Ryan Young
Senior fellow at the Competitive Enterprise Institute. All opinions here are my own, and not necessarily CEI’s.
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Category Archives: Economics
Individualism Doesn’t Mean Isolationism
Comments Off on Individualism Doesn’t Mean Isolationism
Posted in Economics, Philosophy
Tagged adam smith, daily kos, Don Boudreaux, individualism, wealth of nations
Much Ado about Nothing: Budget Cut Edition
Democrats want the federal budget to be about $3,730,000,000,000. Republicans want it to be about $3,630,000,000,000. As with many other issues, the difference between the two parties is less than three percent. Even so, it nearly led to a federal government shutdown.
The deal that the two parties recently struck to avoid a government shutdown meets somewhere in the between. It is advertised as cutting $38.5 billion of spending. But on closer inspection, it would actually cut $14.7 billion. That would cut total federal spending by 0.39 percent.
I have a hunch that even those small cuts may not actually happen. This blog post I wrote in 2005 explains why.
The rules of the game in Washington are severely stacked in favor of spending increases. Presidents Bush and Obama grew the federal government by about 100 percent in only a decade with little political pain. And it apparently takes the specter of a government shutdown to reduce spending by 0.39 percent.
If anyone is looking for a reason for fundamental institutional reform, that would be a big one.
Comments Off on Much Ado about Nothing: Budget Cut Edition
Tagged budget cuts, democrats, federal shutdown, republicans, spending, spending cuts
The Environmental-Industrial Complex
Sometimes the green part of green regulations isn’t the environment. It’s money.
Economics says that people act according to their incentives. Public choice theorists say that politicians and regulators also act according to their incentives — just like the rest of us. Those incentives include maximizing agency budgets and winning elections.
This short video from Reason.tv shows public choice theory in action:
Comments Off on The Environmental-Industrial Complex
Posted in Economics, The New Religion
Tagged california, Economics, environmental regulations, incentives, Public Choice, public choice theory, reason, reason tv, regulations
Should Helicopter Parents Stop Hovering over Their Kids?
Helicopter parents — constantly hovering over their children — have their heart in the right place. But that style of parenting has always struck me as… unnecessary.
My former professor Bryan Caplan agrees. He has a new book out that’s based on his research on identical twins. As it turns out, a lot of how kids will turn out as adults is based on nature, not nurture. The implication: parents can ease up on the high-maintenance parenting style that is so fashionable today.
In The Wall Street Journal, Caplan writes, “With a few exceptions, the effect of parenting on adult outcomes ranges from small to zero.”
He continues:
Once I became a dad, I noticed that parents around me had a different take on the power of nurture. I saw them turning parenthood into a chore—shuttling their kids to activities even the kids didn’t enjoy, forbidding television, desperately trying to make their babies eat another spoonful of vegetables. Parents’ main rationale is that their effort is an investment in their children’s future; they’re sacrificing now to turn their kids into healthy, smart, successful, well-adjusted adults. But according to decades of twin research, their rationale is just, well, wrong.
Caplan also uses the law of demand to encourage people to have more kids. One reason people have fewer kids than they used to is because they make parenting very costly for themselves than previous generations did.
By easing up a bit, parenting becomes much cheaper in terms of time, effort, and stress. And when something becomes cheaper, people tend to buy more of it. Or, in this case, Caplan says they should at least give it serious thought.
I’ll have to read the book before I can call myself convinced or not. But Caplan’s thesis that parenting doesn’t have to be a chore makes some intuitive sense. And while fatherhood is probably a few years away for this blogger, It does make the prospect of parenthood seem a little less daunting.
CEI Podcast for March 17, 2011: Are Biotech Crops Coming to Kenya?
CEI Senior Fellow Greg Conko discusses his recent trip to Kenya where he met with members of Parliament and other officials about the best way to regulate the introduction of genetically modified crops to the country.
Comments Off on CEI Podcast for March 17, 2011: Are Biotech Crops Coming to Kenya?
Posted in CEI Podcast, regulation, Technology, Trade
Tagged biotech, biotech crops, farming, genetically modified crops, gm crops, gm food, Greg Conko, kenya, regulation, Trade
More on the Broken Window Fallacy
The Independent Institute’s David Theroux has a valuable post on the broken window fallacy. He links to Bastiat, Hazlitt, and last and least, me. Worth a look.
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Posted in Economics
Tsunamis Are Not Stimulus
Tragedy struck Japan this morning. It will be some time before we know just how many lives the tsunami took, and how much damage was done. But pundits are already saying dumb things.
Larry Summers, who should know better, committed the economists’ cardinal sin this morning: he fell for the broken window fallacy. The sunny side of the destruction is that it will boost the economy. Just think of all the jobs that will be created by the rebuilding process!
Over at the Daily Caller, I gently correct Summers. Natural disasters are bad for the economy. All the rebuilding activity in the next few years will only get Japan back to where it was. If the tsunami had never happened, all that energy could be put to creating new wealth. Disasters are just that: disasters.
Comments Off on Tsunamis Are Not Stimulus
Posted in Economics, International, Publications, Stimulus
Tagged bastiat, bastiat broken window fallacy, broken window fallacy, cnbc, daily caller, earthquake, economic growth, japan, japan earthquake, japan tsunami, larry summers, lawrence summers, natural disaster, Stimulus, tsunami
$6 Billion More in Cuts
On Tuesday, the House will probably vote on a Continuing Resolution to avoid a government shutdown. Republicans are asking for $6 billion in spending cuts as part of the package. If they succeed, this year’s budget deficit will go from about $1.6 trillion to $1.594 trillion.
Never let it be said that congressional Republicans don’t think big!
Posted in Economics, Political Animals, Spending

