In Bootleggers & Baptists: How Economic Forces and Moral Persuasion Interact to Shape Regulatory Politics, economists Bruce Yandle and Adam Smith explain how money and morality are often combined in politics to produce arbitrary regulations benefiting cronies, while constraining productive economic activities by the general public.
Featuring Michael F. Cannon, Director of Health Policy Studies, Cato Institute; and C. Eugene Steuerle, Institute Fellow and Richard B. Fisher Chair, Urban Institute.
Congressional leaders are weighing their options for moving the Senate-passed health care overhaul through the House. That legislation would have the undesirable effect of discouraging low-wage workers from climbing the economic ladder. A new Cato Institute study by Michael F. Cannon finds that implicit tax rates would often exceed 100 percent for low-wage workers, which could trap millions of Americans in low-wage jobs. Cannon also finds that the Senate bill creates incentives as large as $8,000 per year for people to purchase health insurance only when they are sick.