Comment on the Commentary of the Day by Donald J. Boudreaux Chairman, Department of Economics George Mason University [email protected]
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Comment on the Commentary of the Day by Donald J. Boudreaux Chairman, Department of Economics George Mason University [email protected] http://www.cafehayek.com Disclaimer: The following “Letters to the Editor” were sent to the respective publications on the dates indicated. Some were printed but many were not. The original articles that are being commented on may or may not be available on the internet and may require registration or subscription to access if they are. Some of the original articles are syndicated and therefore may have appeared in other publications also. 26 June 2010 in the Gulf of Mexico is So an even greater danger capped, please publish now is an economy Friends, daily a front-page picture of polluted by a gusher of wildlife covered in oil, in panic-driven crude In this brief appearance misery, dying, unable to be legislation. To counter this earlier today on Fox cleaned" (Letters, June danger, please also publish Business's Freedom Watch 26). Ms. Hahn believes daily a picture of oil's with Judge Napolitano, I that "such pictures are neglected benefits - such defend (surprise!) the free needed to educate the as people still alive market: public" about the "horrors because of http://www.youtube.com/w of what oil accidents do to pharmaceuticals and atch?v=qZox41n0VA4&fea our fellow creatures." medical devices; men and ture=youtu.be women healthy because Oil accidents are indeed dangerous bacteria were 26 June 2010 horrible. But they are the killed by ammonia or kept very visible downside of a contained by plastics; Editor, Washington Post product with an enormous children and grandparents 1150 15th St., NW upside - an upside so smiling because they're Washington, DC 20071 important and ubiquitous able to visit each other that, ironically, it has having driven over roads Dear Editor: become invisible. It is to made of asphalt or flown in us as water is to fish. airplanes powered by Deborah Hahn writes: aviation fuel; your readers "Until the damaged BP well enjoying your paper (printed with ink!) because hence, for workers who 24 June 2010 they wear eyeglasses. produce those outputs), it must also be the case that Mr. W. James McNerney, What really needs more access to inexpensive Jr. media attention are the goods and services from Chairman, President, and many marvels that, labor-saving technology CEO because they are so causes unemployment. In The Boeing Co. common, are taken for both cases, fewer domestic granted. workers than before are Dear Mr. McNerney: required to make outputs 25 June 2010 available to consumers. One of your company's radio ads proclaims that an Editor, The New York So here's a question for advantage of Boeing's Times Mr. Krugman: does today's NewGen tanker over 620 Eighth Avenue high unemployment rate Airbus's rival product is New York, NY 10018 also justify Uncle Sam that, being made in imposing punitive tariffs on America, the NewGen To the Editor: R&D teams, inventors, and tanker creates lots of jobs other sources of labor- for Americans. But your ad If Beijing doesn't further saving technologies? also boasts that the raise the value of the NewGen tanker costs less renminbi, Paul Krugman to own and operate than wants Uncle Sam to does Airbus's tanker. impose trade sanctions on Chinese producers ("The If you honestly believe that Renminbi Runaround," using lots of labor to June 25). Mr. Krugman produce a product is a justifies his embrace of benefit bestowed on protectionism by pointing to society by that product, today's high unemployment why do you brag about rate: by making Chinese your tanker's lower cost? goods less costly for After all, producing the Americans to buy, Beijing's NewGen at the lowest monetary policy allegedly possible cost - that is, reduces "demand for efficiently - means that you goods and services to don't employ as many generate the jobs we workers as you would if need." you produced the NewGen inefficiently. If Mr. Krugman is correct that access to inexpensive Suppose, for example, that goods and services from you banned computers abroad causes from Boeing's offices and unemployment by reducing factories. This policy demand for domestically would oblige you to hire produced outputs (and, many more workers to perform nearly all tasks weaken the market system. poses the gravest threat to from aircraft design to But it's important to a liberal economic system. managing the weekly recognise that a liberal payroll. You could then economic system survives 23 June 2010 boast of even MORE only so long as the public American jobs being is willing to support it. Mr. Tony Kornheiser created by the NewGen Long, drawn-out, painful The Tony Kornheiser Show tanker. But would this episodes of unemployment ESPN Radio result be something to weaken that support and celebrate? strengthen the hands of Dear Mr. Kornheiser: those who'd like to undo 23 June 2010 the world's hard-won gains Your show is great. And for liberalisation." while I realize that your The Editor, The Economist chief goal is to be 25 St James's Street Strange reasoning. First, humorous, your monologue London SW1A 1HG government bail-outs and yesterday - lamenting that United Kingdom protective tariffs are the "we Americans don't make very sort of policies that things any more" and filled SIR: those of us who support a with genuine worry about liberal economic system America being largely a "R.A.," a correspondent at seek to prevent. service economy - your blog "Free Exchange," Acquiescing in illiberal demands a response. discusses the tariffs aimed interventions, such as at protecting 200 ironing- these, in order to protect a First, it's untrue that board-making jobs in the genuinely liberal economy Americans "don't make US ("Ironing trade out," is the worst sort of things any more." If you go June 23). In doing so, R.A. destructive duplicity. to the Census Bureau mentions Matt Yglesias's website below you'll (correct) understanding Second, the tariffs that discover that U.S. that any of these workers R.A. here justifies on the industries produce lots of who lose their jobs today grounds that, in his view, "things," such as aircraft, making ironing boards they likely bribe the public pharmaceuticals, would have more difficulty into supporting market communications than in non-recessionary liberalization even during equipment, surgical times finding other "long, drawn-out, painful instruments, sporting employment. episodes of goods - the list is very, very unemployment" were long. From this fact, R.A. implemented in 2003, [http://factfinder.census.go reasons as follows: "I when America's v/servlet/IBQTable?_bm=y understand why market unemployment rate &-filter=&-sortkey2=&- purists think that averaged a very sortkey1=&-defOrder=Y&- countercyclical policy (and respectable 6.0 percent. sortkey0=-RCPTOT&- particularly things like ds_name=EC0731I1&- government bail-outs) Alas, it is the fanciful geo_id=&- generate all sorts of 'realism' of the sort dataitem=NAICS2007|NAI economic distortions and endorsed by R.A. that CS2007$|COMPANY|EST AB|ECT119|ECT2099|ECT consume. As a result, fine talk of encouraging GE100|EMP|PAYANN|BE you're quite prosperous. strategic, cutting-edge, NEFIT|BENHEA|BENPEB| high-technology industries BENPEC|BENOTH|EMPA What's true for the plural that will "move America VPW|EMPQ1PW|EMPQ2P pronoun "we" used to into the 21st century," give W|EMPQ3PW|EMPQ4PW| describe the Kornheiser rise to marvelous spin-off HOURS|PAYANPW|CSTM household is no less true industries, and "create" TOT|CSTMPRT|CSTRSL| for the plural pronoun "we" jobs that pay high wages. CSTFU|CSTELEC|CSTCN used to describe America. T|ELECPCH|ELECGEN|EL We Americans do indeed The reality, as we see, ECSLD|RCPTOT|RCPPPR buy lots of things from non- often features protection of IM|RCPPRO2|MSCTOT|M Americans - a fact that is wrinkled old industries SCRSLTT|MSCCNTTT|MS no more worrying than is paying wages below the COTH|NAICSPC|RCPPSU the fact that, as you might national median (which is M|RCPPSNP|NAICCOV|V say, "we Kornheisers don't about $16 per hour), using ALADD|INVTOTB|INVFINB make things any more and, low-tech methods to |INVWIPB|INVMATB|INVT instead, buy all of our produce low-tech goods, OTE|INVFINE|INVWIPE|IN things from non- and that likely haven't VMATE|ASTBGN|CEXTOT Kornheisers." sparked a single spin-off |CEXBLD|CEXMCH|CEXM industry since the Oval CHA|CEXMCHC|CEXMCH 22 June 2010 Office was occupied by O|ASRET|ASTEND|DPRT Harry Truman. OT|RPTOT|RPBLD|RPMC Editor, Washington Post H|PCHTT|PCHTEMP|PCH 1150 15th St., NW Let's hear no more about CMPQ|PCHEXSO|PCHDA Washington, DC 20071 how protectionism PR|PCHCSVC|PCHRPR|P encourages Americans to CHRFUS|PCHADVT|PCH Dear Editor: press on to a more- PRTE|PCHTAX|PCHOEXP prosperous, high-tech, and &-_lang=en&- So the tariffs that Uncle dynamic future. fds_name=EC0700A1] Sam slaps on Americans who buy Chinese-made 21 June 2010 More importantly, the ironing boards save 200 locations and nationalities jobs that pay about $15 per Editor, Boston Globe of various producers is hour ("Indiana ironing- irrelevant. You make your board factory faces stiff Dear Editor: living by writing and talking competition from Chinese about sports. The companies," June 22). Insisting (contrary to the Kornheiser family doesn't evidence) that immigrants "make things." You earn Whatever the are harming the U.S. an income by specializing (questionable) merits of economy, retired Bank of in what you do best, and this tariff, its reality couldn't Boston CEO Ira Stepanian you use that income to differ more from the wants Uncle Sam to use purchase from persons rhetoric typically deployed harsh measures to prevent outside of your family all to make protectionism undocumented immigration the many "things" that you sound appealing and sexy.