freedom

Does President Trump Support “Unrestrained Freedom”?

The Republican National Committee, in the person of Chairwoman Ronna Romney McDaniel, informs me that I “have been selected to represent the Commonwealth of Virginia as a member of The President’s Club.” I know that this is an important responsibility because it comes with a Priority Mail BRE and a request for $750.

If Poor Nations Want Economic Convergence and Capital Accumulation, They Need Good Policy

There’s a “convergence” theory in economics that suggests, over time, that “poor nations should catch up with rich nations.”

But in the real world, that seems to be the exception rather than the rule.

There’s an interesting and informative article at the St. Louis Federal Reserve Bank which explores this theory. It asks why most low-income and middle-income nations are not “converging” with countries from the developed world.

…only a few countries have been able to catch up with the high per capita income levels of the developed world and stay there. By American living standards (as representative of the developed world), most developing countries since 1960 have remained or been “trapped” at a constant low-income level relative to the U.S. This “low- or middle-income trap” phenomenon raises concern about the validity of the neoclassical growth theory, which predicts global economic convergence. Specifically, the Solow growth model suggests that income levels in poor economies will grow relatively faster than developed nations and eventually converge or catch up to these economies through capital accumulation… But, with just a few exceptions, that is not happening.

Here’s a chart showing examples of nations that are – and aren’t – converging with the United States.

Polarization and Freedom

A new Pew poll finds that three out of four “consistent liberals” would rather live in a community “where the houses are smaller and closer to each other” but within walking distance of schools, stores, and restaurants. Conversely, three out of four “consistent conservatives” would rather live in a larger home on a large lot even if it means driving to schools, stores, and restaurants.


Source: Pew Research Center. Click chart to download Pew’s 121-page (3.5-MB) report on polarization in America.

Pew says this shows that “differences between right and left go beyond politics,” which Pew claims is one of the seven most important things to know about polarization in America. Yet the left has turned the choice between a traditional suburb and a so-called walkable community into a political issue, so it is no wonder that people’s views on this choice are polarized.

Disappointingly, Pew’s report on polarization defines everything in terms of liberal vs. conservative. Pew’s big news is that the share of Americans who are consistently conservative or consistently liberal has more than doubled since 1994–yet you have to read deep into the report to learn that these groups make up just 21 percent of the country. The report says little about the other 79 percent of Americans, yet you’d think they would be important since they outnumber the consistent ones by almost four to one.

Why Did Western Nations Continue to Prosper in the 20th Century even though Fiscal Burdens Increased?

In the pre-World War I era, the fiscal burden of government was very modest in North America and Western Europe. Total government spending consumed only about 10 percent of economic output, most nations were free from the plague of the income tax, and the value-added tax hadn’t even been invented.

Today, by contrast, every major nation has an onerous income tax and the VAT is ubiquitous. Those punitive tax systems exist largely because—on average—the burden of government spending now consumes more than 40 percent of GDP.

historical-size-of-govt

To be blunt, fiscal policy has moved dramatically in the wrong direction over the past 100-plus years. And thanks to demographic change and poorly designed entitlement programs, things are going to get much worse, according to Bank of International Settlements, Organization for Economic Cooperation and Development, and International Monetary Fund projections.

While those numbers, both past and future, are a bit depressing, they also present a challenge to advocates of small government. If taxes and spending are bad for growth, why did the United States (and other nations in the Western world) enjoy considerable prosperity all through the 20th century? I sometimes get asked that question after speeches or panel discussions on fiscal policy. In some cases, the person making the inquiry is genuinely curious. In other cases, it’s a leftist asking a “gotcha” question.

Long-Run GDP

I’ve generally had two responses.

Freedom Banned in Washington

It’s hardly big news, right? Another of our freedoms gets banned in Washington every day. But this time it’s not just particular constitutional rights. They don’t like the whole idea. Or at least the word, on a license plate. 

The District of Columbia allows residents to purchase vanity license plates. And as Chris Moody and Chris Wilson of Yahoo! News describe, there are strict rules about what you can say on your vanity plate:

According to the official list of banned D.C. plate combinations, it may take some extra creativity to get your idea accepted by the city’s meticulous censors. The capital city’s DMV has a 53-page list of 26,993 license plate no-no’s that prohibit everything from praising the local baseball team to expressing disgust with the Internal Revenue Service. The list was made available through a Freedom of Information Request filed by the transparency website GovernmentAttic.org.

You can check out your own ideas at the interactive tester below. Moody and Wilson note that you can’t have such interesting plates as “GOPSUX,” “GODEMS,” “RONPAUL, “”GVTSUX,” ANTIIRS,” “OBAMA,” “BARACK,” or “OBAMA44.”

And that’s right, you can’t have a license plate reading “FREEDOM.”

You can have “LIBERTY,” though, which might suffice. Wonder how they made that distinction. I tried a few other ideas. I once noted that Starbucks wouldn’t let you print “laissez-faire” on a customized Starbucks card. D.C. is more accommodating and has no objection to “LFAIRE.” “GAY” is OK, and perhaps surprisingly so are “HOMO” and “ANTIGAY.” I’ll bet the list of banned words will be constantly growing. “FEMNIST” passes muster, and so does “ANTIFEM.” But don’t try “SEX” or “SEXY.”

Moody and Wilson noted that you can’t have “RONPAUL” or “OBAMA.” But you can have “JEBBUSH”—who is speaking at Cato tomorrow, by the way—or “JEB2016” or “JEB45.” Also “HILLARY” and “BIDEN16.” (“CHRISTIE” is too long, but you can have “CHRISTI” or indeed “CHRIST.”) Hmmm, I’m beginning to wonder why you can’t have “RONPAUL.” But you can have “RAND,” “RAND16,” or indeed “AYNRAND.”

Try your own combinations. Just don’t expect to get “FREEDOM.”

Free or Equal on PBS

In 1980 Milton Friedman made a splash with his 10-part PBS documentary, Free to Choose, which also became a bestselling book. Thirty years later Cato senior fellow Johan Norberg travels in Friedman’s footsteps to see what has actually happened in those places Friedman’s ideas helped transform.

Help Kareem Now

We’ve written about the jailed Egyptian blogger known as Kareem before. Now the people who are working for his release are asking that people “flood the jail with mail” so that Kareem and his jailers will know that the world is watching. I hope you’ll take a moment to help.

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