CEOs vs. Small Business Owners on Which Policies Make for a Business-Friendly Climate

What do big businesses and small businesses want from government? Pretty much the same thing.

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Do Politicians Regulate When They Can’t Spend?

Noel Johnson, Matt Mitchell, and Steve Yamarik have a new working paper answering that question in the affirmative. They look at state fiscal and regulatory policies and find that Democrats generally like to increase taxes and spending when in control of state houses and Republicans do the reverse. But when states have tough balanced-budget requirements [...]

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In Which the Town Comes for My Garden

A Town of Tonawanda building inspector wants to destroy my native plant garden through misapplication of town weed laws. But my garden is legal, and I can prove it…

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What’s in the Sausage?

As commentators begin to read the Dodd-Frank Wall Street Reform and Consumer Protection Act, they are discovering some hidden gems. The most recent discoveries: Diversifying the Portfolio (via Carrie Budoff Brown at Politico): Congress gives the federal government authority to terminate contracts with any financial firm that fails to ensure the “fair inclusion” of women [...]

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Scary metaphor of the day

This today from the WSJ: Federal Deposit Insurance Corp. Chairman Sheila Bair said bank regulators would have the tools they need to banish “too big to fail” institutions from the financial landscape once a Wall Street overhaul bill becomes law. …Ms. Bair said that new powers allowing regulators to seize and liquidate failing institutions would [...]

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Wanted: An economics of fear

During and after the financial panic of 2008, we were exposed to a host of economists trying to explain the market meltdown, what should be done about it, and how we might avoid repeating it. Some of the leading lights in the discipline weighed in on the market problems. Now we have a reform proposal [...]

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Occasionally he is right about something

I’m referring here to Paul Krugman’s column today.  The ratings system in the financial sector has been a complete pile of crock.  As Krugman noted, 93% of AAA-rated subprime-rated mortgage securities are now junk. How often should a AAA-security end up as junk?  Clearly there has been huge systemic failure in this area. I’m a [...]

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