Tag: Free Market

Thinking Is Research, Too! »

Bill Parker, an old friend of mine who died in 2000, was director of graduate studies in economics at Yale for thirteen years. He told me once about his struggles with his colleagues, who, he believed, were spending too much time on technique and not enough time on substance in teaching their courses. The...
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New Book Exposes the ‘Terrible 10′ Worst U.S. Economic Policy Mistakes »

Despite enjoying impressive economic growth over the past century, Americans have also been the victims of scores of stupid government mistakes that have made them poorer. For many the blunders led only to temporary setbacks, but for others the errors created life-altering disasters from which they never recovered. In the new book The Terrible...
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Government-Run Preschool Is a Dead End, Not a Lifeline »

Greater economic equality requires the “lifeline” of more government-funded preschool for disadvantaged children, says Nobel Prize–winning economist James Heckman in his New York Times editorial last week. High-quality education can certainly enhance a foundation of opportunity and prosperity. But the empirical record shows that government preschool is a dead end, not a lifeline. Conspicuously...
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Nancy Pelosi Flunks the Preschool Test: More Government Is Not the Answer »

When releasing the “Economic Agenda for Women and Families,” Democratic Leader Nancy Pelosi claimed that America has an early child care and education “crisis” that threatens our economy. Her solution is to adopt President Obama’s Preschool and Early Head Start/Child Care Initiative, and create universal government-run child care for all three- and four-year-olds. A...
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California Parents Need Education Options, Not Government “Accountability” »

Overall test scores for some 6 million California students in government-run schools fell this year for the first time in a decade. Rather than drumming up classroom instruction, California officials propose dumping the tests—and this move has fed ed officials fuming. In itself, ditching California’s current Academic Performance Index (API) is a good thing....
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Creative Destruction—The Best Game in Town »

In his justly famous 1942 book Capitalism, Socialism and Democracy, Joseph A. Schumpeter described the dynamics of a market economy as a process of “creative destruction.” In his view, innovation—“the new consumers’ goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates”—drives this...
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The Republic of Georgia’s Uncertain Economic Future »

Over the past ten years the Republic of Georgia has seen a remarkable amount of economic progress. Twenty-one years ago, Georgia was one of the Soviet republics, and struggled economically after the break-up of the Soviet Union. Its economic turnaround came with the election of Mikheil Saakashvili as president in 2004. He fired all...
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Why We Are on an Unsustainable Path »

To people who subscribe to the health policy orthodoxy, the riddle of modern healthcare is: Why are health costs rising so fast? To me the riddle is: why isn’t health spending rising even faster? As I write in my recent book, Priceless: Curing the Healthcare Crisis, every time you and I spend a dollar at...
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Problem Solved, No Government Program Needed »

In a classic article, Stanford University professor Kenneth Arrow argued that the market for medical care is inherently flawed because of asymmetric information. In what follows, I am going to embellish on the argument, making it even more forceful than it was in the original text. My book, Priceless: Curing the Healthcare Crisis, offers...
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Hospital Pricing Strategies »

CNN and Time Magazine discovered how hospital charges mounted for one family. Nurses pricked the patient’s finger for a glucose test 190 times. At $39 a pop that totaled $7,410. A breathing ventilator generated 32 separate bills, totaling $65,600. There were separate charges for the IV tube and for asking for a urine bottle....
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