The Clinton administration, working with Republican leaders, wants to do for foreign governments what the Reagan administration did for the S&L industry. The idea, as discussed at the Halifax world economic meeting, is to create a global bankruptcy court. It would restructure government debt wherever it may be, so long as the nation is on the verge of defult. It would then lend ever more money to debt-ridden governments.
In the Clinton administration’s spin control on the Mexican meltdown, Nafta had nothing to do with it. Without the treaty, matters would have been worse, the White House says, and now Nafta will help Mexico recover.
The Republican leadership, which shepherded Nafta to ratification, has no interest in countering this argument. They fear being indicted as co-conspirators in the back-door bailout—which they allowed to proceed without even a Congressional vote.
The period between the World Wars was a golden age for the Austrian School of economics. Led by Ludwig von Mises, a group of scholars writing in the tradition of Carl Menger broke new ground in economic science. Their studies showed the superiority of free markets and sound money over all forms of government control. A top theorist in that Mises Circle of thinkers was Gottfried Haberler, who died in Washington, D.C., at the age of 94 on May 6, 1995.
As Congress considers cuts in science funding, lamentations are rising. “We’re dominated by fools,” said one Democrat. “At risk is the type of Government-financed research that has put men on the moon,” intoned the New York Times. “Such cuts portend wide changes in American science and American life.” A few years ago, a Harvard physicist compared federal refusal to build the Superconducting Supercollider to medieval Europe allowing itself to be overrun by the Moors.
We have the makings of a world central bank, thanks to the government officials from industrialized countries (the G-7) who met at Halifax, Nova Scotia, in June. U.S. Treasury Secretary Robert Rubin, as usual, got just what he wanted.
The officials didn’t call it a world central bank, a creepy term that would have invited public reprisal. But central banking is a good description of what this monster will do—as a prelude to the global economic distortion and world inflation it will cause.
The economy is again teetering on the brink of recession, and everyone’s calling on the Fed to do something—anything!—to prevent another economic slump. But while the Fed has mastered the art of messing up the economy, it doesn’t have the ability to stop the bad consequences of its own manipulative actions.
Just a few years ago we had a bicentennial celebration of the Constitution. Republicanism and federalism, the two most salient features of the Constitution, were never mentioned. Instead we had a glorification of multiculturalism and the central state.
The Republican Congress has had nine months to reduce taxes. Even one percent would be appreciated. Instead, we get convoluted plans that will be “revolutionary” at some point in the far-distant future. Enough of welfare reform. It’s time to reform taxes.
Left-liberals hate the idea, but the prosperity of everyone in a market economy depends in good part on the rich. The capital they have earned and saved generates investments and creates jobs. Their savings keep interest rates low. Their actions are philanthropic in every sense. In their professions, they help everyone prosper. In their charity, they help the poor, and allow the arts and education to thrive.
The income tax has become politically vulnerable. Some politicians have said we should replace it with a national sales tax. Yet, far from reducing the total tax burden, this would merely shift the burden around from individual filers to retailers.
