Posts tagged with: economy

This article at the WSJ reviews a book that purports to be about progressive environmentalism. Doomsday is out. Nobody cares. People need material well-being before they are interested in environmentalism at all.

Messrs. Nordhaus and Shellenberger want "an explicitly pro-growth agenda," on the theory that investment, innovation and imagination may ultimately do more to improve the environment than punitive regulation and finger-wagging rhetoric. To stabilize atmospheric carbon levels will take more–much more–than regulation; it will require "unleashing human power, creating a new economy."

Not perfect, but alot better than what passes for environmentalism most of the time.

Blog author: mvandermaas
Tuesday, June 12, 2007
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Here’s a map of the US that replaces state names with the names of countries with similar GDPs. Pretty fascinating stuff in that it allows a look at just how huge the US economy really is. And it’s a gold mine for trivia buffs…

“If a man will not work, he shall not eat.” That’s a good rule, I think.

The Care of Creation blog is noting, however, that “people who work longer hours use more energy and generally contribute more to the decline of the ecological quality of life on planet earth.”

The basis for the claim is a report that comes from the Center for Economic and Policy Research, and “finds that if all countries worked as many hours per week as U.S. workers do, the world would consume 15 to 30 percent more energy by 2050 than it would by following Europe’s model.”

As I’ve asserted before, calculations that simply take into account the outputs of various environmentally-relevant factors, like GHGs, without also noting the relevant economic variables, are highly flawed.

So perhaps per capita American workers do work longer hours and therefore use more energy than their European counterparts. But do the American workers also contribute more to their respective country’s GNP than do Europeans? I’m betting they do…and it shouldn’t be surprising that all these factors correlate, because of the energy-dependent nature of the economy in the 21st century. But as recent trends suggest, perhaps even that doesn’t mean that economies must increase GHG emissions to grow.

Who gets more bang for their energy buck? The EU’s share of gross world product (GWP) is roughly 20%. Estimates put the EU’s population right around 490 million. The US’s share of GWP is larger than the EU’s, somewhere between 20% and 30%, but accomplishes that with a fraction of the population, numbering barely above 300 million.

So, work less and “save” the planet, but also contribute less to the global economy. That’s a formula for disaster.

For another take on how you can do nothing and save the planet, see the May 21 edition of the Joy of Tech comic.

Blog author: jspalink
Wednesday, May 30, 2007
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“Root of all evil” or liberator of mankind? Samuel Gregg examines the role that money plays in a free economy, particularly the way it “allows people to engage in the greater specialization of economic production which produces growth.”

Read the full commentary here.

John Stossel must have been on vacation last week.

I caught part of the 20/20 special offering for Earth Day on Friday night. Among the reports was one by Jay Schadler focusing on solar power as an alternative source of energy.

Schadler pointed out that even though the United States has only 5% of the world’s population, we consume 25% of the world’s energy. It’s a typical canard trotted out by those who want to depict us ugly Americans as “energy hogs.”

But instead of taking a deeper look at these kinds of statistics, the stats usually appear at the intro of a news piece as a hook leading into some other point about alternative energy.

But let’s take a brief look at the implications of such statistics. Let’s even accept them at face value. What such conclusions about the wastefulness per capita of American energy consumption overlook is the inherent connection between economic productivity and energy usage.

Yes, let’s say America’s share of worldwide energy usage is 25%.

But what is America’s share of the global economy? Somewhere between one-fifth and one-third of gross world product. So just maybe there is in fact a link between economic output and energy consumption.

Another aspect of this relationship appears when you run a historical series comparing per capita CO2 emissions and income growth on Google’s Gapminder software.

Some of Michigan’s economic woes are pretty well outlined in an editorial in today’s OpinionJournal, “MoveOnOutofMichigan.org”.

It begins by noting a symbolically important defection:

Comerica Inc. was founded in 1849 in Detroit and the Detroit Tigers play in Comerica Park, but this week the bank holding company announced it is moving its headquarters to Dallas–where, it said, the bigger growth opportunities are. Consider it one more vote of confidence in the state the national expansion forgot, and especially in Michigan Governor Jennifer Granholm’s economic agenda.

Read the rest here.

Michigan’s unemployment rate was 6.9% in January, the worst in the US, and has been one of the worst in the nation for about the last two years.

As a side note, the actual website MoveOnOutofMichigan.org is “coming soon.”

With all this talk of health care reform this year, I couldn’t help but do some digging into the real aspects of the proposals. Ranging from the completely disruptive universal medical care plan from California Governor Arnold Schwarzenegger to the socialist-like plan from Senator Ted Kennedy (D-MA) in the 110th congress, health care is big on the agenda for 2007. I am afraid that if the policies proposed by Schwarzenegger and Kennedy are passed, future generations will witness a detrimental effect on our economy. Kennedy’s home state of Massachusetts, being the first state to provide universal health care to its citizens, has already seen negative aspects in regards to business and job creation.

These arguments for universal health care come disguised in many forms, but all contribute negatively to the economy. The idea of making health care affordable and available to citizens is an excellent idea, however, Governor Schwarzenegger’s and Senator Kennedy’s ideas are the wrong way to go.

Forcing employers to provide health care and penalizing them for not providing coverage is not the right direction to head.

The state of Massachusetts employs a combination of subsidies and penalties to make insurance more affordable and to force people to buy it. The law requires employers with 11 or more full-time employees to offer health coverage or be subject to a $295 fee for each employee, as well as face being billed for services their uninsured employees get.

Because of this policy, employees are going to lose other benefits and suffer pay cuts, or even be fired. The cost of medical insurance is extremely high. The real solution rests in not forcing employers to provide coverage, but to make insurance more affordable.

The answer lies in eliminating all of the fraudulent law suits filed every day by money-hungry lawyers who are completely destroying the medical system. As lawyers sue doctors, malpractice insurance premiums increase. The number of personal injury litigations has steadily increased at a rate of 12% since 1975.

Jury Verdict Research, a database of plaintiff and defense verdicts, says awards in medical liability cases increased 43 percent in 1999, from $700,000 to $1,000,000. Jury awards in medical malpractice claims jumped 43 percent in one year—from $700,000 in 1999 to $1 million in 2000. Juries are compensating plaintiffs more generously than in the past. From 1994 to 2000, Jury Verdict Research found that more than half of medical malpractice jury awards were for $500,000 or more.

Seeing the direct correlation between health care cost and the cost of medical malpractice insurance for doctors (driven up by law suits), the root of the problem is obvious. This must be attacked before anything else. If Senator Kennedy and Governor Schwarzenegger want to see real progress, their plans must be disregarded and tort abuse must be solved first. There are various other aspects to their plans that are also misinformed and misdirected, but I’ll save that for another time.

Blog author: jspalink
Thursday, December 21, 2006
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Rev. Robert Sirico examines the nature of giving, which keeps us all so busy during this Christmas season. “Without exchange, without private property and a moral sense of its foundation, giving would be limited, impossible or morally dubious,” he writes.

Read the commentary here.

Blog author: jballor
Monday, December 18, 2006
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In this week’s Acton Commentary, Anthony Bradley takes a look at the Spanish economy as it faces a “dilemma,” as he puts it, “simultaneously needing immigrants and seeking to curb them.” Bradley also notes that “institutions like marriage and family seem silly to many Spaniards.”

As APM’s Marketplace reports, shifting trends in Spain might claim another Spanish institution, the siesta. A variety of factors, including increasing competition with labor forces in other nations, are leading some to question the viability of the siesta system in Spain.

The siesta works like this: in the middle of the workday, beginning at around 2pm, offices and businesses close up shop for a few hours, giving workers an extended break. It used to be that employees could go home, spend some time with the family, have a meal, and take a brief catnap, returning fresh to work after the siesta concluded.

But nowadays, the lengthy commutes for urbanites makes a trip home impractical. And many workers don’t like having to stay at work until 9pm in order to get a full day’s work in after the siesta break. What once was a way to create family time is now being seen as contributing to an anti-family work environment. As Jerome Socolovsky reports, “Young parents who want to go home before 9 o’clock to be with their kids can meet with disapproval from the boss.”

One interesting thing about this story is the juxtaposition of the situation in Spain, which seems to be heading away from the siesta model, and the reality in some other industrialized nations, such as Japan, where “power napping” is becoming big business.

In his depiction of the Christian’s daily activities in Life Together, Dietrich Bonhoeffer says that “the noonday hour, where it is possible, becomes for the Christian family fellowship a brief rest on the day’s march. Half of the day is past. The fellowship thanks God and prays for protection until eventide. It receives its daily bread and prays…”

It strikes me that in the rise of the Japanese power nap and the fall of the Spanish siesta, we’re seeing two extremes come together. Perhaps working 12-hour days, as is common in Japan, isn’t the human ideal. And neither is the extended break during the hottest hours of the day necessary in places where the work being done isn’t manual labor.

Appropriate rest is needed, that is beyond question. But exactly what constitutes the right amount of rest seems to be an open question, or at least culturally contextual to some extent. As Calvin observed, the moral requirements of the fourth commandment concerning Sabbath observance are universal, and include provision for “our servants and labourers relaxation from labour.” This includes the “carnal” labor of daily work, as but a pointer toward “the mystery of perpetual resting from our works.”

Update: Marketplace takes a look at the immigration boom in Spain here. According to one immigration lawyer, a major reason immigrants head to Spain is “the generous welfare system. Illegal aliens get free health care here.”

Blog author: jspalink
Wednesday, November 8, 2006
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How can developing countries best compete in a global economy? Humberto Belli, president of Ave Maria College of the Americas in Nicaragua, points to the power of education and human resources. In many cases, poorer countries have a long way to go. “This imbalance in the development of human resources, if not corrected, will negatively impact many countries, impeding them from enjoying the benefits of globalization,” Belli writes.

Read the commentary here.