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Recent Policy Studies
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Economic Growth
Obama’s Plan to “Create or Save” Jobs: A Promise Unfulfilled
By James Sherk, Rea S. Hederman Jr, The Heritage FoundationBackgrounder, 08/06/2009
President Obama has repeatedly claimed that his economic stimulus bill will “create or save” 3.5 million new jobs by 2011, including 600,000 jobs by the end of this summer. It is impossible to hold the President accountable to these promises because there is no way of measuring “jobs saved.” The job-creation rate among private-sector employers will have to increase before employment begins rising again.
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Health Care
Kerry’s Excise Tax on “Gold-Plated” Health Insurance Policies
By Edmund F. Haislmaier, The Heritage FoundationWebMemo, 08/06/2009
Senator Kerry’s “compromise” proposal is a political device to hide a tax on workers of all incomes rather than to reform the tax treatment of health care. Applying an excise tax to all “gold-plated” or “Cadillac” health insurance plans, both fully insured and self-insured, would not have the same effects as capping the tax exclusion and providing tax relief in a revenue-neutral way to Americans who cannot afford coverage.
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Foreign Policy/International Affairs
The North American Leaders Summit: Promoting Economic Freedom and Security
By James M. Roberts, Ray Walser, The Heritage FoundationWebMemo, 08/06/2009
President Barack Obama is planning to meet with President Felipe Calderón of Mexico and Prime Minister Stephen Harper of Canada at the fifth annual North American Leaders Summit in Guadalajara, Mexico. These leaders should focus attention on the strong ties binding North America: a shared commitment to democratic values, free markets, and expanding trade opportunities, the need to meet growing energy needs, and improving security against domestic and international threats.
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Natural Resources, Energy, Environment, & Science
Heritage Analysis of Waxman-Markey Hits Where Others Miss
By David Kreutzer, The Heritage FoundationWebMemo, 08/06/2009
The income losses, the job losses, the tax increases, and the mounting debt all get worse over the coming decades. The Waxman-Markey bill forces a bad deal on a generation that does not have the option to turn it down. The $9.4 trillion of lost income, the 2.5 million lost jobs, the $5.0 trillion of additional national debt, and the $5.7 trillion in new taxes will buy no more than a 0.2 degree (Celsius) moderation in world temperature increases by 2100 and no more than a 0.05 degree reduction by 2050.
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Natural Resources, Energy, Environment, & Science
The Economic Consequences of Waxman-Markey: An Analysis of the American Clean Energy and Security Act of 2009
By David Kreutzer, et al., The Heritage FoundationReport, 08/06/2009
The Waxman–Markey bill proposes a new national tax of historic proportions. Though levied directly on carbon-based energy, the tax’s impact spreads through the economy, increasing prices, reducing income, destroying jobs, and significantly expanding the national debt. It seeks to “level the playing field” by making a more competitive player weaker rather than ensuring an environment where less competitive players can become stronger.
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Budget & Taxation
U.S. Lags while Competitors Accelerate Corporate Income Tax Reform
By Scott A. Hodge, Andre Dammert, Tax FoundationFiscal Facts, 08/06/2009
New data from the Organization for Economic Cooperation and Development shows that the U.S. corporate tax rate has fallen even further out of step with the rest of the industrialized world as countries such as Canada, the Czech Republic, Korea, and Sweden have cut their corporate rates in 2009, lowering the average statutory corporate tax rate of all OECD nations to 26.5 percent.
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Health Care
What Do Vitamins and Fish Oil Tell Us about Drug Research?
By John E. Calfee, American Enterprise InstituteThe American, 08/06/2009
Before we cripple for-profit pharmaceutical research—by implementing, say, an ill-conceived form of healthcare reform that severely limits the profits from new drug development—we need to make sure we have a good drug development substitute in place. And one thing we know from experience is that no such substitute now exists.
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Natural Resources, Energy, Environment, & Science
Lunar-cy
By Max Schulz, American Enterprise InstituteThe American, 08/06/2009
There is no competition today with other nations in a bid to switch our economies to energy sources that are vastly more expensive than the ones currently in use. Indeed, when the Obama administration recently lectured China and India on the need to get aboard the low-carbon energy express, those nations’ governments told ours to take a hike. What the cap-and-traders and lunar pleaders don’t get is that it’s not a race if no one else is running.
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Transportation/Infrastructure
The High Cost of High-Speed Rail
By Randal O'Toole, Texas Public Policy FoundationIssue Brief, 08/06/2009
Texas can do many things to cost-effectively improve transportation networks in ways that save energy, reduce accidents, and cut toxic and greenhouse gas emissions. High-speed rail is not one of those things.
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Information Technology
“The Law Is Whatever the Nobles Do”: Undue Process at the FCC
By Barbara Esbin, Adam Marcus, Progress & Freedom FoundationArticle, 08/06/2009
The FCC’s means of asserting regulatory authority over broadband Internet service providers’ network management practices is unprecedented, sweeping in its breadth, and seemingly unbounded by conventional rules of interpretation and procedure. We should all be concerned, for apparently what we have on our hands is a runaway agency, unconstrained in its vision of its powers.
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National Security
Stopping C-17 Now Would Hobble Future Warfighters
By Loren B. Thompson, Lexington InstituteIssue Brief, 08/06/2009
By the end of President Obama's first term, over 90% of Army combat units will be based in the U.S.— the one place they are least likely to be needed. Getting them to hot spots around the world fast will require a lot of jets, and in many cases they will need to go places that a C-130 cannot reach, or where a C-5 cannot land. 205 C-17s just isn't enough for the long term, but the Obama administration is completely fixated on the short term.
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Economic Growth
Cash for Clunkers: Just Spinning Wheels
By James L. Gattuso, Nicolas Loris, The Heritage FoundationWebMemo, 08/06/2009
When dealerships offer discounts and special deals, those incentives work. But it is the taxpayer funding cash for clunkers. And although the policy is giving dealerships a temporary summertime boost, most of that boost is likely coming at the expense of future sales and other goods and services. At the same time, it is doing little to help the environment while hurting low-income Americans. Rather than provide more cash for this clunker, it should be scrapped.
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Crime, Justice & the Law
The Youth PROMISE Act: Outside the Scope and Expertise of the Federal Government
By David B. Muhlhausen, The Heritage FoundationTestimony, 08/05/2009
The number of mediocre programs funded under the Youth PROMISE Act will vastly outnumber the number of exceptional programs receiving funding. Congress should contemplate the fact that government’s intervention in the lives of youth can cause more harm than good. The ability of the Youth PROMISE Act to have a significant impact on preventing delinquency and gang crime may be limited.
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Health Care
The Prognosis for National Health Insurance
By Arthur Laffer, et al., Texas Public Policy FoundationReport, 08/05/2009
An effective approach to reforming the health care system begins by addressing the incentives driving the unsustainable rise in health care expenditures. Reforms based on President Obama’s priorities fail to do this. Instead, those priorities, if adopted, would exacerbate what is wrong with the current health care system, causing total national health care expenditures and health care inflation to increase. Lower economic growth and increased government deficits would result
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National Security
Fiscal Year 2010 Defense Authorization Bill: Conference Issues and Recommendations
By Mackenzie Eaglen, The Heritage FoundationWebMemo, 08/05/2009
The Administration has not provided enough information or overarching foreign policy strategy to even allow a fair congressional debate about the fundamental shift in defense priorities currently underway. It is now up to Congress to provide careful and long-overdue oversight.
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Budget & Taxation
The New Federal Tobacco Tax: Who Loses?
By David Weeks, National Center for Policy AnalysisBrief Analysis, 08/05/2009
Using tobacco tax increases to fund health care for low-income children is a bad idea. As the taxes imposed on tobacco products increase, revenues are likely to fall–requiring increases in other taxes. In addition, small businesses and their employees are likely to suffer, and the impact on public health is likely to be negligible, or even negative.
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Monetary Policy/Financial Regulation
Talking the Talk, or Walking the Walk? Outcome-Based Regulation of Transnational Investment
By Jerry Ellig, Houman B. Shadab, Mercatus CenterReport, 08/05/2009
The Securities and Exchange Commission (SEC) seeks to increase investors’ access to foreign markets by negotiating bilateral agreements with foreign regulators pursuant to a policy known as “mutual recognition.” Under mutual recognition, a foreign entity seeking to access U.S. capital markets would be permitted to substitute compliance with its home country’s regulations for compliance with U.S. regulation, as long as it agrees to submit to SEC antifraud jurisdiction in its dealings with U.S. investors. The best way for the SEC to pursue mutual recognition is to recognize foreign securities regimes that achieve investor protection outcomes comparable to those achieved by the SEC, and provides a concrete and workable approach for the SEC to follow.
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Regulation & Deregulation
The Misdirection of Current Corporate Governance Proposals
By J.W. Verret, Mercatus CenterTestimony, 08/05/2009
Corporate governance proposals recently advanced impede shareholder voice in corporate elections. This is because they leave no room for investors to design corporate governance structures appropriate for their particular circumstances. Rather than expanding shareholder choice, these reforms actually stand in the way of shareholder choice. Most importantly, they do not permit a majority of shareholders to reject the federal approach.
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Regulation & Deregulation
Electricity Restructuring and Rate Caps
By Commonwealth Foundation, Commonwealth Foundation for Public Policy AlternativesPolicy Points, 08/05/2009
Some Pennsylvania legislators have suggested electricity maintaining rate caps, but this will only prevent competition and push inevitable rate hikes further down the road, discouraging conservation and construction of additional capacity.
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Education
The Poverty of Preschool Promises: Saving Children and Money with the Early Education Tax Credit
By Adam B. Schaeffer, Cato InstitutePolicy Analysis, 08/05/2009
The political momentum behind state-level preschool programs is tremendous, but existing proposals are often flawed and expensive. There is little evidence to support the belief that large-scale government preschool programs are effective, by themselves, in improving long-term student outcomes. Reform of the existing K–12 system should therefore remain the primary focus of those interested in sustainable improvement in student outcomes.
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Crime, Justice & the Law
Trial Lawyer Medicare Bonanza Averted — For Now
By James K. Glassman, American Enterprise InstituteThe American, 08/05/2009
A stealth amendment to the healthcare bill would enrich trial lawyers and could pave the way for potentially massive class action suits. The measure would let lawyers file suits against whole classes of defendants based, not on the evidence in an individual case, but on ‘relevant statistical or epidemiological evidence. The proposed changes to the healthcare reform bill would bypass the court objections and pave the way for potentially massive class action suits.
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National Security
Deter, Defend, Repel, and Partner: A Defense Strategy for Taiwan
By Dan Blumenthal, et al., American Enterprise InstituteReport, 08/05/2009
The People’s Republic of China (PRC) leaders must know that the use of force would be met with enduring and costly resistance, regardless of which coercive scenario they pursue. The People’s Liberation Army must understand that it will be facing not only an active military force of nearly three hundred thousand and a reserve force of some 2.6 million, but also potentially the entire Taiwanese population—23 million strong. A Republic of China that can defend itself fully will both deter PRC adventurism and, as a result, open the door to more peaceful and productive relations across the Strait.
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Economic and Political Thought
Wild Randomness
By Guy Sorman, Manhattan InstituteCity Journal, 08/05/2009
Finance itself is a relatively young field of research in which data have been available in large quantities only over the last 20 years. Thanks to electronic trading, it is now possible to quantify and analyze the fluctuations of financial markets on a large scale, but much interdisciplinary expertise is necessary to make headway in understanding it all.
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National Security
Shiprider Program Demonstrates U.S.-Canadian Cooperation
By Dean Lenuik, Jena Baker McNeill, The Heritage FoundationWebMemo, 08/05/2009
A well-integrated and coordinated marine border policy such as the Shiprider program is just one component in America's strategy to secure the northern border, thereby ensuring long-term prosperity and security. When the U.S. works with its Canadian neighbor on border security in an integrated, sustained, and consistent manner, the results are far superior than if the two nations worked separately.
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Health Care
Killing Americans by Stifling Medical Innovation: The Medical Device “Safety” Act of 2009
By Hans A. von Spakovsky, The Heritage FoundationLegal Memorandum, 08/05/2009
One of the most spectacular achievements of American ingenuity over the past 50 years has been the development of numerous medical devices that prolong life and improve the health of suffering individuals. From pacemakers and implantable cardiac defibrillators to self-monitoring blood glucose kits and insulin pumps, new medical technology has improved the health of countless individuals. Such innovation depends on large amounts of investment capital and a regulatory environment that protects the public without unneeded complexity and liability risk. The Medical Device Safety Act of 2009 threatens both of these requirements.
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Elections, Transparency, & Accountability
Trends in Public and Contracted Government Services: 2002-2007
By Mildred E. Warner, Amir Hefetz, Reason FoundationPolicy Brief, 08/04/2009
Intergovernmental contracting is an important alternate form of contracting. It enables local governments to share expertise and equipment, reach economies of scale in service delivery and promote regional coordination while maintaining familiar avenues for citizen input and accountability. Contract monitoring among local governments is low—just over half of metro places and suburbs, and barely a third of rural governments. Low rates of external monitoring may lead governments to prefer contracting alternatives that keep the service in the public sector.
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Economic Growth
The Tourism Promotion Act of 2009: Doing What Government Does Not Do Best
By Jena Baker McNeill, The Heritage FoundationWebMemo, 08/04/2009
The Senate is set to reconsider a cloture vote on the Tourism Promotion Act of 2009. This legislation would create another government entity—this time a corporation, funded on the backs of foreign tourists—to be used to promote travel to the U.S.
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Economic Growth
Foreign Aid: Congress Should Shift USAID Funds to the Millennium Challenge Account
By James M. Roberts, The Heritage FoundationWebMemo, 08/04/2009
The Millennium Challenge Corporation should adhere closely to its original prioritization of goals, which emphasize encouraging developing countries to adopt and implement policies to fight corruption, strengthen rule of law, and take responsibility for their problems. These criteria should be preserved and remain paramount.
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Foreign Policy/International Affairs
Bill Clinton in Pyongyang: Bring American Reporters Home, Do Not Let Up on Nukes
By Bruce Klingner, The Heritage FoundationWebMemo, 08/04/2009
While securing the freedom of the two U.S. journalists would be a welcome development, former President Clinton’s surprise visit to North Korea risks undermining ongoing international efforts to pressure Pyongyang to abandon its nuclear weapons.
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Information Technology
New gTLDs: Let the Gaming Begin Part I: TLD Front Running
By Michael Palage, Progress & Freedom FoundationProgress on Point, 08/04/2009
A series of recent applications for national trademark rights in terms that correspond to likely strings for new top-level domain names, or TLDs, (e.g., “.BLOG”) highlight just one way in which ICANN’s new generic TLD (gTLD) application process is likely to be “gamed.” But it is also a strategy to which some trademark holders may feel compelled to resort to defend their rights to that string. Unfortunately, it does not appear that ICANN is addressing these important public policy considerations.
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Family, Culture & Community
Decline of the Honor Culture
By James Bowman, Hoover InstitutionPolicy Review, 08/04/2009
Close to a third of the Millennials are the children of divorce. Where the socialization process is weakest – particularly among young men without resident fathers or other strong, adult male influences – the honor group of the gang tends to move in to fill the vacuum.
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Budget & Taxation
The Corporate Income Tax and Workers’ Wages: New Evidence from the 50 States
By Robert Carroll, Tax FoundationSpecial Report, 08/04/2009
One rationale for the corporate income tax is to provide a “backstop” to the individual income tax; that is, to ensure that the return to capital, if not taxed under the individual income tax is at least taxed through the corporate income tax. The conventional wisdom has also been that the corporate income tax adds to the progressivity of the tax system because capital income is earned disproportionately by those with higher incomes. Both of these rationales presume that the corporate income tax is borne, in some way, by owners of capital. Increasingly, however, this view is under fire.
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Foreign Policy/International Affairs
A Realistic Reset with Russia
By James M. Goldgeier, Hoover InstitutionPolicy Review, 08/04/2009
For the reset to be successful over the long run, the United States and Russia, as well as NATO and Russia, will need to do what has already been signaled in the interactions early in Obama’s presidency: acknowledge the differences but seek areas of cooperation where possible. Perhaps most important is to keep expectations in check so that we are not disappointed once again as we have been so often since the end of the Cold War. Achievements are possible, but the two nations will continue to define their interests differently on many of the major issues in the relationship.
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Natural Resources, Energy, Environment, & Science
Georgia Environmental Facilities Authority: Paring Back Mission Creep Could Yield State Half a Billion Dollars
By Kelly McCutchen, Georgia Public Policy FoundationIssue Analysis, 08/04/2009
Georgia Environmental Facilities Authority should return to its original purpose as a lender of last resort for small and economically challenged communities that are unable to find affordable loans in the private sector. Where possible, GEFA could more productively use their funds to make grants to these communities to supplement a commercial bank loan or a bond issue that would provide an average cost of funds or blended rate that would be comparable to or lower than the rates currently paid.
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Elections, Transparency, & Accountability
A Look at H.R. 1826 and the Public Financing of Congressional Campaigns
By John Samples, Cato InstituteTestimony, 08/04/2009
H.R. 1826, the Fair Elections Now Act, reflects a different outlook, a Progressive vision that would substitute publicly funded politics for our current largely private system. In that world, where the government ultimately funds and thereby controls the political activity of the governed, I believe we would sooner or later live in Madison’s nightmare, a world in which the government both controls the governed who in turn have been deprived of the means to control the government.
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Labor
The Anti-Chao: Hilda Solis Goes to Bat for Big Labor
By W. James Antle III, Capital Research CenterLabor Watch, 08/04/2009
When Elaine Chao took over the Labor Department in 2001, her team was told not to badmouth their predecessors. However, new Labor Secretary Hilda Solis’s team has operated under no such restraints. They are determined to undermine the significant labor reforms of the Bush years and to do so with all deliberate haste. Here we give readers at a look at what is going on in President Obama’s Labor Department, including the reforms that are being rescinded and the cast of characters determined to set labor policy back to the Clinton Era.
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Philanthropy
MoveOn.org: How Grassroots Activists Succeeded When Their Leaders Failed
By Sean Higgins, Capital Research CenterOrganization Trends, 08/04/2009
The leftist advocacy group MoveOn.org is a well-oiled, well-funded propaganda-machine. During the past decade it has done much to shape the Democratic Party’s agenda and advance the party’s electoral prospects. MoveOn was succeeding while the Democratic Party was failing in the late 1990s and early 2000s. Perhaps out-of-power conservatives today can learn something from its accomplishments.
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National Security
National Security Not a Good Argument for Global Warming Legislation
By James Jay Carafano, The Heritage FoundationWebMemo, 08/04/2009
The Waxman-Markey cap-and-trade bill has engendered tremendous controversy. Concerns abound about the legislation’s adverse economic consequences as well as skepticism of its affects on world climate trends. Faced with mounting opposition, the bill’s supporters are increasingly making the case that creating a new law is a national security imperative. They are wrong.
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National Security
Is Foggy Bottom Ready for Irregular Warfare?
By Robert Haddick, American Enterprise InstituteThe American, 08/04/2009
The U.S. government has a doctrine for nation-building. Military publications like “Field Manual 3-07: Stability Operations” and the State Department’s Office of the Coordinator for Reconstruction and Stabilization foresee responsible nation-states as the measure of success in post-conflict situations. It should be America’s first choice to promote and strengthen the nation-state system.
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Budget & Taxation
Seven Myths About Taxing the Rich
By Curtis S. Dubay, The Heritage FoundationBackgrounder, 08/03/2009
Raising taxes on the rich would increase the progressivity of the already highly progressive tax code. It would also damage economic growth by stifling job creation, further slowing the growth of already stagnant wages. Tax hikes on the rich hit small businesses hard. Raising these rates will hurt the businesses that are the primary engine for job growth in the U.S.
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Natural Resources, Energy, Environment, & Science
The Omnivore’s Delusion: Against the Agri-intellectuals
By Blake Hurst, American Enterprise InstituteThe American, 08/03/2009
Critics of “industrial farming” spend most of their time concerned with the processes by which food is raised. This is because the results of organic production are so, well, troublesome. With the subtraction of every “unnatural” additive, molds, fungus, and bugs increase. But the most delicious irony is this: the parts of farming that are the most “industrial” are the most likely to be owned by the kind of family farmers that elicit such a positive response from the consumer.
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Foreign Policy/International Affairs
The New Internationalism
By John J. Tierney, Capital Research CenterFoundation Watch, 08/03/2009
The Peace and Security Funders Group is a liberal internationalist coalition of U.S. donors who believe the best way to prevent wars, constrain rogue nations, and prevent the spread of nuclear weapons is to let international laws and organizations set the terms of world peace. It would likely limit U.S. sovereignty and replace a strong national defense with endless rounds of international rulemaking and consensus-building.
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Health Care
Fighting a Bitter Prescription
By Roger Bate, American Enterprise InstituteThe American, 08/03/2009
One of the most vibrant cities in the world, renowned as a crossroads between East and West, Istanbul has benefited hugely as the hub of a major trade route. But the benefit of being at such a key location also brings the burden of care – that goods passing through should be safe and legal. It was therefore appropriate that in Istanbul I met with pharmaceutical experts trying to stop the lethal trade in counterfeit drugs.
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Health Care
Drug Use in Nigeria
By Roger Bate, et al., Africa Fighting MalariaWorking Paper, 08/03/2009
While Nigeria still has problems to overcome, it is well ahead of other African nations in combating the scourge of substandard drugs. Indeed, it could be viewed as a model for other countries in Africa – as such, the bar should be set high for combating poor-quality drugs in Nigeria.
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Monetary Policy/Financial Regulation
Do We Need a Consumer Financial Protection Agency?
By Peter J. Wallison, Alex J. Pollock , American Enterprise InstituteOn the Issues, 08/03/2009
The proposed Consumer Financial Protection Agency could deny financial products and services to a portion of the population because they are not sophisticated enough to understand what they are offered. If enacted, the CFPA will put undue burden on smaller financial companies, just as Sarbanes-Oxley put great burdens on small firms.
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Budget & Taxation
Summary of Latest Federal Individual Income Tax Data
By Gerald Prante, Tax FoundationFiscal Facts, 08/03/2009
The Internal Revenue Service has released new data on individual income taxes, reporting on calendar year 2007, a year in which the economy remained healthy and continued to grow. Individual income tax collections increased substantially that year, while the overall average effective tax rate remained about the same.
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Budget & Taxation
The Medicaid Monster
By Paul Howard, Manhattan InstituteCity Journal, 08/03/2009
Since its inception over four decades ago, New York State’s Medicaid program has expanded inexorably. Today it is the nation’s most expensive by far, projected to spend a mind-boggling $49.2 billion in 2010—roughly 14 percent of the nation’s total Medicaid budget, though the state holds just 7 percent of the nation’s population. The program’s enormous size has helped saddle New York taxpayers with some of the highest state and local taxes in the United States, killing jobs and siphoning support from other vital public needs.
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Natural Resources, Energy, Environment, & Science
Pitts Bill Could Be Nuclear Energy Game Changer
By Jack Spencer, The Heritage FoundationWebMemo, 08/03/2009
On July 31, Congressman Joe Pitts (R-PA) introduced the Streamline America's Future Energy Nuclear Act, which brings a fresh approach to U.S. nuclear energy policy. Instead of the well-worn subsidy-first approach that often dominates congressional attempts to support nuclear energy, Congressman Pitts's bill focuses on reforming the arduous regulatory and policy environment so that the nuclear renaissance can flourish.
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Health Care
Obamacare: One Pill, Two Pill, Red Pill, Blue Pill
By The Heritage Foundation, The Heritage FoundationFact Sheet, 07/31/2009
This fact sheet identifies the top 10 reasons Obamacare is wrong for America.
