But let’s look at the arguments made by the opponents of fiscal stimulus. Some have argued that, as deficits increase, people now offset the putative stimulus by increasing their savings in anticipation of future tax increases. So there is no stimulus now. Others have argued that, for example, extending unemployment insurance (again) to those unemployed for more than six months will increase the length of unemploymentnow (by subsidizing it) while failing to stimulate. The stimulus failure is due to the relatively small increase in spending induced by non-permanent increases in income (as unemployment insurance is certainly not permanent source of income). Even more, producers know that the spending is non-permanent so it is unlikely to result in increased employment of labor. Thus, there is no stimulus now; in fact if unemployment continues there is a kind of anti-stimulus now. Austrians have argued that failing to allow the housing market to adjust by both fiscal and monetary propping-up measures, worsens the situation now by prolonging the inevitable adjustment to a bubble sector. As the adjustment is dragged out and the rest of the economy suffers the dampening effectsnow. This must include the uncertainty as to when (in calendar time) the market will be allowed to adjust. In empirical work, John Taylor finds that to the extent there was some effect of the fiscal stimulus it was very small and lasted only a matter of two or three months for each major injection. So I guess the long run is four or five months by this reckoning:Compared with the 2008 stimulus, the 2009 stimulus was larger, but the amount paid in checks was smaller and more drawn out. Nevertheless, there is still no noticeable effect on consumption. I also show the timing of the “Cash for Clunkers” program in Figure 7; it did encourage some consumption, but did not last and cannot be considered an effective method to stimulate the economy. In addition, my analysis of the government spending part of the stimulus is that it too had little positive impact.Even frameworks that stress future consequences of current stimulus need not be long-run theories in the calendar sense. For example, if the anticipated taxes required to pay off or service current deficits consist of rises in marginal income tax rates, output will be considerably lower and the real interest rates higher in a matter of a couple of years than without stimulus. The upshot of all of this is that the anti-stimulus economists are not claiming we must trade off benefits now for some long-term pie-in-the-sky benefits. Most are saying: The stimulus route leads to (almost) no benefits now as well as costs later.
Posted on June 29, 2010 Posted to Cato@Liberty
Posted on June 28, 2010 Posted to Cato@Liberty
pulling in Iranian viewers with sizzling soaps and sitcoms but has incensed the Islamic republic's clerics and state television executives. Unlike dozens of other foreign-based satellite channels here, Farsi1 broadcasts popular Korean, Colombian and U.S. shows and also dubs them in Iran's national language, Farsi, rather than using subtitles, making them more broadly accessible. Its popularity has soared since its launch in August.... Satellite receivers are illegal in Iran but widely available. Officials acknowledge that they jam many foreign channels using radio waves, but Farsi1, which operates out of the Hong Kong-based headquarters of Star TV, a subsidiary of Murdoch's News Corp., is still on the air in Tehran. Viewers are increasingly deserting the six channels operated by Iranian state television, with its political, ideological and religious constraints, for Farsi1's more daring fare, including the U.S. series "Prison Break," "24" and "Dharma and Greg."Those who want to build a wall around the minds of the Iranian people denounce Murdoch and his temptations:
Some critics here hold Murdoch responsible for what they see as this new infestation of corrupt Western culture. The prominent hard-line magazine Panjereh, or Window, devoted its most recent issue to Farsi1, featuring on the cover a digitally altered version of an evil-looking Murdoch sporting a button in the channel's signature pink and white colors. "Murdoch is a secret Jew trying to control the world's media, and [he] promotes Farsi1," the magazine declared. "Farsi1's shows might be accepted in Western culture . . . but this is the first time that such things are being shown and offered so directly, completely and with ulterior motives to Iranian society. Does anybody hear alarm bells?" wrote Morteza Najafi, a regular Panjereh contributor.The Iranian state -- Akbar Ganji calls it a "sultanate" in Weberian terms -- has tried to block access to Farsi1. It jams foreign channels, it sends police out to confiscate satellite dishes, but it can't seem to prevent many citizens from tuning in to officially banned broadcasts. Way back in 1979, David Ramsay Steele of the Libertarian Alliance in Great Britain wrote about the changes beginning in China. He quoted authors in the official Beijing Review who were explaining that China would adopt the good aspects of the West -- technology, innovation, entrepreneurship -- without adopting its liberal values. “We should do better than the Japanese,” the authors wrote. “They have learnt from the United States not only computer science but also strip-tease. For us it is a matter of acquiring the best of the developed capitalist countries while rejecting their philosophy.” But, Steele replied, countries like China have a choice. “You play the game of catallaxy, or you do not play it. If you do not play it, you remain wretched. But if you play it, you must play it. You want computer science? Then you have to put up with striptease.” North Korea and Burma choose to "remain wretched." That's not the future Iran's leaders want. But they too will find it difficult to keep their citizens in an information straitjacket while participating in a global economy. Footnote: In all this discussion of how authoritarian governments try to protect their citizens from offensive images, alternative ideas, and what's going on in the rest of the world, I am for some reason reminded of the "30 Rock" episode in which NBC executive Jack Donaghy (Alec Baldwin) is trying to figure out how to deal with a high-strung performer. Another actress tells him, "You've got to lie to her, coddle her, protect her from the real world." Jack replies,"I get it -- treat her like the New York Times treats its readers."
Posted on June 26, 2010 Posted to Cato@Liberty
A talented little group of intellectuals in the 1930s was keen on Promethean myths, and the center of that impulse was the United States, where the talented group pictured the Communist movement in the light of Prometheus and his struggles. Edmund Wilson devoted his masterwork To the Finland Station to the Promethean theme—it, too, came out in 1940, by the way....
Read more...By the time Wilson completed his own manuscript, he knew very well that, in Russia, Marxism had pretty much failed. And he attributed this failure largely to a philosophical error on Marx’s part, back in the nineteenth century. Marx had thoughtlessly incorporated into his own doctrine a whiff of mysticism, drawn from Hegel. The mystical whiff had transformed Marx’s movement from a sober, progressive-minded, social-science action campaign into a movement of religious inebriates. A religious frenzy had produced a hubris. Under Lenin and the Bolsheviks, hubris led to despotism. And to crime—to the deliberate setting aside of moral considerations. To the dehumanization of humanism.Such was Wilson’s argument in To the Finland Station. Here was the Promethean myth, twisted into tragedy: a story of rebellion and counter-rebellion. Freedom and its betrayal. Fire and self-immolation. Wilson’s philosophical mentors were Max Eastman and Sidney Hook, and in that same year each of those redoubtable thinkers came out with his own variation on the same interpretation—Eastman in an essay in Reader’s Digest (which later appeared in his book Reflections on the Failure of Socialism) and Hook in a volume called Reason, Social Myths, and Democracy. In the United States in 1940, tragic Prometheanism was more than an argument. It was a school of thought.And somehow Koestler, composing his novel under European circumstances inconceivably more difficult than anything his American colleagues would ever experience, arrived at roughly the same interpretation.
Posted on June 25, 2010 Posted to Cato@Liberty
Assistant Professor of Chemistry John McLean has been awarded a $2.7 million Grant Opportunity grant from the National Institutes of Health as part of the American Recovery and Reinvestment Act of 2009.
Posted on June 24, 2010 Posted to Cato@Liberty
Posted on June 23, 2010 Posted to Cato@Liberty
Posted on June 22, 2010 Posted to Cato@Liberty
Serena, who earned her third title by beating her sister in last year's final, has tweaked her tournament preparation in anticipation of a visit Thursday to Wimbledon by Queen Elizabeth II. "I've been working on my curtsy," Serena said. "It's a little extreme, so I'm going to have to tone it down. I was practicing it this morning."This is a republic. We do not recognize distinctions among individuals based on class or birth. We are not subjects of the queen of the England, the queen of the Netherlands, the emperor of Japan, or the king of Saudi Arabia. Therefore we don't bow or curtsy to foreign heads of state.
Posted on June 21, 2010 Posted to Cato@Liberty
Posted on June 20, 2010 Posted to Cato@Liberty
Posted on June 20, 2010 Posted to Cato@Liberty