“If someone you know volunteers at a thrift store or crochets baby hats for the crafts site Etsy or favors handmade wooden toys as a baby shower gift, you’ve probably been hearing the alarms about the Consumer Product Safety Improvement Act (CPSIA). Hailed almost universally on its passage last year—it passed the Senate 89 to three and the House by 424 to one, with Ron Paul the lone dissenter—CPSIA is now shaping up as a calamity for businesses and an epic failure of regulation, threatening to wipe out tens of thousands of small makers of children’s items from coast to coast, and taking a particular toll on the handcrafted and creative, the small-production-run and sideline at-home business, not to mention struggling retailers. How could this have happened?”
jeffmiller:
President Obama pushed for his stimulus package by claiming, rather questionably, that ”economists from across the political spectrum agree” that such a stimulus package was necessary. Hopefully, Obama will similarly push for other policies that reflect the broad consensus of economists. Here are some uncontroversial economic principles, along with the percentage of economists who agree with each principle:
- A ceiling on rents reduces the quantity and quality of housing available. (93%)
- Tariffs and import quotas usually reduce general economic welfare. (93%)
- Flexible and floating exchange rates offer an effective international monetary arrangement. (90%)
- Fiscal policy (e.g., tax cut and/or government expenditure increase) has a significant stimulative impact on a less than fully employed economy. (90%)
- The United States should not restrict employers from outsourcing work to foreign countries. (90%)
- The United States should eliminate agricultural subsidies. (85%)
- Local and state governments should eliminate subsidies to professional sports franchises. (85%)
- If the federal budget is to be balanced, it should be done over the business cycle rather than yearly. (85%)
- The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. (85%)
- Cash payments increase the welfare of recipients to a greater degree than do transfers-in-kind of equal cash value. (84%)
- A large federal budget deficit has an adverse effect on the economy. (83%)
- A minimum wage increases unemployment among young and unskilled workers. (79%)
- The government should restructure the welfare system along the lines of a “negative income tax.” (79%)
- Effluent taxes and marketable pollution permits represent a better approach to pollution control than imposition of pollution ceilings. (78%)
Since Obama is committed to generally accepted economic principles, I look forward to Obama ending the minimum wage, expanding free trade, allowing outsourcing, and ending agricultural subsidies.
“Very important to pass budget ASAP - legislature tired, spent nights here, but we’re still 1 vote short.”
schwarzenegger
Cool to see Schwarzenegger starting to actually use Twitter. He (his staff) pretty much just live-blogged his press conference.