Cybersecurity policy should refrain from imposing sweeping, expensive, top-down solutions that could increase rigidities of existing systems. The federal government can better protect American information systems by shoring up its own network vulnerabilities, supporting strong encryption techniques, and reforming laws to encourage security research and report- ing, so that the entities best positioned to do so can strengthen their own cybersecurity.
The regulatory authority Congress grants to government agencies is an immensely powerful tool for altering behavior in the marketplace. Intended to solve problems that otherwise would not be addressed, the regulatory process often yields excessively broad and burdensome rules that fail to achieve the desired public objective or provide hoped-for benefits to the public.
The US Export-Import Bank (Ex-Im Bank) is a government credit agency that provides tax- payer-backed financing to private exporting businesses. An increasing body of evidence shows that the Ex-Im Bank provides subsidized financing to big businesses at the expense of smaller businesses and taxpayers while doing little to promote exports, create jobs, or improve competitiveness of US firms. Removing this source of government-granted privilege can only help US exporters.
The next big wave of data-driven technological innovation will connect physical devices embedded with tiny computing devices to the Internet in an effort to seamlessly improve the measurements, communications, flexibility, and customization of our daily needs and activities. This “Internet of Things” (IoT) is already growing at a breakneck pace and is expected to continue to accelerate rapidly.
The most recent debate over providing the US president fast-track trade-negotiating authority raises the perennial catalog of questions and concerns about free trade. This is understandable: the benefits of free international trade are often diffuse and hard to see, while the benefits of shielding specific groups from foreign competition are often immediate and visible. This illusion fuels the common perception that free trade is detrimental to the American economy. It also tips the scales in favor of special interests seeking protection from foreign competition. As a result, the federal government currently imposes thousands of tariffs, quotas, and other barriers to trade.
Guaranteed pension benefits are a key feature of government employment for many state and local workers. However, flawed accounting methods have resulted in persistent underfunding of these promised benefits.
Federal regulators often have good intentions when proposing new rules, such as increasing worker safety or protecting the environment. However, policymakers typically view each regulation on its own, paying little attention to the rapid buildup of rules—many of them outdated and ineffective—and how that regulatory accumulation hurts economic growth.
Some in Washington claim the federal spending and deficit problem is solved. While the deficit has been cut in half (from a record-high of $1.4 trillion in FY09 to $680 billion in FY13), this reduction can be attributed to several singular events, such as the end of the payroll tax “holiday” and higher receipts from Fannie Mae and Freddie Mac. Over the longer term, deficits and debt are projected to continue increasing.
An ideal health care system will provide better health to more people at lower cost on a continuous basis. This should be the ultimate goal of health care reform. Yet decades of legislative attempts have failed to achieve this aim. Why?
As federal government borrowing is set to exceed yet another debt limit, most are quick to recall—and wish to avoid a repeat of—the 2011 debt-limit showdown. If current rhetoric is any indication, it appears many of the last debate’s lessons have been forgotten. Regrettably, it seems many of the debate’s facts have been forgotten as well.
As the holiday season approaches, there are predictions that upwards of 1,000,000 drones will be purchased by Christmas. The FAA is currently working to create regulations on these consumer drones. Eli Dourado discusses these regulations and what the FAA should do on C-SPAN’s Washington Journal.
The Midas Paradox is a landmark treatise that solves mysteries that have long perplexed economic historians, and corrects misconceptions about the true causes, consequences, and cures of macroeconomic instability. Like Milton Friedman and Anna J. Schwartz’s A Monetary History of the United States, 1867–1960, it is one of those rare books destined to shape all future research on the subject.