Economics for Economists

Here is another Tract calling for resumption of Trade Talks, claiming dire need before Bush loses his ‘Fast Tracking’ authority in July. Many cannot understand that the Trade Talks are a dead issue with the Farm States aligned to Vote down any Treaty which touches their farm supports before Bush’s authority lapses in July. Those pleading the Case for Free Trade fail to understand that the Opposition positions of the EU, Brazil and India, and the United States are all based upon refusal to make further Concessions in areas which are their basic Trade strengths; EU could not control the flow of Goods into their respective Countries, Brazil and India would be faced with a Consumption market which they cannot finance, and the United States would lose its real Trade advantage of Food Grains. Evaluative study would conclude surrender of any of the major positions would wreck havoc in the economies involved, with only marginal gains to be made by Anyone. The EU, Brazil, and India would face a Trade imbalance functionally equal to that presently endured by the United States, while the United States would lose its last real Trade position in the World beside Boeing. Economists need to forget Trade theory, and examine Trade balances.

Robert Bohannon might develop a reputation as horrendous as the Columbian Cocaine Cartel, with his design to caffeinate baked Goods. Turning such a Power over to the Corporate structure might unbalance the entire American Dietary network. I can see it now: ‘I will have the uncaffeinated Cheesecake, please! And a Cup of Coffee on the side. The Caffeinated Cheesecake always gets me Wired.’ We will be holding Congressional Hearings to determine how much Caffeine is being added to Our Pound cake. State Legislators might as well start debates on the proper Minimum Age for children to have access to Caffeinated Baked Goods. The FDA will be ordered by Congress to come up with the correct labeling format for Donuts and Pies. Oh, the legislative effort which will be required to insure the proper levels of Caffeine for Cookies!

Laurence Kotlikoff thinks We, as Americans, may be saving too much money for Retirement; and actually, he is probably right. Americans do not need a multiplex of new Investment plans and planning systems, We need a universal Pension system. We have Social Security, and though it has had its detractors since its inception, has still provided more People with more financial security than any other effort in history. Social Security would still be sound, and paying its obligations for the next 40 years, if We could convince Congress to raise its own taxes, and invest Social Security revenues in sound Banking nodules. Economists, and Taxpayers, should understand the great Entitlements Crisis has been caused by Politicians and Lobbyists, not by the revenue-generating Economy We all live within. lgl