Friday's interesting reads - 6/6/08

I had the last of the three letters I submitted to the WSJ published today.

"At $4, Everybody Gets Rational" by Charles Krauthammer for The Washington Post (via RealClearPolitics):

"America's sudden change in car-buying habits makes suitable mockery of that absurd debate Congress put on last December on fuel efficiency standards. At stake was precisely what miles-per-gallon average would every car company's fleet have to meet by precisely what date.

It was one out-of-a-hat number (35 mpg) compounded by another (by 2020). It involved, as always, dozens of regulations, loopholes and throws at a dartboard. And we already knew from past history what the fleet average number does. When oil is cheap and everybody wants a gas guzzler, fuel efficiency standards force manufacturers to make cars that nobody wants to buy. When gas prices go through the roof, this agent of inefficiency becomes an utter redundancy.

At $4 a gallon, the fleet composition is changing spontaneously and overnight, not over the 13 years mandated by Congress...

Some things, like renal physiology, are difficult. Some things, like Arab-Israeli peace, are impossible. And some things are preternaturally simple. You want more fuel-efficient cars? Don't regulate. Don't mandate. Don't scold. Don't appeal to the better angels of our nature. Do one thing: Hike the cost of gas until you find the price point."

The truth is that people respond to financial incentives. I don't have a problem with an additional fuel tax as long as they cut taxes in other places. I'm slightly skeptical they would do they, but you don't know. The left and the right would fight over whose taxes to cut.

"Libertarians and the Welfare State: Is It Time to Drop the Hard Line?" by Bryan Caplan:

"[T]he existence of welfare state is one of the main rationalizations for undercutting the greatest anti-poverty campaign the world has ever known: immigration. (Friedman said it most clearly: "You cannot simultaneously have free immigration and a welfare state." But Krugman's in full agreement). And unlike the welfare state, immigration has and continues to help absolutely poor people, not relatively poor Americans who are already at the 90th percentile of the world income distribution. There's no reason for libertarians to make apologies to social democrats: Libertarian defenders of immigration are the real humanitarians in the world, and the laissez-faire era of open borders without the welfare state was America's real humanitarian era."

"Leftist thinking left off the syllabus" by Rodrigo Abd for The LA Times (HT: RealClearPolitics):

"Leftist ideology may be gaining ground in Latin America. But it will never set foot on the manicured lawns of Francisco Marroquin University.

For nearly 40 years, this private college has been a citadel of laissez-faire economics. Here, banners quoting "The Wealth of Nations" author Adam Smith -- he of the powdered wig and invisible hand -- flutter over the campus food court.Every undergraduate, regardless of major, must study market economics and the philosophy of individual rights embraced by the U.S. founding fathers, including "life, liberty and the pursuit of happiness."

A sculpture commemorating Ayn Rand's "Atlas Shrugged" is affixed to the school of business. Students celebrated the novel's 50th anniversary last year with an essay contest. The $200 cash prize reinforced the book's message that society should reward capitalist go-getters who create wealth and jobs, not punish them with taxes and regulations.

"The poor are not poor just because others are rich," said Manuel Francisco Ayau Cordon, a feisty octogenarian businessman, staunch anti-communist and founder of the school. "It's not a zero-sum game.""