Friday, June 28, 2013
How the Mighty Fall
How the Mighty Fall
The Roman empire eventually lost its economic vitality thanks to price controls, heavy taxes and state-sponsored debt relief.
Book Review: Balance - WSJ.com
By Matthew Rees
One of the underappreciated realities of history is that most of it has been lived in relative misery. From the Paleolithic era 2.5 million years ago up to the early 19th century, average life expectancy topped out at about 35. And for much of this period, there was no such thing as economic growth—humans subsisted on what they could kill or scratch from the ground or on the proceeds of a minimal barter economy. While some civilizations outperformed others, sooner or later the standouts fell into decline. The reasons why, and the lessons for the United States, are the subject of "Balance: The Economics of Great Powers From Ancient Rome to Modern America," by Glenn Hubbard and Tim Kane.
The great powers in their story are a mix of empires (Roman, British, Spanish, Ottoman), dynasties (Ming China), countries (post-1868 Japan), regions (the European Union) and even a U.S. state (California). According to Messrs. Hubbard and Kane (dean of Columbia's business school and chief economist of the Hudson Institute, respectively), the decline of these polities has tended to follow a template or sequence of error: "denying the internal nature of stagnation, centralizing power, and shortchanging the future to overspend on the present." When the inability to corral fiscal profligacy coincides with a breakdown of political institutions, a toxic imbalance ensues and decline follows.
Before the great powers could decline, of course, they had to rise. How and why they did has been the source of a long and lively debate. An abundance of labor, land and capital was once thought to be fundamental, only to be upstaged more recently by a focus on an abundance of people, ideas and things. Messrs. Hubbard and Kane argue, as do others, that certain policies and core principles are the key: property rights, flexible work rules, open markets. For the authors, such matters explain economic growth entirely.
To those who would cite the primacy of technological breakthroughs, Messrs. Hubbard and Kane assert that inventions only spark growth if there are systems in place (such as intellectual-property rights) that enable inventions to flourish and their value to spread. "The wheel and the windmill were invented many times," they write, "then forgotten, until finally one society had the institutional framework to implement them widely and pass them on permanently." In short, "institutions explain innovation."
The flip side is true as well. The failure of institutions to adapt to evolving realities brings about decline. The prosperity of Rome, the authors say, was a byproduct of material innovation (they highlight the development of concrete) and also the political kind: a professional army, federalist governance, property rights and a hostility to hereditary rule. Over time, however, Rome's rulers imposed measures that sapped the empire's vitality: price controls, heavy taxes and a ban on the free movement of rural Romans. Of no great help was the first recorded example of state-sponsored debt relief: Hadrian, as emperor, canceled the outstanding liabilities that individuals owed to the central government, going back 15 years, and had the loan records burned in a public ceremony.
Another example of a great power that rose and fell—and is now rising again—is China. From the years 400 to 1000, the authors say, it had an estimated per capita GDP of $450, a third higher than Western Europe's. It rose to $600 by 1300, thanks in part to a number of inventions, from paper making to shipbuilding. The ships, in turn, enabled an exchange of goods with people throughout Asia.
But such dynamism proved unsustainable. A version of civil war led to an erosion of China's fleet and a decline in trade voyages. That some coastal areas continued to profit from barter prompted the regime's leaders to criminalize large-boat construction in 1500 and eventually destroy all oceangoing ships. Such moves, the authors claim, were emblematic of China's turn inward and its failure to capitalize on its inventions. The result was stagnant living standards until 1800. An even more profound source of China's trouble was institutional: The Chinese emperorship "morphed into a zero-sum struggle for influence among interest groups."
"Balance" closes with an examination of the woes afflicting California—which, if a stand-alone country, would have the world's 10th largest GDP (down from fifth not long ago)—and of the woes afflicting the U.S. as a whole. Messrs. Hubbard and Kane note that California's tax climate is among the most hostile to business formation of any state in the country. And the dysfunctional political system has contributed to both crushing debt levels and an inability to do anything about them.
For America, Messrs. Hubbard and Kane see "the storm clouds of history" gathering on the horizon. The culprits are again internal: political inertia and, because of wayward policies, the erosion of economic vigor. The authors are particularly critical of the government's overspending and recommend a balanced-budget amendment to the Constitution. And yet they are optimistic. "American democracy," they write, "has proven itself more powerful than all of the skeptics' and cynics' concerns." Maybe so, but the history of economic folly that they skillfully recount in "Balance" is a timely reminder that societies that seem invincible are often anything but.
Mr. Rees, the head of the speechwriting firm Geonomica, is a senior fellow in the Center for Global Business and Government at Dartmouth's Tuck School of Business.
The Roman empire eventually lost its economic vitality thanks to price controls, heavy taxes and state-sponsored debt relief.
Book Review: Balance - WSJ.com
By Matthew Rees
One of the underappreciated realities of history is that most of it has been lived in relative misery. From the Paleolithic era 2.5 million years ago up to the early 19th century, average life expectancy topped out at about 35. And for much of this period, there was no such thing as economic growth—humans subsisted on what they could kill or scratch from the ground or on the proceeds of a minimal barter economy. While some civilizations outperformed others, sooner or later the standouts fell into decline. The reasons why, and the lessons for the United States, are the subject of "Balance: The Economics of Great Powers From Ancient Rome to Modern America," by Glenn Hubbard and Tim Kane.
The great powers in their story are a mix of empires (Roman, British, Spanish, Ottoman), dynasties (Ming China), countries (post-1868 Japan), regions (the European Union) and even a U.S. state (California). According to Messrs. Hubbard and Kane (dean of Columbia's business school and chief economist of the Hudson Institute, respectively), the decline of these polities has tended to follow a template or sequence of error: "denying the internal nature of stagnation, centralizing power, and shortchanging the future to overspend on the present." When the inability to corral fiscal profligacy coincides with a breakdown of political institutions, a toxic imbalance ensues and decline follows.
Before the great powers could decline, of course, they had to rise. How and why they did has been the source of a long and lively debate. An abundance of labor, land and capital was once thought to be fundamental, only to be upstaged more recently by a focus on an abundance of people, ideas and things. Messrs. Hubbard and Kane argue, as do others, that certain policies and core principles are the key: property rights, flexible work rules, open markets. For the authors, such matters explain economic growth entirely.
To those who would cite the primacy of technological breakthroughs, Messrs. Hubbard and Kane assert that inventions only spark growth if there are systems in place (such as intellectual-property rights) that enable inventions to flourish and their value to spread. "The wheel and the windmill were invented many times," they write, "then forgotten, until finally one society had the institutional framework to implement them widely and pass them on permanently." In short, "institutions explain innovation."
The flip side is true as well. The failure of institutions to adapt to evolving realities brings about decline. The prosperity of Rome, the authors say, was a byproduct of material innovation (they highlight the development of concrete) and also the political kind: a professional army, federalist governance, property rights and a hostility to hereditary rule. Over time, however, Rome's rulers imposed measures that sapped the empire's vitality: price controls, heavy taxes and a ban on the free movement of rural Romans. Of no great help was the first recorded example of state-sponsored debt relief: Hadrian, as emperor, canceled the outstanding liabilities that individuals owed to the central government, going back 15 years, and had the loan records burned in a public ceremony.
Another example of a great power that rose and fell—and is now rising again—is China. From the years 400 to 1000, the authors say, it had an estimated per capita GDP of $450, a third higher than Western Europe's. It rose to $600 by 1300, thanks in part to a number of inventions, from paper making to shipbuilding. The ships, in turn, enabled an exchange of goods with people throughout Asia.
But such dynamism proved unsustainable. A version of civil war led to an erosion of China's fleet and a decline in trade voyages. That some coastal areas continued to profit from barter prompted the regime's leaders to criminalize large-boat construction in 1500 and eventually destroy all oceangoing ships. Such moves, the authors claim, were emblematic of China's turn inward and its failure to capitalize on its inventions. The result was stagnant living standards until 1800. An even more profound source of China's trouble was institutional: The Chinese emperorship "morphed into a zero-sum struggle for influence among interest groups."
"Balance" closes with an examination of the woes afflicting California—which, if a stand-alone country, would have the world's 10th largest GDP (down from fifth not long ago)—and of the woes afflicting the U.S. as a whole. Messrs. Hubbard and Kane note that California's tax climate is among the most hostile to business formation of any state in the country. And the dysfunctional political system has contributed to both crushing debt levels and an inability to do anything about them.
For America, Messrs. Hubbard and Kane see "the storm clouds of history" gathering on the horizon. The culprits are again internal: political inertia and, because of wayward policies, the erosion of economic vigor. The authors are particularly critical of the government's overspending and recommend a balanced-budget amendment to the Constitution. And yet they are optimistic. "American democracy," they write, "has proven itself more powerful than all of the skeptics' and cynics' concerns." Maybe so, but the history of economic folly that they skillfully recount in "Balance" is a timely reminder that societies that seem invincible are often anything but.
Mr. Rees, the head of the speechwriting firm Geonomica, is a senior fellow in the Center for Global Business and Government at Dartmouth's Tuck School of Business.
Street performer assaulted outside Summerfest
Street performer assaulted outside Summerfest | FOX6Now.com:
"MILWAUKEE (WITI) — A saxophone player was assaulted outside the Summerfest grounds near Chicago St. on Wednesday, June 26th around 11 p.m.
26-year-old street performer Cassandra Struve became a target on opening night while she was playing an old jazz song.
“I was playing Minnie the Moocher, classic Blues Brothers song,” said Struve.
”A lady with a child in her hand came up to me, smacked me in my face and said ‘don’t play that.’”
Struve says three African American women confronted her and shouted that a white girl could not play the song.
After being hit, Struve says she was shocked and pushed the woman away, but was hit again.
“Her daughter came out of nowhere and punched me twice in the side of the face,” said Struve.
“After she did that I was instantly upset.
You know, I mean, I cried.”"
"MILWAUKEE (WITI) — A saxophone player was assaulted outside the Summerfest grounds near Chicago St. on Wednesday, June 26th around 11 p.m.
26-year-old street performer Cassandra Struve became a target on opening night while she was playing an old jazz song.
“I was playing Minnie the Moocher, classic Blues Brothers song,” said Struve.
”A lady with a child in her hand came up to me, smacked me in my face and said ‘don’t play that.’”
Struve says three African American women confronted her and shouted that a white girl could not play the song.
After being hit, Struve says she was shocked and pushed the woman away, but was hit again.
“Her daughter came out of nowhere and punched me twice in the side of the face,” said Struve.
“After she did that I was instantly upset.
You know, I mean, I cried.”"
Michigan sets dynamic ticket prices based on supply
Michigan sets dynamic ticket prices based on supply - ESPN:
"Michigan set its expected end zone initial dynamic prices to range anywhere from $65 (Akron) to $195 (Notre Dame) per seat. Michigan-Ohio State is estimated at $175 per seat at this point."
"Michigan set its expected end zone initial dynamic prices to range anywhere from $65 (Akron) to $195 (Notre Dame) per seat. Michigan-Ohio State is estimated at $175 per seat at this point."
Bumblebee memorial scheduled for Sunday at Wilsonville Target
Bumblebee memorial scheduled for Sunday at Wilsonville Target | OregonLive.com:
"Fifty thousand bumblebees will be honored in a memorial this weekend at the Wilsonville Target where a majority of the insects died.
State officials directly linked the die-off to trees that had been sprayed with the insecticide Safari. "
"Fifty thousand bumblebees will be honored in a memorial this weekend at the Wilsonville Target where a majority of the insects died.
State officials directly linked the die-off to trees that had been sprayed with the insecticide Safari. "
HowStuffWorks "How to Unlock a Cell Phone or Smartphone"
HowStuffWorks "How to Unlock a Cell Phone or Smartphone":
"If you've ever wondered what the difference between a locked and an unlocked cell phone is, or if you've ever wondered if your phone can be unlocked, or how you can do it, we'll explain it to you in this article.
Plus, we'll tell you why having an unlocked phone can be a good thing, and whether or not it's legal."
"If you've ever wondered what the difference between a locked and an unlocked cell phone is, or if you've ever wondered if your phone can be unlocked, or how you can do it, we'll explain it to you in this article.
Plus, we'll tell you why having an unlocked phone can be a good thing, and whether or not it's legal."
Still catering to the 2%, Toledo opens city pools today
Still catering to the 2%, Toledo opens city pools today - WatchdogWire - Ohio:
"I did an analysis of pool usage in 2008 and found that Toledo pools really don’t have that high of attendance with maybe about 2% of the city’s population actually utilizing this ‘service.’
Based upon census data and cost at the time, I found it was costing the city about $120 per person served.
As I wrote at the time:
It would be cheaper to buy every kid in the city a membership to the Boys and Girls Club ($5 per year for 16-18 year olds, but only $3 for 7-15 year olds) which would give them access to ALL activities, not just the pools."
"I did an analysis of pool usage in 2008 and found that Toledo pools really don’t have that high of attendance with maybe about 2% of the city’s population actually utilizing this ‘service.’
Based upon census data and cost at the time, I found it was costing the city about $120 per person served.
As I wrote at the time:
It would be cheaper to buy every kid in the city a membership to the Boys and Girls Club ($5 per year for 16-18 year olds, but only $3 for 7-15 year olds) which would give them access to ALL activities, not just the pools."
Walker’s reforms allowed Wisconsin district to make bold changes to an unsustainable retirement program
Walker’s reforms allowed Wisconsin district to make bold changes to an unsustainable retirement program - EAGnews.org powered by Education Action Group Foundation, Inc.:
"Relief finally came in the form of Act 10, Gov. Scott Walker’s landmark legislation, which allowed school districts to manage their labor budgets without union consent."
"Relief finally came in the form of Act 10, Gov. Scott Walker’s landmark legislation, which allowed school districts to manage their labor budgets without union consent."
Climate Alarmism’s 10,000 Commandments
Climate Alarmism’s 10,000 Commandments | Somewhat Reasonable:
"However, the manmade global warming “disasters” exist only in computer models and assertions by scientists who are addicted to billions in government Climate Armageddon grants. Moreover, the “preventative measures” are far worse than the disasters EPA claims to be preventing."
"However, the manmade global warming “disasters” exist only in computer models and assertions by scientists who are addicted to billions in government Climate Armageddon grants. Moreover, the “preventative measures” are far worse than the disasters EPA claims to be preventing."
AVOID THE NEED FOR SPYING USING ONE NOT-SO-WEIRD TRICK
Ann Coulter - June 19, 2013 - AVOID THE NEED FOR SPYING USING ONE NOT-SO-WEIRD TRICK
"Not only do our post-1965 immigration policies create an unemployment problem, not only have they massively increased the crime rate, but now all Americans are being asked to give up their civil liberties to fulfill Teddy Kennedy's dream of bringing the entire Third World to live right here in America. (And vote Democrat!)
When we're referring to "American citizen Anwar al-Awlaki" -- provoking Rand Paul to carry on for 13 hours about Obama killing an "American citizen" with a drone -- the phrase "American citizen" has lost its essential meaning.
We don't have a drone problem.
We don't have a spying problem.
We have an immigration problem. "
"Not only do our post-1965 immigration policies create an unemployment problem, not only have they massively increased the crime rate, but now all Americans are being asked to give up their civil liberties to fulfill Teddy Kennedy's dream of bringing the entire Third World to live right here in America. (And vote Democrat!)
When we're referring to "American citizen Anwar al-Awlaki" -- provoking Rand Paul to carry on for 13 hours about Obama killing an "American citizen" with a drone -- the phrase "American citizen" has lost its essential meaning.
We don't have a drone problem.
We don't have a spying problem.
We have an immigration problem. "
Why both employment and unemployment rate for Muskegon County grew in May
Why both employment and unemployment rate for Muskegon County grew in May | MLive.com:
"The unemployment rate in May edged up from 8.1 percent to 8.7 percent for the Muskegon-Norton Shores metro area, which encompasses the county.
At the same time, the total number of non-farm jobs jumped to 63,400, up from 62,000 in April, according to statistics released Thursday, June 27 by the Michigan Department of Technology, Management & Budget."
"The unemployment rate in May edged up from 8.1 percent to 8.7 percent for the Muskegon-Norton Shores metro area, which encompasses the county.
At the same time, the total number of non-farm jobs jumped to 63,400, up from 62,000 in April, according to statistics released Thursday, June 27 by the Michigan Department of Technology, Management & Budget."
Inspector General Finds Park Police Lost Track of Weapons
Inspector General Finds Park Police Lost Track of Weapons | NBC4 Washington:
"The U.S. Park Police, the law enforcement agency responsible for safeguarding the National Mall and critical American landmarks, has lost track of a large supply of handguns, rifles and shotguns, according to a harshly critical report issued Thursday."
"The U.S. Park Police, the law enforcement agency responsible for safeguarding the National Mall and critical American landmarks, has lost track of a large supply of handguns, rifles and shotguns, according to a harshly critical report issued Thursday."
Washington Post defends study that bashes U.S. teacher training colleges
Washington Post defends study that bashes U.S. teacher training colleges - EAGnews.org powered by Education Action Group Foundation, Inc.:
"The National Council on Teacher Quality’s report concludes that the “mediocrity” of teacher training programs in U.S. colleges and universities – perpetuated by low admissions standards and inadequate student teaching experiences – is resulting in poorly prepared and ineffective educators in the classroom."
"The National Council on Teacher Quality’s report concludes that the “mediocrity” of teacher training programs in U.S. colleges and universities – perpetuated by low admissions standards and inadequate student teaching experiences – is resulting in poorly prepared and ineffective educators in the classroom."
Global Warming And Climate Change: There's Nothing To Fight Against
Global Warming And Climate Change: There's Nothing To Fight Against - Investors.com:
"The feared warming predicted by models simply hasn't materialized. The flaw is so obvious that even the United Nations' Intergovernmental Panel on Climate Change is having to acknowledge that maybe there's nothing to this global warming after all.
"If things continue as they have been, in five years, at the latest, we will need to acknowledge that something is fundamentally wrong with our climate models," Hans Van Storch, the IPCC report's lead author has admitted to Spiegel, the German magazine.
"But even today, we are finding it very difficult to reconcile actual temperature trends with our expectations."
"The feared warming predicted by models simply hasn't materialized. The flaw is so obvious that even the United Nations' Intergovernmental Panel on Climate Change is having to acknowledge that maybe there's nothing to this global warming after all.
"If things continue as they have been, in five years, at the latest, we will need to acknowledge that something is fundamentally wrong with our climate models," Hans Van Storch, the IPCC report's lead author has admitted to Spiegel, the German magazine.
"But even today, we are finding it very difficult to reconcile actual temperature trends with our expectations."
Buena Vista clerk who made racial slur hears more calls for resignation, says 'we need to heal'
Buena Vista clerk who made racial slur hears more calls for resignation, says 'we need to heal' | MLive.com
Paula Dean gone but democrat clerk still on the public dole.
Paula Dean gone but democrat clerk still on the public dole.
How to curb obesity: Tax calories, study says
How to curb obesity: Tax calories, study says - The Washington Post:
"There may be an economic cure for the nation’s obesity: Hike the price of food.
Raising the price of a calorie for home consumption by 10 percent might lower the percentage of body fat in youths about 8 or 9 percent, according to new research from the National Bureau of Economic Research."
"There may be an economic cure for the nation’s obesity: Hike the price of food.
Raising the price of a calorie for home consumption by 10 percent might lower the percentage of body fat in youths about 8 or 9 percent, according to new research from the National Bureau of Economic Research."
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