Archives: 12/2014

The Final Nail in the Keynesian Coffin?

I wrote earlier this year about the “perplexing durability” of Keynesian economics. And I didn’t mince words.

Keynesian economics is a failure. It didn’t work for Hoover and Roosevelt in the 1930s. It didn’t work for Japan in the 1990s. And it didn’t work for Bush or Obama in recent years. No matter where’s it’s been tried, it’s been a flop. So why, whenever there’s a downturn, do politicians resuscitate the idea that bigger government will “stimulate” the economy?

And I specifically challenged Keynesians in 2013 to explain why automatic budget cuts were supposedly a bad idea given that the American economy expanded when the burden of government spending shrank during the Reagan and Clinton years.

I also issued that same challenge one day earlier, asking Keynesians to justify their opposition to sequestration given that Canada’s economy prospered in the 1990s when government spending was curtailed.

It seems that the evidence against Keynesianism is so strong that only a fool, a politician, or a college professor could still cling to the notion that bigger government lead to more growth.

Fortunately, it does appear that there’s a growing consensus against this free-lunch theory.

Is North Korea Preparing for Change or Planning More of the Same?

North Koreans have formally ended their three-year mourning period for Kim Jong-il. By custom his son, Kim Jong-un, and the country now are free to move forward without hindrance from the past.

A small, poor nation, the Democratic People’s Republic of Korea should be an international nullity, irrelevant to global affairs. Yet it again dominated headlines in the U.S. with the hacking of Sony.

Although the FBI is pointing its finger at Pyongyang, a number of online experts strongly doubt the charge. Whatever the case, this otherwise two-bit international player is at the top of the news.

For the last seven decades Washington has made North Korea America’s problem. The U.S. initially had little choice since its joint division of the Korean peninsula with the Soviet Union led to creation of two antagonistic states.

But eventually the Republic of Korea took off economically and adopted democratic rule.  Today the ROK surpasses the North on every measure of national power save military, and the latter is a matter of choice.

As I point out on Forbes online: “By taking on responsibility for South Korea’s defense, Washington has thrust itself into the middle of the Korean conflict. The risk and cost made sense during the Cold War when the ROK was vulnerable and the region a hegemonic battleground. But no longer.”

How Hawkish Are Republican Voters?

William Kristol tells the Washington Post that Sen. Rand Paul is a “lonely gadfly” on foreign policy:

“Rand Paul speaks for a genuine sentiment that’s always been in the Republican Party, but maybe it’s 10 percent? 15 percent? 20 percent? I don’t think he’s going to be a serious competitor for guiding Republican foreign policy.”

At the Huffington Post I suggest that Kristol read the polls. They show rising non-interventionist sentiment among Republicans and especially among independents. I argue:

Americans, including Republicans, are getting tired of policing the world with endless wars. Support for the Iraq war is almost as low as approval of Congress.

Medicaid’s Access to Care Problems Persist and Will Get Worse Next Year

Last week, Republican Governor Bill Haslam announced a plan to expand Medicaid in Tennessee. Republican governors in Wyoming and Utah have also put forward expansion plans in the past month. A recent Washington Post editorial argued that there is “no rational justification” for refusing to expand Medicaid.

Despite this claim there are many reasons to be wary of Medicaid expansion even as some Republican governors signal some measure of support. A recent government report found that many Medicaid patients have access to care problems, including difficulty getting an appointment to see a doctor and lengthy wait times. Due to a looming reduction in the rates Medicaid pays some doctors, access to medical care for Medicaid enrollees is likely to get worse next year.

In the report from the HHS Office of Inspector General, researchers posed as Medicaid patients and called managed care providers. They found that 51 percent of listed providers could not schedule an appointment. Some providers could not be found at the location listed, some were found but were not participating in the plan, while others were no longer taking new Medicaid patients.

Even those few who were able to get appointments faced lengthy average wait times. At 28 percent of providers offering appointments, enrollees had to wait longer than a month. At 10 percent, the wait exceeded two months. Many states have requirements that wait times must be shorter than a month, so the fact that so many would have to wait longer than that “raises further questions about enrollees’ ability to obtain timely access to care.”

Internationalists vs. Isolationists

Last week, I had a piece in Townhall in which I criticized those who call libertarians “isolationists.”  I explained the various ways libertarians are just as internationalist, if not more so, than those of other political persuasions.  The recent Rand Paul-Marco Rubio back and forth on President Obama’s new Cuba policy helps illustrate the point.  Here is the Washington Post summarizing the exchange:

Hawkish Republicans have long called Paul’s foreign policy “isolationist,” a label he rejects. In this week’s Cuba debate, Paul applied the label to Rubio.

Paul’s comments were unusually personal, beginning with a series of tweets aimed at Rubio followed by a two-paragraph message on his Facebook page. “Senator Rubio is acting like an isolationist” and “does not speak for the majority of Cuban-Americans,” he wrote.

Paul followed up with an op-ed on Time’s Web site Friday afternoon in which he wrote that he grew up learning to despise communism but over time concluded that “a policy of isolationism against Cuba is misplaced and hasn’t worked.” He noted that public opinion has shifted in favor of rapprochement — especially among young people, including young Cuban Americans — and that U.S. businesses would benefit by being able to sell their goods in Cuba.

Rubio responded to Paul’s comments Friday evening, telling conservative radio host Mark Levin, “I think it’s unfortunate that Rand has decided to adopt Barack Obama’s foreign policy on this matter.”

I don’t think there can be much doubt that Paul’s approach of engagement with Cuba is internationalist, not isolationist.  The Rubio approach is harder to define.  It can be seen as isolationist, in a sense; alternatively, it could be some sort of aggressive, interventionist – and ineffective – internationalism.  Either way, the Cuba issue is a good illustration of how libertarians are not isolationists, and hopefully this will put an end to that mistaken characterization.

Worst Congress Ever? You Must Be Kidding

The Establishment media really love laws and government. NPR, the Washington Post, Huffington Post, Pew Research, NBC, Politico – they’re all lamenting the “least productive Congress” ever. Or more precisely noting that the just-concluded 113th Congress was the second least productive Congress ever, second only to the 2011-12 112th Congress. But what’s the definition of a “productive Congress”? One that passes laws, of course, lots of laws. Congress passed only 286 laws in the past two years, exceeded in slackerdom only by the 283 passed in the previous two years of divided government.

Now journalists may well believe that passing laws is a good thing, and passing more laws is a better thing. But they would do well to mark that as an opinion. Many of us think that passing more laws – that is more mandates, bans, regulations, taxes, subsidies, boondoggles, transfer programs, and proclamations – is a bad thing. In fact, given that the American people pondered the “least productive Congress ever” twice, and twice kept the government divided between the two parties, it just might be that most Americans are fine with a Congress that passes fewer laws. 

Is a judge “less productive” if he imprisons fewer people? Is a policeman less productive if he arrests fewer people? Government involves force, and I would argue that less force in human relationships is a good thing. Indeed I would argue that a society that uses less force is a more civilized society. So maybe we should call the 112th and 113th Congresses the most civilized Congresses since World War II (the period of time actually covered by the claim “least productive ever”).

Dana Milbank of the Washington Post ups the ante from “least productive” to “by just about every measure, the worst Congress ever.” Seriously? Since I am confident that Mr. Milbank is not historically ignorant, I assume he’s just being rhetorically provocative. But just in case any of his readers might actually believe that claim, let me suggest a few other nominees for “worst Congress ever”:

The 31st Congress, which passed the Fugitive Slave Act in 1850

The 5th Congress, which passed the Alien and Sedition Acts in 1798

The 21st Congress, which passed the Indian Removal Act in 1830

The 77th Congress, which passed Public Law 503, codifying President Franklin D. Roosevelt’s Executive Order 9066 authorizing the internment of Japanese, German, and Italian Americans, in 1942

The 65th Congress, which passed the Eighteenth Amendment (Prohibition), the Espionage Act, and the Selective Service Act, and entered World War I, all in 1917

Worst Congress ever? The 113th isn’t even in the running. 

You Ought to Have A Look: Poor Climate Models, Ethics and Climate Policy, New White House Guidelines

You Ought to Have a Look is a feature from the Center for the Study of Science posted by Patrick J. Michaels and Paul C. (“Chip”) Knappenberger. While this section will feature all of the areas of interest that we are emphasizing, the prominence of the climate issue is driving a tremendous amount of web traffic. Here we post a few of the best in recent days, along with our color commentary.

Here are a couple of items from around the web that caught our eye this week:

The first is an analysis of recent climate model performance undertaken by Steve McIntyre over at his now-famous “Climate Audit” blog. (Recall that McIntyre began his blog as a place to carefully examine—”audit”—the now infamous “hockeystick” representation of the earth’s surface temperature history of the past millennium or so.) In his latest post, McIntyre compares climate model predictions against real-world observations of the earth’s temperature over the past several decades—a task that is near and dear to our own hearts. (We have been in San Francisco this week at the annual fall meeting of the American Geophysical Union presenting a poster on a similar topic.)

McIntyre finds the discrepancy between models and reality to be “unprecedented” and described the results of his examination:

Equally noteworthy however—and of greater interest to [Climate Audit] readers where there has been more focus on model-observation discrepancy—is that the overheating discrepancy between models and surface temperatures in 2014 was the fourth highest in “recorded” history and that the 5 largest warm discrepancies have occurred in the past 6 years.  The cumulative discrepancy between models and observations is far beyond any previous precedent. This is true for both surface and satellite comparisons.

If this all sounds familiar, it’s because we reached a similar conclusion ourselves in our recent post, “Record Global Temperature—Conflicting Reports, Contrasting Implications,” where we noted:

For the past 16 straight years, climate models have collectively projected more warming than has been observed.

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