SOME ECONOMICS AGAIN

How outsourcing creates jobs: "Job creation is the number-one issue in the Presidential election. And yet, the creation of jobs is a mysterious, little understood process -- especially among politicians.... Labor legislation has the goals of fairness and job stability, but the more "protective" the legislation, the less efficient labor markets become. Anyone familiar with academic tenure or government employment knows that well-protected jobs also mean low productivity and limited flexibility. The IMF study found that employment protection legislation was a primary factor in job creation. Where protection is strong, new job creation is almost nonexistent (.25%), but where job protection is relatively weak, job creation is five times greater (1.50%). Where it is easy to fire employees is precisely where you will find the higher rates of job creation because employers face a lower cost and risk when they hire a worker. Freedom in the labor market keeps employees productive because they know that employers can easily fire them... By outlawing or restricting the outsourcing of jobs to cheap foreign labor you would greatly discourage the establishment of new jobs in the U.S. and encourage current employers to move overseas... Putting limits on foreign outsourcing will make the U.S. a less desirable location for employers and would put American companies at a disadvantage"

Tyler Cowen (of 'Marginal Revolution') is an economist specialising in the economics of culture & globalization. Here is his take on how French cultural protectionism has driven French films from the world's cinema screens: "American movies account for 80 percent of European box office receipts, although European movies have won only 5 percent of the American market .. No government can legislate artistic success. Film culture, like all culture, is dynamic. It isn't protection that it needs; it is stimulation. Without it, the form atrophies. If Europeans treat their films as weak, those films will become permanently weak."

The bigger European states can't handle serious economic reform: "Whether it is ... 'Lula' da Silva in Brazil, Leszek Miller in Poland or Gerhard Schroeder in Germany, the core dilemma is the same. Governments from the left get elected by campaigning against the policies of the financial elite - yet then find themselves constrained to adopt the very policies they campaigned against... In part, this ... reflects the economic stagnation that has crippled Europe since 2001. Unemployment is now 9.3 per cent in Germany, 9.4 per cent in France, 16.7 per cent in Slovakia and 19.1 per cent in Poland. That's a tough environment for any government to be clawing back welfare entitlements.... But to economists and the elite, those high taxes and regulation are holding Europe back - and threatening to pull it under in the future, as an ageing society will have even fewer workers supporting far more retirees. In smaller economies such as Australia and the Netherlands, voters accept that governments must tighten their belts"

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ELSEWHERE

Comment from a reader about the 9/11 "Commission": "John Ashcroft just told it like it was yesterday - he said the "intelligence failure" was due to insane policies introduced by prior administrations. Especially good was Ashcroft's stab at a member of the Commission - who ordered the greatest weakening of intelligence in many years. Just great - the Dems are getting salt in their self-indlicted wounds".

It really is pathetic to hear film-maker Oliver Stone's evasions and apologies for Fidel Castro. "There are none so blind ...." In Stone you can hear today's American "liberalism" in full flight.

All the 9-11 victims families deserve our sympathy and support, however some of them are venting their anger at the wrong target. "Who, listening to them, would not be struck by the fact that all their fury and accusation is aimed not at the killers who snuffed out their husbands' and so many other lives, but at the American president, his administration, and an ever wider assortment of targets including the Air Force, the Port Authority, the City of New York?" Did the British civilians in World War II blame Churchill for the lives they lost to German bombing? Leftists really are disgusting.

Bunker Mulligan agreed with the article about Defense Dept. schools that I linked to yesterday. He grew up in those schools, sent his son to one and became himself an instructor at the Air Force Academy. He has posted on his experiences here and here


Rather surprising that the very conservative Peter Hitchens started out as a far-Leftist too. I must be one of the few life-long conservatives who are both intellectually oriented and politically outspoken. I think my first conservative act was when, at age 13, I used my saved pocket-money to buy a subscription to "Reader's Digest".

I wonder if Captain Clueless has grown up yet? He used to think that anyone who disagreed with affirmative action was a "white supremacist". But he also voted for Al Gore and lived to regret it so there is hope.

Today's recipe is another Thai one: Spicy chicken in peanut sauce. See here.

For more postings, see GREENIE WATCH and POLITICAL CORRECTNESS WATCH

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The Left have always wanted more spent on welfare and made "Fascism" a swear-word. President Bush deposed a brutal Fascist dictator and sponsored a big expansion of welfare. But instead of being admired by the Left, he is hated with a passion. What does that tell you about the Left? It tells you that they have no principles at all: That everything they have ever claimed to stand for is fake.

Three more examples of Leftist dishonesty: They blame the 9/11 attacks on "poverty" in the Islamic world. Yet most of the attackers were Saudis and Saudi Arabia is one of the world's richest countries! They also say that they oppose racism yet support "affirmative action" -- which judges people by the colour of their skin! They say that they care about "the poor" but how often do you hear them calling for the one thing that would bring about a worldwide economic boom in poor countries -- the USA and the EU abandoning their agricultural protectionism? Leftists obviously care more about conservative farmers than they do about the poor!

America is engaged in a titanic struggle with hate. The American Left hate America, much of Europe hates America and, most of all, the Islamic fundamentalists hate America. Fortunately America is -- in every sense -- the world's strongest country.

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