“The pension time bomb is ticking — and could ultimately explode in a savings-and-loan-like crisis. An aging workforce and the collapse of the stock market have combined to create massive underfunding of traditional corporate pensions. The Pension Benefit Guaranty Corporation (PBGC), the government agency that insures these pensions, estimates the underfunding at $300 billion, a total that was only $23 billion as recently as 1999,” writes Robert Samuelson in the Washington Post.

Internet Sales Tax Effort May Be Dead for 2003 (Washington Post): “Three dozen states seeking congressional approval for their plan to tax all Internet sales may have missed their chance this year. Two key congressional panels today signalled that they are not willing to hitch the online sales tax issue to a planned extension of the Internet tax moratorium, a law that bans taxes on Internet access and Internet-specific services.” 

“And while one is loath to defend them, these faceless, fast-talking people who call us during dinner, perhaps it’s time someone did. Telemarketing isn’t a crime. It’s a profitable business responsible for legitimate employment. Yet it’s just been regulated out of existence, and the country is applauding,” writes Farhad Manjoo in Salon.

Needy local, state governments tack more taxes onto travelers (USA Today): Travelers face higher taxes as more state and local governments turn to out-of-towners to ease their budget troubles. In the past two months, at least four states have adopted taxes on lodging, meals or car rentals, and several cities are considering them.

• Core of weapons case crumbling (BBC)
• Bogus from the Beginning (Raimondo, Antiwar.com)
• Who is Buried in Bush’s Speech (Kinsley, Slate)
• How to Deal With a Meltdown (Rockwell, LRC)

Posted by Mises.org News

The Price of Tariffs (WSJ): “What do apples, pears, quinces, rice, T-shirts, trousers, bib overalls, blankets, stainless steel products, doors, men’s suits, windows, drums, cans and ink-jet printers have in common? They are all part of a much longer list of U.S. products that currently sell well in Europe but won’t in the future if they are slapped with 100% tariffs.... There is a way out. Mr.

Let’s get something clear: there is no deflation. Let me put it another way: deflation, there is not.

OK, folks, you’d better sit down and make sure your blood pressure is at a reasonable level before continuing. Here is Tom Nugent “debunking” some economic fallacies, with my comments interspersed:

Greenspan: Further Interest Rate Cuts Possible (CNN.com): “While some question whether further rate cuts would be effective, Greenspan said the central bank has studied the issue and decided that they would. But he also conceded that low rates so far have not lifted business activity as much as they might have in the past.”