Posts tagged with: georgia

As Kishore Jayabalan noted yesterday, the fallacy of “broken windows” is, unfortunately, ubiquitous in discussions of public finance and macroeconomics. Though we are told that government spending and public works have a stimulating effect on economic activity, rarely are the costs of such projects discussed.

Such is the case with several stimulus projects in my own hometown of Atlanta, GA. The Atlanta Journal-Constitution reports on a list that Sen. John McCain and Sen. Tim Coburn drew up, criticizing wasteful stimulus projects throughout the country:

Their list includes Georgia Tech professors who received federal stimulus funds to understand how jazz, avant-garde art and Indian classical musicians improvise. The report cites an Atlanta Journal-Constitution article that describes the $762,372 study, which involves using brain imaging to learn how musicians do their work.

[....] The senators also highlighted a $677,462 research project at Georgia State University to study “why monkeys respond negatively to inequity and unfairness.” Asked about the project, the university sent the AJC a news release from last year that said the research “will hopefully answer questions about the evolution of responses to reward inequality — including those responses in humans.”

Georgia Tech has fired back:

Georgia Tech issued a statement in response, saying such research is “necessary for the long-term economic success of our state and our nation.”

But how can one verify such claims? As Kishore has pointed out, the mere fact that money is being spent is not enough to claim that the economy benefits from such expenditure. The hidden costs of stimulus money are the jobs and services that would have otherwise been funded by the private sector.

In order to actually determine whether an investment is truly beneficial to the economy, one must be able to subject it to the cost-accounting of profit and loss. A product or service that makes losses has consumed resources that could have otherwise been put to more productive uses in the economy. But since government expenditures are funded not through any kind of voluntary market exchange, but through taxation, this kind of mechanism cannot be used to evaluate them.

So we can be pretty sure that stimulus projects, in fact, are not as conducive to economic growth as we have been led to believe, since such projects would probably not withstand the profit-and-loss test of the market.

But this is not to say that funding any of this kind of scientific research is not worthwhile. Activities such as philanthropy and charitable giving do not produce any kind of profitable return, but are nevertheless recognized as noble and praiseworthy. There may be good reasons for funding these projects, but economic growth is not one of them.

Blog author: rnothstine
posted by on Monday, February 18, 2008

Ernie Harwell was calling the play by play over television for the first live televised sports broadcast from coast to coast. The series featured the famous “shot heard round the world” at the Polo Grounds in 1951. It’s possibly baseball’s most well known historic moment featuring a dramatic 9th inning home run by Bobby Thompson to defeat the Brooklyn Dodgers, sending the New York Giants to the World Series. It was Russ Hodges radio call of the same game, however, that became etched in American sports lore. Harwell humorously says, “Only my wife knows I was on the air that day.”

Harwell received plenty of fame, notoriety, and admiration however, as the regular voice of the Detroit Tigers starting in 1960. Harwell was honored by his hometown of Washington, Ga, just weeks after celebrating his 90th
birthday
. He returns to the place where it all started as a word-smith and story-teller, characteristics often strongly associated with Southerners of his era. Harwell is also known to have overcome a severe speech impediment on his way to broadcast glory. Harwell just recently was enshrined in the Georgia Sports Hall of Fame, he’s already received the prestigious Ford C. Frick Award from the National Baseball Hall of Fame and Museum in 1981.

Harwell has many thrilling encounters and prestigious awards in his long life, but his most important encounter he says came on Easter morning in 1961 at a Billy Graham Crusade in Bartow, Florida. “Something told me I should go, and then I turned to Jesus, and ever since then my life hasn’t been the same since,” Harwell says. The famed voice of the Tigers has also been long been involved with Baseball Chapel, an evangelistic ministry for ballplayers.

In 1991, when former Michigan football coach Bo Schembechler took over Tiger baseball operations, he let Harwell go. Harwell said it was a tough time for him, but he wanted to have peace and trust God, never be bitter, accept the situation. Fans immediately rallied to Harwell’s defense and Tiger ownership suffered the consequences of what can only be called a major public relations disaster. Mike Ilitch bought the Tigers in 1993, and went about recapturing the magic of Tiger history and tradition. Ilitch immediately rehired Harwell to the delight of the fans. Harwell eventually retired in 2002 on his own terms.

His wife also survived cancer, and Harwell thanks God. “One of the greatest things about Jesus is he lifts your burdens, worries, and cares. Jesus takes care of me, I don’t worry about anything. I know Scripture says “God works all things for good,” Harwell says. Former broadcast partner Jim Price credits Harwell for giving him spiritual guidance when Price’s son was diagnosed with autism.

Harwell is a man of many honors and talents; He served honorably in the Marines during WWII. Harwell is also a well known writer, and over 65 songs he has written have been recorded by artists. Harwell amusingly notes, “I have more no-hitters than Nolan Ryan.” Harwell is a legend though, a prized piece of Americana. A voice and personality who represents so well an era where baseball over the radio magically ruled the airwaves.

The famed announcer is also known for not worrying and enjoying life, a peace he says “comes from Christ.” Harwell also started the first game of every broadcast year with a quote from Scripture in Song of Solomon, “The flowers are springing up and the time of the singing of birds has come. Yes, spring is here.”