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161. What Can the United States Learn from the Nordic Model?

Author:
Daniel Mitchell
Publication Date:
11-2007
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Some policymakers in the United States and Europe argue that it is possible to enjoy economic growth and also have a large welfare state. These advocates for bigger government claim that the so- called Nordic Model offers the best of both worlds. This claim does not withstand scrutiny. Economic performance in Nordic nations is lagging, and excessive government is the most likely explanation. The public sector in Sweden, Denmark, Norway, Finland, and Iceland consumes, on average, more than 48 percent of economic output. Total government outlays in the United States, by contrast, are less than 37 percent of gross domes- tic product. Revenue comparisons are even more striking. Tax receipts average more than 45 per- cent of GDP in Nordic nations, a full 20 percent- age points higher than the aggregate tax burden in the United States.
Topic:
Economics and Government
Political Geography:
United States and Europe

162. In Pursuit of Happiness Research: Is It Reliable? What Does It Imply for Policy?

Author:
Will Wilkinson
Publication Date:
04-2007
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
“Happiness research” studies the correlates of subjective well-being, generally through survey methods. A number of psychologists and social scientists have drawn upon this work recently to argue that the American model of relatively limited government and a dynamic market economy corrodes happiness, whereas Western European and Scandinavian-style social democracies pro- mote it. This paper argues that happiness research in fact poses no threat to the relatively libertarian ideals embodied in the U.S. socioeconomic system. Happiness research is seriously hampered by confusion and disagreement about the definition of its subject as well as the limitations inherent in current measurement techniques. In its present state happiness research cannot be relied on as an authoritative source for empirical information about happiness, which, in any case, is not a simple empirical phenomenon but a cultural and historical moving target. Yet, even if we accept the data of happiness research at face value, few of the alleged redistributive policy implications actually follow from the evidence. The data show that neither higher rates of government redistribution nor lower levels of income inequality make us happier, whereas high levels of economic freedom and high average incomes are among the strongest correlates of subjective well- being. Even if we table the damning charges of questionable science and bad moral philosophy, the American model still comes off a glowing success in terms of happiness.
Topic:
Economics, Markets, and Political Economy
Political Geography:
United States, America, and Europe

163. Has U.S. Income Inequality Really Increased?

Author:
Alan Reynolds
Publication Date:
01-2007
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
There are frequent complaints that U.S. income inequality has increased in recent decades. Estimates of rising inequality that are widely cited in the media are often based on federal income tax return data. Those data appear to show that the share of U.S. income going to the top 1 percent (those people with the highest incomes) has increased substantially since the 1970s.
Topic:
Demographics, Development, and Economics
Political Geography:
United States

164. Cato Education Market Index Full Technical Report

Author:
Andrew J. Coulson
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The index presented in this report attempts to measure how closely existing school systems resemble free markets and rates education policy proposals on how conducive they are to the rise of competitive marketplaces. We define an education market as a system that provides the freedom for producers and consumers to voluntarily associate with one another, as well as the incentives that encourage families to be diligent consumers and educators to innovate, control costs, and expand their services. It is a system in which schools can offer instruction in any subject, using any method, for which families are willing to pay.
Topic:
Development, Economics, Education, and Markets

165. The Cato Education Market Index

Author:
Andrew J. Coulson
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The index presented in this report attempts to measure how closely existing school systems resemble free markets and rates education policy proposals on how conducive they are to the rise of competitive marketplaces. We define an education market as a system that provides the freedom for producers and consumers to voluntarily associate with one another, as well as the incentives that encourage families to be diligent consumers and educators to innovate, control costs, and expand their services. It is a system in which schools can offer instruction in any subject, using any method, for which families are willing to pay.
Topic:
Development, Economics, Education, and Markets

166. The Bottom Line on Iran: The Costs and Benefits of Preventive War versus Deterrence

Author:
Justin Logan
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
It appears increasingly likely that the Bush administration's diplomatic approach to Iran will fail to prevent Iran from going nuclear and that the United States will have to decide whether to use military force to attempt to delay Iran's acquisition of a nuclear weapons capability. Some analysts have already been promoting air strikes against Iran, and the Bush administration has pointed out repeatedly that the military option is “on the table.” This paper examines the options available to the United States in the face of a prospective final diplomatic collapse.
Topic:
Conflict Prevention, Economics, and War
Political Geography:
United States, Iran, and Middle East

167. CATO Institute: KidSave: Real Problem, Wrong Solution

Author:
Michael Tanner and Jagadeesh Gokhale
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
There is growing bipartisan recognition that the pathway out of poverty is not through consumption but through saving and accumulation. That idea has led to a number of interesting and innovative experiments by state and local governments and by private charitable organizations and has helped fuel the drive for personal accounts as part of Social Security reform.
Topic:
Conflict Resolution, Security, Development, Economics, and Government

168. Time to Stop Fooling Ourselves about Foreign Aid: A Practitioner's View

Author:
Thomas Dichter
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The foreign aid industry has for decades tried one approach after another in an effort to make aid work. A career of field experience in the aid industry, however, confirms the empirical record that aid is unimportant to growth or poverty reduction and suggests that aid is not likely to work in the future. The belief that foreign assistance has been generally ineffective, moreover, appears to be widespread among aid practitioners with long field experience.
Topic:
Foreign Policy, Economics, International Cooperation, and United Nations

169. Underdevelopment in Sub-Saharan Africa: The Role of the Private Sector and Political Elites

Author:
Moeletsi Mbeki
Publication Date:
04-2005
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Economic growth in Africa, as in the rest of the world, depends on a vibrant private sector. Entrepreneurs in Africa, however, face daunting constraints. They are prevented from creating wealth by predatory political elites that control the state. African political elites use marketing boards and taxation to divert agricultural savings to finance their own consumption and to strengthen the repressive apparatus of the state. Peasants, who constitute the core of the private sector in sub-Saharan Africa, are the biggest losers. In order for Africa to prosper, peasants need to become the real owners of their primary asset—land—over which they currently have no property rights.
Topic:
Economics, Human Rights, and Politics
Political Geography:
America

170. CATO Institute: Saving Money and Improving Education: How School Choice Can Help States Reduce Education Costs

Author:
David Salisbury
Publication Date:
10-2005
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Historically, elementary and secondary education has been the largest item in state budgets. During the past three decades, state spending on public education has grown both in terms of revenues spent per pupil and as a percentage of total personal income. Spending on K–12 education is expected to continue to rise during the next few years, mainly because of the increased number of teachers and other school personnel that will be needed to meet increased enrollment.
Topic:
Civil Society, Economics, Education, and Politics