Glenn Reynolds, writing in USA Today, draws some lessons from Katrina and her ten-year aftermath.
Against that view [that the Ex-Im Bank adds positive value to the American economy by ‘leveling’ the global trading field], we offer a simple, open-economy trade model to demonstrate that there is, in fact, a deadweight loss in the domestic economy when a government offers an export subsidy. In addition to a loss in economic efficiency, the Ex-Im Bank amounts to a special privilege for the connected few—big subsidies to powerful companies. For example, nearly $8 billion of the $12 billion in Ex-Im Bank loan guarantees in 2013 went to support Boeing exports. In fact, of that $12 billion, 97 percent supported the sales of only 10 firms. While Ex-Im Bank programs may indeed benefit select domestic firms, we will demonstrate that the bank’s overall impact on the US economy is negative.
Tim Carney exposes Hillary Clinton’s penchant for flip-floppery and cronyism.
John Cochrane likes the Wall Street Journal‘s recent exhibit of Phillips Curve Art.
Today is the official release day of the new book edited by Mark Steyn, A Disgrace to the Profession – a book on the sorry academic history of the idea that global temperatures are described accurately by the shape of a hockey stick. Here’s an in-depth review of the book. (HT W.E. Heasley)