Quotulatiousness

October 20, 2017

Quebec’s niqab ban

Filed under: Cancon, Government, Law, Liberty — Tags: , , , — Nicholas @ 03:00

Chris Selley on the Quebec provincial government’s latest anti-Muslim legislation:

It’s mostly about the Quiet Revolution. That’s what we’ve been assured by wise owl pundits about all this intolerant-looking rigmarole in Quebec. When polls show far more Quebecers than other Canadians hesitant to vote for a turban-wearing Sikh like NDP Leader Jagmeet Singh, the owls exhort us to contextualize: Quebecers’ rejection of the Catholic Church’s outsized role in their society left them suspicious of all public displays of religiosity (except Catholic ones, weirdly). This explains higher levels of antipathy toward other religious symbols as well, we are told: kippas, kirpans and hijabs. Hijabs specifically are antithetical to a uniquely French brand of feminism, the owls explain. We must understand that French Canadians, like the French, simply do not believe in multiculturalism; other cultures must adapt to and exist within the dominant one. Without understanding all this, we cannot comprehend what’s really happening.

Well, here’s what really happened Wednesday: after years of dithering, the Liberal government in Quebec City made it illegal to provide or receive government services with one’s face covered — which is to say no niqabs on university campuses, no niqabs at the police station, no niqabs on the bus or on the Métro. Not even the Parti Québécois’ much-loathed values charter proposed the latter. So what are we to make of this, owls? Was the Quiet Revolution, this proud rejection of church influence over the state, really about bestowing upon the state the power to tell religious people what they can and cannot wear on buses and trains? Shall we sing Gens du Pays?

How stupid do the Liberals think people are? How stupid do they think Canadian judges are? Stupid enough, apparently, to believe that this isn’t really about niqabs, but about a general outbreak of people riding public transit without their faces showing. Justice Minister Stéphanie Vallée said the rule applied equally to niqabs, balaclavas, dark sunglasses and anything else that might obscure all or part of the face. It’s a simple matter of “security, communication and identification.”

October 19, 2017

America’s third-world air traffic control system

Filed under: Bureaucracy, Government, Technology, USA — Tags: , , , — Nicholas @ 05:00

In City Journal, John Tierney says there’s hope for improvement, but the crony capitalists might yet manage to keep the crappy system in its current state anyway:

Members of Congress are about to face a tough choice: should they vote to replace America’s scandalously antiquated air-traffic control system with one that would be safer and cheaper, reduce the federal deficit, conserve fuel, ease congestion in the skies, and speed travel for tens of millions of airline passengers? Or should they maintain the status quo to please the lobbyists representing owners of corporate jets?

If that choice doesn’t sound difficult, then you don’t know the power that corporate jet-setters wield in Congress. They’re the consummate Washington crony capitalists: shameless enough to demand that their private flights be subsidized by the masses who fly coach, savvy enough to stymie reforms backed by Democratic and Republican administrations.

While the rest of the industrialized world has been modernizing air-traffic control, the United States remains mired in technology from the mid-twentieth century. Controllers and pilots rely on ground-based radar and radio beacons instead of GPS satellites. They communicate by voice over crowded radio channels because the federal government still hasn’t figured out how to use text messaging. The computers in control towers are so primitive that controllers track planes by passing around slips of paper.

The result: an enormous amount of time wasted by passengers, especially those traveling in the busy airspace of the Northeast. Because the system is so imprecise, planes have to be kept far apart, which limits the number of planes in the air — leaving passengers stranded at terminals listening to the dread announcements about “air traffic delays.” When they do finally take off, they’re often delayed further because the pilot must fly a zig-zag course following radio beacons instead of saving time and fuel by taking a direct route.

Surprisingly, the Canadian air traffic control system is the model to emulate:

The Trump administration is pushing Congress this month to turn over the air-traffic control system to a not-for-profit corporation supported by user fees instead of tax dollars. It would resemble Nav Canada, which has won high praise from the aviation community for modernizing Canada’s system while reducing costs. Nav Canada’s controllers use GPS technology and text messaging, as do the controllers at the corporation that has taken over the United Kingdom’s system.

Sir Humphrey Appleby on Education and Health Care

Filed under: Britain, Bureaucracy, Education, Government, Humour — Tags: , , — Nicholas @ 02:00

RadioFreeCanada1
Published on 5 May 2010

October 18, 2017

Cognitive bias – it can be a problem for the “nudgers”, too

Filed under: Economics, Europe, Government — Tags: , , , — Nicholas @ 05:00

Ilya Somin says that replacing private decisions with “rational” government nudges does not guarantee that there are no cognitive biases still being expressed:

Economist Richard Thaler recently won the 2017 Nobel Prize in economics for his important work documenting widespread cognitive errors in human decision-making. All too often, people fail to act as rationally as conventional economic models assume, and at least some of those errors are systematic in nature. Such errors can lead to mistakes that greatly diminish our health, happiness, and welfare.

Thaler and many other behavioral economics scholars argue that government should intervene to protect people against their cognitive biases, by various forms of paternalistic policies. In the best-case scenario, government regulators can “nudge” us into correcting our cognitive errors, thereby enhancing our welfare without significantly curtailing freedom.

Irrational Nudgers

But can we trust government to be less prone to cognitive error than the private-sector consumers whose mistakes we want to correct? If not, paternalistic policies might just replace one form of cognitive bias with another, perhaps even worse one. Unfortunately, a recent study suggests that politicians are prone to severe cognitive biases too – especially when they consider ideologically charged issues. Danish scholars Caspar Dahlmann and Niels Bjorn Petersen summarize their findings from a study of Danish politicians:

    We conducted a survey of 954 Danish local politicians. In Denmark, local politicians make decisions over crucial services such as schools, day care, elder care and various social and health services. Depending on their ideological beliefs, some politicians think that public provision of these services is better than private provision. Others think just the opposite. We wanted to see how these beliefs affected the ways in which politicians interpreted evidence….

    In our first test, we asked the politicians to evaluate parents’ satisfaction ratings for a public and a private school. We had deliberately set up the comparison so one school performed better than the other. We then divided the politicians into two groups. One group got the data — but without any information as to whether the school was public or private. The schools were just labeled “School A” and “School B.” The other group got the exact same data, but instead of “School A” and “School B,” the schools’ titles were “Public School” and “Private School.”

    If politicians are influenced by their ideologies, we would expect that they would be able to interpret the information about “School B” and “School A” correctly. However, the other group would be influenced by their ideological beliefs about private versus public provision of welfare services in ways that might lead them to make mistakes….

    This is exactly what we found. Most politicians interpreting data from “School A” and “School B” were perfectly capable of interpreting the information correctly. However, when they were asked to interpret data about a “Public School” and a “Private School” they often misinterpreted it, to make the evidence fit their desired conclusion.

Even when presented additional evidence to help them correct their mistakes, Dahlmann and Petersen found that the politicians tended to double down on their errors rather than admit they might have been wrong. And it’s worth noting that Denmark is often held up as a model of good government that other countries should imitate. If Danish politicians are prone to severe ideological bias in their interpretation of evidence, the same – or worse – is likely to be true of their counterparts in the United States and elsewhere.

“Obama is actually the most conservative President since World War II”

Filed under: Economics, Government, USA — Tags: , , — Nicholas @ 03:00

Dan Mitchell does some statistical legerdemain to calculate US government spending increases by presidential terms in office and discovers some surprising results:

I’ve learned that it’s more important to pay attention to hard numbers rather than political rhetoric. Republicans, for instance, love to beat their chests about spending restraint, but I never believe them without first checking the numbers. Likewise, Democrats have a reputation as big spenders, but we occasionally get some surprising results when they’re in charge.

President Obama was especially hard to categorize. Republicans automatically assume he was profligate because he started his tenure with a Keynesian spending binge and the Obamacare entitlement. But after a few years in office, some were arguing he was the most frugal president of modern times.

  • So I crunched the data in 2012 and discovered that he was either a big spender or a closet Reaganite depending on how the numbers were sliced.
  • I then re-calculated the budget numbers in 2013 and found that spending grew at a slower rate the longer Obama was in office.
  • And when I did the same exercise in 2014, using another year of data, Obama looked even more like a tight-fisted fiscal conservative.

Or, to be more accurate, what I basically discovered is that debt limit fights, sequestration, and government shutdowns were actually very effective. Indeed, the United States enjoyed a de facto spending freeze between 2009 and 2014, leading to the biggest five-year reduction in the burden of federal spending since the end of World War II. And it’s unclear that Obama deserves any of the credit since he was on the wrong side of those battles.

Anyhow, I’ve decided to update the numbers now that we have 8 years of data for Obama’s two terms.

But first, a brief digression on methodology: All the numbers you’re about to see have been adjusted for inflation, so these are apples-to-apples comparisons. Moreover, all my calculations are designed to show average annual increases. I also made sure that the “stimulus” spending that took place in the 2009 fiscal year was included in Obama’s totals, even though that fiscal year began (on October 1, 2008) while Bush was President.

Lots of links in the original post that I’m too lazy to re-link, so go read the whole thing. H/T to Rafe Champion for the link.

October 14, 2017

It’s not the actual dollar amount wasted, it’s what it reveals about the federal government

Filed under: Cancon, Government — Tags: , , — Nicholas @ 05:00

Colby Cosh, giving full credit for the scoop to Tom Korski, on the minor-but-revealing way the federal government treats taxpayer money:

Even as I summarize this news, I can see the potential for various kinds of carping from ad men or illustrators who don’t want their oxen gored. “Sigh, this is just business as usual.” Like hell it is: under the Conservatives the finance department used plain covers or inexpensive stock photos for the budget. This is exclusively Liberal tomfoolery.

“Okay, but the cost is perfectly reasonable for what we got!” Two hundred thou for one document, huh? Try that one out on a newspaper art director. Try it out on anyone who ever worked for a magazine, particularly one with newsstand sales that actually depended on a fancy cover.

Maybe you’re thinking, “Even if it’s a bit ridiculous, it’s ONLY $200,000 against a background of billions.” But is it? To me this is the most intriguing part of all. Blacklock’s quotes an e-mail (“It’s fresh. I love where this is going”) from someone who has the title “senior marketing advisor for the finance department”.

Am I the only one left asking, “Why the hell does the federal finance department need a marketing advisor?” The “senior” part denotes a six-figure salary, none of which is included in the cheque that was written to the nice creatives at McCann. Is the finance department a business whose revenues depend on effective advertising? Does Canada’s federal government have several finance departments contending with each other for market share?

[…]

This is the sort of use of public funds for essentially partisan purposes that we can’t throw anybody in jail for, except in my daydreams. Blacklock’s uncovered e-mails make this positively explicit: in arguing over the 2016 budget cover someone observed that, “Justin Trudeau’s election mantra was all about positivity, change, and optimism for the future. We want this budget cover to illustrate that feeling.” I would say this utterance is not quite in the tradition of our public service, except for my fear that it is a perfect expression of the real tradition.

October 12, 2017

That Time Canada Tried to Make a Literal “Gaydar”

Filed under: Cancon, Government, History — Tags: , , , , — Nicholas @ 04:00

Today I Found Out
Published on 10 Oct 2017

Never run out of things to say at the water cooler with TodayIFoundOut! Brand new videos 7 days a week!

In this video:

We are all familiar with the colloquialism “gaydar” which refers to a person’s intuitive, and often wildly inaccurate, ability to assess the sexual orientation of another person. In the 1960s, the Royal Canadian Mounted Police (RCMP) attempted to use a slightly more scientific, though equally flawed, approach- a machine to detect if a person was gay or not. This was in an attempt to eliminate homosexuals from the Canadian military, police and civil service. The specific machine, dubbed the “Fruit Machine”, was invented by Dr. Robert Wake, a Carelton University Psychology professor.

Want the text version?: http://www.todayifoundout.com/index.php/2013/06/when-the-canadian-government-used-gay-detectors-to-try-to-get-rid-of-homosexual-government-employees/

Britain’s Old Boy Network – from “the Establishment” to “the Embarrassment”

Filed under: Britain, Government, History — Tags: , , , , — Nicholas @ 03:00

In the media rounds supporting his new book, The Square and the Tower: Networks, Hierarchies and the Struggle for Global Power, Niall Ferguson discusses the decline and fall of the oldest power network in Britain:

It used to be that the United Kingdom of Great Britain and Northern Ireland was the United Cronydom of Great Poshhouse and Northern Grousemoor. The only network that mattered was the Old Boy Network. The OBN was formed by men who were the old boys of a tiny elite of boarding schools known as “public schools” because they were closed to the public. Most boys at those schools were scions of the aristocracy or the landed gentry: future barons and baronets.

Even if thick to the point of educational sub-normality, these young gentlemen would attend either Oxford or Cambridge. They would then be given one of the following jobs:

1. Estate manager and courtier (eldest son).

2. Foreign Office or Treasury mandarin (brightest son).

3. Cabinet minister (most extrovert son).

4. Governor of [insert Caribbean island] (youngest son).

5. BBC director-general (Left-wing son).

This is of course a caricature. In reality, there were all kinds of sub-networks — clusters — within the elite network that ran Britain. Sometimes, a brilliant group of talented young men would come together to achieve great things. There was the “Kindergarten” formed by Alfred Milner, which tried (and failed) to transform South Africa into a second Canada or Australia. There were the Apostles — the Cambridge Conversazione, the most exclusive intellectual club of all time — to which the economist John Maynard Keynes belonged.

However, with increasing frequency after 1945, the OBN’s achievements were less than brilliant. Suez. Wilson. Heath. Double-digit inflation. The three-day week. From being the winners of glittering prizes, the OBN degenerated in the eyes of a previously deferential public into the upper-class twits of the year.

In the Sixties the journalists Henry Fairlie and Anthony Sampson popularised the disdainful name that the historian A.J.P. Taylor had given the British elite: “The Establishment”. By the Seventies the Establishment were more like The Embarrassment — objects of sitcom ridicule. By the Eighties they had been almost entirely driven from the corridors of power. Nothing better illustrated this than the Thatcher governments: not only was the prime minister a woman from provincial Lincolnshire (albeit one with an Oxford degree); there were enough ministers in her Cabinet with Jewish backgrounds to inspire off-colour jokes about “Old Estonians”.

QotD: The Progressive vision

Filed under: Bureaucracy, Government, Politics, Quotations — Tags: , — Nicholas @ 01:00

The champions of socialism call themselves progressives, but they recommend a system which is characterized by rigid observance of routine and by a resistance to every kind of improvement. They call themselves liberals, but they are intent upon abolishing liberty. They call themselves democrats, but they yearn for dictatorship. They call themselves revolutionaries, but they want to make the government omnipotent. They promise the blessings of the Garden of Eden, but they plan to transform the world into a gigantic post office. Every man but one a subordinate clerk in a bureau. What an alluring utopia! What a noble cause to fight!

Ludwig von Mises, Bureaucracy, 1944.

October 11, 2017

The Great Recession

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 04:00

Marginal Revolution University
Published on 9 Aug 2016

There’s already been much discussion over what fueled the Great Recession of 2008. In this video, Tyler Cowen focuses on a central theme of the crisis: the failure of financial intermediaries.

By 2008, the economy was in a very fragile state, with both homeowners and banks taking on greater leverage, many ending up “underwater.” Why did managers at financial institutions take on greater and greater risk? We’ll discuss a couple of key reasons, including the role of excess confidence and incentives.

In addition to homeowners’ leverage and bank leverage, a third factor played a major role in tipping the scale toward crisis: securitization. Mortgage securities during this time were very hard to value, riskier than advertised, and filled to the brim with high risk loans. Cowen discusses several reasons this happened, including downright fraud, failure of credit rating agencies, and overconfidence in the American housing market.

Finally, a fourth factor joins homeowners’ leverage, bank leverage, and securitization to inch the economy closer to the edge: the shadow banking system. On the whole, the shadow banking system is made up of investment banks and various other complex financial intermediaries, highly dependent on short term loans.

When housing prices started to fall in 2007, it was the final nudge that pushed the economy over the cliff. There was a run on the shadow banking system. Financial intermediaries came crashing down. We faced a credit crunch, and many businesses stopped growing. Layoffs ensued, increasing unemployment.

What could have been done to prevent all of this? You’ll have to watch the video to find out.

October 10, 2017

India’s bold experiment … is an economic failure

Filed under: Economics, Government, India — Tags: , , — Nicholas @ 05:00

Back in December, I linked to an article by Shikha Dalmia, discussing the rhetoric and (likely) reality of India’s currency experiment. Now, Lawrence White rounds up the damage done:

The debate over demonetization was revived this month (September 2017) after the Reserve Bank of India finally announced the count of returned currency. It announced that 99 percent of the discontinued notes, Rs 15.28 trillion out of Rs 15.44 trillion, had been returned. As Vivek Kaul has noted, “The conventional explanation for this is that most people who had black money found other people, who did not have black money, to deposit their savings into the banking system for them.”

The trivial size of unreturned currency, of course, obliterates BDK’s [Bhagwati, Dehejia, and Krishna’s] projection of a government seigniorage windfall.

What about BDK’s other projected source of revenue, the 50% tax on acknowledged black deposits? Whereas in BDK’s scenario, black currency holders would make Rs2 trillion in voluntary-disclosure deposits, which would yield Rs 1 trillion in revenue, the actual collections under the scheme were reported in April at Rs 23 billion, or 2.3% of the BDK-imagined sum. Such paltry revenues mean that demonetization, from the fiscal perspective, was all pain and no gain.

The accumulating evidence on economic growth, meanwhile, has become damning. Between July and September 2016, India’s GDP grew 7.53 percent. Between January and March 2017 it grew 5.72 percent. Former head of the Reserve Bank of India Raghuram Rajan, now returned to the University of Chicago, links the drop to demonetization: “Let us not mince words about it — GDP has suffered. The estimates I have seen range from 1 to 2 percentage points, and that’s a lot of money — over Rs2 lakh crore [i.e. trillion] and maybe approaching Rs2.5 lakh crore.” Kaul adds that GDP does not well capture the size of the informal cash sector, where the losses from demonetization were greatest.

In response to the RBI report and GDP data, and to their credit, BDK have substantially retreated from claims of success to what can be regarded as the claim that there is still a chance to break even.

This is not what unions are supposed to do – getting bad cops back on the job

Filed under: Bureaucracy, Government, Law, USA — Tags: , , — Nicholas @ 03:00

Ed Krayewski explains why it’s so tough to fire a police officer who is proven to be dangerous to the public:

Since 2008, the Philadelphia Police Department has fired more than 150 cops, of whom at least 88 had been arrested and at least 48 were eventually convicted on charges like murder, rape, and extortion. Seventy-one of those officers tried to get their jobs back, and of those 71, at least 44 were successful.

In reviewing 37 of the nation’s largest police departments, including Philadelphia, the Post found that since 2006 at least 451 of about 1,800 fired officers got their jobs back, thanks to provisions in their union contracts. Campaign Zero, an effort of a group of Black Lives Matter activists, tracks union contracts and their content; it finds that such arrangements are guaranteed in some way in virtually each contract they reviewed. That ubiquity makes many efforts at reducing police violence futile. Cities must have the ability to fire cops who are unable to do their jobs without resorting to excessive force.

[…]

Public employees have a right to associate and assemble, of course. But public unions have the power they enjoy today only because of expansive privileges granted to them by government. Labor unions in the private sector must be careful not to make demands that would make their employers fiscally unsustainable. With public-sector unions, by contrast, the government will always be there for a bailout. And no matter how much a service declines in the public sector, the “customers” often have no other place to go. There is no competitive pressure for institutions like police to be responsive to consumer demands. Single-party rule in most major cities offers additional inoculatation from facing consequences for subpar performance.

Bad cops will keep getting rehired as long as public sector unions are among the most powerful forces in government, setting rules that protect public employees at the expense of the people they’re supposed to serve.

QotD: The base conditions for democratic society

Filed under: Government, Law, Liberty, Middle East, Quotations — Tags: , , , — Nicholas @ 01:00

The absolutely vital elements of a successful democratic component of government (note – component of a system, not the entire system): is that there be a literate population; a free and enquiring press; a well developed and just rule of law; and a tradition of give and take being acceptable to the society.

Tribal societies have none of these things. That is why democracies have consistently failed in African countries where tribalism is still the most important element. (In fact politics in some of these places is still largely a competition between which tribal groups served in the imperial militaries, versus which served in the imperial civil services. With very bloody competition between the two.) The fact that illiteracy is rampant; free presses almost non-existent; and the rule of law where judges are not beholden to tribal interests, or simply threats, doesn’t exist: makes democracy impossible to sustain.

Muslim culture has none of these things. A system where a woman’s evidence in court is one third of a man’s – and dhimmitude is recognized even if slavery officially isn’t – is unlikely to have these things. And for literacy, free press, or rule of law, see Africa, but doubled.

It is also possible to suggest that without a clear understanding of the logic of natural laws, you can’t have a democracy. The fact that Muslim scholarship specifically rejects natural law on the basis that Allah can cause anything, so there are no ‘natural laws’, means you cannot have these things. The reason the Muslim world lost its scientific supremacy of the 11th and 12th centuries relates specifically to their decision to turn their back on empirical evidence. Without that basic understanding, I do not believe democracy is possible. (In fact that basic approach helps explain why democracy is actually anathema to good Muslims, and why Boko Haram literally means ‘Western education is evil’!)

So the concept that an ‘Arab Spring’ could work in the Middle East is a sad indictment on the Western media and ‘intelligentsia’s’ failed understanding about how democracy works.

In fact the entire deluded Western project of attempting to impose ‘republics’ on tribal societies as part of post-colonialism, is an indictment on the western fantasy that republics are workable, let alone good things.

Let’s face it, no western republic, even in the most educated, literate, and rule of law-abiding parts of the Anglosphere, has survived a first century without a collapse and or bloody civil war. The most ‘successful’ Western republics have included the American (see above), French (see above), Weimar (heard of the popularly elected Adolf Hitler?), Italian (50 governments in 50 years), Greek (how’s that brilliant financial planning going?) and Polish (are they on their 3rd, 4th, or 5th?). Those are the good ones. 90% of all republics ever founded in Europe, South America, Asia, Africa, or the Middle East, have collapsed into dictatorship, civil war, mass murder, or ethnic cleansing, within 20 years of being set up.

And that’s what we thought would work in the Middle East?

Nigel Davies, “The ‘Arab Spring’, 1848, and the 30 Years War/s”, Rethinking History, 2015-09-19.

October 8, 2017

Despite the rhetoric, Trump can’t just “wave goodbye” to Puerto Rico’s debt

Filed under: Government, Politics, USA — Tags: , , , , — Nicholas @ 05:00

Megan McArdle on the financial plight that Puerto Rico was facing even before the hurricane season began:

… the fact remains that Puerto Rico is not going to be able to pay all of its debts. Prior to the hurricane, the territory had $73 billion in outstanding debt, and a population of 3.4 million people. That’s approximately $21,500 for every man, woman and child on the island – just about enough to buy each of them a brand new Mini Cooper, provided that they don’t insist on the sport package or the heated seats.

Puerto Rico couldn’t afford to buy 3.4 million Mini Coopers before; they certainly can’t now that Maria has washed out so many roads. Even before the hurricane, Puerto Rico’s GDP was around $100 billion, meaning that repaying its debt would consume nearly nine months of everything the island earned. And while there will probably be a brief bump in economic activity as disaster relief funds pour in and the destruction is cleared away, over the long term the hurricane represents a huge setback: businesses destroyed, people killed or injured, funds that could be generating economic growth instead diverted to simply replacing what has been lost.

So whatever President Trump does, or does not do, investors in Puerto Rican bonds are going to have to take a substantial haircut. The problem is, we’re not going to wipe out the debt entirely. And even if we could, it wouldn’t be enough to get Puerto Rico back to economic or fiscal health.

“If it’s that bad,” you may be thinking, “surely we ought to simply wipe out the debt holders? After all, they’re investment professionals. They can afford to take the loss; ordinary Puerto Ricans can’t.” The problem is that most of the folks holding Puerto Rico’s debt aren’t vulture hedge funds sitting on wads of ill-gotten gains; the overwhelming majority of the debt is held by ordinary folks who buy bonds or bond funds. Like, say, your parents. Or maybe you. And also, a lot of Puerto Ricans, who would be hit very hard if the value of their investments were wiped out.

How did Puerto Rico get so deeply into debt? Step forward the federal and Puerto Rican governments to take a bow:

The operations of the Puerto Rico Electric Power Authority, for example, defy belief: It essentially gave unlimited free power to municipalities and government-owned entities, which used it to do things like operate skating rinks in the tropics. Everywhere you look, you see signs of a government struggling to perform basic tasks: collect taxes, maintain the infrastructure, improve the health system. In the jargon of development economists, the island lacks “state capacity”: It is simply unable to exert the amount of power over its operations that we on the mainland mostly take for granted.

But you can’t entirely blame the Puerto Rican government for the state of the underlying economy, which is what had plunged the island into a bankruptcy crisis even before the hurricane. For that you have to look to the federal government, which eliminated a tax break that had given companies incentives to locate in Puerto Rico, and then oversaw a financial crisis that sent them into an even deeper spiral. We also made sure that a relatively poor island was forced to adopt the federal minimum wage, which was too high for the local labor market. That has contributed to the 11.5 percent unemployment rate. And Puerto Rico uses the U.S. dollar, leaving it unable to adjust monetary policy to overcome economic stagnation.

October 7, 2017

Why We Should Privatize the Postal Service

Filed under: Bureaucracy, Business, Government, USA — Tags: , , — Nicholas @ 04:00

ReasonTV
Published on 6 Oct 2017

What’s the best way to make the Post Office faster and cheaper? Pull the government’s tendrils out of it and let it loose in the private sector.

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