Basic Economics

by Sowell, Thomas

  {676} U. S. Bureau of the Census, Historical Statistics of the United States: Colonial Times to 1970 (Washington: Government Printing Office, 1975), Part 1, pp. 224, 1117.

  {677} Office of Management and Budget, Analytical Perspectives: Budget of the United States Government, Fiscal Year 2013 (Washington: Government Printing Office, 2012), pp. 81, 82.

  {678} Michael J. Boskin, “Sense and Nonsense About Federal Deficits and Debt,” Policy Brief, November 2004, p. 1.

  {679} Edmund L. Andrews, “Sharp Increase in Tax Revenue Will Cut Deficit,” New York Times, July 13, 2005, p. A1.

  {680} Nick Timiraos, “Housing Agency Reserves Fall Far Below Minimum,” Wall Street Journal, November 13, 2009, p. A6.

  {681} E. Scott Reckard, “FHA Reports That Its Finances Have Improved,” Los Angeles Times, December 14, 2013, p. B4.

  {682} Economic Report of the President, 2014, pp. 389, 390.

  {683} Phillip Matier and Andrew Ross, “Boatload of Subsidies Buoy New South S.F. Ferry,” San Francisco Chronicle, June 25, 2012, p. C1.

  {684} “Fiscal Frustrations,” The Economist, February 10, 2007, p. 28.

  {685} David Fraser, A Land Fit for Criminals: An Insider’s View of Crime, Punishment and Justice in England and Wales (Sussex: Book Guild Publishing, 2006), p. 109.

  {686} Daniel Seligman and Joyce E. Davis, “Investing in Prison,” Fortune, April 29, 1996, p. 211.

  {687} Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (New York: Modern Library, 1937), p. 687.

  {688} “Non-Dynamic Duo,” Wall Street Journal, March 2, 2006, p. A14.

  {689} Ibid.

  {690} “The Shrinking Deficit,” Wall Street Journal, October 9, 2007, p. A16.

  {691} Edmund L. Andrews, “Surprising Jump in Tax Revenues Curbs U.S. Deficit,” New York Times, July 9, 2006, section 1, p. 1.

  {692} “How to Raise Revenue,” Wall Street Journal, August 24, 2007, p. A14.

  {693} Oliver Wendell Holmes, Collected Legal Papers (New York: Peter Smith, 1952), pp. 230–231.

  {694} John Maynard Keynes, The Means to Prosperity (New York: Harcourt, Brace, 1933), p. 5.

  {695} Jed Graham, “Public Pension Plans Underfunded, Even with Rosy Forecasts,” Investor’s Business Daily, March 28, 2011, p. A1.

  {696} Ibid.

  {697} “The Unsteady States of America,” The Economist, July 27, 2013, p. 9.

  Chapter 20: Special Problems in the National Economy

  {698} Dick Armey, Armey’s Axioms: 40 Hard-Earned Truths from Politics, Faith and Life (New York: Wiley, 2003), p. 183.

  {699} Gurcharan Das, India Unbound: The Social and Economic Revolution from Independence to the Global Information Age (New York: Alfred A. Knopf, 2001), p. 318.

  {700} Brian Riedl, “Twisting ‘The Facts’,” National Review (online), August 29, 2002.

  {701} “Lula’s Great Pension Battle,” The Economist, April 5, 2003, p. 36.

  {702} Richard Vedder and Lowell Gallaway, Out of Work: Unemployment and Government in Twentieth-Century America (New York: Holmes & Meier, 1993), p. 77.

  {703} Ibid.

  {704} Ibid., p. 55.

  {705} Paul Johnson, Modern Times: The World from the Twenties to the Nineties, revised edition (New York: Perennial Classics, 2001), p. 216.

  {706} U. S. Bureau of the Census, Historical Statistics of the United States: Colonial Times to 1970 (Washington: Government Printing Office, 1975), Part 1, p. 126.

  {707} “The Turning Point,” The Economist, September 22, 2007, p. 35.

  {708} Arthur F. Burns, “The Anguish of Central Banking,” 1979 Per Jacobsson Lecture, September 30, 1979, p. 16.

  {709} Jim Granato and M.C. Sunny Wong, The Role of Policymakers in Business Cycle Fluctuations (New York: Cambridge University Press, 2006), pp. 46–47

  {710} Robert J. Samuelson, The Great Inflation and Its Aftermath: The Past and Future of American Affluence (New York: Random House, 2008), pp. 128–129.

  {711} Ibid., p. 207.

  {712} Jim Powell, FDR’s Folly: How Roosevelt and His New Deal Prolonged the Great Depression (New York: Crown Forum, 2003), p. 57.

  {713} “La Dolce Pensione,” The Economist, July 28, 2007, p. 52.

  {714} Carter Dougherty, “After Enacting Pension Cuts, Europe Weathers a Storm,” New York Times, August 6, 2008, p. C1.

  {715} Walt Bogdanich, et al., “Retirees’ Disability Epidemic,” New York Times, September 21, 2008, section 1, pp. 1, 26, 27.

  {716} “Lula’s Great Pension Battle,” The Economist, April 5, 2003, p. 36.

  {717} Rupert Darwall, “Market Reform: Lessons from New Zealand,” Policy Review, April-May 2003, p. 71.

  {718} Paul Wallace, “The End of Pensions Pretensions,” The World in 2004 (London: The Economist Newspaper Limited, 2003), p. 137.

  {719} “Pensions,” The Economist, August 25, 2007, p. 86.

  {720} “The Wages of Unemployment,” Wall Street Journal, January 16, 2013, p. A13.

  {721} Gurcharan Das, India Unbound, p. 164.

  {722} Eric Bellman, “As Economy Zooms, India’s Postmen Struggle to Adapt,” Wall Street Journal, October 3, 2006, p. A12.

  {723} John R. Wilke, “Mortgage Lending to Minorities Shows a Sharp 1994 Increase,” Wall Street Journal, February 13, 1996, p. A1.

  {724} Louise Story, “Banks Hunting for More Cash,” New York Times, April 22, 2008, p. C3.

  {725} Gurcharan Das, India Unbound, p. 349.

  {726} Ibid., p. 317.

  {727} “Under Water,” The Economist, February 14, 2004, p. 59.

  {728} Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (New York: Modern Library, 1937), p. 873.

  PART VI: THE INTERNATIONAL ECONOMY

  Chapter 21: International Trade

  {729} John Adams: A Biography in His Own Words, edited by James Bishop Peabody (New York: Newsweek, 1973), Volume I, pp. 121–122.

  {730} Louis Uchitelle, “Nafta and Jobs,” New York Times, November 14, 1993, section 4, p. 4.

  {731} “Present at the Creation,” a survey of America’s world role, The Economist, June 29, 2002, p. 26.

  {732} “Free Trade on Trial,” The Economist, January 3, 2004, p. 14.

  {733} David Luhnow, “Of Corn, Nafta and Zapata,” Wall Street Journal, March 5, 2003, p. A13.

  {734} Economic Report of the President, 2002 (Washington: U.S. Government Printing Office, 2002), p. 371.

  {735} “Free Trade on Trial,” The Economist, January 3, 2004, p. 14.

  {736} Oliver Wendell Holmes, Collected Legal Papers (New York: Peter Smith, 1952), p. 293.

  {737} U. S. Bureau of the Census, Historical Statistics of the United States: Colonial Times to 1970 (Washington: Government Printing Office, 1975), Part 2, p. 864.

  {738} James C. Cooper and Kathleen Madigan, “A Shrinking Trade Gap Looks Good Stateside,” BusinessWeek, May 7, 2001, p. 35.

  {739} Joel Kotkin, The City: A Global History (New York: Modern Library, 2005), p. 138. See also Hossein Askari and Joydeep Chatterjee, “Software Exporting: A Developing Country Advantage,” Banca Nazionale del Lavoro Quarterly Review, March 2003, pp. 57–74.

  {740} Daniel T. Griswold, “International Markets, International Poverty: Globalization and the Poor,” Wealth, Poverty and Human Destiny, edited by Doug Bandow and David L. Schindler (Wilmington, DE: ISI Books, 2003), p. 218.

  {741} Allan McPhee, The Economic Revolution in British West Africa, second edition (London: F. Cass, 1971), p. 68.

  {742} Walter Adams and James W. Brock, The Structure of American Industry, ninth edition (Englewood Cliffs, NJ: Prentice Hall, 1995), p. 76.

  {743} Ward’s Automotive Group, Ward’s Automotive Yearbook: 2005 (Detroit: Ward’s Communications, 2005), pp. 243, 245.

  {744} Ward’s Automotive Group, Ward’s Automotive Yearbook: 2012 (Detroit: Ward’s Communications, 2012), p. 30.

  {745} The Economist, Pocket World in Figures: 2013 edition (London: Profile Books, 2012), pp. 14, 72
.

  {746} Ibid., pp. 24, 26.

  {747} “The Incompetent or the Incoherent?” The Economist, October 30, 2004, p. 9.

  {748} Ken Belson, “Slowdown? Don’t Tell Toyota Motor,” New York Times, October 31, 2002, p. W1.

  {749} Martin Fackler, “Japan Makes More Cars Elsewhere,” New York Times, August 1, 2006, p. C1.

  {750} Joanna Slater and Nayan Chanda, “No More Fun and Games,” Far Eastern Economic Review, May 3, 2001, p. 48.

  {751} Jonathan Israel, The Dutch Republic: Its Rise, Greatness, and Fall, 1477–1806 (New York: Oxford University Press, 1995), p. 2; Michael Wintle, An Economic and Social History of the Netherlands, 1800–1920: Demographic, Economic and Social Transition (New York: Cambridge University Press, 2000), pp. 88–93.

  {752} Joanna Slater and Nayan Chanda, “No More Fun and Games,” Far Eastern Economic Review, May 3, 2001, p. 49.

  {753} “Unproductive,” The Economist, September 8, 2001, p. 65.

  {754} John P. McKay, Pioneers for Profit: Foreign Entrepreneurship and Russian Industrialization 1885–1913 (Chicago: University of Chicago Press, 1970), p. 139.

  {755} Brink Lindsey, Against the Dead Hand: The Uncertain Struggle for Global Capitalism (New York: Wiley, 2002), p. 83.

  {756} “1,028 Economists Ask Hoover to Veto Pending Tariff Bill,” New York Times, May 5, 1930, pp. 1, 4.

  {757} Ibid., p. 4.

  {758} Jim Powell, FDR’s Folly: How Roosevelt and His New Deal Prolonged the Great Depression (New York: Crown Forum, 2003), pp. 43–45.

  {759} Richard Vedder and Lowell Gallaway, Out of Work: Unemployment and Government in Twentieth-Century America (New York: Holmes & Meier, 1993), p. 77.

  {760} Walter Adams and James W. Brock, The Structure of American Industry, ninth edition, pp. 97, 104.

  {761} “Sparks Fly over Steel,” The Economist, November 15, 2003, p. 57.

  {762} “Sweet Opportunity,” Wall Street Journal, March 6, 2006, p. A14.

  {763} Alexandra Wexler, “Cheaper Sugar Sends Candy Makers Abroad,” Wall Street Journal, October 21, 2013, pp. A1, A14.

  {764} Leslie Wayne, “U.S. Weapons, Foreign Flavor,” New York Times, September 27, 2005, p. C1.

  {765} Tomas Larsson, The Race to the Top: The Real Story of Globalization (Washington: Cato Institute, 2001), pp. 29–30.

  {766} Ibid., p. 31.

  {767} Joseph E. Stiglitz, Globalization and Its Discontents (New York: W.W. Norton, 2002), pp. 173, 174.

  {768} “A Market for Ideas,” a special report on patents and technology, The Economist, October 22, 2005, p. 15.

  {769} Dieter Ernst, “The Offshoring of Innovation,” Far Eastern Economic Review, May 2006, p. 31.

  {770} Steve Lohr, “Hello, India? I Need Help with My Math,” New York Times, October 31, 2007, p. C4.

  {771} Japan Automobile Manufacturers Association, Cars and Trucks for a Vibrant America and a Better World (Washington: Japan Automobile Manufacturers Association, 2007), p. 8.

  {772} “A Note on Patterns of Production and Employment by U.S. Multinational Companies,” Survey of Current Business, March 2004, pp. 53–54.

  {773} Tomas Larsson, The Race to the Top, p. 56.

  {774} Ibid., p. 62.

  {775} Nassau W. Senior, Three Lectures on the Transmission of the Precious Metals from Country to Country and the Mercantile Theory of Wealth (London: John Murray, 1828), pp. 75–76.

  {776} Jagdish Bhagwati, Free Trade Today (Princeton, NJ: Princeton University Press, 2002), pp. 8–9.

  Chapter 22: International Transfers of Wealth

  {777} Michael Mandelbaum, The Ideas That Conquered the World: Peace, Democracy, and Free Markets in the Twenty-First Century (New York: Public Affairs, 2002), p. 2.

  {778} United Nations Conference on Trade and Development, World Investment Report 2013 (New York: United Nations, 2013), p. 213.

  {779} Office of Management and Budget, Analytical Perspectives: Budget of the United States Government, Fiscal Year 2013 (Washington: Government Printing Office, 2012), pp. 81, 82.

  {780} “Channelling Cash,” The Economist, May 25, 2013, p. 72.

  {781} William Booth and Nick Miroff, “Mexico’s Middle-Class Migrants,” Washington Post, July 24, 2012, p. A16.

  {782} Peter Passel, “Foreign Aid Dwarfed by Funds Sent Home by Immigrant Workers,” San Jose Mercury News, December 5, 2012 (online).

  {783} Bob Davis, “Migrants’ Money Is Imperfect Cure for Poor Nations,” Wall Street Journal, November 1, 2006, p. A12.

  {784} The World Bank, Migration and Remittances Factbook 2011, second edition (Washington: The World Bank, 2011), p. 14.

  {785} Daniel J. Boorstin, The Americans, Volume III: The Democratic Experience (New York: Random House, 1973), p. 251.

  {786} Bank for International Settlements, BIS Quarterly Review, June 2013, p. A4.

  {787} Transparency International, Transparency International Corruption Perceptions Index 2012 (Berlin: Transparency International Secretariat, 2012).

  {788} “A Cruel Sea of Capital,” a survey of global finance, The Economist, May 3, 2003, p. 6.

  {789} Saritha Rai, “Is the Next Silicon Valley Taking Root in Bangalore?” New York Times, March 20, 2006, p. C3.

  {790} Ken Belson, “Slowdown? Don’t Tell Toyota Motor,” New York Times, October 31, 2002, p. W1.

  {791} Alexis Grimm and Charu Sharma, “U.S. International Services: Cross-Border Trade in 2012 and Services Supplied Through Affiliates in 2011,” Survey of Current Business, October 2013, pp. 27, 32.

  {792} Ibid., p. 25.

  {793} The World Bank, “Gross Domestic Product 2012,” downloaded from the World Development Indicators Database, World Bank, 17 December 2013, p. 1.

  {794} “Animal Spirits and the Fed,” Wall Street Journal, February 1, 2005, p. A12.

  {795} “Balance of International Trade in Goods—% of GDP,” Downloaded from the website Eurostat on March 27, 2014: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tec00044&plugin=0.

  {796} “International Data,” Survey of Current Business, December 1999, p. D-20.

  {797} “The German Disease,” Wall Street Journal, January 10, 2005, p. A12.

  {798} “The World in Figures: Industries,” The World in 2004 (London: The Economist Newspaper Limited, 2003), p. 104.

  {799} Sarah P. Scott, “U.S. International Transactions: Fourth Quarter and Year 2012,” Survey of Current Business, April 2013, p. 28.

  {800} Kevin B. Barefoot and Marilyn Ibarra-Caton, “Direct Investment Positions for 2012: Country and Industry Detail,” Survey of Current Business, July 2013, p. 32.

  {801} “Foreign Direct Investment,” The Economist, July 1, 2006, p. 89.

  {802} “Economic and Financial Indicators,” The Economist, December 7, 2002, p. 99.

  {803} Mira Wilkins, The History of Foreign Investment in the United States to 1914 (Cambridge, MA: Harvard University Press, 1989), p. 195.

  {804} Barry Eichengreen, “U. S. Foreign Financial Relations in the Twentieth Century,” The Cambridge Economic History of the United States, Volume III: The Twentieth Century, edited by Stanley L. Engerman and Robert E. Gallman (New York: Cambridge University Press, 2000), p. 463.

  {805} Ibid., p. 466.

  {806} Jeffry A. Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century (New York: W.W. Norton, 2006), p. 20.

  {807} Mira Wilkins, The History of Foreign Investment in the United States to 1914, p. 142.

  {808} “Free Trade on Trial,” The Economist, January 3, 2004, p. 14.

  {809} Anand Giridharadas and Saritha Rai, “An Indian Company Wants to Be Everywhere,” New York Times, October 18, 2006, p. C3.

  {810} Kevin B. Barefoot, “U.S. Multinational Companies: Operations of U.S. Parents and Their Foreign Affiliates in 2010,” Survey of Current Business, November 2012, p. 52.

  {811} The World Bank, Migration and Remittances Factbook 2011, second edition, p. 17.

  {812} Warren C. Scoville, The
Persecution of Huguenots and French Economic Development: 1680–1720 (Berkeley: University of California Press, 1960), pp. 325–340; W. Cunningham, Alien Immigrants to England (New York: The Macmillan Company, 1897), p. 69.

  {813} Fernand Braudel, A History of Civilizations, translated by Richard Mayne (New York: Penguin Press, 1994), p. 440.

  {814} R. Bayly Winder, “The Lebanese in West Africa,” Comparative Studies in Society and History, Vol. IV, No. 3 (April 1962), p. 309.

  {815} Charles Issawi, “The Transformation of the Economic Position of the Millets in the Nineteenth Century,” Christians and Jews in the Ottoman Empire: The Functioning of a Plural Society, edited by Benjamin Braude and Bernard Lewis (New York: Homes & Meier, 1982), Volume I, pp. 262, 263, 266.

  {816} Thomas Sowell, Migrations and Cultures: A World View (New York: Basic Books, 1996), Chapter 2.

  {817} Ibid., Chapter 7.

  {818} Winthrop R. Wright, British-Owned Railways in Argentina: Their Effect on Economic Nationalism, 1854–1948 (Austin: University of Texas Press, 1974).

  {819} John P. McKay, Pioneers for Profit: Foreign Entrepreneurship and Russian Industrialization 1885–1913 (Chicago: University of Chicago Press, 1970), p. 35.

  {820} Thomas Sowell, Migrations and Cultures, Chapter 5.

  {821} Jonathan Kaufman, “How Cambodians Came to Control California Doughnuts,” Wall Street Journal, February 22, 1995, p. A1.

  {822} Fernand Braudel, The Mediterranean and the Mediterranean World in the Age of Philip II, translated by Siân Reynolds (Berkeley: University of California Press, 1995), Vol. II, p. 795.

  {823} “Graduate Emigration,” The Economist, April 2, 2005, p. 94.

  {824} George J. Borjas, “Immigration and Welfare: A Review of the Evidence,” The Debate in the United States over Immigration, edited by Peter Duignan and Lewis H. Gann (Stanford, CA: Hoover Institution Press, 1998), p. 126.

  {825} David B. Abernethy, The Dynamics of Global Dominance: European Overseas Empires, 1415–1980 (New Haven: Yale University Press, 2000), p. 87.

  {826} Bill Spindle, “Desert Oasis: Boom in Investment Powers Mideast Growth,” Wall Street Journal, July 19, 2007, p. A13.