The Economists' Voice: Top Economists Take On Today's Problems
Three dozen eminent economists, most of them American, here examine contemporary policy issues in terms largely accessible to laypeople. The topics range widely, including climate change, offshoring, the economics of the war in Iraq, social security, tax reform, welfare reform, the death penalty, the housing boom, and others. Contrasting views are presented on some issues and not on others. The treatment of the issues has an overwhelmingly American orientation, with minimal reference to relevant experience abroad or likely responses to U.S. policy in the rest of the world. Still, the brief discussions of each issue serve as a useful and often stimulating introduction to the thinking of professional economists on the salient policy issues of recent times.
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With the U.S. economy soaring, few care that immigration to the United States is at its highest absolute levels. But what happens when the economy falls back to earth? High-tech immigrant workers are already competing with Americans for jobs, while unskilled immigrant laborers are becoming a permanent underclass. High immigration is creating imbalances in education, income distribution, employment, and welfare demands -- as well as tensions between immigrants and citizens and among the federal, state, and local governments. An economic slump will mean crisis. Congress and the White House need to cut back now.
Will Russia be run by democrats or oligarchs? The signs are worrying. The West would rather not dwell on the extent to which Russia's market is dominated by robber barons and permeated by crime and corruption. Russia's democracy is weak, with unfair election campaigns, a compromised media, and few checks on the presidency. The West cannot afford to let Russia descend into chaos, which might mean losing control of Russia's arsenal of weapons of mass destruction, but its two-faced NATO expansion policy hurts the democrats' chances.
The growing economic disputes between the USA and Japan could develop into a serious political conflict. The 'Japan problem' is rooted in two fictions (1) that the Japanese state has central organs of government which bear ultimate responsibility for economic and political decision-making, whereas the Japanese system is a collection of different hierarchies without a centre (2) that Japan has a free-market capitalist economy, whereas it is actually a 'capitalist development state', characterized by a partnership between central bureaucrats and entrepreneurs. Fixed trade commitments could be part of the solution.
