Critiquing the Critic

There was a time when I thought Louis Menand, an academic who writes for the New Yorker, was the smartest guy around. But I've changed my mind, because his review of Bryan Caplan's really ridiculous book is abysmal and totally misses the point. To recap Caplan's argument: Irrational voters support economic policy that makes people worse off. And government mostly messes everything up (See here for more). Menand's conclusion:

read in full

A Beachhead in the Campaign Against Free-Market Primacy

Business Week has an interesting article on how some in the corporate community are embracing government-run health insurance. It's not particularly new news, but the article shows that some true-believers in the primacy of the free market are becoming more practical. They're moderating their views on government's capacity and role in society (though their faith in the market probably hasn't been shaken, paradoxically).

read in full

EPI Papers Challenge The Macroeconomic Mainstream

EPI just put out two very interesting papers (on full employment and demand-led growth) that challenge the wisdom of low-impact macroeconomic policy. Two general points:
  • There doesn't have to be a trade-off between efficiency and fairness. Indeed, policies could generate demand-led growth partly by ensuring that work was fairly rewarded.
  • Government can play a constructive role in the economy- guaranteeing fair wages, promoting growth, ensuring full employment. The best it can do isn't just to "get out of the way."

read in full

The Capuano Coma -- No Act of Commission

For several months, Rep. Michael Capuano (D-MA) has been responsible for leading the task force charged with reporting a recommendation to Speaker Pelosi about creating an independent commission to hear and advise on ethics complaints against members of the House. The Capuano task force has stopped meeting, according to Congressional Quarterly ($). Apparently, "some Democrats ... fear that a change in the current ethics process would leave them vulnerable to politically motivated complaints." As opposed to the status quo?

read in full

I'm Thinking of an Issue...Starts With "E"

Inclusion has put a challenge to the progressive policy community. What is an all-encompassing issue that nobody really knows exists? According to this logic, alternative and less familiar ways of framing rising economic inequality and insecurity aren't viable because they don't show up on the pollster's static list of "issues." But this ignores Perlstein's most important insight, that "the greatest politicians create their own issues, ones that no one knew existed." (An insight I couldn't help but notice that is very similar to my favorite one of the late philospher Richard Rorty: "the talent for speaking differently, rather for arguing well, is the chief instrument of cultural change.") Here's a shot: exploitation and economic fairness.

read in full

Fiscal Integrity Award Winner: Sen. Charles Grassley

We here at OMB Watch were so inspired by comments reported in today's Wall Street Journal that we decided to issue a brand new Fiscal Integrity Award. It takes a special person to come to the defense of the integrity of the capital gains tax. In recent weeks, its integrity has increasingly come under question, as members of Congress, the media, and yours truly have been focusing on a loophole that allows private equity fund managers' service compensation to be taxed at the capital gains rate.

read in full

Emanuel Amendment Voted Down

The Emanuel amendment to the Financial Services/General Government appropriations bill, which would have defunded part of the Office of Vice President, failed by a vote of 209 to 217 (roll call). The amendment was an attempt to get the OVP to comply with a request for information regarding the US attorneys scandal (See this Think Progress post for more). Correction: Vice President Cheney's claim was about classified material, which, under an executive order, a National Archives offices oversees (link).

read in full

Private Tax Collection Program Remains

BNA ($) on how the private debt collection program wasn't killed yesterday:

The House passed the Financial Services and General Government appropriations bill (H.R. 2829) June 28 on a vote of 240-179 after House Democrats yielded to concerns about plans to shut down the Internal Revenue Service's private debt collection program.

read in full

Proxy Wars, Pt. II: DOD Authorization Bill

Congressional Democrats, still smarting from their perceived capitulation in May to President Bush on ending the war on Iraq, are serving notice that their next stand will come during the debate next month on H.R. 1585, the half-a-trillion-dollar Defense Department FY 2008 reauthorization bill. According to Sen. Debbie Stabenow (D-MI), chair of the Democratic Steering and Outreach Committee, and Senate Majority Leader Harry Reid (D-NV) H.R. 1585 will feature "timelines, parameters, accountability, and a pathway" to remove U.S. fighting men and women from Iraq.

read in full

Who Said This ... and Why?

OK, in a story on today in BNA about legislation to reform tax laws relating to carried interest, guess who suggested the bill has been introduced because of a recent focus on the private equity and hedge fund industries, and said tax policy should not be targeted at individual sectors... saying it does not make sense to single out one industry and was this a statement in support of a bill to end the targeted tax treatment of an individual sector so as to keep it from remaining singled out, as per current law?

read in full

Pages

Subscribe to The Fine Print: blog posts from Center for Effective Government