Bungled Parliament:: The Price of Pursuing Safe Society Over Growth and Opportunity


On May 6 British voters handed themselves a hung Parliament for the first time since 1974. No political party has a governing majority. This has surprised most pundits who have assumed for several years that the Conservatives would reclaim government in Britain by 2010, ending 13 years of Labour rule and the tenure of Gordon Brown, the prime minister everyone loves to hate.

The reasons for the conservative’s disappointing performance are complex. Certainly the surprisingly adroit performance in the first-ever prime ministerial debates by Nick Clegg, the even-more-telegenic-than-David Cameron leader of the Liberal Democrat party, did not help.  read more »

A Carbon Added Tax, Not Cap and Trade


Paul Krugman devoted a recent lengthy New York Times Magazine article to the promotion of a disastrous “cap and trade” regime for reducing carbon emissions. Though he doesn't outright endorse it, he strongly suggests that the Waxman-Markey bill that passed the House would be acceptable to him. Krugman then proceeds to pooh-pooh the carbon tax idea, one that I believe has far more merit.

Cap and trade would be a debacle for a slew of reasons. The most important is that it won't even reduce carbon emissions.  read more »

Growing America: Demographics and Destiny


Over the next four decades, American governments will oversee a much larger and far more diverse population. As we gain upward of 100 million people, America will inevitably become a more complex, crowded and competitive place, but it will continue to remain highly dependent on its people's innovative and entrepreneurial spirit.  read more »

Is Sweden a False Utopia?


By Nima Sanandaji and Robert Gidehag

Sweden is often held up by American pundits and experts as a kind of Utopia, a country to be emulated. As is often the case when dealing with Utopias however, the complexities of history, culture and policy frequently are shoved aside.

Rather than being guinea pigs in a progressive experiment in social engineering, Swedes are a unique people with a long history. Therefore, we should question the lazy assumption that good Swedish outcomes (long life expectancies, social equality) are due to particular Scandinavian policies (the welfare state).  read more »

California is Too Big To Fail; Therefore, It Will Fail


Back in December I wrote a piece where I stated that California was likely to default on its obligations. Let’s say the state’s leaders were less than pleased. California Treasurer Bill Lockyer’s office asserted that I knew “nothing about California bonds, or the risk the State will default on its payments.” My assessment, they asserted, “is nothing more than irresponsible fear-mongering with no basis in reality, only roots in ignorance. Since it issued its first bond, California has never, not once, defaulted on a bond payment.”  read more »

Finding the Good in This Bad Time


This year's best places rankings held few great surprises. In a nation that shed nearly 6.7 million jobs since 2007, the winners were places that maintained or had limited employment declines. These places typically had high levels of government spending (including major military installation or large blocs of federal jobs) or major educational institutions. Nor was the continued importance of the energy economy surprising in a nation where a gallon of gas is still about $3 a gallon.  read more »

Guns, Guts, And Geithner


Calls for more bank regulators remind me of a regulatory go-round with an erratic European bank chairman to whom I once reported. Almost eighty years old, with a failing memory and a fondness for mid-day Martinis, he once interrupted a luncheon to call his wife and ask that she send his revolver over to the bank.

At one time in his life he might have had a license to carry a firearm, but the permit had long expired. He wanted the great equalizer on this particular afternoon because the television was full of possible terror threats against financial interests, and he figured, after his second highball, that outside agitators  read more »

Leading a Los Angeles Renaissance


Surprisingly, despite the real challenges Los Angeles faces today, the city is out in front of many of its urban competitors in transforming its capacity to provide a safe place to raise and properly educate children, exactly the criteria Millennials use in deciding where to settle down and start a family. It is the kind of challenge that cities around the country must meet if they wish to thrive in the coming decade.  read more »

Telecommute Taxes On The Table

Rep Jim Hines.jpg

The Obama Administration has recently been shining a spotlight on the need to eliminate barriers to telework and its growth. Now Congress has legislation before it that would abolish one of telework's greatest obstacles, the risk of double taxation Americans face if they telecommute across state lines. The Telecommuter Tax Fairness Act (H.R. 2600)would remove the double tax risk.

H.R. 2600 can and should be enacted as a stand-alone measure. However, Washington is also currently developing or considering a variety of other legislative packages, any one of which would be significantly strengthened if the provisions of H.R. 2600 were added to it. These packages include energy/climate legislation (expected to be unveiled later this month), transportation legislation and small business legislation. Each of these packages, we have been told, would double as a jobs bill.  read more »

The War For Jobs, Part II: Teamwork On The Frontlines

Ventura CA at night-3087716404_bed2a0e51b_m.jpg

So if we are in a new war -- this one for business and job growth -- what role does local government play?

It would be a mistake to over-emphasize the role of government, especially at the local level. Despite the claims of politicians from both parties about how many jobs their policies "created," governments don't create jobs, at least not in the private sector. Ventura, for example, is estimated to generate about seven to eight billion dollars in annual economic activity. The sales and profitability of thousands of individual businesses are only marginally impacted by what goes on at City Hall, no matter what cheerleaders or critics might claim.  read more »