The Conspiracy to Keep You Poor and Stupid is a trademark of Donald L. Luskin

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Star Trek

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Chronicle of the Conspiracy
Join us as we discover, document, expose and challenge the bad people, the bad institutions and the bad ideas that stand in the way of wealth creation -- and show you how to fight back!

Friday, June 12, 2009

NOW HERE'S A TAX POLICY PAUL KRUGMAN WILL LOVE!   From Greg Mankiw -- a proposal to lower taxes for short people, and raise them for tall people.

Posted by Donald L. Luskin at 1:14 AM | link  


Thursday, June 11, 2009

AND HOW DOES HE FEEL ABOUT CALLING A SPADE A SPADE?   From this morning's New York Times:
If there is one thing Kenneth R. Feinberg does not like to be called, it is a czar.

But the man the Obama administration appointed Wednesday as the compensation official for companies on federal assistance will have an almost unprecedented discretion to set pay for some of the nation’s top bankers and chief executives.

...“One thing that troubles me is this notion of me described as a compensation czar,” Mr. Feinberg said in an interview. “It makes it sound as if my goal is to impose certain restrictions on the private marketplace..."

Yeah... sounds pretty much like that.

Posted by Donald L. Luskin at 7:21 AM | link  

I GUESS WE NEED MORE STIMULUS   ...or maybe less ...or something. Whatever they're doing, it's not working. When is Paul Krugman going to point these facts out in a column? Bueller? Bueller? Anyone?

Thanks to Dave Duval.

Posted by Donald L. Luskin at 6:56 AM | link  


Wednesday, June 10, 2009

BET YOU NEVER KNEW HOW LITTLE $100 MILLION IS   ...that is, until that's all you pledge to reduce the federal budget by. Check out this excellent visualization.

Thanks to Jameson Campaigne.

Posted by Donald L. Luskin at 10:01 AM | link  


Tuesday, June 09, 2009

OKAY, I'M CONFUSED. AM I GOING TO GET PAID, OR AM I NOT?   Tuesday morning, The Washington Post:
...the Obama administration is ready to issue new regulations limiting the compensation of top executives at financial institutions that have received government rescue funds.
Tuesday afternoon, The Wall Street Journal:
The Obama administration is dropping its plan to cap salaries at firms receiving government bailout money, leaving them subject to congressionally imposed limits on bonuses, according to people familiar with the matter.

Posted by Donald L. Luskin at 11:04 PM | link  

BUSH WOULDN'T HAVE DARED   But Obama will dare anything, when it comes to the adoring media. Here's how he dares to claim his bogus "stimulus" is working, on the grounds that it "saves" jobs that would have otherwise been lost. Only problem -- this can't be measured. William McGurn in the Journal:
"Saved or created" has become the signature phrase for Barack Obama as he describes what his stimulus is doing for American jobs. His latest invocation came yesterday, when the president declared that the stimulus had already saved or created at least 150,000 American jobs -- and announced he was ramping up some of the stimulus spending so he could "save or create" an additional 600,000 jobs this summer. These numbers come in the context of an earlier Obama promise that his recovery plan will "save or create three to four million jobs over the next two years."

...Of course, the inability to measure Mr. Obama's jobs formula is part of its attraction. Never mind that no one -- not the Labor Department, not the Treasury, not the Bureau of Labor Statistics -- actually measures "jobs saved." As the New York Times delicately reports, Mr. Obama's jobs claims are "based on macroeconomic estimates, not an actual counting of jobs." Nice work if you can get away with it.

And get away with it he has. However dubious it may be as an economic measure, as a political formula "save or create" allows the president to invoke numbers that convey an illusion of precision.


Posted by Donald L. Luskin at 8:45 AM | link  


Monday, June 08, 2009

AMBITIOUS ECONO-GRAPHIC   The concepts laid out here may be questionable (as such things always are), but I congratulate the Wall Street Journal for this ambitious attempt to use graphics to illuminate difficult and inter-related phenomena:


Posted by Donald L. Luskin at 9:21 AM | link  

STEELE ON SOTOMAYOR   I've been waiting to hear what Shelby Steele has to say about the Sotomayor nomination. It's just what I expected, but Steele always expresses these ideas so beautifully:
Judge Sotomayor is the archetypal challenger. Challengers see the moral authority that comes from their group's historic grievance as an entitlement to immediate parity with whites -- whether or not their group has actually earned this parity through development. If their group is not yet competitive with whites, the moral authority that comes from their grievance should be allowed to compensate for what they lack in development. This creates a terrible corruption in which the group's historic grievance is allowed to count as individual merit. And so a perverse incentive is created: Weakness and victimization are rewarded over development. Better to be a troublemaker than to pursue excellence.

Sonia Sotomayor is of the generation of minorities that came of age under the hegemony of this perverse incentive. For this generation, challenging and protesting were careerism itself. This is why middle- and upper middle-class minorities are often more militant than poor and working-class minorities. America's institutions -- universities, government agencies, the media and even corporations -- reward their grievance. Minority intellectuals, especially, have been rewarded for theories that justify grievance.

And here we come to Judge Sotomayor's favorite such ingenuity: disparate impact. In the now celebrated Ricci case the city of New Haven, Conn., threw out a paper and pencil test that firefighters were required to take for promotion because so few minorities passed it. In other words, the test had a disparate and negative impact on minorities, so the lead plaintiff, Frank Ricci -- a white male with dyslexia who worked 10 hours a day to pass the test at a high level -- was effectively denied promotion because he was white. Judge Sotomayor supported the city's decision to throw out the test undoubtedly because of her commitment to disparate impact -- a concept that invariably makes whites accountable for minority mediocrity.


Posted by Donald L. Luskin at 9:16 AM | link  

THIS MAN MIGHT BE THE NEXT FED CHAIR?   Here's a New York Times account of the White House political maneuvering of Larry Summers. To be sure, we can't fully trust anything we read in the Times. And certainly not a story that characterizes Summers as a "right-of-center economist". But ask yourself whether a guy who plays childish power games like this ought to be running the Fed:
Mr. Goolsbee and Mr. Summers also clashed in March over whether to bail out Chrysler and ease its merger with Fiat, or to let the automaker fail.

Mr. Summers, along with Mr. Geithner and the political advisers, favored giving Chrysler a second chance. “My judgment, and Tim’s judgment, was that given all the equities involved, and given the potentially traumatic effects on confidence, that it was much better to try to save Chrysler if a reasonable merger agreement could be reached,” he said.

Mr. Goolsbee argued that rescuing the financial system was one thing, since credit is the economy’s lifeblood, but the government should not run an auto company. Saving Chrysler, he added, could further harm General Motors, which stood to gain market share.

The arguments became so heated that Mr. Summers stormed from one meeting, a witness said. While he later included Mr. Goolsbee’s objections in a memorandum for Mr. Obama, he excluded Mr. Goolsbee from the decisive meeting with the president.

There, Mrs. Romer expressed the objections from the Council of Economic Advisers, but made a point of naming the absent Mr. Goolsbee. That prompted Mr. Obama to ask, “Where is Austan?” He had the aide summoned to state his case, in what some aides took as a rebuke to Mr. Summers.


Posted by Donald L. Luskin at 9:02 AM | link  


Sunday, June 07, 2009

KUDLOW REPLAY   Here's the YouTube video from Friday's appearance.


Posted by Donald L. Luskin at 9:40 PM | link