Category Archives: Economics

A Good Place To Start Trimming The Federal Budget

Education:

America spends far more on education than countries like Germany, Japan, Australia, Ireland, and Italy, both as a percentage of its economy, and in absolute terms. Yet despite this lavish government support for education, college tuition in the U.S. is skyrocketing, reaching levels of $50,000 or more a year at some colleges, and colleges are effectively rewarded for increasing tuition by mushrooming federal financial-aid spending. Americans can’t read or do math as well as the Japanese, even though America spends way more (half again more) on education than Japan does, as a percentage of income, according to the CIA World Fact Book.

Definitely another bubble about to pop.

Politifact?

…or PolitiFiction?

In fact—if we may use that term without PolitiFact’s seal of approval—at the heart of ObamaCare is a vast expansion of federal control over how U.S. health care is financed, and thus delivered. The regulations that PolitiFact waves off are designed to convert insurers into government contractors in the business of fulfilling political demands, with enormous implications for the future of U.S. medicine. All citizens will be required to pay into this system, regardless of their individual needs or preferences. Sounds like a government takeover to us.

…As long as the press corps is nominating “lies of the year,” ours goes to the formal legislative title of ObamaCare, the Patient Protection and Affordable Care Act. For a bill that in reality will raise health costs and reduce patient choice, the name recalls Mary McCarthy’s famous line about every word being a lie, including “the” and “and.”

I’ll go with politifiction.

[Update a while later]

Pere Suderman isn’t impressed, either:

If you had to rank the biggest political lie of 2010, what would it be? The utter horse-hockey that we’ve somehow proven that the stimulus created a zillion-billion long-term jobs and acted like a fiscal-policy Powerbar for the economy? The president’s oft-repeated and flatly untrue statement that under the health care overhaul, if you like your doctor or your health plan, you can keep it? The contrived justifications for describing ObamaCare as indisputably “fiscally responsible” despite a hotly contested and thoroughly gamed budgetary scoring process? How about the administration’s repeated but totally false claim that the CBO backs up its Medicare accounting, when in fact the CBO has said that the administration’s numbers constitute a form of “double counting”?

Say what you will about the rest of its accomplishments (or lack thereof), but the White House has proven a remarkably consistent and high-quality bullshit factory this year. The way they churn this stuff out, you might think they’d be up for an award! No such luck…

PolitiFiction.

The Waste Of Money

…that is our educational system It’s run for the benefit of the administrators and teachers’ unions, not the children.

[Update a while later]

It’s not just a waste of money, it’s criminally stupid:

Skylar Torbett, also a junior, said administrators told him, “They said the candy canes are weapons because you can sharpen them with your mouth and stab people with them.” He said neither he nor any of their friend did that.

Next thing they knew, they were all being punished with detention and at least two hours of cleaning. Their disciplinary notices say nothing about malicious wounding but about littering and creating a disturbance.

“It was at 7 in the morning, before school even starts, so I don’t what we’d be really disrupting,” said Cameron Gleason, also a junior.

And they wonder why people home school.

The Next Gift To A Grateful Nation

…from the Obama administration — price controls:

Price controls cause shortages — that is Econ 101, but this is a White House that has declared a War on (Social) Science, at least when it comes to fundamentals such as supply and demand, which it apparently believes are the invention of a right-wing think tank somewhere in Arlington. I have spent part of the morning debating people who are very upset that George W. Bush may have entertained heterodox views about evolution (I do not know that he did), but, given a choice, I will take the government that has insufficient appreciation for advanced biology over the government that has insufficient appreciation for fundamental economics.

Me, too.