Category Archives: Economics

Business, Economics, Political Commentary

The Latest Government-Caused Crisis

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The Obama administration knew about the foreclosure irregularities?

it appears that the Obama administration chose to tolerate the irregularities that now threaten the housing market and the financial industry because it preferred that banks use their limited resources to focus on giving breaks to folks who couldn’t pay their mortgages, rather than on handling foreclosures properly.

I don’t know whether the irregularities in question justify an extended moratorium on foreclosures. But if they do — or even if they don’t, and we still end up with such a moratorium — then it looks like the Obama administration will bear considerable blame for the consequences.

This is the same economically ignorant mentality that was displayed yesterday on Fox News Sunday by Debbie Wasserman-Schultz, when she said that the highest priority was to “keep people in their homes.”

So the government creates the crisis by encouraging people to buy homes they couldn’t afford, and now it’s perpetuating it by insisting on keeping them in them, instead of allowing the market to finally clear. The country’s in the very best of hands.

Business, Economics, Political Commentary

In Which I Agree With Bob Zubrin

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Mostly because it’s not about space policy: End the 1099 tyranny.

There are doubtless a lot of other horrific things in the health-care deform that we couldn’t find out about until (as Queen Nancy said) we passed it, but this is so far the most egregious, if one ignores the mandate itself on a constitutional basis. It’s not unconstitutional, thanks to the odious Sixteenth Amendment, but it’s economically devastating.

Economics, Education, Political Commentary

The Last Thing That Public Education Needs

6 Comments

…is more money:

The stimulus bill devoted $100 billion to education (about $80 billion of it for K–12). As Reason magazine notes, that’s twice the Department of Education’s annual budget. “Race to the Top” is less than 5 percent of this staggering gusher of money. It’s not “Race to the Top” that is the Obama administration’s signature education initiative, but spending that the teachers’ unions would only have dreamed of two short years ago.

These funds have kept school systems from having to undertake wrenching changes, or any changes at all. They have helped goose federal spending on education from $37.5 billion in the last year of the Bush administration to $88.8 billion in the second year of the Obama administration, according to the calculations of Jay Greene of the University of Arkansas.

While the private economy has shed 8 million jobs in a work force of 150 million during the downturn, the $550 billon education system has added jobs. It’s the great wonder of the American economy, growing during recessions and regardless of its quality. If everyone in America were a teacher, we’d truly be a worker’s paradise.

The spending would be justified if it correlated with outcomes.

But it never does. It was just a huge payoff to a huge Democrat political contributor, with money that we don’t have, but we’ll have to pay for eventually.

[Update a few minutes later]

Uniting political adversaries — against the unions. Public employee unions should be outlawed. They’ve destroyed California.