Topic: General

Bulgaria’s October 5th Elections: A Flashback at the Economic Records

Bulgarians will go to the polls on October 5th to elect new members of its parliament and thus a new government. Before casting their votes, voters should reflect on the economic records of Bulgaria’s governments since 1995.

Every country aims to lower inflation, unemployment, and lending rates, while increasing gross domestic product (GDP) per capita. Through a simple sum of the former three rates, minus year-on-year per capita GDP growth, I constructed a misery index for each of Bulgaria’s six governments since 1995 (see the accompanying table).

Use Education to Transform China From Within

BEIJING—China’s university system is growing.  However, the People’s Republic of China still lags behind the U.S. and other Western nations.  Chinese students increasingly are heading to America for higher education. 

While recently playing tourist in Beijing I spoke to a number of young Chinese.  They were bright and inquisitive, ambitious and nationalistic.  They worried about finding good jobs and were irritated by government restrictions on their freedom. 

Beijing’s global influence depends upon domestic economic growth and political stability.  And that ultimately depends upon China’s young. 

The PRC’s university students today are most likely to become the country’s leaders tomorrow.  The number of college graduates has increased to seven million, a four-fold jump over the last decade. 

While the number of universities in China is growing, few have national, let alone international, reputations.  Undoubtedly that will change over time.  Today, however, competition for the few available spots at top schools is extraordinary. 

For instance, Peking and Tsinghua Universities are the only Chinese universities among the world’s top 100.  They have space only for 6000 new students a year. 

Obviously, far more Chinese students could succeed, indeed thrive, at fine universities.  So more than 400,000 young Chinese are heading abroad every year. 

Government Failure: More from Paul Light

NYU’s Paul Light provides thoughts on government failure in the Wall Street Journal today.

Congress returned to its investigation of the General Motors faulty ignition switch Tuesday with a blistering Senate hearing on the National Highway Traffic Safety Administration’s failure to act. As the House Energy and Commerce Committee concluded on the same day, the agency had more than enough information in 2007 to prevent further tragedy, but gave GM a pass.

Lest anyone think that the neglect was an aberration in an otherwise invulnerable government, the cascade of highly visible failures has been accelerating since the mid-1980s. According to my list of management failures that made the national news over the past quarter-century, the federal government produced an average of 1.5 failures per year from 1986 to 1993, two per year from 1993 to 2001, and three per year from 2001 to today.

Light’s views build on his recent study on the subject, which I discussed in this blog. Light says some nice things about the bureaucracy, which I have not quoted here. But he has documented a long list of failures:

With more aggressive oversight and stronger policy, for example, the Occupational Health and Safety Administration could have prevented the fertilizer plant explosion in West, Texas, last year that killed 13 people. With more effective monitoring of at least two of its watchlists, the intelligence community could have warned the Boston police that there was a potential terrorist duo in the city before the Boston Marathon bombing. With a bit of late-night reading of its own internal reports, the Department of Veterans Affairs could have discovered the VA’s wait-list scandal well before it hit the news. And so it goes, from the flu-vaccine shortages, to the Columbia shuttle disaster, the financial meltdown, the Gulf of Mexico oil spill and the healthcare.gov disaster.

I think a key reason why the federal government is failing more than ever is because it is larger than ever. Light suggests other reasons for the government’s poor performance. Either way, this is an important discussion to have, and I am glad Light is out front documenting the failures and asking some fundamental questions.

Countries at Risk, not Fake U.S. Coalition, Should Stop the Islamic State

President Barack Obama is fighting the Islamic State with a coalition without members.  What are allies for?

Washington collects allies like most people collect Facebook friends.  It doesn’t matter if the new “friends” enhance America’s security.  Washington wants more allies.

Yet America’s allies do little for the U.S.  Their view is that Washington’s job is to defend them.  Their job is to be defended by Washington. 

For decades Washington faced down a nuclear-armed power—the Soviet Union and then Russia—to protect the Europeans.  The Europeans did essentially nothing for the U.S. 

After 9/11 several European states contributed to America’s efforts in Afghanistan and Iraq.  Neither invading the latter nor attempting to build a democratic central government in the former made policy sense, but some Europeans sacrificed on behalf of a professed U.S. interest. 

However, Washington quickly repaid the favor, underwriting Britain’s and France’s foolish war in Libya.  Now the Europeans want Washington to save Ukraine and “reassure” countries to the east.  Yet the EU has a larger GDP and population than America. 

With the U.S. now calling for assistance against ISIL, the continent has turned more frigid.  No one seems interested in joining Washington’s air war, even Great Britain.

Washington’s Asian friends are even less helpful.  For decades Japan wouldn’t help U.S. forces, even if they were defending Japan.  That is finally changing, but there still is no good reason Washington to stare down the People’s Republic of China to secure Tokyo’s disputed claim to the Senkaku Islands. 

ObamaCare Exchanges Recklessly, Often Unlawfully, Throwing Taxpayer Money At Health Insurance Companies

Robert Laszewski, health policy wonk, blogger, and president of Health Policy and Strategy Associates, tells Inside Health Insurance Exchanges:

The Obama administration has no idea how many people are currently enrolled [in exchanges] but they keep cutting checks for hundreds of millions of dollars a month for insurance subsidies for people who may or may not have paid their premium, continued their insurance, or are even legal residents.

And if you think they’re doing those “enrollees” a favor, remember that if it turns out a recipient wasn’t eligible for the subsidy, he or she has to pay the money back.

Surprised? Don’t be. This is part of a deliberate, consistent strategy by the Obama administration to throw money at individual voters and key health care industry groups—lawfully or not—to buy support for this consistently unpopular law.

The D.C. Circuit Grants En Banc Review of Halbig

My reaction to the D.C. Circuit’s decision to grant en banc review of Halbig v. Burwell in a nutshell:

  1. It is unnecessary.
  2. It is unwise.
  3. It is unfortunate.
  4. It appears political, as would a decision to overrule Halbig.
  5. It will likely only delay Supreme Court review.
  6. En banc review does not necessarily mean the court will overturn Halbig, though it doesn’t look good.
  7. I predict that even if the court overturns Halbig, the Obama administration will lose ground.
  8. The D.C. Circuit will not have the last word.

If you want to go outside the nutshell, where I unpack all this with more words and facts and links, go here