Cato Headlines

ObamaCare: A Bad Deal for Young Adults

Thu, 05 Nov 2009 14:02:00 -0600

President Obama won the presidency with 66 percent of the vote among 18-to-29 year-olds. That's a larger share than any presidential candidate has won in decades. Yet according to a new study by Cato scholar Aaron Yelowitz, the cost of President Obama's health care plan would fall inordinately upon younger Americans, meaning they are in essence being asked to subsidize the care of their elders.

"ObamaCare: A Bad Deal for Young Adults," by Aaron Yelowitz
Healthcare.Cato.org

Remembering the Fall of the Wall

Thu, 05 Nov 2009 07:52:00 -0600

The Berlin Wall fell 20 years ago, marking the collapse of Soviet communism. The anniversary is an appropriate time for stocktaking and for seeking to answer a number of questions associated with this historic event, its aftermath, and its continued influence.

"Reflections on Communism Twenty Years after the Fall of the Berlin Wall," by Paul Hollander
"Socialism Kills: The Human Cost of Delayed Economic Reform in India," by Swaminathan S. Anklesaria Aiyar
Vladimir Bukovsky discusses the legacy of the Soviet Union
"Subverting Socialism," Cato 2001 Annual Report
"Why Socialism Collapsed in Eastern Europe," by Tom Palmer
"Freedom and Prosperity in Central and Eastern Europe: 20 Years after the Collapse of Communism," Cato Conference

Will Federal Health Legislation Cause the Deficit to Soar?

Tue, 03 Nov 2009 12:50:00 -0600

According to the CBO, both the Senate Finance Committee's health reform plan, and the House version of health legislation, would reduce 10-year deficits. Supporters of these health care proposals thus argue that the plans are fiscally responsible. In a new paper, Cato scholar Daniel J. Mitchell explains that promises of lower deficits are a triumph of hope over experience. "Government-run health care will cost more than the politicians are telling us," says Mitchell.

"Will Federal Health Legislation Cause the Deficit to Soar?," by Daniel J. Mitchell

Reflections on Communism Twenty Years after the Fall of the Berlin Wall

Mon, 02 Nov 2009 00:13:00 -0600

Twenty years ago the Berlin Wall fell, marking the collapse of Soviet communism. The anniversary is an appropriate time for stocktaking and for seeking to answer a number of questions associated with this historic event, its aftermath, and its continued influence. In a new paper, author Paul Hollander shows how the failure of the communist system was not merely economic and political; it was a moral failure as well.

"Reflections on Communism Twenty Years after the Fall of the Berlin Wall," by Paul Hollander
"Murderous Idealism," by Paul Hollander, Washington Post

New Cato Journal Tackles Race Relations, Global Warming, and Trade Protectionism

Fri, 30 Oct 2009 09:20:00 -0500

In the most recent issue of Cato Journal, Cato scholar Jason Kuznicki reviews evidence from economic and legal history to argue that not only did U.S. governments incentivize and even mandate racial discrimination, but these acts tended to reinforce racial mistrust as time went by. Also in this issue, Patrick J. Michaels and Paul C. Knappenberger catalogue scientific shortcomings in the EPA's greenhouse gases endangerment finding, and Miaojie Yu asks, "Does a party's tariff platform affect its electoral outcome?".

Fall 2009 Issue of Cato Journal

House Dems Unveil New Health Care Bill

Thu, 29 Oct 2009 08:59:00 -0500

House Democrats last week unveiled a new health care reform bill that is a combination of versions passed by three House committees. The bill includes a more "moderate" version of the so-called public option — health care providers would be allowed to negotiate reimbursement rates with the federal government. Cato scholar Michael D. Tanner comments, "Regardless of how much lipstick they put on this pig, it still is a government takeover of the health care system that would all but eliminate private insurance and force millions of Americans into a government-run system. "

"Can't Achieve Public Option Without Deception," by Michael F. Cannon and Michael D. Tanner
"Health Reform: Dems' Deep Divisions," by Michael D. Tanner
Healthcare.Cato.org

Latest Nuclear Proliferation Update Looks at Nuclear Diplomacy with Iran

Tue, 27 Oct 2009 12:09:00 -0500

In the most recent issue of the Cato Institute's Nuclear Proliferation Update, Cato scholar Justin Logan examines recent developments in the diplomatic efforts to prevent Tehran's nuclear progress and situates such efforts in the context of U.S. grand strategy. Also in the issue, Ted Galen Carpenter examines the development of Venezuela's nuclear program.

Yes, Mr. President: A Free Market Can Fix Health Care

Wed, 21 Oct 2009 07:27:00 -0500

In March 2009, President Barack Obama said, "If there is a way of getting this done where we're driving down costs and people are getting health insurance at an affordable rate, and have choice of doctor, have flexibility in terms of their plans, and we could do that entirely through the market, I'd be happy to do it that way." In a new paper, Cato scholar Michael F. Cannon explains how letting workers control their health care dollars and tearing down regulatory barriers to competition would control costs, expand choice, improve health care quality, and make health coverage more secure.

"Yes, Mr. President: A Free Market Can Fix Health Care," by Michael F. Cannon
Healthcare.Cato.org

The Human Cost of Delayed Economic Reform in India

Wed, 21 Oct 2009 07:26:00 -0500

As the world approaches the 20th anniversary of the fall of communism, it is worth investigating the costs borne by countries like India that did not become communist but drew heavily on the Soviet model. What would the impact on social indicators have been had India commenced economic reform one decade earlier, and enjoyed correspondingly faster economic growth and improvements in human development indicators? In a new study, Cato scholar Swaminathan Aiyar finds that with earlier reform, 14.5 million more children would have survived, 261 million more Indians would have become literate, and 109 million more people would have risen above the poverty line.

"Socialism Kills: The Human Cost of Delayed Economic Reform in India," by Swaminathan S. Anklesaria Aiyar

Stopping Medical Marijuana Prosecution

Mon, 19 Oct 2009 08:06:00 -0500

Under new policy guidelines from the Obama administration, federal drug agents won't pursue medical marijuana users and suppliers as long as they follow state laws. Cato scholar Tim Lynch applauds the move: "This shift in policy is more mindful of the constitutional principle of federalism by allowing the states to try different policy approaches, and it is more respectful of the division of opinion within the medical community about the benefits of marijuana for certain patients. This de-escalation of the drug war is good policy and is long overdue."

"The Politics and Science of Medical Marijuana," Cato Policy Forum
The Politics of Medical Marijuana, featuring Rob Kampia, 3/30/2009 (MP3 )
"Get Serious about Decriminalizing Drugs; Others Are," by Tim Lynch and Juan Carlos Hidalgo

Somalia, Redux: A More Hands-Off Approach

Mon, 12 Oct 2009 07:42:00 -0500

The two-decade-old conflict in Somalia has entered a new phase, which presents both a challenge and an opportunity for the United States. To best encourage peace in the devastated country, Washington needs a new strategy that takes into account hard-learned lessons from multiple failed U.S. interventions. In a new study, author David Axe argues that Washington should err on the side of nonintervention, and recommends, "The Obama administration should work to build a regional framework for reconciliation, the rule of law, and economic development that acknowledges the unique risks of intervention in East Africa."

"Somalia, Redux: A More Hands-Off Approach," by David Axe

Why Sustainability Standards for Biofuel Production Make Little Economic Sense

Thu, 08 Oct 2009 12:15:00 -0500

The U.S. sustainability standard currently requires ethanol production to emit at least 20% less CO₂ than the gasoline it is assumed to replace. In a new study, authors Harry de Gorter and David R. Just argue that sustainability standards for ethanol are, by definition, illogical and ineffective. Moreover, say de Gorter and Just, those standards divert attention from the contradictions and inefficiencies of ethanol import tariffs, tax credits, mandates, and subsidies, all of which exist whether ethanol is sustainable or not.

"Why Sustainability Standards for Biofuel Production Make Little Economic Sense," by Harry de Gorter and David R. Just

Would a Stricter Fed Policy and Financial Regulation Have Averted the Financial Crisis?

Thu, 08 Oct 2009 07:34:00 -0500

Many commentators have argued that if the Federal Reserve had followed a stricter monetary policy earlier this decade when the housing bubble was forming, and if Congress had not deregulated banking but had imposed tighter financial standards, the housing boom and bust—and the subsequent financial crisis and recession—would have been averted. In a new study, Cato scholars Jagadeesh Gokhale and Peter Van Doren investigate those claims and dispute them.

"Would a Stricter Fed Policy and Financial Regulation Have Averted the Financial Crisis?," by Jagadeesh Gokhale and Peter Van Doren

Cato Launches DownsizingGovernment.org

Mon, 05 Oct 2009 05:08:00 -0500

The Cato Institute on Monday announced the launch of DownsizingGovernment.org, a new website aimed at providing policymakers, media and the public with comprehensive data on federal spending. The site spotlights the constant and extensive waste of taxpayer dollars by executive agencies. "Some people have lofty visions about how government spending can help society," says Cato scholar Chris Edwards. "But the essays on this website put aside such bedtime stories about how government programs are supposed to work, and instead focus on how they actually work in the real world."

DownsizingGovernment.org

How Urban Planners Caused the Housing Bubble

Thu, 01 Oct 2009 06:32:00 -0500

Everyone agrees that the recent financial crisis started with the deflation of the housing bubble. But what caused the bubble? In a new study, Cato scholar Randal O'Toole says that a necessary condition for the formation of housing bubbles was supply shortages, most of which resulted from urban planners engaged in growth-management planning. O'Toole argues, "States that use some form of growth management should repeal laws that mandate or allow such planning, and other states and urban areas should avoid passing such laws or implementing such plans; otherwise, the next housing bubble could be even more devastating than this one."

"How Urban Planners Caused the Housing Bubble," by Randal O'Toole

New Regulation Looks at Derivatives, Alcohol Taxes, and Fuel Economy Rules

Tue, 29 Sep 2009 08:18:00 -0500

In the most recent issue of Regulation Magazine, Lynn A. Stout asks whether derivatives should be considered unenforceable gambling contracts. Jean Helwege, Peter Wallison, and Craig Pirrong comment on Stout's analysis. Also in this issue, Bruce Yandle shows how national capitalism threatens the U.S. auto industry, and Ian W.H. Parry tackles the question, "Are current alcohol tax levels about right, or should they be increased?"

Fall 2009 Issue of Regulation

Why Public Sector Unionism Is a Bad Deal for Taxpayers and Representative Government

Mon, 28 Sep 2009 07:42:00 -0500

Rates of unionization in the United States today are at historic lows and are unlikely to rebound. However, there is one sector in which organized labor is growing in strength: government. In a new study, authors Don Bellante, David Denholm and Ivan G. Osorio show how the unionization of government employees creates a powerful, permanent constituency for bigger government, and make some recommendations as to how to check this constituency's growing power.

"Vallejo Con Dios: Why Public Sector Unionism Is a Bad Deal for Taxpayers and Representative Government," by Don Bellante, David Denholm and Ivan G. Osorio

Proposals for the Next Transportation Reauthorization

Tue, 15 Sep 2009 07:05:00 -0500

Since the completion of the Interstate Highway System in the early 1990s, the mission of the Department of Transportation has become increasingly murky. In a new study, Cato scholar Randal O'Toole suggests that it is a good time to abolish the department and devolve federal transportation programs to the states. As a second-best solution, O'Toole also offers eight proposals which aim to improve the efficiency of surface transportation programs without foreclosing options to implement more dramatic reforms when the opportunity arises.

"Getting What You Paid For — Paying For What You Get: Proposals for the Next Transportation Reauthorization," by Randal O'Toole

A Strategy to Exit Afghanistan

Mon, 14 Sep 2009 06:49:00 -0500

Given the nature of the conflict in Afghanistan, a definitive, conventional "victory" is not a realistic option. Denying a sanctuary to terrorists who seek to attack the United States does not require Washington to pacify the entire country, eradicate its opium fields, or sustain a long-term military presence in Central Asia. In a new study, Cato scholars Malou Innocent and Ted Galen Carpenter suggest that Washington should narrow its objectives, lay out a strategy for withdrawal over the next 12 to 18 months, and recommend that the U.S. should view al Qaeda's presence in the region as "a chronic, but manageable, problem."

"Escaping the 'Graveyard of Empires': A Strategy to Exit Afghanistan," by Malou Innocent and Ted Galen Carpenter

U.S. Slips in Economic Freedom Rankings

Mon, 14 Sep 2009 05:02:00 -0500

Economic freedom around the world remains on the rise but it has declined notably in the U.S. since the year 2000, according to the Economic Freedom of the World: 2009 Annual Report, released by the Cato Institute in conjunction with the Fraser Institute of Canada. In 2000 the U.S. was ranked the second-freest economy, but has fallen to 6th place this year. "The rule of law, government spending, and regulation are the areas where the United States saw the most troubling declines in its ratings this decade," comments Cato scholar Ian Vasquez.

Economic Freedom of the World: 2009 Annual Report