Should Central America Listen to the WSJ and Copy Hong Kong, or Listen to the OECD and Copy Greece?

International Liberty

The great thing about the Economic Freedom of the World is that it’s like the Swiss Army Knife of global policy. No matter where you are or what issue you’re dealing with, EFW will offer insight about how to generate more prosperity.

Since today’s focus is Central America, let’s look at the EFW data.

As you can see, it’s a mixed bag. Some nations are in the top quartile, such as Costa Rica, Guatemala, and Panama, though none of them get high absolute scores. Mexico, by contrast, has a lot of statism and is ranked only #88, which means it is in the third quartile. And Belize is a miserable #122 and stuck in the bottom quartile (where Cuba also would be if that backwards country would be ranked if it produced adequate statistics).

One of the great challenges for development in central America (as well as other parts…

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No, US school funding is actually somewhat progressive.

Random Critical Analysis

Note: I have already touched on these issues in a much longer, much broader post on education and on twitter at some length, however I thought it’d be useful to zoom in on this issue and marshal the evidence in one place for future reference.

It is stillcommonly supposed by much of the public that school funding is terribly unequal due to reliance on local funding mechanisms (especially property tax).   Although there were once modest inequalities associated with local income levels (several decades earlier), this information is generally wildly out of date today.   Within the vast majority of states districts with less advantaged students (read: higher poverty, lower income, fewer parents with college degrees, minority, etc) actually spend at least as much money per pupil (often more), both overall and in the narrower instructional expenditure category, and where there are inequalities these differences are usually quite modest and…

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Hong Kong’s Remarkable Fiscal Policy

International Liberty

I’ve had ample reason to praise Hong Kong’s economic policy.

Most recently, it was ranked (once again) as the world’s freest economy.

And I’ve shown that this makes a difference by comparing Hong Kong’s economic performance to the comparatively lackluster (or weak) performance of economies in the United States, Argentina, and France.

But perhaps the most encouraging thing about Hong Kong is that the nation’s top officials genuinely seem to understand the importance of small government.

Here are some excerpts from a recent speech delivered by Hong Kong’s Financial Secretary. He brags about small government and low tax rates!

Hong Kong has a simple tax system built on low tax rates. Our maximum salaries tax rate is 15 per cent and the profits tax rate a flat 16.5 per cent. Few companies and individuals would find it worth the risk to evade taxes at this low…

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Pielke on Climate #2

Climate change debate is way more complicated than some people in the media think and try to make us believe…

The Climate Fix

2015-11-19-1447968585-1661590-6672156239_89c77d53d8_oWelcome to the second edition of my occasional newsletter on climate and energy issues. As a reminder, my day-to-day research or writing is focused on sports governance and science policy. But I’ve written a fair bit on the topics of climate and energy over the past 25 years, including two books and a boatload of academic papers, and I’m paying attention. So caveat lector!

A few things to say up front:

  • If you don’t like what I write or don’t like me, then don’t read it – no big deal, just a professor with a blog.
  • If you appreciate the perspective, consider the tip jar to your right. And thanks to those of you who visited it last month – much appreciated!
  • If you’d like to engage, consider a comment, a Tweet or an email. I am happy to discuss or debate.
  • If you choose to call me names or lie about…

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The Continuing Revenge of the Laffer Curve

International Liberty

Seven years ago, I wrote about the “Butterfield Effect,” which is a term used to mock clueless journalists.

A former reporter for the New York Times, Fox Butterfield, became a bit of a laughingstock in the 1990s for publishing a series of articles addressing the supposed quandary of how crime rates could be falling during periods when prison populations were expanding. A number of critics sarcastically explained that crimes rates were falling because bad guys were behind bars and invented the term “Butterfield Effect” to describe the failure of leftists to put 2 + 2 together.

Journalists are especially susceptible to silly statements when writing about the real-world impact of tax policy.

They don’t realize (or prefer not to acknowledge) that changes in tax rates alter incentives to engage in productive behavior, and this leads to changes in taxable income. Which leads to changes in tax revenue, a…

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