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Gale Pooley – inspired by the research of GMU Econ alum Jeremy Horpedahl – reports that “housing amenity abundance has increased significantly since 1956.” A slice:

Median home size has almost doubled, rising from about 1,150 square feet in 1956 to roughly 2,210 square feet today. Over the same period, average household size has shrunk from 3.3 people to 2.51. The result is a dramatic increase in living space per person—from just 348 square feet in 1956 to about 880 square feet today. That’s 532 more square feet per person, or a 153 percent increase. Had space per person stayed at its 1956 level, the typical home today would measure only about 874 square feet.

The median home cost about $14,500 in 1956—roughly $12.61 per square foot. With average wages at $1.85 an hour, each square foot required 6.82 hours of earning. Today, the median home price is about $420,300, or $190.18 per square foot. However, average wages have risen to $36.53 an hour (before benefits), bringing the time price down to 5.21 hours per square foot. So, while the dollar price per square foot has risen 15-fold, wages have increased nearly 20-fold. The result is the time price of housing has fallen by almost 24 percent.

Compared to 1956, we now enjoy 532 more square feet per person as well as homes packed with 3.7 times more amenities—and all of it for about 24 percent less time per square foot.

Patrick Carroll reveals what U.S. cities with the fastest declining rental rates have in common with each other.

George Will decries the ham-fisted intrusions of the U.S. government’s executive branch into higher education. Here’s his conclusion:

Finally, it is almost sublimely hilarious that Trump’s compact forbids universities to “belittle” — wait for it — “conservative ideas.” Such as? Civility? Free trade? Fiscal continence? The separation of powers? The rule of law? Keeping the public and private sectors distinct by not conscripting corporations (Intel, U.S. Steel and others) into the public sector? Government too modest to decree that universities must be “safe spaces” for conservatives (who used to be proud of not being snowflakes)?

The Trump administration is today’s comprehensive belittler of conservative ideas. Its solicitude for “conservative ideas” will not encompass this one: Many things are beyond government’s proper scope and actual competence. Watching today’s politics toy with an institution of MIT’s complexity and importance is like watching a toddler play with Sèvres porcelain.

Mitch Daniels applauds Indiana legislators for resisting intimidation from the White House to gerrymander. A slice:

It’s not that Indiana Republicans have deserted their president. Ninety percent of them voiced their approval of him in the same survey. It is simply that this proposal runs so counter to most people’s sense of principle, and priority. Attempts by outside political action committees to generate pro-redistricting rallies at the Statehouse flopped pathetically.

Jack Nicastro is correct: “The real villain in Minnesota’s $1.5 billion fraud scandal isn’t Somalis—it’s the feds.”

Arnaud Bertrand shares the details of the U.S. Department of Homeland Security’s new, absurd requirements for foreign tourists to the U.S.: (HT Scott Lincicome)

Insanely, submitting your past 5 years’ social media to enter the U.S. as a tourist is only a small part of the proposed upcoming requirements.

You’ll also need to give your DNA (!) among many other new requirements.

All the additional info you’ll need to give as a tourist eligible for ESTA (meaning those tourists who don’t need a visa, for instance from EU, UK, Australia, Japan, and other Visa Waiver countries):

– All social media accounts from the last 5 years
– All your biometrics: face, fingerprint, DNA, and iris
– All your phone numbers from the last 5 years
– All your email addresses from the last 10 years
– IP addresses and metadata from your submitted photos
– Names of your family members (parents, spouse, siblings, children)
– All your family members’ phone numbers from the last 5 years
– Your family members’ dates of birth
– Your family members’ places of birth
– Your family members’ residencies
– All your business phone numbers from the last 5 years
– All your business email addresses from the last 10 years

If you do need a visa (i.e. non ESTA), I imagine the requirements are going to be far more drastic.

This is straight from the Department of Homeland Security documentation which you can find here.

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Beggar Thy Own Citizens

This column by Greg Ip received a lot of undeserved attention.

Mr. G__:

Thanks for your email asking for my thoughts on Wall Street Journal columnist Greg Ip’s recent claim that “China’s growth is coming at the rest of the world’s expense.”

Here are my thoughts in a nutshell: Ip could not be more mistaken.

He writes about China:

In the past five years, its export volumes have soared while imports have flatlined. China is swallowing up a growing share of the world’s market for manufactured goods. This reveals an uncomfortable truth: Beijing is pursuing a “beggar thy neighbor” growth model at everyone else’s expense.

Let’s reword Ip’s passage to more clearly reveal the reality that it describes:

In the past five years, the goods it has produced and shipped to foreigners for their use have soared while the outputs it has gotten in return have flatlined. Those of us outside of China are benefiting from ever-more of China’s manufactured goods without our having to give to China in exchange any more of our goods. This reveals an uncomfortable truth for the Chinese people: Beijing is enriching the rest of the world by pursuing a “beggar thy own citizens” degrowth model.

A people are made poorer, not richer, when their government arranges for them to produce more output for foreigners’ use while simultaneously restricting what they receive in exchange from foreigners for their own use.

You, of course, would make your own household poorer, not richer, by obliging yourself, your wife, and your children to produce more goods for your neighbors’ use while preventing yourself, your wife, and your children from accepting from your neighbors anything more in exchange. The victims of your household’s bizarre, self-destructive trade policy wouldn’t be your neighbors; they’d benefit. The victims would be you and your family.

This economic reality isn’t changed if a government compels every household and firm within its jurisdiction to produce more goods for foreigners’ use while preventing these households and firms from accepting from foreigners anything more in exchange.

Economic self-destruction does not become economic self-help just because a government enforces self-sacrifice on a national scale.

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030

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Some Links

The Wall Street Journal‘s Editorial Board is understandably unimpressed with Trump’s attempt to use tariff revenues to compensate farmers for some of the damage that farmers are suffering as a result of the very tariffs that generate those revenues. Two slices:

President Trump said Monday he is “delighted” to give American farmers “$12 billion in economic assistance.” According to Mr. Trump, this money will be coming from his tariffs, which is interesting, in that much of the pain farmers are feeling is also coming from his tariffs. Now watch, as the left hand pays off the right.

…..

“Trade wars are good, and easy to win,” Mr. Trump once boasted. Then why does he keep needing to divert billions of dollars to compensate the people whose livelihoods are collateral damage? Mr. Trump promised “Liberation Day.” He’s offering farmers a bailout instead.

Scott Lincicome tweets:

Trump’s tariffs are also a small-business-killer in other industries, including manufacturing. The big guys can navigate this (or pay someone to do it for them). The little guys don’t stand a chance.

My intrepid Mercatus Center colleague, Veronique de Rugy, decries “the bipartisan war on prices.” A slice:

Take legislation introduced earlier this year by what would have once been an unlikely duo: Sens. Josh Hawley (R–Mo.) and Bernie Sanders (I–Vt.). Their “10 Percent Credit Card Interest Rate Cap Act“—also reflecting a Trump idea from the 2024 campaign—sounds compassionate. Who enjoys paying 25 percent interest?

In practice, price controls of all sorts are disastrous. Credit card interest rates are high because unsecured consumer lending is very risky. They’re the price for the lender taking a chance on a person. If the government artificially caps rates far below the market rate, banks will stop lending to riskier borrowers. That doesn’t just mean broke shopaholics. It includes the working single parent using a financial last resort before payday.

Just as rent controls can create a housing shortage by reducing the attractiveness of supplying those homes, interest-rate caps can create a credit shortage. They put millions of working-class Americans—the people proposals like these are supposed to protect—at risk of being “debanked.” Stripped of their credit cards, some will turn to payday lenders, loan sharks, and pawn shops, whose charges are far higher.

It gets worse. A cap this low wouldn’t merely shrink credit availability; it would invert it. At 10 percent, banks would only lend to the safest, highest-income borrowers. Credit cards would become a luxury product for the affluent—a financial advantage while everyone else is pushed into the financial shadows.

Jennifer Huddleston warns against siccing the antitrust dogs on app stores.

Arnold Kling ponders conservatism.

GMU Econ alum Dominic Pino (now a columnist at the Washington Post) offers some basic economics lessons to Zohran Mamdani, Bernie Sanders, and others who insist that corporate CEOs are overpaid. Two slices:

Why are these executives paid so much? [Starbucks CEO Brian] Niccol’s career offers an interesting example. He is among the highest-paid CEOs in the food industry, and he previously worked for Taco Bell and Chipotle. Both times, he led successful turnaround efforts, and Starbucks needs one. The company has been closing stores and cutting its workforce while its stock price has stagnated for several years.

It’s too early to tell how Niccol will do at Starbucks, but his record at Chipotle is complete, and it’s remarkable. Niccol became the CEO of Chipotle in 2018. By the time he left for Starbucks in 2024, Chipotle’s revenue had doubled and its stock value had octupled.

…..

The question becomes: How much credit does the CEO deserve? Ten percent? Five percent? Chipotle’s answer during Niccol’s tenure: less than 1 percent.

The company’s market capitalization, the total value of all outstanding shares of its stock, on the day Niccol became CEO in March 2018 was about $9 billion. When he left in August of last year, it was about $77 billion.

That means, over six years, the shareholders of Chipotle paid Brian Niccol a mere $167.3 million to increase their wealth by $68 billion. He got paid about 0.2 percent of the wealth he helped create.

Yesterday (December 11th) was the 300th anniversary of the birth of George Mason the man, who is celebrated here by Jonathan Horn. Two slices:

Sick with gout, depressed over the death of his wife, and worried what would happen to their nine surviving children, Mason often refused summons for his service in assemblies away from home. But in the spring of 1776, as the American colonies inched toward independence, he went to Williamsburg to serve in the convention that would design a new constitution for Virginia as well as a declaration of rights. Mason largely wrote the drafts, including the first right enumerated: “That all men are born equally free and independent, and have certain inherent natural rights. . . among which are the enjoyment of life and liberty, with the means of acquiring and possessing property, and pursuing and obtaining happiness and safety.”

Sound familiar? Copies of the draft Virginia Declaration of Rights appeared in Philadelphia just as the Continental Congress assigned Jefferson to a committee to write a “declaration of independence.” In fairness, Jefferson didn’t boast of any “originality” in his quickly written work. The Declaration, he explained in his response to Henry Lee, “was intended to be an expression of the American mind. . . harmonizing sentiments of the day.” Indeed, had Jefferson attempted to do otherwise, his fellow delegates would not have agreed to affix their names to his work.

Jefferson, with some editing help from his fellow delegates, did exactly what they needed him to do and perfected the phrasing. “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.” The improvement on Mason’s version is, to borrow a phrase, self-evident.

…..

Fashionable as it’s become to argue that it was in defense of slavery that the colonists ultimately declared independence, it’s not true. As historians like Gordon Wood and Jack Rakove have pointed out, the forces leading to independence were already, to borrow Washington’s analogy, “like a snowball in rolling” long before Dunmore printed his proclamation. Only in desperation did he resort to emancipation and, even then, not for the slaves he himself owned.

Rich Lowry rightly excoriates Tucker Carlson. Two slices:

It’s passing strange that a self-styled defender of Western civilization and scathing critic of the persecution of Christians would find so much to like about Qatar, which is not part of the West and suppresses Christianity (apostasy from Islam is illegal, and so is proselytizing for a non-Islamic faith, while public worship is restricted for non-Islamic faiths).

Also, it doesn’t make sense for a free man making a stirring statement about freedom to do it by cozying up to an unfree country like Qatar.

In fact, Qatar is as inapt a location for making such a statement . . . as Russia (although Doha’s grocery stores are probably even better than Moscow’s).

…..

The aforementioned Russia is another country that Carlson puffs up, and it, too, is illiberal and hostile to the West.

All this just speaks to how deeply disaffected Tucker Carlson is with the West as it exists now and its course over the last 80 years or maybe more. It says it all that he is much more prone to attack Winston Churchill than the emir of Qatar.

For pilgrims and dissenters, the embrace of a place outside America with a different culture and different system always involves an implicit, and often explicit, critique of America.

So it is with Carlson and Qatar. The kingdom may trample on basic human rights, but it is orderly, illiberal, and not in any danger of being talked into becoming allies with Israel by the Jewish lobby.

What’s not to like?

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Quotation of the Day…

… is from page 380 of the 2016 second edition of Thomas Sowell’s excellent volume Wealth, Poverty and Politics:

The fortune made by Henry Ford was an incidental by-product of the historic expansion of productivity that expanded the lives of millions. Why third parties should imagine themselves entitled to intervene in such processes, to which they contributed nothing, and to preempt the decisions of others – decisions for which the interventionists pay no price if they are wrong – is one of the great mysteries of our time.

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Here’s a note to a commenter at my Facebook page.

Mr. Reviere:

Commenting on Facebook, you write:

Tariffs are taxes intended to create an incentive within the supply chain to rebase in the US as much as is economic for investors to do. Deal with that. Where the supply chain can’t or won’t move, it’s just a tax, one of many tax choices….

But someone has to address this ‘for our side’, because you can bet your cotton socks that someone is doing it in every other country. So you are stuck with the need for a regulator in the US, simply because they already have their counterpart in every other country.

The premise of your comment has several fundamental flaws.

First, you presume that the amount of economic activity that occurs within a country without tariffs is suboptimal. But how do you know? What source do you have that reveals this alleged information to you? More to the point, what source do you suppose government officials have that reveals such information to them? The fact is, neither you nor any politician or bureaucrat is justified in presuming that the pre-tariff amount of economic activity in the U.S. is suboptimal. Further, economic theory and history give us good reason to believe that economic activity under a regime of free trade is much more likely to be close to ‘optimal’ than is any pattern engineered with tariffs and other interventions.

Second, you ignore the fact that no sources of supply can be ‘rebased’ in the U.S. without destroying some other sources of supply currently ‘based’ in the U.S. If, for example, tariffs cause Americans to produce more steel, the resources used to produce this additional steel must be diverted away from other U.S. industries, causing outputs in these other industries to fall. Do you have any idea which particular U.S. industries will shrink as a result of whatever economic ‘rebasing’ is achieved by Trump’s tariffs? Of course you don’t, because no one does or could possess such knowledge. This reality, in turn, means that your implicit presumption that tariff-induced ‘rebasing’ will be economically – or even militarily – worthwhile is unwarranted.

Third, while you correctly note that other countries have government officials who fancy that they know how to use government power to override market forces in order to improve their economies’ performance, you incorrectly presume that these officials get it right. The economic interventions of government officials abroad, no less than the economic interventions of government officials here, are distorted by political considerations and, worse, also by the inescapable ignorance of such officials of the myriad economic details and trade-offs that they’d have to know if their interventions were to have any prospect of success.

The economic interventions of foreign-government officials weaken, rather than strengthen, their economies. You therefore err in asserting that we must have our government officials commit the same folly.

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030

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Humanity Has a Huge Surplus of Economic Misunderstanding

Here’s a letter to AP Fact Check.

Editor:

Melissa Goldin does a deep dive into the cause(s) of the U.S. “agricultural trade deficit” (“FACT FOCUS: Trump blames Biden for the agricultural trade deficit. It’s not that simple,” December 10). To what extent is this “deficit” caused by the policies of Biden? To what extent is it caused by the policies of Trump? To what extent are the policies of foreign governments to blame?

Busy studying these trees, Ms. Goldin fails to understand the forest, which is that there is no economic relevance whatsoever to an ‘agricultural trade deficit.’ None. Nothing in economics remotely suggests that a well-functioning economy will or should export more agricultural products than it imports.

These “trade deficits” are especially unsurprising for economic entities, such as the U.S. economy, that, like Mr. Trump’s own business ventures, overwhelmingly specialize in producing services. (What is surprising is that the U.S. for so long ran “agricultural trade surpluses.”) Therefore, an exploration of the cause(s) America’s “agricultural trade deficit” is as pointless as would be an exploration of the cause(s) of Mar-a-Lago’s “agricultural trade deficit.”

There’s nothing here demanding an explanation and no problem needing a solution. Yet by treating “agricultural trade deficit” as a meaningful economic concept with relevance for policy, such an exploration as carried out by Ms. Goldin only lends unwarranted credence to Trump’s and other protectionists’ misuse of meaningless trade statistics to justify unjustifiable protectionist measures.

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030

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Some Links

Jeff Jacoby eloquently applauds America’s birthright citizenship. A slice:

Abolishing birthright citizenship has been a fixture of the MAGA agenda for years. Trump’s order was designed to force a confrontation, in the hope that at least five justices might overturn a principle of American law regarded as settled for generations. So far, every court to examine the issue has been unequivocal: Presidents have no authority to cancel the citizenship of babies born in the United States. When US District Judge John Coughenour, appointed by President Reagan in 1981, temporarily blocked Trump’s order, he noted that in more than 40 years on the bench, he couldn’t recall another case “where the question presented is as clear as this one is.”

Viewed through the lens of law and history, the case for birthright citizenship is overwhelming. The 14th Amendment opens with an unequivocal declaration: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States.” That language was written to ensure that virtually anyone born in America would be recognized as American — regardless of race, social standing, or the citizenship of their parents. In an 1898 landmark, United States v. Wong Kim Ark, the Supreme Court confirmed that a child born in San Francisco to Chinese immigrants was a citizen —even though, under the Chinese Exclusion Act, his parents had been barred from naturalizing.

For 127 years, that precedent has been the rock on which American citizenship policy rests. The only exceptions are babies whose parents are not “subject to the jurisdiction” of US law, namely foreign diplomats, enemy occupiers, or (until 1924) American Indians born on tribal lands. No court has ever accepted the claim that undocumented immigrants or foreign tourists are in that category.

Viewed through the lens of practicality, the case for birthright citizenship is even stronger. Ending it would upend administrative systems that have functioned smoothly for more than a century. State governments issue birth certificates on the assumption that anyone born here is a citizen. Hospitals are not immigration outposts; nurses do not check passports in the delivery room. No centralized federal registry exists to evaluate parents’ legal status, nor could one be created without building an intrusive bureaucracy unlike anything Americans have ever tolerated.

John Yoo predicts that the U.S. Supreme Court will refuse to end birthright citizenship. A slice:

President Trump is entitled to ask the court to overturn Wong Kim Ark. But his administration must persuade the justices to disregard the plain text of the Constitution, the weight of the historical evidence from the time of the 14th Amendment’s ratification and more than 140 years of unbroken government practice and judicial interpretation.

A conservative, originalist Supreme Court is unlikely to reject the traditional American understanding of citizenship held from the time of the Founding through Reconstruction to today.

George Will is right: At least when it comes to war powers, “the Constitution, Congress and norms are cobwebs inadequate for lassoing a presidential locomotive.” A slice:

The lesson is stark. Do not expect the Constitution’s language and structure to impede what decades of presidential practices have made normal: presidents doing what they choose regarding warmaking. The current president has pushed prerogative to absurdity (e.g., defining war as something waged by suspected drug smugglers). In domestic affairs (e.g., a bogus “emergency” justifying tariffs; an executive order amending the 14th Amendment regarding birthright citizenship), the Constitution probably soon will restrain him. Regarding warmaking, however, the Constitution, Congress and norms are cobwebs inadequate for lassoing a presidential locomotive.

So, voters are learning the Constitution’s limited ability to mitigate the consequences of their choices. Neither the language of the law (constitutional or other), nor what are now shadows of norms, can substitute for what is indispensable: an occupant of the presidency whose constitutional conscience causes him or her to distinguish the proper from the merely possible.

Given what the foreword of [Michael] McConnell’s book calls today’s widespread sense of “constitutional degradation,” it might seem quaint to speak of a president’s constitutional conscience. In a few years, however, there can again be presidential self-restraint grounded in personal humility, and in uncodified principles — moral and prudential — requiring decent respect from the decent.

Brian Gross argues persuasively that AI will enhance and leverage, not reduce, human creativity. Two slices:

The Industrial Revolution provoked a comparable dread. As Phil Gramm and Michael Solon recently wrote in these pages, the transition from artisanal production to industrial scale was denounced as “disastrous” and “terrible” even as it increased life expectancy by 25% and lifted standards of living. While some jobs vanished, far more and better jobs appeared. The same thing happened when assembly lines reshaped manufacturing, when robotics entered the factory floor, when computers displaced typewriters, and when the internet placed a printing press on every desk.

The surprise isn’t the anxiety; it’s how reliably we forget its cyclical nature. What critics of AI overlook is the enduring lesson that when tools change, human creativity doesn’t shrink. It expands.

…..

The deeper truth is that AI is less a rival to human creativity than a multiplier of it—allowing people to spend more time on what technology can’t replicate: judgment, taste, voice, imagination. A language model can imitate Hemingway’s rhythm but not his soul; it can echo Shakespeare’s cadences but not the consciousness that produced them. That AI can, for a moment, fool our ears is a testament to its power as mimicry. That it can’t touch us in the depths of our hearts is why it makes human originality more, not less, precious.

Human creativity isn’t an output function. It lies in choices—what to emphasize, what to omit, what risks to take—the forms of judgment no machine can automate. The challenge for policymakers, then, is to resist the temptation to smother AI with fear. Regulation should focus on establishing clear rules for attribution, data use and ownership so that the rarest element in the creative economy—original human insight—continues to be rewarded.

The Industrial Revolution, the information age, and the early digital economy all show what happens when we let innovation raise the baseline: more opportunity, more discovery, more unexpected flashes of genius. A decade from now, we will likely see today not as the end of human creativity, but as the moment when originality became more valuable.

Eric Boehm corrects yet another of Trump’s countless falsehoods about trade.

Greg Lukianoff decries the 37-day imprisonment of Larry Bushart, of Lexington, Tennessee, for exercising his freedom of speech. A slice:

The government has helped to normalize this repression. Following regulatory threats from the chairman of the Federal Communications Commission, ABC briefly suspended “Jimmy Kimmel Live!” after Mr. Kimmel discussed Mr. Kirk’s killing in a monologue. The State Department said it revoked visas held by foreigners who celebrated the assassination online. The Defense Department has reviewed service members’ social media posts about Mr. Kirk; at least a dozen service members have been suspended or relieved of duty because of their comments.

None of this diminishes the horror of Mr. Kirk’s killing. He was shot to death while speaking — apparently, for speaking — to students on a college campus. That violence sent a chilling message.

It’s the same message jailing Mr. Bushart sends: Some ideas are too dangerous to express, and those who give voice to them may lose their lives, their liberty or their livelihood.

The best way to honor Mr. Kirk is not to criminalize speech. It is to ensure that argument remains the alternative to violence. In a just society, people should not fear that they will be killed for their speech. And they should not fear that they will spend five minutes in jail — let alone five weeks — for sharing a nonthreatening meme.

Laura Williams explains what shouldn’t – but, alas, what today nevertheless does – need explaining: Modern campus culture fails to prepare graduates for the real world. A slice:

Business leaders complain that recent graduates are unable to work independently, lack motivation and problem-solving abilities, and are easily offended.

“Many recent college graduates may struggle with entering the workforce for the first time as it can be a huge contrast from what they are used to throughout their education journey,” Intelligent’s chief education and career development adviser Huy Nguyen said in the report.

Universities are pouring resources into defining welcoming layouts, lowering barriers, policing microaggressions, and establishing safe spaces. But recent products of that pipeline are paying the price. And lest we forget, most will keep paying it. University graduates owe an average of $28,244 one year after they leave school.

Columnist and podcaster Brad Polumbo was still in college at Amherst when he told Fox News his dorm’s university staff had tried to soothe stressed-out students using “Carebears to Cope” during finals week. He found it condescending, and he’s excelled in a competitive, skills-based career since. Many of the kids who’ve been fired from their first jobs, though, are emerging from a world that coddles them and prioritizes protecting their emotional vulnerability and intellectual comfort. But your comfort zone is a terrible place to build any intellectual muscle.

The Editorial Board of the Washington Post applauds the U.S. Department of Justice’s stepping back from its practice of encouraging racial preferences. A slice:

Progressive identity politics is in retreat after resounding defeats in court and at the ballot box. But if a future Democratic administration wants to recommit to woke politics, it will still have many tools at its disposal. One of them is the legal doctrine of “disparate impact,” which encourages companies, universities and state and local governments to fixate on race and ethnicity to a fault. Attorney General Pam Bondi has chipped away at the doctrine with revised regulatory guidance this week, and other departments can follow her lead.

The Civil Rights Act of 1964 is aimed at intentional discrimination. The concept of disparate impact stretches that idea to the point of incoherence. It says that different average outcomes among groups — even if there was no intent to discriminate — can still be a civil rights violation. Institutions that receive Justice Department grants have been regulated according to this standard, prohibited from doing anything that has the “effect” of creating disparities among groups.

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Quotation of the Day…

is from page 132 of Norbert Michel’s excellent data-filled 2025 book, Crushing Capitalism: How Populist Policies are Threatening the American Dream:

Critics insist that their industrial policy prescriptions would be better for the typical worker, less-educated workers, and anyone unable to obtain the skills needed to compete in the current job market. But such policies would promote a culture of dependency because they would make it easier for people to remain in less-educated and lower-skilled categories and thus leave them unprepared to deal with future changes and challenges. Besides, such policies show little faith in the average Americans’ ability to better themselves and ignore all the evidence that suggests that they can improve their living standards when given the opportunity.

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The Heart of the Case for Free Trade

Here’s a letter to the Wall Street Journal.

Editor:

Jack Butler believes that, with regard to trade policy, the heart is in tension with the head (“Confession of a Cheap Imports Enjoyer,” December 10). The heart, he observes, pities “people whose local factories close,” while the head, for its part, informs us that free trade enriches the country at large. The former, alas, is concrete and touches our hearts; the latter is abstract and satisfies only our minds.

Mr. Butler misconstrues what’s in tension. The heart isn’t at odds with the head. The seen is at odds with the unseen.

Protectionists’ myopia allows them to see only the particular jobs that are destroyed by trade. Protectionists thus confine their heartfelt pity only to this select group of workers.

Free traders’ gaze is wider. They see that every job saved or created by protectionist measures is matched by a domestic job that those same measures destroy or prevent from being created. Seeing these – and other – wider consequences of protectionism, we free traders’ are moved by our hearts to oppose protectionism, for it is heartless to ignore not only consumers whose standards of living are reduced by protectionism, but other fellow citizens who lose jobs or who suffer lower wages as a result of protectionist measures.

Free traders, no less than protectionists, have caring and open hearts. The difference is that free traders, unlike protectionists, also have clear and open eyes.

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030

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