Peter Boettke provides an important Post on Corruption. Americans congratulate themselves that We live in a Corruption-free society, but We do not. The collusion between Doctors and Drug companies is a classic case of Corruptive practice. Doctors over-drug their Patients because they receive free gifts and vacations from the amount of Drugs they proscribe from a Drug company. I personally have been proscribed a Drug which is more inefficient than the older drug previously used which costs less; you can bet I am going back to the cheaper, older, and more effective drug. Elsewhere, it is Government regulation which allows Power companies to charges established Customers for the Costs of new construction to gain new Customers. The list, compiled, could go on and on. Americans should not think We escape from Corruptive control.
Menzie Chinn examines the White House claims of halving the Deficit. The important element, here, comes from the fact that the Short-term trend which is not remarkable (expressing more Accounting than economic growth) can be expected to reverse in Y2007. The truth states the Federal Government is spending too much, getting little bang for the Buck, and will present real down-the-road Costs.
William Polley supplies consideration of the CPI core increase. What is wrong with this one? Current Corporate profits are extremely high (excellent to sell Stock Option stocks for Corporate Executives), but shows little promise as a longterm trend; while future Investment opprotunities may be crippled by returning high Oil prices. Household Equity may decline with Housing also dropping.
Mark Thoma presents material showing that American labor is straining to maintain their positions, though the numbers say the Economy is booming. It might be one of those time when Robert Reich is actually politically correct in his assessment. As the World Turns, and it might be turning against Us. lgl
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