Archives: 05/2014

Globalization Eradicates Poverty

The Malaysia Chronicle and The Economist recently reported on how globalization is improving the lives of Chinese villagers. Consider this example:

Taobao is an online retailer like Amazon. There are few qualifications to open an online store with Taobao. Chinese villagers, having little more than their cheap labor to offer, sell handicrafts on the website. The villagers get paid for their work and amass greater opportunities in return, while money and prosperity flow into their previously sleepy villages.

Globalization is making Chinese villagers richer, contrary to critics who claim that globalization generates poverty.   Interconnected, free markets generate wealth and pull people out of poverty. This occurs as the connective technologies of globalization (like the Internet) increase competition. That benefits consumers who can buy more, increasingly inexpensive products to better their quality of life. That also creates innovation and employment, as is the case for Chinese villagers.

For more on the relationship between human progress and economic freedom, visit HumanProgress.org

The Ever Expanding Role of Trade Agreements: Human Rights

For years, I’ve been fighting what feels like a rearguard battle to keep free trade agreements focused on free trade. It can be a real struggle. Labor issues, environmental issues, and intellectual property are all solidly part of U.S. trade policy. Next up might be human rights.

The European Union has had human rights in its trade agreements for a while now, in the form of a provision that allows the EU to suspend the trade agreement if its partner does not sufficiently protect human rights. Recently, in their trade talks with the EU, both Canada and Japan have raised objections to such a provision, based on the view that they are developed countries that already protect human rights, and thus shouldn’t be subject to the EU’s scrutiny on this issue.

It will be interesting to see how the United States reacts if the EU demands such a provision as part of the Transatlantic Trade and Investment Partnership (TTIP) talks. Many lawmakers and commentators would object, I think. On the other hand, there might also be some U.S. support for the provision. Consider this from the Financial Times:

In a move that will cause concern with some US negotiating partners such as Brunei and Vietnam, [Senator Ron] Wyden says he would also like to see trade agreements address human rights, something advocated by fellow Democrats.

“I think it’s the responsible thing to do and I think it will bring more support for the cause of trade expansion,” Mr Wyden says.

I have a number of objections to the inclusion of human rights in trade agreements. One is that, contrary to what Senator Wyden suggests, including these issues will, in my view, make it much harder to achieve the trade liberalization that is at the core of these agreements. It moves the debate away from the basic issue of how we are better off with free trade, and in the process adds new opponents to such agreements.

Another is that people don’t really agree on what constitutes human rights. Are we talking about the right to free speech or the right to food? There are very different implications from the different conceptions.

I think it’s important to have conversations about rights at the international level. Even if we don’t all agree, we can learn a lot from each other. But as a condition for negotiating free trade agreements, adding in human rights probably just means we are less likely to achieve freer trade.

Walking to School? Yeah, There’s a Federal Program for That

The Associated Press reports:

For a growing number of children in Rhode Island, Iowa and other states, the school day starts and ends in the same way — they walk with their classmates and an adult volunteer to and from school. Walking school buses are catching on in school districts nationwide because they are seen as a way to fight childhood obesity, improve attendance rates and ensure that kids get to school safely….

Many programs across the country are funded by the federal Safe Routes to School program, which pays for infrastructure improvements and initiatives to enable children to walk and bike to school.

 

What We Can Expect from the Supreme Court in the Next Month

As we head into the last month of the Supreme Court term – the Court releases its final, typically highest profile, opinions the last week of June – it’s time to take a deep breath and survey the lay of the land. Here’s what we can expect in coming weeks as the justices rush to get their final opinions out before heading out on their summer vacation/lecture/exile:

  1. Currently scheduled opinion-release days are June 2 (this coming Monday), 9, 16, 23, and 30. I’d expect the Court to cut June 30 – I’m sure some of the justices already have travel planned for that week – and add 3-4 more opinion days the weeks of June 9, 16, or 23. Each week’s extra days are typically announced on the Monday of the given week.
  2. There are 25 cases outstanding, most notably Bond (treaty power, argued in November), Noel Canning (recess appointments, January), McCullen (abortion-clinic buffer zone, January), Harris (forced unionization of home healthcare aides, January), Hobby Lobby/Conestoga Wood Specialties (Obamacare contraceptive mandate, March), Susan B. Anthony List (criminalizing false political speech, April), and Riley/Wurie (cell phone searches, April).

As for how all these cases will turn out, all I can say is that it’s fortunate that I’m not paid for my predictive abilities because I don’t think anyone could make a living doing that. Unlike many Court-watchers, however, I’m happy to go on a limb with my best guesses at what’ll happen:

Occupational Licensing In the New York Times

Yesterday the New York Times published an op-ed by Morris Kleiner making the case for occupational licensing reform. In it, Kleiner argues that there is a bipartisan case for reform, and that the real losers of occupational licensing are consumers. Kleiner notes that occupational licensing has noble aims, to protect the health and safety of the public from those who seek to defraud them. But the actual result provides more protection from competition for those in the professions rather than protection for consumers from low-quality providers.

Thirty percent of the work force requires some kind of occupational license today compared with ten percent in the 1970s. This raises costs to consumers, especially those with low incomes who do not wish to pay for the minimum level of “quality” that licensing boards claim to provide.

Kleiner proposes to replace licensing boards with optional certification programs. All individuals could legally practice in a particular profession, but individuals could choose to undergo certification to signal the quality of their training and service provision. Cheaper, uncertified professionals could provide services to those who are more price sensitive.

Kleiner has spent his career studying the decline of labor unions and the rise of occupational licensure as the U.S. economy has shifted from manufacturing to services. In 2006 Regulation published A License for Protection in which Kleiner describes this shift. I’ve also covered his work on dental hygienist regulation here, and the upcoming Summer issue of Regulation will look at his work on nurse practitioner regulation.

Our Freeloading Allies

One of the overlooked aspects of President Obama’s speech at West Point yesterday was his call for other countries to step forward, and do more to defend themselves and their interests. He also expected them to contribute “their fair share” in places like Syria.

It might have been overlooked because it was neither new, nor unexpected. Polls consistently show that Americans believe we use our military too frequently, and they are tired of bearing the costs of policing the planet. Meanwhile, the minority who believe that we should be spending more on the military  – 28 percent of Americans, according to a recent Gallup poll – might not feel that same way if they knew how much we spend as compared to the rest of the world, especially our wealthy allies.

This new Cato infographic, prepared with the able assistance of my colleague Travis Evans, might help to put it all in perspective. In addition to showing how much American taxpayers spend, it also shows, indirectly at least, how that spending discourages other countries from spending more to defend themselves.

Piling On: More New Research Shows No Link Between “Polar Vortex” and Global Warming

Global Science Report is a feature from the Center for the Study of Science, where we highlight one or two important new items in the scientific literature or the popular media. For broader and more technical perspectives, consult our monthly “Current Wisdom.”


This is getting embarrassing.

Another scientific paper has just been published that again finds no association between Arctic sea ice loss and extreme cold and wintery conditions across the U.S.—White House Science Advisor John Holdren’s favorite mechanism for tying last winter’s persistent “polar vortex” over the eastern US to anthropogenic global warming (AGW).

We wonder just what it will take for the White House to publicly admit that it was grossly wrong. At the very least, it needs to disavow a widely-disseminated YouTube video featuring Holdren explaining the link between last winter’s polar vortex and human-caused climate change. There is no such link. Of course, this won’t happen, as Holdren was simply engaging in a publicity stunt relying on tenuous science to scare up support for President Obama’s Climate Action Plan.  The President is hell-bent on an endless string of executive actions aimed at manipulating the energy market and reducing our energy choices along the way.

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