Cato Daily Dispatch for November 19, 2004
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Illinois Supreme Court Stops Suits against Gun ManufacturersGreenspan: Trade Deficits Pose Risk to U.S. Economy
Social Security on the Agenda for the 109th Congress
Illinois Supreme Court Stops Suits against Gun Manufacturers
"The Illinois Supreme Court threw out two lawsuits accusing gunmakers of knowingly letting weapons fall into the hands of gang members and other criminals, in a ruling Thursday that the manufacturers cannot legally be blamed for street violence," reports the Washington Post.
"`The mere fact that defendants' conduct in their plants, offices and stores puts guns into the stream of commerce does not state a claim for public nuisance,' the court said. `It is the presence and use of the guns within the city of Chicago that constitutes the alleged nuisance.'"
In "Pistol Whipped: Baseless Lawsuits, Foolish Laws," Robert Levy, senior fellow, writes: "Before we compromise constitutional rights expressly recognized in the Second Amendment, we ought to be sure of three things: first, that we've identified the real problem; second, that we've pinpointed its cause; and, third, that our remedy is no more extensive than necessary to fix the problem. The spreading litigation against gun makers fails all three tests as do the latest gun control proposals. Guns do not increase violence; they reduce violence. Banning or regulating firearms will not eliminate the underlying pathologies. And a less invasive remedy already exists: enforce existing laws."
Greenspan: Trade Deficits Pose Risk to U.S. Economy
"The persistence of bloated U.S. trade deficits over time can pose a risk to the U.S. economy, which thus far has proven resilient, Federal Reserve Chairman Alan Greenspan warned Friday," the Associated Press reports.
The Web site for Cato's Center for Trade Policy Studies sets the record straight on trade deficits: "America's trade deficit is not a cause for alarm. It is not caused by 'unfair' trade practices abroad or a lack of industrial competitiveness at home. The trade deficit results from a net inflow of foreign capital into the United States, capital drawn by America's vibrant and growing economy. Without this capital inflow, domestic interest rates would be higher, investment lower, and long-term growth rates slower.
"Imports do not harm the American economy. They raise the living standards of U.S. workers and provide low-cost inputs and capital equipment for American industry. Imports do not reduce the number of jobs in our economy. They help to create better jobs by allowing Americans to shift resources to sectors where we can be even more productive."
Social Security on the Agenda for the 109th Congress
"Congress will send President Bush legislation overhauling both Social Security and the tax code by the end of 2006, House Majority Leader Tom DeLay will tell top conservatives in a speech tonight," according to the Washington Times.
"`Social Security and tax reform are both on the agenda for the 109th Congress, and we plan to send both bills to the president before we adjourn two years from now,' DeLay will tell the Council for National Policy, according to excerpts from the speech text."
Michael Tanner, director of Cato's Project on Social Security Choice, says: "The Democratic congressional leadership, which has ardently opposed Social Security reform, now faces a choice. Will they engage in a thoughtful debate over Social Security's problems and possible solutions or will they cling to the status quo and the failed scare tactics of the past? For Republicans, they must now decide whether they meant what they said when they promised to fix Social Security."
Tanner is the author of "The 6.2 Percent Solution: A Plan for Reforming Social Security." The plan would enable individuals to privately invest their half (6.2 percentage points) of their payroll tax through individual accounts. The remaining 6.2 percentage points of payroll taxes will be used to pay transition costs and to fund disability and survivors benefits.
Gina Verticchio, editor, gverticchio@cato.org
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