday)

Think how bad things would have been without the “stimulus” bill!

FEE Timely Classic
“What is Seen and What is Unseen: Government ‘Job Creation’” by Larissa Price

Chinese Communists Celebrate 60 Years in Power

Sheldon Richman — Fri, 02 Oct 2009 13:02:25 +0000

“China’s leaders marked their nation’s 60th anniversary on Thursday with a precision display of military bravado that included, improbably, a female militia unit toting submachine guns and attired in red miniskirts and white jackboots, and a fleet of floats with representations of a giant fish and Mount Everest.” (New York Times, Friday)

Two-China policy.

FEE Timely Classic
“Adam Smith in China” by James Dorn

U.S.-China Trade Relations Face More Friction

Sheldon Richman — Thu, 01 Oct 2009 12:26:37 +0000

“Companies that import solar panels to the United States are facing up to $70 million in unexpected tariffs. The bill comes at a time when the industry is already struggling and could hurt both foreign solar panel makers and foreign and American distributors. It could also further strain trade relations between the United States and China.” (New York Times, Thursday)

Shooting ourselves in the foot.

FEE Timely Classic
“The Topsy-Turvy Tariff Tangle” by W. M. Curtiss

Supreme Court Takes New Second Amendment Case

Sheldon Richman — Thu, 01 Oct 2009 12:25:48 +0000

“The Supreme Court could ignite a vigorous new fight over state and local gun controls across the nation when it rules on a challenge to Chicago’s handgun ban. The court said Wednesday it will consider a challenge to Chicago’s ban, and even gun control supporters believe a victory is likely for gun-rights proponents.” (Washington Post, Thursday)

Does the Second Amendment apply to the states?

FEE Timely Classic
“States’ Rights Revisited” by Gene Healy

Obama Gives Away $5 Billon in Medical Grants

Sheldon Richman — Thu, 01 Oct 2009 12:24:50 +0000

“President Obama toured a Maryland cancer lab Wednesday to call attention to $5 billion in new government health science grants, which he described as the ‘largest single boost to biomedical research in history.’” (Los Angeles Times, Thursday)

He had to borrow it first. So what won’t we get for that money?

FEE Timely Classic
“Separate State and Science” (pdf) by Sheldon Richman

Public Option Dealt Setback in Senate Committee

Sheldon Richman — Wed, 30 Sep 2009 12:27:46 +0000

“A key Senate panel twice beat back efforts Tuesday to create a government-run insurance plan, dealing a crippling blow to the hopes of liberals seeking to expand the federal role in health coverage as a cornerstone of reform.” (Washington Post, Wednesday)

Much damage can still be done.

FEE Timely Classic
“Obama’s Health-Insurance Cartel” by Sheldon Richman

Obama Anti-Immigrant Policy Pushes Firings

Sheldon Richman — Wed, 30 Sep 2009 12:27:04 +0000

“A clothing maker with a vast garment factory in downtown Los Angeles is firing about 1,800 immigrant employees in the coming days — more than a quarter of its work force — after a federal investigation turned up irregularities in the identity documents the workers presented when they were hired. The firings at the company, American Apparel, have become a showcase for the Obama administration’s effort to reduce illegal immigration by forcing employers to dismiss unauthorized workers rather than by using workplace raids.” (New York Times, Wednesday)

When work is a crime.

FEE Timely Classic
“At the Intersection of the Minimum Wage and Illegal Immigration” by Howard Baetjer

FDIC Moves to Rebuild Depleted Fund

Sheldon Richman — Wed, 30 Sep 2009 12:25:53 +0000

“Acknowledging that they had greatly underestimated the problems plaguing the nation’s banks, federal officials on Tuesday proposed a $45 billion plan financed by the industry to rescue the ailing insurance fund that protects bank depositors.” (New York Times, Wednesday)

Government deposit insurance is a most insidious form of intervention.

FEE Timely Classic
“Privatize Deposit Insurance” by Jeffrey Rogers Hummel

European Socialists Fail to Capitalize on Economic Woes

Sheldon Richman — Tue, 29 Sep 2009 12:49:02 +0000

“A specter is haunting Europe — the specter of Socialism’s slow collapse. Even in the midst of one of the greatest challenges to capitalism in 75 years, involving a breakdown of the financial system due to ‘irrational exuberance,’ greed and the weakness of regulatory systems, European Socialist parties and their left-wing cousins have not found a compelling response, let alone taken advantage of the right’s failures.” (New York Times, Tuesday)

Notice the unwarranted assumption that it’s the free market which failed.

FEE Timely Classic
“Capitalism: Yes and No” by Clarence B. Carson

Corporate Mergers Indicate Economic Optimism

Sheldon Richman — Tue, 29 Sep 2009 12:45:58 +0000

“In a signal that confidence — and perhaps a bit of executive swagger — may be returning to the business world, two large mergers were announced on Monday, adding to a flurry of deals in the last month.” (New York Times, Tuesday)

In a mixed economy it can be hard to know if mergers have a true economic justification.

FEE Timely Classic
“Corporate Mergers: Method or Madness?” by Sheldon Richman

Health System Said to Deliver Too Much Care

Sheldon Richman — Tue, 29 Sep 2009 12:44:38 +0000

“A dirty word in health-care reform is ‘rationing,’ a term that conjures up the image of faceless government bureaucrats denying lifesaving therapies in the name of cutting costs. But what if the real issue is not the specter of future rationing, but the haphazard, even illogical, way in which care is delivered today?” (Washington Post, Tuesday)

Where’s it written that the only alternative to nationalized insurance is the interventionist status quo?

FEE Timely Classic
“The Economics of Medical Care” by George Yossif

Some Want “Illegals” Covered under Healthcare Plan

Sheldon Richman — Mon, 28 Sep 2009 12:52:26 +0000

“Fearful that they’re losing ground on immigration and health care, a group of House Democrats is pushing back and arguing that any health care bill should extend to all legal immigrants and allow illegal immigrants some access.” (Washington Times, Monday)

If no one is entitled to tax-funded benefits, how can “illegals” be less entitled than others?

FEE Timely Classic
“Absorbing Immigrants” by Donald J. Boudreaux

Cuba Allows For-Profit Farming on State Lands

Sheldon Richman — Mon, 28 Sep 2009 12:51:20 +0000

“Faced with the smothering inefficiencies of a state-run economy and unable to feed his people without massive imports of food, Cuban leader Raúl Castro has put his faith in compatriots like Esther Fuentes and his little farm out in the sticks. If Cuba is searching for its New New Man, then Fuentes might be him. The Cuban government, in its most dramatic reform since Castro took over for his ailing older brother Fidel three years ago, is offering private farmers such as Fuentes the use of fallow state lands to grow crops — for a profit. Capitalism comes to the communist isle? Not quite, but close. Raúl Castro prefers to call it ‘a new socialist model.’” (Washington Post, Monday)

Who knows where this will lead?

FEE Timely Classic
“La Lucha: The Human Cost of Economic Repression in Cuba” by Patricia Linderman