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52. Abolish the Department of Homeland Security
- Author:
- David Rittgers
- Publication Date:
- 09-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- After the terrorist attacks of September 11, 2001, Congress created the Department of Homeland Security (DHS), an umbrella organization that would oversee 22 preexisting federal agencies. The idea was to improve the coordination of the federal government's counterterrorism effort, but the result has been an ever-expanding bureaucracy.
- Topic:
- Intelligence, Terrorism, and Counterinsurgency
- Political Geography:
- United States
53. Private School Chains in Chile: Do Better Schools Scale Up?
- Author:
- Gregory Elacqua, Humberto Santos, Dante Contreras, and Felipe Salazar
- Publication Date:
- 08-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- There is a persistent debate over the role of scale of operations in education. Some argue that school franchises offer educational services more effectively than do small independent schools. Skeptics counter that large, centralized operations create hard-to-manage bureaucracies and foster diseconomies of scale and that small schools are more effective at promoting higher-quality education. The answer to this question has profound implications for U.S. education policy, because reliably scaling up the best schools has proven to be a particularly difficult problem. If there are policies that would make it easier to replicate the most effective schools, systemwide educational quality could be improved substantially.
- Topic:
- Development, Education, and Governance
- Political Geography:
- United States, Latin America, and Chile
54. Capital Inadequacies: The Dismal Failure of the Basel Regime of Bank Capital Regulation
- Author:
- Kevin Dowd, Martin Hutchinson, Jimi Hinchliffe, and Simon Ashby
- Publication Date:
- 07-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The Basel regime is an international system of capital adequacy regulation designed to strengthen banks' financial health and the safety and soundness of the financial system as a whole. It originated with the 1988 Basel Accord, now known as Basel I, and was then overhauled. Basel II had still not been implemented in the United States when the financial crisis struck, and in the wake of the banking system collapse, regulators rushed out Basel III.
- Topic:
- Economics, International Trade and Finance, Markets, Monetary Policy, and Governance
- Political Geography:
- United States
55. Intercity Buses: The Forgotten Mode
- Author:
- Randal O'Toole
- Publication Date:
- 06-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The debate over President Obama's fantastically expensive high-speed rail program has obscured the resurgence of a directly competing mode of transportation: intercity buses. Entrepreneurial immigrants from China and recently privatized British transportation companies have developed a new model for intercity bus operations that provides travelers with faster service at dramatically reduced fares.
- Topic:
- Economics, Markets, Infrastructure, and Governance
- Political Geography:
- United States and China
56. The Subprime Lending Debacle: Competitive Private Markets Are the Solution, Not the Problem
- Author:
- Patric H. Hendershott and Kevin Villani
- Publication Date:
- 06-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The United States' market-government hybrid mortgage system is unique in the world. No other nation has such heavy government intervention in housing finance. This hybrid system nurtured the excessively risky loans, financed with too much leverage, that fueled the U.S. housing bubble of the last decade and resulted in the systemic collapse of the global financial system.
- Topic:
- Debt, Economics, and Financial Crisis
- Political Geography:
- United States
57. Federal Higher Education Policy and the Profitable Nonprofits
- Author:
- Vance Fried
- Publication Date:
- 06-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Undergraduate education is a highly profitable business for nonprofit colleges and universities. They do not show profits on their books, but instead take their profits in the form of spending on some combination of research, graduate education, low-demand majors, low faculty teaching loads, excess compensation, and featherbedding. The industry's high profits come at the expense of students and taxpayer.
- Topic:
- Economics, Education, Markets, Privatization, and Governance
58. The Other Lottery: Are Philanthropists Backing the Best Charter Schools?
- Author:
- Andrew J. Coulson
- Publication Date:
- 06-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The central problem confronting education systems around the world is not that we lack models of excellence; it is our inability to routinely replicate those models. In other fields, we take for granted an endless cycle of innovation and productivity growth that continually makes products and services better, more affordable, or both. That cycle has not manifested itself in education. Brilliant teachers and high-performing schools can be found in every state and nation, but, like floating candles, they flicker in isolation, failing to touch off a larger blaze.
- Topic:
- Economics, Education, and Markets
59. Crony Capitalism and Social Engineering: The Case against Tax-Increment Financing
- Author:
- Randal O'Toole
- Publication Date:
- 05-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Tax-increment financing (TIF) is an increasingly popular way for cities to promote economic development. TIF works by allowing cities to use the property, sales, and other taxes collected from new developments—taxes that would otherwise go to schools, libraries, fire departments, and other urban services—to subsidize those same developments.
- Topic:
- Economics, Markets, Monetary Policy, and Governance
60. Leashing the Surveillance State: How to Reform Patriot Act Surveillance Authorities
- Author:
- Julian Sanchez
- Publication Date:
- 05-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Congress recently approved a temporary extension of three controversial surveillance provisions of the USA Patriot Act and successor legislation, which had previously been set to expire at the end of February. In the coming weeks, lawmakers have an opportunity to review the sweeping expansion of domestic counter-terror powers since 9/11 and, with the benefit of a decade's perspective, strengthen crucial civil-liberties safeguards without unduly burdening legitimate intelligence gathering. Two of the provisions slated for sunsetroving wiretap authority and the so-called “Section 215” orders for the production of records—should be narrowed to mitigate the risk of overcollection of sensitive information about innocent Americans. A third—authority to employ the broad investigative powers of the Foreign Intelligence Surveillance Act against “lone wolf” suspects who lack ties to any foreign terror group—does not appear to be necessary at all.
- Topic:
- Defense Policy, Intelligence, National Security, Counterinsurgency, Governance, and Law
- Political Geography:
- United States
61. Fannie Mae, Freddie Mac, and the Future of Federal Housing Finance Policy: A Study of Regulatory Privilege
- Author:
- David Reiss
- Publication Date:
- 04-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The federal government recently placed Fannie Mae and Freddie Mac, the government-chartered, privately owned mortgage finance companies, in conservatorship. These two massive companies are profit driven, but as government-sponsored enterprises (GSEs) they also have a government-mandated mission to provide liquidity and stability to the U.S. mortgage market and to achieve certain affordable housing goals. How the two companies should exit their conservatorship has implications that reach throughout the global financial markets and are of key importance to the future of American housing finance policy.
- Topic:
- Economics, Markets, Privatization, Financial Crisis, and Governance
- Political Geography:
- United States
62. Bankrupt: Entitlements and the Federal Budget
- Author:
- Michael Tanner
- Publication Date:
- 03-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The U.S. government is about to exceed its statutory debt limit of $14.3 trillion. But that actually underestimates the size of the fiscal time bomb that this country is facing. If one considers the unfunded liabilities of programs such as Medicare and Social Security, the true national debt could run as high as $119.5 trillion.
- Topic:
- Debt, Economics, Human Welfare, Financial Crisis, Governance, and Health Care Policy
- Political Geography:
- United States
63. Putting Politics above Markets: Historical Background to the Greek Debt Crisis
- Author:
- Takis Michas
- Publication Date:
- 08-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Political clientelism and rent seeking have been the central organizing principles of Greek society since the foundation of the Greek state in the 19th century. The influence of the Eastern Orthodox Church on Greek nationalism and the legacy of the patrimonialist Ottoman empire produced a weak civil society. The result has been a disproportionately large Greek state and public bureaucracy since the 1800s that set the stage for rent-seeking struggles that have followed.
- Topic:
- Corruption, Debt, Financial Crisis, and Governance
- Political Geography:
- Europe
64. Social Security's Financial Outlook and Reforms: An Independent Evaluation
- Author:
- Jagadeesh Gokhale
- Publication Date:
- 10-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Social Security is often described as a "foundational" element of the nation's social safety net. Almost all Americans are directly affected by the program and many millions primarily depend on its benefits for supporting themselves during retirement. But the program's financial condition has worsened considerably since the last recession, which began in 2007. In that year, the Social Security trustees estimated that the program's trust fund would be exhausted by 2042. The trustees' annual report for 2011 brings the trust fund exhaustion date forward to 2038. Indeed, the programs revenues fell short of its benefit expenditures in 2010 and it appears unlikely that significant surpluses will emerge again under the program's current rules. If the program's finances continue to worsen at this rate, it won't be long before the debate on reforming the program assumes an urgency and intensity similar to that during 1982-83, when imminent insolvency forced lawmakers to implement payroll tax increases and scale back its benefits.
- Topic:
- Economics, Government, and Human Welfare
- Political Geography:
- America and Ethiopia
65. The New "Supercommittee": An "Optimistic" View
- Author:
- Jared Lobdell
- Publication Date:
- 11-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- An October New York Times story remarked that “with just five weeks until its deadline, a secretive Congressional committee seeking ways to cut the federal deficit is far from a consensus, and party leaders may need to step in if they want to ensure agreement, say people involved in the panel's work.” We have this “supercommittee” of twelve members of Congress, ostensibly for the purpose of cutting a minimum $1.2 trillion from our deficit, chosen by four appointers, none agreeing with any other on exactly what ought to be done, representing mostly diametrically opposing wings of two parties with irreconcilable differences.
- Topic:
- Debt, Economics, Global Recession, Monetary Policy, and Financial Crisis
- Political Geography:
- United States
66. The Case for Gridlock
- Author:
- Marcus E. Ethridge
- Publication Date:
- 01-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- In the wake of the 2010 elections, President Obama declared that voters did not give a mandate to gridlock. His statement reflects over a century of Progressive hostility to the inefficient and slow system of government created by the American Framers. Convinced that the government created by the Constitution frustrates their goals, Progressives have long sought ways around its checks and balances. Perhaps the most important of their methods is delegating power to administrative agencies, an arrangement that greatly transformed U.S. government during and after the New Deal. For generations, Progressives have supported the false premise that administrative action in the hands of experts will realize the public interest more effectively than the constitutional system and its multiple vetoes over policy changes. The political effect of empowering the administrative state has been quite different: it fosters policies that reflect the interests of those with well organized power. A large and growing body of evidence makes it clear that the public interest is most secure when governmental institutions are inefficient decisionmakers. An arrangement that brings diverse interests into a complex, sluggish decisionmaking process is generally unattractive to special interests. Gridlock also neutralizes some political benefits that producer groups and other well-heeled interests inherently enjoy. By fostering gridlock, the U.S. Constitution increases the likelihood that policies will reflect broad, unorganized interests instead of the interests of narrow, organized groups.
- Topic:
- Democratization, Government, Politics, Power Politics, and Governance
- Political Geography:
- United States and America
67. Estimating ObamaCare's Effect on State Medicaid Expenditure Growth
- Author:
- Jagadeesh Gokhale
- Publication Date:
- 01-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Unless repeal attempts succeed, the Patient Protection and Affordable Care Act of 2010 (ObamaCare) promises to increase state government obligations on account of Medicaid by expanding Medicaid eligibility and introducing an individual health insurance mandate for all US citizens and legal permanent residents. Once ObamaCare becomes fully effective in 2014, the cost of newly eligible Medicaid enrollees will be almost fully covered by the federal government through 2019, with federal financial support expected to be extended thereafter. But ObamaCare provides states with zero additional federal financial support for new enrollees among those eligible for Medicaid under the old laws. That makes increased state Medicaid costs from higher enrollments by "old-eligibles" virtually certain as they enroll into Medicaid to comply with the mandate to purchase health insurance. This study estimates and compares potential increases in Medicaid costs from ObamaCare for the five most populous states: California, Florida, Illinois, New York, and Texas.
- Topic:
- Government, Health, Markets, and Health Care Policy
- Political Geography:
- United States, New York, California, and Florida
68. Behind the Curtain: Assessing the Case for National Curriculum Standards
- Author:
- Neal McCluskey
- Publication Date:
- 02-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The argument for national curriculum standards sounds simple: set high standards, make all schools meet them, and watch American students achieve at high levels. It is straightforward and compelling, and it is driving a sea change in American education policy.
- Topic:
- Development, Education, and Culture
- Political Geography:
- United States and America
69. Lawless Policy: TARP as Congressional Failure
- Author:
- John Samples
- Publication Date:
- 02-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The U.S. Constitution vests all the “legislative powers” it grants in Congress. The Supreme Court allows Congress to delegate some authority to executive officials provided an “intelligible principle” guides such transfers. Congress quickly wrote and enacted the Emergency Economic Stabilization Act of 2008 in response to a financial crisis. The law authorized the secretary of the Treasury to spend up to $700 billion purchasing troubled mortgage assets or any financial instrument in order to attain 13 different goals. Most of these goals lacked any concrete meaning, and Congress did not establish any priorities among them. As a result, Congress lost control of the implementation of the law and unconstitutionally delegated its powers to the Treasury secretary. Congress also failed in the case of EESA to meet its constitutional obligations to deliberate, to check the other branches of government, or to be accountable to the American people. The implementation of EESA showed Congress to be largely irrelevant to policymaking by the Treasury secretary. These failures of Congress indicate that the current Supreme Court doctrine validating delegation of legislative powers should be revised to protect the rule of law and separation of powers.
- Topic:
- Economics, Monetary Policy, and Financial Crisis
- Political Geography:
- United States and America
70. Globalization: Curse or Cure? Policies to Harness Global Economic Integration to Solve Our Economic Challenge
- Author:
- Jagadeesh Gokhale
- Publication Date:
- 02-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Globalization holds tremendous promise to improve human welfare but can also cause conflicts and crises as witnessed during 2007–09. How will competition for resources, employment, and growth shape economic policies among developed nations as they attempt to maintain productivity growth, social protections, and extensive political and cultural freedoms?
- Topic:
- Development, Economics, Globalization, and International Trade and Finance
- Political Geography:
- Global Focus
71. They Spend WHAT? The Real Cost of Public Schools
- Author:
- Adam B. Schaeffer
- Publication Date:
- 03-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Although public schools are usually the biggest item in state and local budgets, spending figures provided by public school officials and reported in the media often leave out major costs of education and thus understate what is actually spent.
- Topic:
- Economics, Education, Government, and Monetary Policy
72. Defining Success: The Case against Rail Transit
- Author:
- Randal O'Toole
- Publication Date:
- 03-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Over the past four decades, American cities have spent close to $100 billion constructing rail transit systems, and many billions more operating those systems. The agencies that spend taxpayer dollars building these lines almost invariably call them successful even when they go an average of 40 percent over budget and, in many cases, carry an insignificant number of riders. The people who rarely or never ride these lines but still have to pay for them should ask, “How do you define success?"
- Topic:
- Government, Markets, and Infrastructure
- Political Geography:
- America
73. The Inefficiency of Clearing Mandates
- Author:
- Craig Pirrong
- Publication Date:
- 07-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- In the aftermath of the financial crisis, attention has turned to reducing systemic risk in the derivatives markets. Much of this attention has focused on counterparty risk in the over-the counter market, where trades are bilaterally executed between dealers and derivative purchasers. One proposal for addressing such counterparty risk is to mandate the trading of derivatives over a centralized clearinghouse. This paper lays out the advantages and risks to a mandated clearing requirement, showing how, in some instances, such a mandate can actually increase systemic risk and result in more financial bailouts.
- Topic:
- Economics, International Trade and Finance, Markets, and Financial Crisis
74. The DISCLOSE Act, Deliberation, and the First Amendment
- Author:
- John Samples
- Publication Date:
- 06-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The United States Supreme Court decided in Citizens United v. Federal Election Commission that Congress may not prohibit spending on political speech by corporations. President Obama and several members of Congress have sharply criticized Citizens United, and Sen. Charles Schumer and Rep. Chris Van Hollen have proposed the DISCLOSE Act in response to the ruling. DISCLOSE mandates disclosure of corporate sources of independent spending on speech, putatively in the interest of shareholders and voters. However, it is unlikely that either shareholders or voters would be made better off by this legislation. Shareholders could demand and receive such disclosure without government mandates, given the efficiency of capital markets. The benefits of such disclosure for voters are likely less than assumed, while the costs are paid in chilled speech and in less rational public deliberation. DISCLOSE also prohibits speech by government contractors, TARP recipients, and companies managed by foreign nationals. The case for prohibiting speech by each of these groups seems flawed. In general, DISCLOSE exploits loopholes in Citizens United limits on government control of speech to contravene the spirit of that decision and the letter of the First Amendment.
- Topic:
- Civil Society, Democratization, and Human Rights
- Political Geography:
- United States
75. The Libertarian Vote in the Age of Obama
- Author:
- David Kirby and David Boaz
- Publication Date:
- 01-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Libertarian—or fiscally conservative, socially liberal—voters are often torn between their aversions to the Republicans' social conservatism and the Democrats' fiscal irresponsibility. Yet libertarians rarely factor into pundits' and pollsters' analyses.
- Topic:
- Democratization and Politics
- Political Geography:
- United States
76. The Massachusetts Health Plan: Much Pain, Little Gain
- Author:
- Michael F. Cannon and Aaron Yelowitz
- Publication Date:
- 01-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- In 2006, Massachusetts enacted a sweeping health insurance law that mirrors the legislation currently before Congress. After signing the measure, Gov. Mitt Romney (R) wrote, "Every uninsured citizen in Massachusetts will soon have affordable health insurance and the costs of health care will be reduced." But did the legislation achieve these goals? And what other effects has it had? This paper is the first to use Current Population Survey data for 2008 to evaluate the Massachusetts law, and the first to examine its effects on the accuracy of the CPS's uninsured estimates, self-reported health, the extent of "crowd-out" of private insurance for both children and adults, and in-migration of new Massachusetts residents.
- Topic:
- Government, Health, and Privatization
- Political Geography:
- United States
77. Obama's Prescription for Low-Wage Workers: High Implicit Taxes, Higher Premiums
- Author:
- Michael F. Cannon
- Publication Date:
- 01-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- House and Senate Democrats have produced health care legislation whose mandates, subsidies, tax penalties, and health insurance regulations would penalize work and reward Americans who refuse to purchase health insurance. As a result, the legislation could trap many Americans in low-wage jobs and cause even higher health-insurance premiums, government spending, and taxes than are envisioned in the legislation.
- Topic:
- Government, Health, and Privatization
- Political Geography:
- United States and America
78. Budgetary Savings from Military Restraint
- Author:
- Benjamin H. Friedman and Christopher Preble
- Publication Date:
- 09-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The United States needs a defense budget worthy of its name, one that protects Americans rather than wasting vast sums embroiling us in controversies remote from our interests. This paper outlines such a defense strategy and the substantial cuts in military spending that it allows. That strategy discourages the occupation of failing states and indefinite commitments to defend healthy ones. With fewer missions, the military can shrink its force structure—reducing personnel, the weapons and vehicles procured for them, and operational costs. The resulting force would be more elite, less strained, and far less expensive. By avoiding needless military conflict and protecting our prosperity, these changes would make Americans more secure.
- Topic:
- Defense Policy, Arms Control and Proliferation, and Debt
- Political Geography:
- United States and America
79. Reforming Indigent Defense: How Free Market Principles Can Help to Fix a Broken System
- Author:
- Stephen J. Schulhofer and David Friedman
- Publication Date:
- 09-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Criminal defense systems are in a state of perpetual crisis, routinely described as “scandalous.” Public defender offices around the country face crushing caseloads that necessarily compromise the quality of the legal representation they provide. The inadequacy of existing methods for serving the indigent is widely acknowledged, and President Obama has recently taken steps to give the problem a higher priority on the national agenda.
- Topic:
- Defense Policy, Markets, Law, and Prisons/Penal Systems
80. Congress Should Account for the Excess Burden of Taxation
- Author:
- Christopher J. Conover
- Publication Date:
- 10-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- A well-established principle of public finance holds that taxes impose costs on society beyond the amount of revenue government collects. Estimates vary depending on the type of tax, but the “marginal excess burden” of federal taxes most likely ranges from 14 to 52 cents per dollar of tax revenue, averaging about 44 cents for all federal taxes.
- Topic:
- Economics, Government, and Markets
- Political Geography:
- United States
81. Fiscal Policy Report Card on America's Governors: 2010
- Author:
- Chris Edwards
- Publication Date:
- 09-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- State governments have had to make tough budget choices in recent years. Tax revenues have stagnated as a result of the poor economy, and that has prompted governors to take a variety of fiscal actions to close large budget gaps. Some governors have cut spending to balance their budgets, while others have pursued large tax increases.
- Topic:
- Economics, Government, Markets, and Monetary Policy
- Political Geography:
- America
82. Reforming Medical Malpractice Liability through Contract
- Author:
- Michael F. Cannon
- Publication Date:
- 11-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- This paper discusses the medical malpractice "crisis" and the potential of contract liability to reduce overall malpractice costs as well as improve the quality of and access to care. First, the paper describes the current medical malpractice liability "system" and some of the more common reforms offered. It then discusses the economic rationale of allowing patients and providers to agree in advance of treatment on how the patient will be compensated in the event of simple negligence on the part of providers, explaining how contract liability may offer improvements in the areas of costs, patient preferences, the pursuit of more efficient liability rules, and quality of care. The paper then critiques select objections to contract liability – those based on the superior bargaining power of providers, the lack of information available to patients, and possible reductions in quality – and forwards possible limitations on the right to contract that may allay such concerns.
- Topic:
- Health, Law, and Health Care Policy
- Political Geography:
- United States
83. Has the Fed Been a Failure?
- Author:
- George A. Selgin, Lawrence H. White, and William D. Lastrapes
- Publication Date:
- 11-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- As the one-hundredth anniversary of the 1913 Federal Reserve Act approaches, we assess whether the nation's experiment with the Federal Reserve has been a success or a failure. Drawing on a wide range of recent empirical research, we find the following: (1) The Fed's full history (1914 to present) has been characterized by more rather than fewer symptoms of monetary and macroeconomic instability than the decades leading to the Fed's establishment. (2) While the Fed's performance has undoubtedly improved since World War II, even its postwar performance has not clearly surpassed that of its undoubtedly flawed predecessor, the National Banking system, before World War I. (3) Some proposed alternative arrangements might plausibly do better than the Fed as presently constituted. We conclude that the need for a systematic exploration of alternatives to the established monetary system is as pressing today as it was a century ago.
- Topic:
- Civil Society, Government, and Markets
- Political Geography:
- United States
84. Do Vouchers and Tax Credits Increase Private School Regulation?
- Author:
- Andrew J. Coulson
- Publication Date:
- 10-2010
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- School voucher and education tax credit programs have proliferated in the United States over the past two decades. Advocates have argued that they will enable families to become active consumers in a free and competitive education marketplace, but some fear that these programs may in fact bring with them a heavy regulatory burden that could stifle market forces. Until now, there has been no systematic, empirical investigation of that concern. The present paper aims to shed light on the issue by quantifying the regulations imposed on private schools both within and outside school choice programs, and then analyzing them with descriptive statistics and regression analyses. The results are tested for robustness to alternative ways of quantifying private school regulation, and to alternative regression models, and the question of causality is addressed. The study concludes that vouchers, but not tax credits, impose a substantial and statistically significant additional regulatory burden on participating private schools.
- Topic:
- Education, Government, and Markets
- Political Geography:
- United States
85. A Better Way to Generate and Use Comparative-Effectiveness Research
- Author:
- Michael F. Cannon
- Publication Date:
- 02-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- President Barack Obama, former U.S. Senate majority leader Tom Daschle, and others propose a new government agency that would evaluate the relative effectiveness of medical treatments. The need for “comparative-effectiveness research” is great. Evidence suggests Americans spend $700 billion annually on medical care that provides no value. Yet patients, providers, and purchasers typically lack the necessary information to distinguish between high- and low-value services.
- Topic:
- Economics, Government, Health, and Privatization
- Political Geography:
- United States
86. Health-Status Insurance: How Markets Can Provide Health Security
- Author:
- John H. Cochrane
- Publication Date:
- 02-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- None of us has health insurance, really. If you develop a long-term condition such as heart disease or cancer, and if you then lose your job or are divorced, you can lose your health insurance. You now have a preexisting condition, and insurance will be enormously expensive—if it's available at all. Free markets can solve this problem, and provide life-long, portable health security, while enhancing consumer choice and competition. “Heath-status insurance” is the key. If you are diagnosed with a long-term, expensive condition, a health-status insurance policy will give you the resources to pay higher medical insurance premiums. Health-status insurance covers the risk of premium reclassification, just as medical insurance covers the risk of medical expenses. With health-status insurance, you can always obtain medical insurance, no matter how sick you get, with no change in out-of-pocket costs.
- Topic:
- Economics, Health, Markets, and Privatization
- Political Geography:
- United States
87. Financial Crisis and Public Policy
- Author:
- Jagadeesh Gokhale
- Publication Date:
- 03-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- This Policy Analysis explains the antecedents of the current global financial crisis and critically examines the reasoning behind the U.S. Treasury and Federal Reserve's actions to prop up the financial sector. It argues that recovery from the financial crisis is likely to be slow with or without the government's bailout actions. An oil price spike and a wealth shock in housing initiated the financial crisis. Declines in stock values are intensifying that shock, threatening to deepen the current recession as U.S. consumers and investors cut their expenditures. An offsetting wealth injection from additional risk-bearing investors could initiate a quicker recovery. Thus, supporters of government intervention justify the bailout's debt-financed fund injections—in essence, they want to compel future taxpayers to join the group of today's risk bearing investors.
- Topic:
- Economics, Globalization, International Trade and Finance, and Markets
- Political Geography:
- United States
88. NATO at 60: A Hollow Alliance
- Author:
- Ted Galen Carpenter
- Publication Date:
- 03-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- As the North Atlantic Treaty Organization celebrates its 60th birthday, there are mounting signs of trouble within the alliance and reasons to doubt the organization's relevance regarding the foreign policy challenges of the 21st century. Several developments contribute to those doubts. Although NATO has added numerous new members during the past decade, most of them possess minuscule military capabilities. Some of them also have murky political systems and contentious relations with neighboring states, including (and most troubling) a nuclear-armed Russia. Thus, NATO's new members are weak, vulnerable, and provocative—an especially dangerous combination for the United States in its role as NATO's leader.
- Topic:
- Security, Foreign Policy, NATO, International Cooperation, and International Security
- Political Geography:
- Russia and North Atlantic
89. Pakistan and the Future of U.S. Policy
- Author:
- Malou Innocent
- Publication Date:
- 04-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- A spreading Islamic insurgency engulfs the amorphous and ungoverned border between Afghanistan and Pakistan. After initial victories by the United States and the Northern Alliance in autumn 2001, hundreds of Taliban and al Qaeda fighters fled Afghanistan to seek refuge across the border in Pakistan's rugged northwest. Since 2007, the number of ambushes, militant offensives, and targeted assassinations has risen sharply across Afghanistan, while suicide bombers and pro-Taliban insurgents sweep through settled areas of Pakistan at an alarming pace. For better and for worse, Pakistan will remain the fulcrum of U.S. policy in the region—its leaders continue to provide vital counterterrorism cooperation and have received close to $20 billion in assistance from the United States, yet elements associated with its national intelligence agency, Inter-Services Intelligence, covertly assist militant proxy groups destabilizing the region
- Topic:
- Security, Foreign Policy, International Cooperation, Islam, and War
- Political Geography:
- Pakistan, Afghanistan, United States, South Asia, and Asia
90. Bright Lines and Bailouts: To Bail or Not To Bail, That Is the Question
- Author:
- Vern McKinley and Gary Gegenheimer
- Publication Date:
- 04-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- A financial-institution bailout involves government intervention through a transaction or forbearance targeted to a financial institution or group of financial institutions. The action is preemptive as the financial institution does not fail and go out of business, but remains a going concern, benefiting creditors, shareholders, or counterparties. In the absence of a bailout, the financial institution would either be forced to go through receivership or bankruptcy in the prescribed legal form, or have its role in financial intermediation disrupted.
- Topic:
- Economics, Government, Political Economy, and Privatization
- Political Geography:
- United States
91. Obamacare to Come: Seven Bad Ideas for Health Care Reform
- Author:
- Michael Tanner
- Publication Date:
- 05-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- President Obama has made it clear that reforming the American health care system will be one of his top priorities. In response, congressional leaders have promised to introduce legislation by this summer, and they hope for an initial vote in the Senate before the Labor Day recess.
- Topic:
- Government and Health
- Political Geography:
- United States
92. Broadcast Localism and the Lessons of the Fairness Doctrine
- Author:
- John Samples
- Publication Date:
- 05-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The First Amendment to the U.S. Constitution recognizes a laissez-faire policy toward speech and the press. The Framers of the Bill of Rights worried that the self-interest of politicians fostered suppression of speech. In contrast, some constitutional theorists have argued that the Constitution empowers, rather than restricts, the federal government to manage speech in order to attain the values implicit in the First Amendment.
- Topic:
- Civil Society and Mass Media
- Political Geography:
- United States
93. Thinking Clearly about Economic Inequality
- Author:
- Will Wilkinson
- Publication Date:
- 07-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Recent discussions of economic inequality, marked by a lack of clarity and care, have confused the public about the meaning and moral significance of rising income inequality. Income statistics paint a misleading picture of real standards of living and real economic inequality. Several strands of evidence about real standards of living suggest a very different picture of the trends in economic inequality. In any case, the dispersion of incomes at any given time has, at best, a tenuous connection to human welfare or social justice. The pattern of incomes is affected by both morally desirable and undesirable mechanisms. When injustice or wrongdoing increases income inequality, the problem is the original malign cause, not the resulting inequality. Many thinkers mistake national populations for “society” and thereby obscure the real story about the effects of trade and immigration on welfare, equality, and justice. There is little evidence that high levels of income inequality lead down a slippery slope to the destruction of democracy and rule by the rich. The unequal political voice of the poor can be addressed only through policies that actually work to fight poverty and improve education. Income inequality is a dangerous distraction from the real problems: poverty, lack of economic opportunity, and systemic injustice.
- Topic:
- Democratization, Economics, and Social Stratification
94. How Urban Planners Caused the Housing Bubble
- Author:
- Randal O'Toole
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Everyone agrees that the recent financial crisis started with the deflation of the housing bubble. But what caused the bubble? Answering this question is important both for identifying the best short-term policies and for fixing the credit crisis, as well as for developing long-term policies aimed at preventing another crisis in the future.
- Topic:
- Economics, Markets, and Financial Crisis
- Political Geography:
- United States, California, and Georgia
95. Halfway to Where? Answering the Key Questions of Health Care Reform
- Author:
- Michael Tanner
- Publication Date:
- 09-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Although neither the House nor the Senate passed a health care bill by President Obama's August deadline, various pieces of legislation have made it through committee, and they provide a concrete basis for analyzing what the proposed health care reform would and would not do. Looking at the various bills that are moving on Capitol Hill, we can determine the following: Contrary to the Obama administration's repeated assurances, millions of Americans who are happy with their current health insurance will not be able to keep it. As many as 89.5 million people may be dumped into a government-run plan. Some Americans may find themselves forced into a new insurance plan that no longer includes their current doctor. Americans will pay more than $820 billion in additional taxes over the next 10 years, and could see their insurance premiums rise as much as 95 percent. The current health care bills will increase the budget deficit by at least $239 billion over the next 10 years, and far more in the years beyond that. If the new health care entitlement were subject to the same 75-year actuarial standards as Social Security or Medicare, its unfunded liabilities would exceed $9.2 trillion. While the bills contain no direct provisions for rationing care, they nonetheless increase the likelihood of government rationing and interference with how doctors practice medicine. Contrary to assertions of some opponents, the bills contain no provision for euthanasia or mandatory end-of-life counseling. The bills' provisions on abortion coverage are far murkier.
- Topic:
- Government, Health, Human Welfare, and Markets
- Political Geography:
- United States and America
96. Would a Stricter Fed Policy and Financial Regulation Have Averted the Financial Crisis?
- Author:
- Jagadeesh Gokhale and Peter Van Doren
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- 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 this paper, we investigate those claims and dispute them. We are skeptical that economists can detect bubbles in real time through technical means with any degree of unanimity. Even if they could, we doubt the Fed would have altered its policy in the early 21st century, and we suspect that political leaders would have exerted considerable pressure to maintain that policy. Concerning regulation, we find that the banking reform of the late 1990s had little effect on the housing boom and bust, and that the many reform ideas currently proposed would have done little or nothing to avert the crisis.
- Topic:
- Economics, Government, Markets, and Financial Crisis
- Political Geography:
- United States
97. Somalia, Redux: A More Hands-Off Approach
- Author:
- David Axe
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The two-decade-old conflict in Somalia has entered a new phase, which presents both a challenge and an opportunity for the United States. The elections of new U.S. and Somali presidents in late 2008 and early 2009 provide an opportunity to reframe U.S.-Somali relations. 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. The old strategy favoring military force and reflexive opposition to all Islamists should give way to one emphasizing regional diplomacy and at least tacit acceptance of a government that is capable of bringing order to Somalia.
- Topic:
- Conflict Resolution, Islam, Terrorism, and Fragile/Failed State
- Political Geography:
- Africa, United States, and Somalia
98. Yes, Mr. President: A Free Market Can Fix Health Care
- Author:
- Michael F. Cannon
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- 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.” This paper 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.
- Topic:
- Economics, Health, and Markets
- Political Geography:
- United States
99. Three Decades of Politics and Failed Policies at HUD
- Author:
- Tad DeHaven
- Publication Date:
- 11-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The U.S. Department of Housing and Urban Development has long been plagued by scandals, mismanagement, and policy failures. Most recently, HUD's subsidies and failed oversight of Fannie Mae and Freddie Mac helped to inflate the housing bubble, which ultimately burst and cascaded into a major financial crisis.
- Topic:
- Development, Economics, Markets, and Financial Crisis
- Political Geography:
- United States
100. Bending the Productivity Curve: Why America Leads the World in Medical Innovation
- Author:
- Glen Whitman and Raymond Raad
- Publication Date:
- 11-2009
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The health care issues commonly considered most important today — controlling costs and covering the uninsured — arguably should be regarded as secondary to innovation, inasmuch as a medical treatment must first be invented before its costs can be reduced and its use extended to everyone. To date, however, none of the most influential international comparisons have examined the contributions of various countries to the many advances that have improved the productivity of medicine over time. We hope this paper can help fill that void.
- Topic:
- Health, Human Welfare, and Markets
- Political Geography:
- America