Friday, September 10, 2004

Outsourcing Paul Samuelson

The grand old man of liberal economics speaks out, in the NYTimes. An excerpt:

[mainstream economists] are perpetrators of what Mr. Samuelson terms "the popular polemical untruth."

Popular among economists, that is. That untruth, Mr. Samuelson asserts in an article for the Journal of Economic Perspectives, is the assumption that the laws of economics dictate that the American economy will benefit in the long run from all forms of international trade, including the outsourcing abroad of call-center and software programming jobs.

Sure, Mr. Samuelson writes, the mainstream economists acknowledge that some people will gain and others will suffer in the short term, but they quickly add that "the gains of the American winners are big enough to more than compensate for the losers."

That assumption, so widely shared by economists, is "only an innuendo," Mr. Samuelson writes. "For it is dead wrong about necessary surplus of winnings over losings." Trade, in other words, may not always work to the advantage of the American economy, according to Mr. Samuelson.

Now, Mr. Samuelson has also recently endorsed John Kerry, so it appears he (Samuelson, not Kerry) is on a roll.

Another article, by Josh Bivens. A pretty reasonable treatment, considering it comes for the Center for American Progress.

Perhaps not surprisingly, K. Grease finds the response of Bhagwati, et al rather more convincing. Can we outsource Paul Samuelson to Bangalore, in exchange for some better code for MICROSOFT Service Pack II?

Thursday, September 09, 2004

Biography as Politics





Wednesday, September 08, 2004

Bloody Shirt? or Hair Shirt?




*NOTE on "wave the bloody shirt"*:


Party Time


The Kerry video is actually pretty effective, for the Bush side.

But Bush himself...maybe not so effective for the Bush side.

The alternatives:
Ralph Nader, the "I love me, ME, ME!" Party
Michael Badnarik, the Libertarian Party
David Cobb, the Green Party
Walt Brown, the Socialist Party
Lord Sutch (posthumously), the Monster Raving Loonies party

Tuesday, September 07, 2004

Gouging....HOOAH....GOOD God, y'all....What is it GOOD for?

When I walk into a Circle K, to buy ice, is it because I love the owner and want to make sure he stays in business. Probably not; I walk in there to take advantage of him, because the value of the ice to me far exceeds the price he is charging.

And does Circle K man open his store out of love for me, out of concern for my welfare? He does not. He opens because the price he can charge for ice exceeds the cost of production, and he can make money.

In other words, we are taking advantage of each other, and both of us are better off. (Here is an ad, where Circle K advertises the fact that they have ice. Watch out for the bowling ball, tho!) Millions in Florida are without power. And, therefore, without ice. That means lots of people want to buy ice. But, Florida has a robust anti-gouging law.

The result is that, if you wanted to drive to Florida with truckloads of ice, and try to sell it at the market price, you would be arrested. Does that make sense? Sure, the people who might drive down there with the much-needed ice are doing it out of greed. Who cares? The people buying it are doing THAT out of greed, too. They certainly aren't worried about truck man's welfare.

Outlawing price-gouging makes sense, if you think that statutes, and vague feelings that scarcity is somehow wrong, create reality. Me, I think that physical facts, like people's need for ice to save freezers full of soon-to-be-rotting food, matters more.

An excellent article on price-gouging after Charlie. And another article, for background. And, another, yet again. In the latter two articles, the claim is that citizens were "hit with price-gouging." No, no, no. Citizens were hit with scarcity, since there isn't enough stuff to go around. People who like price-gouging laws simply refuse to accept the physical reality of "not enough." Higher prices reflect scarcity, rather than cause it. And higher prices, if allowed to do their magic, might ameliorate "not enough."

(Yes, this rant continues K. Grease's previous rant. And I may rant about this again).

Monday, September 06, 2004


Bob Herbert, in his column today:



Three points immediately occur:




Dump Dumping, Redivivus: Amend the Byrd Amendment

The WTO is rightly yanking our chain over the infamous "Byrd Amendment." Now, you have to give him credit: Robert Byrd of WV moved to the "Vote for me, and I will give you other people's money!" platform years before the rest of the Democrats realized that, lacking actual ideas, they should do the same thing.

But this thing needs to go (the Amendment, I mean. Byrd....well, his continued success is explained by his "Porkman" superhero identity). (You might like CAGW's Byrd Droppings page). (And they say W smirks! Check this guy out....)

Interesting analysis (scroll to Aug 31, 2004 entry) by CATO's own Daniel Ikenson. An excerpt:

"By compensating petitioners and supporters of petitions, the Byrd amendment provides an additional financial incentive to file antidumping and countervailing duty cases,” remarked Ikenson. “Furthermore, by excluding from compensation those companies or unions not supporting the petitions, the law encourages companies that might otherwise decline to support petitions to do so simply to maintain eligibility for compensation.”

(Press release continues) While petitioning industries and their representatives tend to deny any linkage between the Byrd amendment and support for trade remedy petitions, the WTO case included as evidence a letter from a U.S. law firm urging a company to register
support for the countervailing duty case against lumber from Canada in order to qualify for Byrd amendment payouts.

“Despite opposition to the law at its inception from President Clinton and advocacy for repeal from President Bush, the U.S. Congress seems to have drawn a line in the sand over this issue,” Ikenson explained. “It is proving difficult to pry Congressional hands from a tool that allows them to quietly subsidize their business constituents. Unfortunately, the relatively low levels of retaliation authorized—about $150 million this year—will do little to inspire a change in that mindset.”

The dispute over the Byrd amendment is not an isolated event. There are a number of outstanding WTO rulings against U.S. laws and policies—including the Foreign Sales Corporation/Extraterritorial Income Tax provision and the Antidumping Act of 1916—that the United States has yet to implement. This mounting record of noncompliance must call into question the commitment of the United States to a rules-based trading system.

Those darned rules...they apply to everyone else, but not U.S., right?

Sunday, September 05, 2004






