Recent Policy Studies

• Economic and Political Thought
  

  We Still Hold These Truths: Rediscovering Our Principles, Reclaiming Our Future

  By Matthew Spalding, Intercollegiate Studies Institute
  
  Book, 11/10/2009
  

  In the midst of frenzied efforts to remake our nation—of endless government initiatives involved in virtually every aspect of our daily lives—Americans are increasingly concerned: How did we get so far off track? And how can we get America back on course? This book explains and brings to life ten core principles that define us as a nation and inspire us as a people—liberty and equality, natural rights and the consent of the governed, private property and religious freedom, the rule of law and constitutionalism, all culminating in self-government at home and independence in the world.

  
  
  
• Foreign Policy/International Affairs
  

  The U.N. Human Rights Council: No Better for Obama’s Engagement

  By Brett D. Schaefer, Steven Groves, The Heritage Foundation
  
  Backgrounder, 11/10/2009
  

  The record of the U.N. Commission on Human Rights was a disgrace. Three years ago, the commission was replaced by the Human Rights Council, and its record has been equally dismal. The Obama Administration sought a seat at the council in an attempt to reform the council from within. Evidence from the first council sessions with the U.S. as a member demonstrates that the Obama Administration has failed to improve the human rights body. "Defamation of religions" resolutions continue to threaten free speech around the world. Brutal regimes continue to influence council deliberations. Israel remains unfairly targeted.

  
  
  
• Foreign Policy/International Affairs
  

  Dangerous Trajectories: Obama’s Approach to Arms Control Misreads Russian Nuclear Strategy

  By Ariel Cohen, The Heritage Foundation
  
  Backgrounder, 11/10/2009
  

  Russia still considers the United States its “principal adversary.” Russia also relies on its nuclear weapons to compensate for its inferiority in conventional weapons relative to the U.S., NATO, and China. Russian political and military leaders are still captives of czarist and Soviet geopolitical thinking and military traditions. U.S. policymakers need to understand this background and Russia’s Soviet-style negotiating tactics when negotiating realistic and verifiable arms control agreements with Russia. The Obama Administration’s wishful thinking and unilateral concessions will not prevent a new arms race.

  
  
  
• Crime, Justice & the Law
  

  Veterans’ Courts

  By Marc A. Levin, Texas Public Policy Foundation
  
  Policy Brief, 11/10/2009
  

  The rationale for veterans’ courts is based on the combat-related stress, financial instability, and other difficulties adjusting to life that confront many soldiers returning home from Iraq and Afghanistan. A 2008 RAND Corporation study found that about one-fifth of all Iraq and Afghanistan veterans—or about 300,000 of the more than 1.6 million U.S. troops in the two wars—reported symptoms of post traumatic stress disorder or major depression. While most of these veterans are law-abiding, these problems contribute to criminal behavior among a substantial number of veterans.

  
  
  
• Information Technology
  

  Jurisdiction: The $64,000 Question

  By Barbara Esbin, Progress & Freedom Foundation
  
  Progress Snapshot, 11/10/2009
  

  The FCC is a creature of Congress. It has no “common law” ability to make law (or act in a legislative capacity), save for those powers expressly delegated to it by Congress in the Communications Act. There is no express delegation of regulatory authority over the Internet or Internet services in the Act. Unfortunately, the FCC has made clear its view that it may regulate the network management practices of broadband Internet service providers under its implied or “ancillary jurisdiction.”

  
  
  
• Natural Resources, Energy, Environment, & Science
  

  Top Ten Energy Myths

  By Thomas Tanton, Pacific Research Institute
  
  PRI Study, 11/10/2009
  

  Using data from the U.S. Department of Energy and the Energy Information Administration, this report outlines the types of fuel most used in the U.S.—where they come from, the risks involved, and the potential for alternative technologies. Contrary to common belief, new technology has greatly reduced the environmental risk of oil extraction, and renewable energies such as solar and wind will not increase our energy security. There is a plethora of unexplored options for securing energy in America through domestic sources, but misled confidence in renewable technologies and increased efficiency are hampering common-sense energy policy.

  
  
  
• Monetary Policy/Financial Regulation
  

  The Vices and Virtues of Limiting Executive Compensation

  By Russell Roberts, Mercatus Center
  
  Testimony, 11/10/2009
  

  The problem with executive compensation is that executives have not been subject to the profit and loss consequences of the free-market system. Profits encourage risk-taking, and the losses encourage prudence. If the government resists bailouts and allows these incentives to become fully operational, better outcomes will result as large institutions will no longer be reliant on tax payer funds.

  
  
  
• Labor
  

  Decreasing Union Transparency: A Step Backward for Workers

  By James Sherk, Ryan O'Donnell, The Heritage Foundation
  
  WebMemo, 11/10/2009
  

  President Obama campaigned on a platform of transparency and opposing special interest lobbyists. However, his Department of Labor has violated both of those principles by revoking the improvements in union financial transparency that Secretary Chao implemented. Union members deserve to know how their dues are spent because it protects them from corruption and allows them to hold their union accountable for bad decisions. Congress should act to protect workers if the President will not.

  
  
  
• Crime, Justice & the Law
  

  Ownership Registration Proposal: What Benefits and at What Cost?

  By J.W. Verret, Washington Legal Foundation
  
  Legal Backgrounder, 11/10/2009
  

  Each year, two million corporations and limited liability companies are established throughout the U.S. The process by which these entities are created has traditionally been governed under state law. On June 18, 2009, the Senate Homeland Security Committee considered a bill titled the “Incorporation Transparency and Law Enforcement Assistance Act.” Critics of the bill claim that it will not fulfill its goals of preventing money laundering or terrorist financing, but it will instead impose significant costs and unwarranted hurdles on the 5,000 legitimate businesses formed in the United States every day.

  
  
  
• Crime, Justice & the Law
  

  U.S. Anti-Money Laundering Laws in the Wake of U.S. v. Santos

  By Carlos F. Gonzalez, Regan Kruse, Washington Legal Foundation
  
  Legal Backgrounder, 11/10/2009
  

  Congress made money laundering a federal crime in 1986. Last year the Supreme Court’s decision in United State v. Santos, which attempted to clarify the scope of the federal money laundering statute, has since generated much confusion among the lower courts and has faced criticism for making money laundering crimes more difficult to prosecute. To close the loophole that Santos allegedly created for defendants, Congress amended the money laundering statute in May 2009.

  
  
  
• Crime, Justice & the Law
  

  Investing in Lawsuits: “Litigation Financing” and the Consumer Protection Imperative

  By Damon R. Leichty, Eric R. Thomason, Washington Legal Foundation
  
  Working Paper, 11/10/2009
  

  The growth of litigation financing in recent years has been extraordinary. What began as a small-scale entrepreneurial movement has now developed into transnational entities financing corporate lawsuits and managing hedge funds. From Las Vegas to London, the movement has burgeoned largely unchecked. That cannot continue.

  
  
  
• Family, Culture & Community
  

  Revenge of the Dirty Dozen: 12 Policies that Undermine Civil Society

  By Katherine Bradley, Chuck Donovan, The Heritage Foundation
  
  WebMemo, 11/10/2009
  

  With a flurry of activity surrounding the agenda coming from the White House and Congress, it is easy to overlook the smaller pieces of legislation that would have a big impact on American families and society. Taken as a whole, the people and communities these policies claim to assist would rely less on strong neighborhood, faith-based, and private networks for support and more on costly and highly regulated federal projects, weakening the same virtues of civil society they purport to nurture.

  
  
  
• International Trade/Finance
  

  Taiwan’s Economy Needs More Than Cooperation with China

  By Derek Scissors, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  More open Taiwanese trade and investment with China fits the principles of American foreign policy. Diversification of economic efforts will result in a more vigorous Taiwan. And a more economically dynamic, secure Taiwan is good for peace, stability, and prosperity in the region. The U.S. should assist Taiwan in this effort, starting with U.S.-Taiwan trade and investment. A U.S.-Taiwan free trade agreement, for instance, would provide a powerful example for other potential partners.

  
  
  
• Labor
  

  TSA Nominee Erroll Southers’s Stand on Collective Bargaining Needs Clarity

  By James Sherk, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  President Obama has nominated Erroll Southers to serve as Administrator of the Transportation Security Administration, which employs the airline security screeners charged with preventing terrorists from boarding American airplanes. As the head of the TSA, Southers would decide whether the organization collectively bargains over security procedures. Collective bargaining—currently forbidden for the TSA—would put American lives at risk by preventing the TSA from responding rapidly to new intelligence and by replacing merit promotions with seniority schedules. Southers has refused to state whether he would change TSA policy on collective bargaining.

  
  
  
• Budget & Taxation
  

  Seven Reasons Why Congress Should Repeal, Not Fix, the Death Tax

  By William W. Beach, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  What should Congress do with the federal estate tax, also known as the death tax? Some members want to permanently “fix” the death tax by reducing the top rate to 35 percent, which some pro-death tax policymakers suggest is a rate wealthy taxpayers could “afford.” However, this would be the wrong move for Congress to make. Instead, policymakers should do what their voters want them to do, as revealed in poll after poll: They should repeal this tax and kill it, once and forever.

  
  
  
• Budget & Taxation
  

  PERA Falls Off a Cliff

  By Barry W. Poulson, Independence Institute
  
  Issue Paper, 11/09/2009
  

  The Public Employees Retirement System (PERA) in Colorado is experiencing a funding crisis. The recent collapse of financial markets has resulted in a significant decrease in the value of the PERA portfolio. But the funding crisis in PERA is not just the result of problems in financial markets. The problems in this defined benefit pension plan have emerged over several decades, and are symptomatic of the poor incentive structure guiding the governance of many defined benefit public pension plans. The financial market turmoil has exacerbated these problems, but PERA is facing a long-run deterioration in its funding status.

  
  
  
• Health Care
  

  Will Federal Health Legislation Cause the Deficit to Soar?

  By Daniel J. Mitchell, Cato Institute
  
  Tax & Budget Bulletin, 11/09/2009
  

  Enacting a $1 trillion entitlement program would greatly increase the burden of government spending. In addition, promises of lower deficits are a triumph of hope over experience. Government forecasters have a very poor track record of predicting costs. More realistic assumptions suggest that health legislation could easily push up 10-year deficits by $600 billion.

  
  
  
• Health Care
  

  ObamaCare: A Bad Deal for Young Adults

  By Aaron Yelowitz, Cato Institute
  
  Briefing Paper, 11/09/2009
  

  One of the most interesting questions about the health care overhaul now moving through Congress is how it would affect young adults. The legislation would force most or all Americans to purchase health insurance and would impose price controls on health insurance that would limit insurers’ ability to offer lower premiums to low-risk enrollees. Those provisions would drive premiums down for 55-year-olds but would drive them up for 25-year-olds—who are then implicitly subsidizing older adults. In fact, many young people could see their premiums as much as double under ObamaCare.

  
  
  
• Health Care
  

  The Prognosis for National Health Insurance: A Virginia Perspective

  By Arthur B. Laffer, Donna Arduin, Wayne H. Winegarden, Virginia Institute for Public Policy
  
  Report, 11/09/2009
  

  President Obama’s principles to drastically alter U.S. health care policy—a public health insurance exchange, mandated minimum coverage, mandated coverage of preexisting conditions, required purchase of health insurance—do not address the fundamental driving forces behind rising health care costs. Conversely, by empowering patients and doctors to manage health care decisions, a patient-centered health care reform would directly address the distortions weakening our current health care system and would simultaneously control costs, increase health outcomes, and improve the overall efficiency of the health care system.

  
  
  
• Health Care
  

  Addicted to the Physician Payment “Fix”

  By Bryan E. Dowd, American Enterprise Institute
  
  On the Issues, 11/09/2009
  

  Congressional mismanagement of Medicare is a bipartisan project in which Democrats and Republicans set aside the rancor of party politics and ideological differences and work hand in hand to run the program into the ground. Despite legislation mandating that Congress make cuts in Medicare’s physician payments if costs grow too rapidly, Congress has ignored or circumvented the rule every year except in 2002. The sustainable growth rate legislation should be replaced with sensible policies to reduce unnecessary spending and improve incentives for better health care.

  
  
  
• Natural Resources, Energy, Environment, & Science
  

  Researching Solar Radiation Management as a Climate Policy Option

  By Lee Lane, American Enterprise Institute
  
  Testimony, 11/09/2009
  

  Because of the institutional barriers to effective global climate-change agreements, climate policy should be diversified beyond those measures that seek only steep reductions in greenhouse gas emissions. Solar radiation management, a form of geoengineering that aims to offset global warming via a slight reduction in the amount of solar energy absorbed by the Earth, deserves consideration as part of a potential climate policy portfolio.

  
  
  
• Education
  

  Leaders and Laggards: A State-by-State Report Card on Educational Improvement

  By Frederick M. Hess, American Enterprise Institute
  
  Papers and Studies, 11/09/2009
  

  America’s education system needs far-reaching innovation. It is archaic and broken, a relic of a time when high school graduates could expect to live prosperous lives, when steel and auto factories formed the backbone of the American economy, and when laptop computers and the Internet were the preserve of science fiction writers. And while the challenges are many—inflexible regulations, excessive bureaucracy, a dearth of fresh thinking—the bottom line is that most education institutions simply lack the tools, incentives, and opportunities to reinvent themselves in profoundly more effective ways.

  
  
  
• Health Care
  

  Medicaid: The Forgotten Issue in Health Reform

  By Robert B. Helms, American Enterprise Institute
  
  Health Policy Outlook, 11/09/2009
  

  Current health reform legislation under consideration in Congress fails to adequately address fundamental flaws in the Medicaid program. Medicaid provides health care for the poorest and most severely disabled members of our society, and improving its quality should be a top priority. Instead of making simple reforms to the way federal funds are distributed for Medicaid, current health care legislation only seeks to expand the program despite the fact that the present growth of federal expenditures on Medicaid is not sustainable.

  
  
  
• Health Care
  

  Government-Run Health Care Even Without the Public Option

  By Robert A. Book, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  One of the most-discussed issues in the health care reform debate is whether to include a government-run, “public option” health plan. But both sides seem to be ignoring a much larger issue: Regardless of whether a public option is included, the reforms under consideration in Congress would impose such rigid control on private health plans that it amounts to a government-run health care system—even if the insurance companies remain technically under private ownership.

  
  
  
• Information Technology
  

  The Faulty Berkman Report: “The Fallacy of Overlooking Secondary Consequences”

  By Seth L. Cooper, Free State Foundation
  
  Perspectives from FSF Scholars, 11/09/2009
  

  The Berkman Report is a misguided plea for drastically expanded government regulation of broadband networks in the United States. It urges a force-fit of the generally highly regulatory broadband regimes employed by several foreign social democracies on the American broadband marketplace. It also relies on a falsely optimistic picture of the ability of government regulators to direct investment on a nationwide basis for the deployment and operation of advanced technologies. These glaring weaknesses undermine the Report’s usefulness to American policymakers.

  
  
  
• The Constitution/Civil Liberties
  

  Property Rights or Property Permissions?

  By Timothy Sandefur, Liberty
  
  Liberty, 11/09/2009
  

  There is an increasingly common phenomenon in America: the abuse of permitting powers by local governments that want to force property owners to give up their rights—to money, to land, or to the ballot—in exchange for permission to use their own property as they wish. Indeed, many if not most judges and law professors today view property rights as no right at all, but rather as a permission given by the state to those citizens it deems worthy.

  
  
  
• Foreign Policy/International Affairs
  

  Japan’s Security Policy: Navigating the Troubled Waters Ahead

  By Bruce Klingner, The Heritage Foundation
  
  Backgrounder, 11/09/2009
  

  The U.S. relationship with Japan has just become more complicated. The recent election victory of the Democratic Party of Japan has resulted in more resistance to a truly shared U.S.-Japanese mission. Refusing to provide troops to aid the coalition in Afghanistan, and generally uninterested in actively engaging in overseas security missions, the risk-averse DPJ is pulling back from its responsibilities in the U.S.-Japan alliance, as well as internationally. This leaves the U.S. in the position of responding to an ally who demands an equal role yet resists assuming equal responsibilities.

  
  
  
• Health Care
  

  Pelosi Health Care Plan: Who Pays the Surtax?

  By Rea S. Hederman, Guinevere Nell, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  The House legislation to enact Speaker Nancy Pelosi’s (D-CA) health care plan relies on a large surtax to pay for it. The surtax is 5.4 percent on personal income of single filers with over $500,000 and joint filers with over $1 million in modified adjusted income. This surtax hammers successful small business owners who file as individuals and will gradually encompass all American taxpayers, much like the dreaded Alternative Minimum Tax does.

  
  
  
• National Security
  

  The Pakistan-Britain Terror Connection: Lessons and Warnings for the United States

  By Ted R. Bromund, Lisa Curtis, The Heritage Foundation
  
  Backgrounder, 11/09/2009
  

  The Pakistan-Britain terror connection poses a serious threat to Great Britain and its allies, including the United States. Breaking the personnel, financial, and ideological links will require fighting terrorism on three fronts: Afghanistan, Pakistan, and Britain. In Afghanistan, the U.S., the U.K., and their allies need to continue to fight the Taliban and al-Qaeda. They should also hold Pakistan accountable for its failure to act decisively against terrorism. In Britain, the government needs to enforce the tightened immigration and asylum practices, refuse to cooperate with radical Islamism, and promote citizenship and economic opportunity to help immigrants assimilate into British society.

  
  
  
• Labor
  

  Heritage Employment Report: October Has Few Treats, Lots of Tricks

  By Rea S. Hederman, James Sherk, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  On November 6, the Bureau of Labor Statistics announced that the unemployment rate had soared from 9.8 percent to 10.2 percent in October. Jobs losses in October—190,000—were higher than expected. As job losses mount, the monthly jobs report continues to demonstrate both the failure of the stimulus bill and the hollowness of the Administration’s claim that it created or saved 640,000 jobs. Congress and the Administration should encourage private-sector investment and entrepreneurship instead of attempting to plan a recovery from Washington.

  
  
  
• Health Care
  

  A Closer Look at the House Democrats’ Health Care Bill

  By Center for Health Policy, Center for Data Analysis, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  Congress should take a step-by-step approach to fix what is clearly broken in the health care sector of the economy. However, the new House bill is clearly just more of the same. Higher taxes and increased government intervention will not improve health care, and increasing enrollment in costly and troubled government programs will only add to the rising costs of care.

  
  
  
• Family, Culture & Community
  

  The National Endowment for the Arts: NEA Grants Shift from Censorship to Propaganda

  By Meghan Keane, Capital Research Center
  
  Organization Trends, 11/09/2009
  

  For decades the National Endowment for the Arts has been caught up in controversy over its mission and its grantees. But this year, for the first time, artists themselves are questioning whether they are being used by the agency to foster a political agenda.

  
  
  
• Education
  

  Reform-Minded Money

  By RiShawn Biddle, Capital Research Center
  
  Foundation Watch, 11/09/2009
  

  The Bill and Melinda Gates Foundation has become the most prominent advocate for changing how children are educated in America’s public schools. Its school reform agenda, the zeal of co-founders Bill and Melinda Gates, and a willingness to abandon ineffective strategies, has helped make the Gates Foundation a major foe of the teacher unions. But the Gates Foundation must take care to avoid the pitfalls that have befallen earlier generations of school reformers.

  
  
  
• Health Care
  

  Comparing Financing of the House and Senate Health Care Reform Plans

  By Gerald Prante, Tax Foundation
  
  Fiscal Facts, 11/09/2009
  

  The two health care reform bills introduced by Speaker Nancy Pelosi and Senator Max Baucus would impose a financial penalty on individuals if they do not buy health insurance, although the House penalty is higher. In both plans, employers would have to pay a penalty to either the government or to new “health exchanges” if they do not provide a government-approved health insurance plan to employees, and once again, the penalty is larger in the House bill. This report compares and contrasts these and other differences in the two bills.

  
  
  
• Economic Growth
  

  A Hard Pill to Swallow

  By Jacob Sullum, Reason Foundation
  
  Reason, 11/09/2009
  

  Obama administration officials say the $787 billion stimulus package is all about putting Americans back to work. When questioned about whether this is an efficient way to do that, they claim all the work needs to be done anyway. Conversely, when asked whether all the projects are really worth the money spent on them, they cite jobs "created or saved" as a backup justification.

  
  
  
• Economic Growth
  

  The Misuse of Economic History: Flawed Analogies with Japan’s “Liquidity Trap and the Great Depression

  By Alan Reynolds, Cato Institute
  
  Cato Journal, 11/09/2009
  

  Economists frequently use historical anecdotes to justify theories they prefer and policies they advocate. Unfortunately, policy-motivated history often depends on "stylized" facts and hazy metaphors—such as bubbles bursting, central banks pushing on strings, and budget deficits jump-starting the economy.

  
  
  
• Economic and Political Thought
  

  The Undemanding Ethics of Capitalism

  By William A. Niskanen, Cato Institute
  
  Cato Journal, 11/09/2009
  

  The United States and many other countries are now experiencing the first major financial crisis in over 75 years, a condition that too many people have been quick to blame on an outbreak of greed that they claim is characteristic of capitalism. Blaming a financial crisis on greed, however, is like blaming airplane crashes on gravity.

  
  
  
• International Trade/Finance
  

  Trade Protectionism and Electoral Outcome

  By Miaojie Yu, Cato Institute
  
  Cato Journal, 11/09/2009
  

  In the 2004 U.S. elections, the dispute on trade policy was one of the important issues between the Democrats and the Republicans. The Democratic Party emphasized that the U.S. government should link multinational trade agreements to labor and environmental issues. Conversely, the Republican Party advocated free trade and pledged to make the expansion of trade a consistent priority. This dispute over trade policy raises an interesting question: Does a party’s tariff platform affect its electoral outcome?

  
  
  
• Health Care
  

  The Pelosi Health Care Plan: Employer Mandate Penalties on Small Businesses

  By John L. Ligon, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  Recently unveiled health care reform legislation known as the "Pelosi plan" would impose new costs on small businesses. This legislation would create an employer penalty system that would apply to small firms—even those with 25 or fewer workers. Businesses expanding total annual payroll to $500,000 would face a $10,000 marginal penalty; this penalty rises to $19,200 for small firms expanding total wages to $750,000. This additional cost would create a strong disincentive for small firms to increase compensation or hire additional employees.

  
  
  
• Health Care
  

  Doing Health Care Reform Right: The Empowering Patients First Act

  By Greg D'Angelo, Robert E. Moffit, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  President Obama has said that he is open to new and different ideas to reform health care and has properly said that no political party has a monopoly on wisdom or good ideas. Congressman Tom Price (R-GA) has offered a clear, conservative alternative to the health care bill proposed by Democrats in the House. The Price bill would achieve significant, positive health system change without expanding the size of the federal government or raising taxes as the Democratic leadership’s bills do. It should play a more prominent role in the health care discussion.

  
  
  
• Crime, Justice & the Law
  

  Prisoner Reentry: A Limited Federal Government Role

  By David B. Muhlhausen, The Heritage Foundation
  
  Testimony, 11/09/2009
  

  Policymakers on the national, state, and local levels need to be concerned about prisoner reentry. Nevertheless, policymakers should acknowledge the crucial role that incarceration has played in the nation’s drop in crime and the continued comparatively low crime rates. Reentry programs need to be rigorously evaluated to determine their effectiveness at reducing recidivism. Congress needs to do more to ensure that the reentry programs it funds are rigorously evaluated.

  
  
  
• Health Care
  

  Union Contracts of Health Care Workers Would Inflate Health Care Costs

  By James Sherk, The Heritage Foundation
  
  WebMemo, 11/09/2009
  

  Unions will make any health care reform that includes a government-run “public plan” more expensive than the CBO estimates. A public plan would turn health care workers into quasi-public employees, making them more likely to unionize. More unionized health care workers would translate into tens of billions of dollars in higher health care costs. These costs would either raise the cost of health insurance premiums or increase the deficit.

  
  
  
• Economic Growth
  

  New Keynesian Versus Old Keynesian

  By John F. Cogan, Tobias Cwik, John B. Taylor, Volker Wieland, Hoover Institution
  
  Defining Ideas, 11/09/2009
  

  Earlier this year, Obama administration economists estimated the impact of the recently enacted $787 billion economic stimulus bill on GDP and employment in the U.S. Using an "old Keynesian" economic model and making highly questionable monetary policy assumptions, these economists estimate that the stimulus package will raise GDP by 3.6 percent and increase employment by 3.6 million jobs. But a new Keynesian approach, which is taught in most graduate economic programs in the U.S. and abroad, reveals starkly different estimates.

  
  
  
• Monetary Policy/Financial Regulation
  

  Why Government Control of Bank Salaries Will Hurt, Not Help, the Economy

  By Dave Mason, The Heritage Foundation
  
  Backgrounder, 11/05/2009
  

  In response to the recent financial crisis, the Obama Administration and the Federal Reserve Board are capping executive salaries and bonuses and imposing a host of new regulations and mandates—all in the name of reducing risk. If the rule of unintended consequences applies anywhere, it applies here. Government pay rules have been tried before and have consistently increased the very salaries and special bonuses they intended to curb. This report explains why the Federal Reserve’s newest proposal will fail like all the rest.

  
  
  
• Education
  

  School Choice in America 2009: What It Means for Children’s Futures

  By Lindsey Burke, The Heritage Foundation
  
  Backgrounder, 11/05/2009
  

  What does school choice mean for American’s daily lives? It means that more and more parents are able to send their children to safer, better schools. It means that students need not remain trapped in failing and dangerous schools—though too many students still are. Congress, as well as state and local policymakers, must enact policies that give all American children the opportunity to learn and achieve. This report details the latest school-choice facts and figures for the 2009-2010 school year.

  
  
  
• Budget & Taxation
  

  The Big-Spending, High-Taxing, Lousy-Services Paradigm

  By William Voegeli, Manhattan Institute
  
  City Journal, 11/05/2009
  

  For California’s governmental-industrial complex, a new liberal administration and Congress in Washington offer plausible hope for a happy Hollywood ending. Federal aid will replace the dollars that California’s taxpayers, fed up with the state’s lousy benefits and high taxes, refuse to provide. Under the coming bailout, the new 49ers—Americans in the other 49 states, that is—will be extended the privilege of paying California’s taxes. At least they won’t have to put up with its public services.

  
  
  
• Budget & Taxation
  

  Rethink the Housing Tax Credit: Stimulus Plans Should Think Past the Needs of Special Interest

  By Ronald D. Utt, The Heritage Foundation
  
  WebMemo, 11/05/2009
  

  Senator Isakson (R-GA) has proposed that the $8,000 housing tax credit be extended until June 2010 and that eligibility be expanded to include households with incomes of up to $300,000 and those who already own a home. The Joint Tax Committee estimates that this tax credit extension will cost taxpayers almost $17 billion over the next five years. At a time when so many are suffering from an unemployment rate nearing 10 percent, and with the federal budget deficit over the next 10 years projected to total $13 trillion, this new tax credit proposal seems extravagant even by federal standards.

  
  
  
• National Security
  

  Chemical Security: Separating Risk from Excessive Regulation

  By Jena Baker McNeill, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  Keeping Americans free, safe, and prosperous must be at the forefront of legislative initiatives aimed at reducing America’s chemical vulnerabilities. Stifling innovation and economic expansion through excessive regulatory schemes will not make Americans safer. What will accomplish this task is putting forward commonsense, market-oriented security policies that allow the private sector to find ideal solutions that are cost-efficient and reduce the incentives for terrorism.

  
  
  
• Health Care
  

  Federalization of Medicaid: Health Reform Bill Would Reduce State Authority

  By Dennis G. Smith, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  Medicaid is designed to be a partnership between the states and the federal government. But under the health bill introduced last week by Speaker Pelosi, the ability of states to run their programs to reflect state variations and preferences would be substantially diminished. Policy decisions would be removed from the elected representatives at the state level and placed in the hands of the federal bureaucracy.

  
  
  
• National Security
  

  Bomb or Surrender: Not America’s Only Options Regarding Iran

  By Baker Spring, James Phillips, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  The Obama Administration should develop a long-range strategy for protecting and defending the U.S. and its allies and establish a robust framework of augmented deterrence to mitigate the threat posed by a nuclear Iran. Strategic planning that assumes a nuclear-armed Iran, even if Iran does not have such weapons at this time, is necessary to develop policies that could help diminish Iran’s appetite for nuclear weapons. Such a strategy serves to protect and defend the United States and its allies from possible future threats as well.

  
  
  
• National Security
  

  Congress Wisely Acts to Bring Greater Independence to Pentagon’s Quadrennial Defense Review Process

  By Mackenzie Eaglen, Eric Sayers, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  The bipartisan expansion of the independent panel to review the 2010 QDR is an encouraging development in a budget year marked by a number of questionable high-level programmatic decisions. Whatever the outcome of the QDR, the panel will raise the level of national security debate and provide new metrics for weighing strategic, modernization, and force structure decisions.

  
  
  
• Health Care
  

  New Health Care House Bill Has Plenty of Taxes

  By Rea S. Hederman, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  The new House health care bill has not been improved over the last few months. It still contains painful tax increases that will affect more and more Americans every year. Because the surtax applies to adjusted gross income, the effective marginal tax rates of successful business owners will skyrocket. The surtax, combined with the expiration of the Bush tax cuts, will result in some individuals having their effective tax rate increase by one-third. These tax increases will slow America’s recovery from the current recession.

  
  
  
• Natural Resources, Energy, Environment, & Science
  

  Scientific Shortcomings in the EPA’s Endangerment Finding from Greenhouse Gases

  By Patrick J. Michaels, Paul C. Knappenberger, Cato Institute
  
  Cato Journal, 11/04/2009
  

  The Environmental Protection Agency’s Proposed Endangerment exemplifies the systematic errors that accumulate at the interface between science and policy when policymakers rely upon previously assembled “compendia” of science. It is particularly dangerous, in the area of global warming, when an entity takes this approach rather than conducting a new assessment of the scientific literature, which the EPA has admittedly done. Moreover, the “foundation documents” used are clearly not peer reviewed in any fashion similar to the peer review process for normal scientific publication. Further, the cross-breeding between the authors and reviewers of these reports is appallingly large.

  
  
  
• Budget & Taxation
  

  Starve the Beast: A Further Examination

  By Michael J. New, Cato Institute
  
  Cato Journal, 11/04/2009
  

  Overall, tax reductions might well be good politics or good policy. However, the evidence presented in this study indicates that revenue reductions, by themselves, are not an effective mechanism for limiting expenditure growth. In addition, the evidence suggests that lower levels of federal revenue may actually lead to greater increases in federal spending. These results indicate that empirical evidence does not support the theory of "starve the beast." As such, individuals seeking to effectively limit the growth of government should give serious consideration to alternative strategies.

  
  
  
• Budget & Taxation
  

  Tax-Spend or Fiscal Illusion?

  By Andrew T. Young, Cato Institute
  
  Cato Journal, 11/04/2009
  

  What is the intertemporal relationship between U.S. federal government expenditures and revenues? Do variations in revenues cause variations in expenditures (tax-spend) or is causation the other way round (spend-tax)? Alternatively, is causation bidirectional or nonexistent? Understanding the “revenue-expenditure nexus” has important implications for the political economy of fiscal policies.

  
  
  
• Natural Resources, Energy, Environment, & Science
  

  Boxer-Kerry Cap-and-Trade Bill’s Nuclear Provision Won’t Fuel a Nuclear Revival

  By Jack Spencer, Nicolas Loris, The Heritage Foundation
  
  Backgrounder, 11/04/2009
  

  America needs a clean, safe, and sustainable energy source. Nuclear power could be part of the solution—with the right set of free-market reforms. Congress, the nuclear industry, and many Americans agree that reform of U.S. nuclear policies is necessary, but cannot agree on what those reforms should look like. The nuclear provision in the Senate’s new Clean Energy Jobs and American Power Act is a nice nod to nuclear power, but leaves the waters muddied. This report provides some clarity.

  
  
  
• Health Care
  

  How Many Americans Could End Up on the Public Health Plan? A Look at the Estimates

  By Greg D'Angelo, The Heritage Foundation
  
  Backgrounder, 11/04/2009
  

  Congress will soon vote on massive health care legislation—and on the amount of power the federal government will have over the entire U.S. health care sector. Many economists, politicians, and American citizens want to know: How many people could lose their current health insurance and end up on the so-called public option, a new government-run health plan? The numbers being tossed around are as dizzying as the array of health care bills. This report details five estimates—and what they mean for millions of Americans.

  
  
  
• Foreign Policy/International Affairs
  

  Russia’s Economic Crisis and U.S.-Russia Relations: Troubled Times Ahead

  By Ariel Cohen, The Heritage Foundation
  
  Backgrounder, 11/04/2009
  

  Russia’s revenues from oil and natural gas are enabling its aggressive and often anti-Western foreign policy. Russia’s falling economic performance has toned down Russia’s rhetoric, but has not drastically changed Russia’s foreign policy narrative, which remains decidedly anti-status quo and implicitly anti-American. The U.S. needs to devise incentives for steps that facilitate Russia’s integration into global markets, but deny benefits if Russia continues to pursue anti-American policies or refuses to enact the needed changes.

  
  
  
• Economic and Political Thought
  

  Never a Neutral State: American Race Relations and Government Power

  By Jason Kuznicki, Cato Institute
  
  Cato Journal, 11/04/2009
  

  Economics tells us that racial discrimination is expensive. Yet social psychology suggests that humans nonetheless tend to mistrust those whom they identify as outsiders. As a result, governments can exacerbate this mistrust and thereby encourage costly discrimination by creating or maintaining official race-based definitions of outgroups and differential outcomes based on race.

  
  
  
• Economic Growth
  

  Vikings in Greece: Kleptocratic Interest Groups in a Closed, Rent-Seeking Economy

  By Michael Mitsopoulos, Theodore Pelagidis, Cato Institute
  
  Cato Journal, 11/04/2009
  

  This article begins with a brief description of the Greek economy. It identifies both the causes of the recent strong growth performance and the reasons why, despite that performance, the competitiveness of the Greek economy remains so low—namely, extensive and low-quality regulation of markets, high administrative costs, a business environment that is not favorable, and weak institutions and widespread corruption.

  
  
  
• Economic Growth
  

  What Can Aid Do?

  By David B. Skarbek, Peter T. Leeson, Cato Institute
  
  Cato Journal, 11/04/2009
  

  Solving the economic problem determines whether a country’s economy develops. It is strange, then, that professional economists have had trouble distinguishing the positive relationship between inputs and outputs from solving the economic problem when it comes to evaluating foreign aid. This article makes such a distinction, and in doing so clarifies what aid can and cannot do.

  
  
  
• Economic Growth
  

  Peter Bauer and the Failure of Foreign Aid

  By Andrei Shleifer, Cato Institute
  
  Cato Journal, 11/04/2009
  

  Peter Bauer is perhaps best known as a persistent and articulate critic of foreign aid. At least since 1972, he saw it as not only failing to speed up, but actually hurting economic development. He defined foreign aid as "a transfer of resources from the taxpayer of a donor country to the government of a recipient country." Needless to say, this did not endear him to the aid establishment, though reality has shown his arguments to be correct.

  
  
  
• Elections, Transparency, & Accountability
  

  The Next Founders: Voices of Democracy in the Middle East

  By Joshua Muravchik, Encounter Books
  
  Book, 11/04/2009
  

  Before September 11, 2001, Americans did not think much about freedom or democracy in the Middle East. Now, as we are entangled in conflicts in Iraq and Afghanistan, the Mid-East’s political and social quandaries lie at the very core of our foreign policy objectives. And yet, after years of blood and fortune spent on the democratization of the Middle East, the most identifiable personalities in the region are notorious terrorists, backwards autocrats, and fanatical preachers. As this book demonstrates, there are in fact also heroic democrats and liberals in these lands of anti-democratic fanaticism, and the fight they are fighting is also our fight.

  
  
  
• The Constitution/Civil Liberties
  

  Assault on Weapons: The Campaign to Eliminate Your Guns

  By Alan Gottlieb, Dave Workman, Second Amendment Foundation
  
  Book, 11/04/2009
  

  This book reveals the history of the gun prohibition movement, a politically-motivated elitist effort built on myths, distortions and lies. The insidious gun ban movement is full of self-appointed "progressive" social engineers and Utopian idealists. Read how these gun banners—who use incremental disarmament of American citizens through legislation, litigation and cultural bigotry—have become a serious threat to liberty and personal safety.

  
  
  
• Health Care
  

  Health Care Reform and the Threat to the Dollar

  By J.D. Foster, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  The U.S. dollar is falling steadily against the Euro and many other major currencies. If this trend continues, the repercussions for the U.S. economy would be significant: higher inflation, higher interest rates, and a lower standard of living. It could also lead to the rapid dethroning of the dollar as the world’s primary reserve currency. Perhaps most worrisome, the slide in the dollar risks becoming a rout that could trigger another global financial crisis.

  
  
  
• Information Technology
  

  Regulating Online Advertising: What Will It Mean for Consumers, Culture & Journalism?

  By Berin Szoka, Mark Adams, Howard Beales, et al., Progress & Freedom Foundation
  
  Progress on Point, 11/04/2009
  

  For the last ten years the online advertising industry has been operating under a system of self-regulation. In February the FTC released much awaited voluntary guidelines for the industry. When those guidelines came out Commissioner Lebowitz declared rather ominously that the day of reckoning was approaching if the industry did not clean up its act. In response, the online ad industry released a new set of regulatory principles to increase protection for consumers. Despite this, legislation authorizing regulation in this field is currently pending on the Hill.

  
  
  
• Foreign Policy/International Affairs
  

  Honduran Handshake: U.S. Policy Still Needs to Be Better

  By Ray Walser, The Heritage Foundation
  
  WebMemo, 11/04/2009
  

  Although hungry for a foreign policy win, the Obama Administration has not shown strong hemispheric leadership regarding Honduras. The October accord requires implementation by the Hondurans, good behavior by Zelaya, and a quick infusion of international support for the elections. It requires further hands-on U.S. diplomacy—not pre-June 28 complacency—to make sure Zelaya does not derail the electoral process and steal Honduras from under the eyes of the Obama Administration.

  
  
  
• Budget & Taxation
  

  Where Do State and Local Governments Concentrate Their Spending?

  By Gerald Prante, Tax Foundation
  
  Fiscal Facts, 11/04/2009
  

  Newly released Census data highlight the different spending priorities of state and local governments. By presenting the data here as percentages of total spending, we reveal government priorities whether their combined state and local budgets are comparatively large or small. Spending is shown for nine specific functional categories.

  
  
  
• Natural Resources, Energy, Environment, & Science
  

  Copenhagen Consequences: What You Need To Know

  By The Heritage Foundation, The Heritage Foundation
  
  Fact Sheet, 11/04/2009
  

  In 1997 the U.S. Senate unanimously passed the Byrd-Hagel Resolution which warned President Clinton not to enter into any global warming treaty that leaves out developing nations or hurts the American economy. This is still U.S. policy today and should serve as the overarching guidelines for the December global warming conference in Copenhagen.