Economics roundup

Free trade benefits all: "Trade liberalization talks in Hong Kong ended with a deal to further liberalize access for poor countries' exports to rich countries' markets. Urged on by the misguided nongovernmental organizations, poor countries wasted an excellent opportunity to enhance their own prosperity by opening their markets to foreign competition, however. Therefore, benefits of trade liberalization for many poor countries, especially those in Africa, are likely to be severely limited. So it is worthwhile to again restate the case for free trade and to back it with evidence countries open to trade tend to be more prosperous than protectionist countries."

A flat-out winner for tax reform: "The report issued last month by President Bush's Advisory Panel on Federal Tax Reform landed in no-man's land. The right was disappointed that its proposals were so timid, and the left was critical because the report highlighted the damaging impact of high tax rates on work, saving and investment. Perhaps the panel could have won more hearts and minds if it had examined the real-world experience with tax reform. The flat-tax revolution in Eastern Europe is particularly compelling. Nine nations from the old Soviet bloc have adopted the flat tax -- which taxes income at one rate -- and others are poised to. In an ironic twist, these countries are rejecting the class-warfare politics of yesteryear and building tax systems specifically designed to attract investment, fuel economic growth and treat all citizens fairly."

Minimum wage ACORN roots: "According to a Dec. 25 report in the Boston Globe, the Democratic Party is joining forces with the activist group ACORN (Association of Community Organizations for Reform Now) to place initiatives on state ballots this fall to raise the minimum wage. The idea is to energize the poor to vote for Democratic candidates as well as the initiative. ACORN's involvement in this campaign is amusing because a few years ago the group sued the state of California in order to be exempted from its minimum wage requirement, which was higher than the federal government's. In its appellate brief, ACORN acknowledged that the more it had to pay each worker, the fewer such workers it would be able to hire. Of course, the same thing is true for businesses as well, something minimum wage advocates refuse to admit."

CEOs should mind their own business: "President Coolidge once said the business of America is business. He might have added that the business of business is to pursue profits, for lately some corporate leaders seem to have lost sight of that basic precept. Instead, they have embraced corporate social responsibility (CSR), the political doctrine du jour of the leftist ninnies who seek to further socials goals that they have decided are virtuous. The activist-inspired CSR movement represents the convergence of two seemingly discordant political doctrines: - corporate socialization and the privatization of regulation."

American Marxist economist Harry Magdoff died recently. Was he a Soviet agent?. Good riddance to bad rubbish either way. From his biography, it was clearly emotion, not reason that drove him.

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