Cato Headlines

We Can Cut Government: Canada Did

Cato Institute — Fri, 25 May 2012 09:51:00 -0400

Two decades ago Canada suffered a deep recession and teetered on the brink of a debt crisis caused by rising government spending. But Canada reversed course and cut spending, balanced its budget, and enacted various pro-market reforms. In the new issue of Cato Policy Report, Cato scholar Chris Edwards says that Canada has shown America how to get its fiscal house in order. Also in this issue Edward H. Crane remarks on the furor over the Government Services Administration recent multi-day party in Las Vegas.

May/June 2012 Issue of Cato Policy Report

The Potential for Private Money

Cato Institute — Wed, 23 May 2012 07:44:00 -0400

Although the Federal Reserve currently has a de facto monopoly on the provision of currency in the United States, this was not always the case. Throughout most of U.S. history, private banks issued their own banknotes as currency. In a new paper, Thomas L. Hogan examines ways this practice could be reinstituted in the United States with minimal changes to the banking system.

"Competition in Currency: The Potential for Private Money," by Thomas L. Hogan

New Cato Site Tracks Police Misconduct

Cato Institute — Tue, 22 May 2012 07:53:00 -0400

No one disputes the idea that police misconduct is wrong, but reasonable people do disagree about the scope of the problem and how it ought to be addressed. In an effort to track allegations of police misconduct so policymakers can make informed assessments of its nature and circumstances, the Cato Institute has launched the National Police Misconduct Reporting Project at PoliceMisconduct.net. Our objective is to identify policies that consistently uphold high standards of ethics, honesty, and professionalism from police officers and critique the policies that do not.

A Case for Defunding Public Broadcasting

Cato Institute — Mon, 21 May 2012 08:06:00 -0400

Government-funded media companies are inherently problematic and impossible to reconcile with either the First Amendment or a government of constitutionally limited powers. In a new paper, Cato scholar Trevor Burrus argues that public broadcasting has run its course as a publicly funded entity. "Public broadcasting does not need to go away, it needs to be transformed back into the noncommercial model that thrived before widespread government funding."

"A Case for Defunding Public Broadcasting," by Trevor Burrus

Monetary Reform in the Wake of Crisis

Cato Institute — Fri, 18 May 2012 10:33:00 -0400

At no time since the founding of the Federal Reserve nearly a century ago has it been more important to reconsider the role of monetary policy in a free society. A new, special issue of Cato Journal addresses how to make the transition from the current regime of discretionary government fiat money to sound money or what Richard H. Timberlake calls "constitutional money." In particular, what types of monetary reform would help prevent future crises, limit government power, increase the range of choices open to individuals, and safeguard the long-run value of money?

American Nightmare: How Government Undermines The Dream of Homeownership

Cato Institute — Thu, 17 May 2012 08:43:00 -0400

The American Dream turned into a nightmare when the housing bubble burst, and people have been trying to figure out who to blame — Greedy bankers? Corrupt politicians? Ignorant homeowners? In American Nightmare: How Government Undermines the Dream of Homeownership, Cato scholar Randal O'Toole explores the forces at play in the housing market and shows how we can rebuild the American dream of homeownership by eliminating federal, state, and local policies that distort the free market for housing.

American Nightmare: How Government Undermines The Dream of Homeownership, by Randal O'Toole

Ending Congestion by Refinancing Highways

Cato Institute — Tue, 15 May 2012 07:34:00 -0400

Although gasoline taxes have long been the main source of funding for building, maintaining, and operating America's network of highways, roads, and streets, the tax is at best an imperfect user fee. In a new paper, Cato scholar Randal O'Toole proposes an affordable vehicle-mile fee system that preserves traveler privacy, eliminates nearly all traffic congestion, adequately funds all federal, state, and local roads, and does so in a revenue-neutral manner after eliminating gas taxes and local road subsidies.

"Ending Congestion by Refinancing Highways," by Randal O'Toole

Questioning Homeownership as a Public Policy Goal

Cato Institute — Thu, 10 May 2012 07:49:00 -0400

For decades U.S. housing policy has focused on promoting homeownership. In a new study, author Morris A. Davis shows that the policies designed to further homeownership have been ineffective and expensive and that homeownership as a public policy goal is not well supported. "A back-of-the envelope calculation suggests the present value of the cost of these policies to U.S. taxpayers is a staggering amount: $2.5 trillion," says Davis.

"Questioning Homeownership as a Public Policy Goal," by Morris A. Davis

Is the EU Going to Last?

Cato Institute — Tue, 08 May 2012 10:00:00 -0400

With Francois Hollande's election as the new French president, and the Greeks massively voting for extreme parties, the entire European project has been called into question. And while Paul Krugman and others argue that austerity is to blame for the recent turmoil, Cato scholar Alberto Mingardi contends that much of the current situation is a result of competing models for economic integration.

"European Project's Contradictory Nature Ensures Its Failure," by Alberto Mingardi
"Austerity Is Blamed," by Richard Rahn
"Paul Krugman and the European Austerity Myth," by Daniel J. Mitchell

Dissident Chinese Economist Allowed to Receive Friedman Prize

Cato Institute — Mon, 07 May 2012 09:20:00 -0400

Economist Mao Yushi on Friday received the Milton Friedman Prize for Advancing Liberty, awarded biennially by the Cato Institute, after a tense several days during which his detention by Chinese authorities seemed imminent. "We're relieved that the Chinese government has kept its word," said Cato founder and president Edward H. Crane. "Given the current political environment in China, we were preparing an alternative program in case the event had to go forward without our honoree."

"Mao Yushi: Recipient of the 2012 Milton Friedman Prize for Advancing Liberty," Cato Video
"Securing Liberty in China," Podcast featuring Mao Yushi
More about the Milton Friedman Prize for Advancing Liberty

Killing bin Laden, Killing al Qaeda

Cato Institute — Tue, 01 May 2012 09:34:00 -0400

May 2 marked the one year anniversary of the SEAL raid that resulted in the death of Osama bin Laden. The killing of bin Laden marked a significant achievement in America's long war against al Qaeda, but also served to highlight the sad and simple truth that the protracted wars of occupation waged in 9/11's name were an enormous drain on American taxpayers and counterproductive to the goal of stopping terrorism.

"Bin Laden's Death, One Year On," by Malou Innocent
"Why al Qaeda May Never Die," by John Mueller

Squeezing the Ivory Tower

Cato Institute — Wed, 25 Apr 2012 11:01:00 -0400

Higher education is in need of serious financial reform. But according to Stephen Joel Trachtenberg, president emeritus and University Professor of Public Service at George Washington University, you cannot have such reform without addressing the staff and faculty's position at these institutions. In the latest version of Cato's Letter, Trachtenberg offers proposals for beginning the financial reform of higher education. "Simply put," he says, "the goal should be to increase faculty 'productivity' by 20 percent and lower the number of administrative staff by 20 percent."

How We Spend Nearly $1 Trillion a Year Fighting Povertyâ€”And Fail

Cato Institute — Wed, 11 Apr 2012 08:36:00 -0400

Between 1964 and now, the federal government spent roughly $12 trillion fighting poverty, and state and local governments added another $3 trillion. Yet the poverty rate has never fallen below 10.5 percent and is now at the highest level in nearly a decade. Clearly, we have been doing something wrong. In a new study, Cato scholar Michael D. Tanner argues that we should "shift our anti-poverty efforts from government programs that simply provide money or goods and services to those who are living in poverty to efforts to create the conditions and incentives that will make it easier for people to escape poverty."

"The American Welfare State: How We Spend Nearly $1 Trillion a Year Fighting Poverty—And Fail," by Michael D. Tanner

New Cato Policy Report Looks at Peace and Free-market Capitalism

Cato Institute — Mon, 02 Apr 2012 10:18:00 -0400

Although the idea strands of peace and free-market capitalism have undergone parallel and substantially overlapping historical trajectories, support for capitalism does not on its own necessarily imply war aversion or support for peace. In the latest issue of Cato Policy Report, Cato scholar John Mueller examines the relationship between peace, democracy, and economic development. Also in this issue, Robert A. Levy discusses inequality and redistribution.

March/April 2012 Issue of Cato Policy Report

Mao Yushi Wins 2012 Friedman Prize

Cato Institute — Mon, 02 Apr 2012 09:49:00 -0400

Mao Yushi, one of China's most outspoken and influential activists for individual rights and free markets, has been named the 2012 winner of the Cato Institute's Milton Friedman Prize for Advancing Liberty. The award will be presented on the evening of May 4 at the Washington Hilton, and will include a keynote address by New Jersey Governor Chris Christie and special remarks by John Stossel.

Regulation Remembers William Niskanen

Cato Institute — Tue, 27 Mar 2012 13:38:00 -0400

William A. Niskanen, the chairman emeritus and a distinguished senior economist at the Cato Institute who passed away last October 26, is commemorated in the most recent issue of Regulation. With remembrances from Susan E. Dudley, William F. Hederman, Jerry L. Jordan, William Poole, Benjamin Zycher, and David R. Henderson, Regulation honors a man whose influence on and importance to the Cato Institute cannot be overstated.

Spring 2012 Issue of Regulation

Expanding Ex-Im's Mandate Is A Big Mistake

Cato Institute — Fri, 16 Mar 2012 09:53:00 -0400

Throughout its history, the Export-Import Bank of the United States (Ex-Im Bank) has limited its activities mostly to financing and guaranteeing U.S. export transactions. But in anticipation of Ex-Im's charter expiry on May 31, 2012, the Obama administration has called for a massive and unprecedented new role for the Ex-Im Bank: to finance U.S. corporations' domestic sales, as well. In a new paper, Cato scholar Sallie James argues that expanding the bank would be a mistake. "Legislators should be looking toward winding down the bank completely," says James, "not expanding its role."

George Will on Sallie James and the Ex-Im Bank
"Expanding Ex-Im's Mandate Is A Big Mistake," by Sallie James
"The End of the Ex-Im Bank?," by Sallie James
"Time to X Out the Ex-Im Bank," by Sallie James

Cutting the Army Corps of Engineers

Cato Institute — Wed, 14 Mar 2012 16:03:00 -0400

Federal infrastructure spending makes for good political sound bites, but the reality is much different, as decades of experience with the Army Corps of Engineers illustrates. In a new essay, Cato scholar Chris Edwards argues, "The nation's long experience with the Army Corps illustrates how federal involvement in local infrastructure often leads to mismanagement, inefficiency, and pork-barrel spending. It's time to revive federalism in infrastructure investment and begin to privatize Army Corps activities or transfer them to the states."

"Cutting the Army Corps of Engineers," by Chris Edwards
"Reforming the Army Corps of Engineers," by Chris Edwards

What Made the Financial Crisis Systemic?

Cato Institute — Tue, 06 Mar 2012 07:39:00 -0500

The current narrative regarding the 2008 systemic financial system collapse is that numerous seemingly unrelated events occurred in unregulated or underregulated markets, requiring widespread bailouts of actors across the financial spectrum, from mortgage borrowers to investors in money market funds. In a new study, authors Patric H. Hendershott and Kevin Villani argue instead that politicians were responsible for both regulatory incompetence and mission-induced laxity, which eventually led to systemic failure.

"What Made the Financial Crisis Systemic?," by Patric H. Hendershott and Kevin Villani

Trade Policy Priority One: Averting a U.S.-China "Trade War"

Cato Institute — Mon, 05 Mar 2012 12:38:00 -0500

An emerging narrative in 2012 is that a proliferation of protectionist, treaty-violating, or otherwise illiberal Chinese policies is to blame for worsening U.S.-China relations. But the U.S. government has also indulged in protectionism and made some poor choices. There is plenty of blame to go around for the heightened bilateral tensions. In a new paper, Cato scholar Daniel J. Ikenson argues that "responsible policymakers should be looking beyond the politics to find bridges, olive branches, and solutions that remind people in both countries of the importance and mutual benefits of the relationship."

"Trade Policy Priority One: Averting a U.S.-China "Trade War"," by Daniel J. Ikenson