January, 2011Greetings!Spring Semester Kick-Off IssueWe're only a few weeks into 2011 and Cato On Campus is already off to a busy start. With the help of our good friends at the D.C. Forum for Freedom, we're hosting a student event this Friday, January 28th titled Social Welfare Policy in the 21st Century. Our debate panel features an impressive group of scholars including Cato's own Michael Tanner, Isabel Sawhill from the Brookings Institution and former Associate Director of the Office of Management and Budget, and Peter Edelman, a professor at the Georgetown University School of Law and the highest ranking member of Clinton's staff to resign over 1996 welfare reform legislation. It's bound to be a "Clash of the Titans," and not like that lame 2010 remake, but the rough and tumble 1981 film. If you're not able to join us at the Institute, then you can still watch and interact live with our speakers here.
NewsEdelman v. Sawhill v. Tanner -- Debate at Cato InstituteCato On Campus welcomes the new semester with a debate featuring three acclaimed welfare scholars. With almost a century of combined experience in the field, and with drastically different viewpoints, the panelists will surely contribute interesting ideas for discussion and debate. Peter Edelman is a Georgetown Law professor and was the highest ranking Clinton official to resign in protest over welfare reform legislation in 1996. Isabel Sawhill is a Senior Fellow at the Brookings Institution and was formerly the Associate Director of the Office of Management and Budget. Michael Tanner is a Senior Fellow at the Cato Institute, a prolific writer, and an acclaimed policy expert. Please join us for "Debating Social Welfare Policy in the 21st Century: What's the Best Way Forward?" on January 28th at 3:30pm at the Cato Institute. Check out their viewpoints and bios, and register here. International Students for Liberty ConferenceThe International Students For Liberty Conference is fast approaching! Students for Liberty is a remarkable organization that seeks to connect and educate students with regard to the ideas and advancement of liberty. Their international conference is the largest gathering of pro-liberty students in the world, and promises world-renowned speakers, fantastic networking opportunities with the nation's top liberty organizations, and countless encounters with other students passionate about liberty. Furthermore, there will be a live taping of the STOSSEL Show on Saturday night. Registration is still open, so register today! Are Public Schools Hazardous to Public Education?This week is National School Choice Week, when advocates gather across the nation to shine a spotlight on effective education options. Cato's Education Policy scholar Andrew Coulson explains, in a two page overview, why we should consider a market approach to schooling rather than our existing monopoly approach. For a dose of modern statistical evidence, check out his corresponding analysis.
10 Days of InternshipsThis is a perfect time to fill out applications for the summer internship you have (or maybe haven't) been thinking of. Many liberty-related organizations have application deadlines approaching in the coming weeks and months, some of which we recently highlighted in an initiative over the holidays called, "10 Days of Internships." With at least ten organizations to consider, you're sure to find something that strikes your interest. Don't miss out! FEATURED ARTICLESRent-Seeking: A PrimerMany of us are familiar with the idea of rent -- for houses, cars, movies, etc. -- and while we might not like paying it, we understand why we must. But when we hear the term "rent seeking," it's often with a negative tone and we're unsure about what exactly it means. Thankfully, economics professor Sandy Ikeda has a knack for explaining complex ideas in a clear, concise format. In this article she explains that rent-seeking, which is technically a neutral term, has come to mean the hijacking of the political apparatus for unfair economic gain that does not create value for the economy on the whole. Looking at how profit-seeking, conversely, creates true value for the whole economy and supports a free market, she also explains how rent-seeking undermines the rule of law and leads to a downward social and economic spiral. For more excellent articles from Foundation for Economic Education, check out their daily email In Brief and their monthly magazine The Freeman. Of Facemasks and Texting -- A Deadly Connection?In Cato's most recent edition of Regulation Magazine, humorist and columnist Tim Rowland presents some striking similarities between football helmets and texting while driving, highlighting Frederic Bastiat's concept of the seen and the unseen. Rowland shows that as helmets in professional football have become more advanced -- intended to protect players -- concussions have become much more prevalent as players no longer fear injuring themselves. Similarly, new data reveals that anti-texting laws have been met with an increase in texting-related accidents, not a decrease. Apparently, texting drivers "now keep their phones in their laps, out of view of the cops" and take their eyes off the road more often than before. As the Superbowl approaches, this study reminds us that the intentions of even the most benevolent policymakers often result in unintended consequences. Consumerism Is Keynesianism"One of the most pernicious and widespread economic fallacies is the belief that consumption is the key to a healthy economy," says economics professor Steven Horwitz. He explains that, in fact, this belief stems from "misguided Keynesian thinking." Horwitz demonstrates that the real way to drive an economy is to provide producers -- who develop products, provide jobs, and supply our needs -- with the proper system of confidence. "Wealth is created through acts of production that rearrange resources in ways people value more than alternative arrangements," not by encouraging people (and/or governments) to spend all of their (our?) money on what already exists. At its root, consumerism was fostered by Keynesian ideas. Therefore, those who equate capitalism with consumerism need some education. Ask the Expert: Can Businesses Transact with Gold on the Internet?Jim Harper, Director of Information Policy Studies at the Cato Institute and government regulation guru, presents the case for transacting business on the Internet with precious metals as currency and the reasons why governments aren't likely to support it. Companies have offered platforms that facilitate alternative payment methods in the past. However, the U.S. government has cracked down on these ventures, citing that the anonymity and lack of oversight would draw attention from some individuals with criminal intentions. There are additional reasons why governments may be interested in stomping out this concept of free-market business interaction, and Harper speculates on a few of those issues as well. POLICY STUDIES"Why Is Africa Poor?"
From television ads to Hollywood movies, Africa has long been the poster child of poverty and of the need for international aid. Yet for years this focus has not returned outcomes that match with inputs. Conversely, however, other regions have sprung up without such assistance. Mills notes that examples of successful development exist around the world, explaining that "as Asian countries have shown, African countries must liberalize their economies to grow." In addition to change from within, such as African governments bolstering rather than undermining the business environment, external governments must also contribute, but not in the conventional or typical sense. "Western governments must also help -- by ending or reducing foreign aid to African regimes." Mills' study shows that by more closely aligning governments and citizens, real change can happen. In Medicine, Money Matters: Real Health Care Reform Would Change Incentives.
As with mechanics, actors, bicycle messengers, and office workers, who all naturally adapt behavior to the incentives around them without much special consideration, the health care system should be regarded in the same way -- and yet it's not. Law professor David A Hyman digs into the incentives behind the heath care industry. He observes that our current approach to problems in the health care system simply exacerbates them. This is causing us to get "more of what we already have -- a dysfunctional non-system that delivers uncoordinated care of widely varying quality at high cost." As Hyman notes, the issue of misaligned incentives is not unique to health care, but the highly political approach to the problems is what prevents true reform. If you've wanted to understand what's broken about the health care system and what can and cannot be done to fix it, then this brief article is a must read. |