2013-05-29

Cato: Obamacare Premise Is Just Wrong


Next week, the Supreme Court takes up the Obamacare litigation, the heart of which is the issue of whether the federal government can constitutionally force people to buy health insurance.
No longer is anyone calling this case “frivolous” or “easy,” as most commentators once did. After all, when the Supreme Court grants six hours of oral argument over three days — something not seen since Brown v. Board of Education and Roe v. Wade — that’s a pretty good sign that the case is important and difficult.
Of course, for most of our history, the question of whether Congress could, by using its constitutional power to regulate interstate commerce, require people to buy something would have been laughably easy. Obviously it can’t: sitting around doing nothing, or even deciding not to buy something, is neither commerce — traditionally defined as trade or exchange, so not even agriculture or manufacturing counts — nor anything interstate.
Indeed, it wasn’t until the New Deal that the Supreme Court allowed Congress to regulate wholly local economic activity. Using the power to make laws that are “necessary and proper” to the enforcement of broader regulations, the court said, the federal government could regulate certain types of local economic activity (wheat-farming, in one particular case) that had, in the national aggregate, a “substantial effect” on interstate commerce.
That “substantial effects” test continues to mark the outer bounds of Congress’ regulatory authority under modern constitutional law. Thus, in the most recent case challenging that power, Congress could stop two women from growing and consuming medicinal marijuana — in compliance with applicable state laws — because their economic activity substantially affected the (illegal) interstate market in marijuana.

2013-05-28

Cato: Never Mind the IRS, You’d Better Be Nice to Kathleen Sebelius


ObamaCare’s Independent Payment Advisory Board is everything its critics say and worse. It is a democracy-skirting, Congress-blocking, powers-unseparating, law-entrenching, tax-hiking, fund-appropriating, price-controlling, health-care-rationing, death-panelingtechnocrat-thrilling, authoritarian, anti-constitutional super-legislature. Its very existence is testament to government incompetence. It stands as a milestone on the road to serfdom.
The Congressional Research Service has now confirmed what HHS Secretary Kathleen Sebelius pretends not to know but what Diane Cohen and I explained here
[I]f President Obama fails to appoint any IPAB members, all these powers fall to Secretary of Health and Human Services Kathleen Sebelius.

Read more at http://www.cato.org/blog/never-mind-irs-youd-better-be-nice-kathleen-sebelius

Cato: Inside America’s Economic Angst


Why do voters of all stripes generally see the economy as anemic? More than 3 million jobs have been created in the last two years, the Dow Jones has jumped from about 8,000 to more than 13,000, and the recession ended almost three years ago. Seems like a lot of good news. So is President Obama getting a bum rap?
The answer depends on your benchmark. If you simply compare today’s economy to where it was in January 2009, the president looks good. And if you believe his claims that the so-called stimulus and the bailouts were necessary to save the economy from collapse, then he looks very good.
Yet Obama still faces an uphill battle this November — because the nonrich aren’tfeeling better off. There are several reasons:
* The unemployment rate is still above 8 percent, even though the White House promised it would drop to about 6 percent today if the stimulus was enacted.
You don’t need to be versed in economic statistics to understand that America is enduring a very anemic recovery.”
* Several million fewer Americans have jobs today than five years ago.
* The poverty rate has jumped to more than 15 percent, with a record number of Americans living below the poverty level of income.
* According to the most recent data, median household income is lower than when the recession began.
* The burden of government spending remains high, and record levels of red ink are a symptom of that bloat in Washington.
* The threat of higher taxes is omnipresent, serving as a Sword of Damocles over the economy’s neck.
* Continued weakness in the housing and financial sectors reminds people that bailouts and intervention have left lots of problems unsolved.

Cato: DOJ vs. School Choice


Claiming that private schools in Milwaukee are discriminating against students with disabilities, the Department of Justice (DOJ) sent a letter to the Wisconsin Department of Public Instruction (DPI) demanding that private schools participating in the Milwaukee school choice program comply with Title II of the Americans With Disabilities Act. As Professor Patrick Wolf explains over at Education Next, the DOJ is wrong on the facts and wrong on the law.
Wolf is part of a team of researchers that has studied the Milwaukee school choice program over five years. Their statistical analysis “confirmed that no measure of student disadvantage—not disability status, not test scores, not income, not race—was statistically associated with whether or not an 8th grade voucher student was or was not admitted to a 9th grade voucher-receiving private school.” This is exactly what the law requires. Wisconsin law forbids discrimination on the basis of disability and requires schools participating in the voucher program to accept students on a random basis. 

Cato: Education’s Missing Apple: The Free Enterprise Solution?


You’ll find it in downtown Oakland, in a neighborhood of barred windows and strip malls. Its name is the American Indian Public Charter School (AIPCS) — though most of the students are Hispanic, Asian, or black. As with a lot of inner-city public schools, there’s a significant achievement gap between its low-income students and the statewide averages for middle- and upper-income white kids. But as I found when I studied the state’s schools earlier this year, it’s the poor minority students at AIPCS who come out on top.
AIPCS is just one example of the many great schools in our nation’s inner-cities, yet the overall poor performance in these areas persists. The problem is not that we lack models of excellence for serving low-income students, but rather that we lack a means of bringing those models to scale.
Education reformers have spent the last half century searching for and trying to invent teaching methods and materials that would bring educational excellence to America’s poorest and most troubled neighborhoods. The assumption has been that once a recipe for success was demonstrated in one place, schools around the nation would inevitably adopt it, discarding their old, less effective practices.
It hasn’t happened. Take the now famous example of Jaime Escalante, whose low-income Hispanic students at Garfield High School were, by the mid-1980s, already besting their peers at Beverly Hills High on the Advanced Placement (AP) calculus exam. Though staggeringly successful, Escalante’s program was not replicated. On the contrary, his own fellow teachers voted to relieve him as head of the math department after Escalante drew the ire of the local teachers’ union because he welcomed over 50 students in his classrooms, while the union contract required no more than 35.
We already have successful models for helping low-income students. What is missing is the means to bring those successes to schools all over the country. In every other field, it is routine for the top services and products to reach mass audiences, but there is no Google of education, no Starbucks, no Apple. Why not?
Almost 20 years ago, I decided to leave a career in computer software engineering to search for the answer. It’s a search that took me back to the origins of formal schooling in ancient Greece, and forward through a dozen historical times and places.

Cato: IRS Abuses Past and Present


The stories coming out about IRS abuses of nonprofit groups are appalling. We will likely find out that arrogant and biased officials are to blame, as well as members of Congress who pushed them to be especially aggressive on conservative groups.
Past IRS abuses have stemmed from foul play by both politicians and bureaucrats. As Gene Healy mentions, numerous presidents have used the IRS as a political weapon. As for the bureaucrats, investigations during the 1990s revealed how IRS enforcement had run amok, with abusive tactics being used against small businesses and other taxpayers.
Some of the hearings were hair-raising, and the abuses led Congress to pass the IRS Restructuring and Reform Act of 1998. Useful links to hearing documents are here and hereincluding Senator Roth describing the agency as having an “awesome power.” Washington Post coverage is hereincluding a story about how even President Clinton was “outraged” by the revelations of IRS abuse.

Cato: Paul Ryan’s Spending Plan


House Budget Committee chairman Paul Ryan (R-WI) has introduced his annual budget blueprint. The plan will likely pass the House but won’t become law this year.
However, the plan signals the direction that House Republicans want to go in budget battles with the Democrats this year, and it also shows the likely thrust of policy under a possible Republican president next year.
Here are a few highlights:
  • Total federal outlays would fall from $3,624 billion this year to $3,530 billion next year. Those figures are $24 billion less than under President Obama’s budget this year and $187 billion next year.
  • Of the $187 billion savings compared to Obama next year, $38 billion would come from discretionary programs, $146 billion from so-called entitlements, and $3 billion from interest costs.
  • Ryan’s proposed spending in 2022 of $4,888 billion would be a modest 13 percent less than Obama’s proposed spending that year. That’s a useful statistic to remember when you read the inevitable stories about how Ryan would slash, burn, and pillage the government safety net.
  • Indeed, Ryan’s proposed increase in federal spending from $3,624 billion this year to $4,888 by 2022 represents fairly robust annual average growth of three percent.
  • As a share of GDP, the Ryan budget would trim outlays from 23.4 percent this year to 19.8 percent by 2022. That reduction would simply get spending back to around the normal historical level. And note that spending would still be higher than the 18.2 percent achieved in the last two years under President Clinton.
  • Ryan would repeal the 2010 health care law and reform Medicare by transitioning to a consumer-choice model. Those changes are expected to reduce annual outlays in 2022 by $258 billion.

Cato: Supreme Court Strikes Another Blow against IRS


As if the IRS weren’t reeling enough already, today the unanimous Supreme Court dealt the beleaguered agency another blow, unanimously ruling that companies who paid a British “windfall tax” could get credit for that payment against their U.S. tax liabilities. This should’ve been a simple case, and the federal tax court got it right – the tax code credits foreign income taxes – but the court of appeals found a convoluted way to rule for the IRS.
As Cato’s brief explained, however, taxpayers have the right to be free from double taxation and here the IRS improperly disregarded the substance of the windfall tax. A foreign tax’s form or label can’t mask its substantive character for legal purposes. American businesses operating overseas should be able to rely on a stable, substantive application of U.S. tax law instead of arbitrary interpretations and constructions manipulated to generate payments to the IRS.

Cato: Sugar Taxes Are Unfair And Unhealthy


If the regulatory discussion about sugar is going to be based on science, rather than science fiction, it needs to move beyond kicking the soda can.
Conventional wisdom says draconian regulation—specifically, a high tax—on sugary drinks and snacks reduces unhealthy consumption, and thereby improves public health. There are many reasons, however, why high sugar taxes are at best unsuccessful, and at worst economically and socially harmful.
Research finds that higher prices don’t reduce soda consumption, for example. No scientific studies demonstrate a difference either in aggregate soda consumption or in child and adolescent Body Mass Index between the two thirds of states with soda taxes and those without such taxes.
The study that did find taxes might lead to a moderate reduction in soda consumption also found this had no effect on adolescent obesity, as the reduction was completely offset by increases in consumption of other calorific drinks.

Cato: Containment a Profoundly Unfriendly Act


The Obama administration has announced that it is sending additional troops to the Philippines as part of an effort to strengthen military ties with its treaty ally. Those forces will augment the small contingent dispatched to the Philippines shortly after the September 11, 2001, terrorist attacks when Manila asked for assistance in combating a Muslim insurgency that supposedly had links to al-Qaida. The 2001 deployment ended a decade in which the United States had no forces stationed in the Philippines after the Philippine government declined to renew the leases for Clark air base and the Subic Bay naval base.
It is no secret that ever since the loss of these bases the Pentagon has wanted to re-establish a significant US military presence in the Philippines. Washington insists that this is because of the need to counter the terrorist threat to the democratic Philippine government, and more generally to strengthen the US’ ability to preserve peace and stability in East Asia.
But one doesn’t have to attend many foreign policy gatherings in Washington to hear quiet — and sometimes not-so-quiet — comments that suggest another motive. To the hawks in the US, troop deployment in the Philippines is merely part of a much broader strategy aimed at containing or encircling China.
An enhanced military position in the Philippines is merely the latest development, other US actions in recent years also show it is trying to contain China. During his visit to Australia in November, President Obama announced that the US was sending an additional 2,500 Marines as well as combat aircraft to that country. In a speech to the Australian parliament, Obama boldly asserted that, “the United States is a Pacific power, and we are here to stay.” He added that, “the United States will play a larger and long-term role in shaping this region and its future.”
Experts in the US and elsewhere interpreted those comments as sending a message that Washington intended to do whatever was necessary to counter China’s growing power and influence.
There were signs that the US was adopting an encirclement strategy during the administration of George W. Bush. The Bush administration strengthened not only the US’ economic ties with its former arch-adversary, Vietnam, but there were talks about providing US naval forces access to Vietnamese ports. And, far more than any of its predecessors, the Bush administration sought to forge a strategic partnership with India, including signing an agreement on nuclear cooperation that critics charged was an implicit acceptance of New Delhi’s nuclear weapons program.

Cato: WSJ: ObamaCare Could Reduce Employee Health Benefits


ObamaCare supporters promised the law’s employer mandate would require employers to provide workers with comprehensive insurance. But they apparently didn’t read the bill very closely. It’s a recurring theme.
According to the Wall Street Journalemployers and employee-benefits consultants have found, and federal regulators now confirm, that the law actually requires most employers to offer no more than very flimsy coverage. Many employers are now exploring the option of offering limited-benefit health plans that cover preventive services and maybe “$100 a day for a hospital visit” but “wouldn’t cover surgery, X-rays or prenatal care.” Indeed, the law could push many employers to reduce the amount of coverage workers receive on the job.
The Obama administration’s reaction demonstrates they had no idea what they were doing. The Wall Street Journal:
Administration officials confirmed in interviews that the skinny plans, in concept, would be sufficient to avoid the across-the-workforce penalty. Several expressed surprise that employers would consider the approach.
“We wouldn’t have anticipated that there’d be demand for these types of band-aid plans in 2014,” said Robert Kocher, a former White House health adviser who helped shepherd the law. “Our expectation was that employers would offer high quality insurance.”

Read more at http://www.cato.org/blog/wsj-obamacare-could-reduce-employee-health-benefits

Cato: It’s Not Obama’s Fault That Crude Oil Prices Have Increased


Is President Obama responsible for the spiraling price of gasoline? Republicans say yes, but the facts say no.
Why have gasoline prices increased since the start of the year? The simplest explanation is that the price of crude oil has increased. Specifically, the spot price for Brent (North Sea) crude has increased $16 a barrel since January. Given that there are 42 gallons to a barrel, that works out to a 38 cent increase in the price of a gallon of oil. Spot prices for gasoline trade in New York have increased about 41 cents per gallon over the same time frame. So there you go.
Why is the price of North Sea oil relevant to the price of gasoline in the United States? Well, we import gasoline refined in Europe from North Sea crude. Even though these imports constitute less than 10 percent of U.S. gasoline consumption, they are necessary to satisfy domestic demand and their price sets the market price for all gasoline regardless of whether other cheaper crude sources are used to refine most of our gasoline.

Cato: Virginia Republican Candidates Not Joining 21st Century

Last week I reported that 40 percent of Virginia Republicans – and 56 percent of independents – now support gay marriage. But on Saturday the Virginia GOP nominated three statewide candidates whose views on homosexuality and marriage equality range from unwavering opposition to bigoted to insane

Read more at http://www.cato.org/blog/virginia-republican-candidates-not-joining-21st-century

Cato: Time for Some Rapprochement in U.S.-China Economic Relations


Has the Chinese government indulged in protectionist, provocative or otherwise illiberal policies that have, on occasion, violated its commitment to the rules of international trade? Yes.
Do the Chinese maintain other policies that very likely would be found to violate China’s WTO obligations? Yes.
Is the U.S. government within its rights to bring formal complaints about benefit-impairing Chinese trade practices to the World Trade Organization for adjudication and resolution? Yes.
But before getting all righteous and patriotic and demanding that China be deemed an economic pariah worthy of exceptionally harsh treatment, keep in mind that the U.S. government has been found out of compliance with its WTO obligations more than any other WTO member, and it remains out of compliance on a few issues to this very day.

Cato: Mobility Is Freedom, Not an Invasion of Privacy


Mobility is freedom, or at least an important part of it. Yet earlier this month challenges to expansions of that freedom came from, surprisingly, the Mises Institute of Canada, Reasonmagazine, and American Enterprise Institute. The issues are new automobile technologies, specifically self-driving cars and improved road pricing, and the challenges came from people who clearly don’t understand the technologies involved.
Self-driving cars, says Roger Toutant writing for the Mises Institute of Canada, will lead to “a national, state-operated, computer network that will be used to achieve an Orwellian level of vehicular control and information sharing. …The implications are ominous. In the future, private spheres will be invaded and all movements will be tracked.”
“Boot up a Google car,” agrees Greg Beato of Reason magazine, “and it’s not so easy to cut the connection with the online mothership.” If you get into a Google driverless car, “you immediately start sending great quantities of revealing information to a company that’s already hoarding every emoticon you’ve ever IMed.”
It is appropriate to question new technologies, but the answer is that’s not the way these cars work. None of the self-driving cars being developed by Volkswagen, Google, or other companies rely at all on central computers. Instead, all the computing power is built into each car.
No state-operated central computer will tell cars where to go. Instead, they will find the best route–perhaps consulting with private congestion-tracking services such as Inrix–or offer users a choice of routes, and go there on their own.

Cato: Why Are We Still in Afghanistan?


American soldiers mistakenly burned a half dozen Korans in Afghanistan. Predictably, the response was riots by many and murder by a few Muslims. Violence has become the tactic of choice of Islamic extremists around the world against secular critics and religious minorities alike.
Indeed, this isn’t the first time that Afghan mobs have killed to avenge a perceived insult to their faith. Last year a crowd in the generally peaceful city of Mazar-e-Sharif slaughtered a dozen United Nations staffers after Rev. Terry Jones burned a Koran in Florida.
The latest round of violence was sparked by the burning of six Korans removed from a prison because they contained extremist messages — added by Afghan Muslims apparently unconcerned about the alleged sacredness of the text. Sent to a landfill, they were set on fire before Afghan personnel identified them as Korans.
In the ensuing violence some 30 Afghans died and a half dozen Americans were killed. A taxi driver told the Wall Street Journal: “If they are insulting our Koran, we don’t want peaceful rallies.” A policeman informed the Washington Post: “Afghans and the world’s Muslims should rise against the foreigners. We have no patience left.” Another cop, trained by NATO, declared: “We should burn those foreigners.”
Members of parliament and political allies of Afghan President Hamid Karzai openly encouraged attacks on allied personnel. Parliamentarian Abdul Sattar Khawasi asserted that “Americans are invaders, and jihad against Americans is an obligation” and called for “war against Americans.”

Cato: Supreme Court Errs in Giving Agencies Power to Define Their Own Power


Although it did good by taxpayers today, the Supreme Court also issued a divided ruling that unfortunately expands the power of administrative agencies generally.  In City of Arlington v. FCC, six justices gave agencies discretion to decide when they have the power to regulate in a given area – which expands on the broad discretion they already have to regulate within the areas in which Congress granted them authority.
But why should courts defer to agency determinations regarding their own authority?  Courts review congressional action, so why should theoretically subservient bureaucrats – appointed by the executive branch and empowered by Congress – escape such checks and balances?  

Cato: Hitting the Ceiling


If you liked last year’s battle over raising the debt ceiling, just get ready for the fight to come.
Last summer’s agreement, you will recall, raised the federal government’s debt limit from $15.194 trillion to $16.394 trillion in exchange for promised future reductions in spending. Until recently, the consensus has been that federal borrowing will bump up against the new limit sometime between late November of this year and early January 2013.
But buried in President Obama’s 2013 budget was the news that the national debt will hit $16.334 trillion by the end of fiscal year 2012, or September 30, 2012. This is just $60 billion below the current debt limit. Since the federal government is continuing to borrow at a rate of over $130 billion a month, we will likely reach the debt ceiling by mid-October — before Election Day.
From a budgeting perspective, there will not be an immediate crisis. The Treasury Department could, if it chooses, employ “extraordinary measures” to enable the government to keep paying its bills until well after the elections. Despite their name, these measures are not all that “extraordinary,” involving such things as delaying contributions to the civil-service pension fund or suspending sales of certain nonessential securities. In fact, the Treasury used such measures last year from May until the final debt agreement in August, and no one really noticed.
But as a political matter, it will be a very different matter.

Cato: The “I-Word” Isn’t a Curse


I’m not convinced that any of the recent scandals roiling the Obama administration constitutes an “impeachable moment,” but, as I argue today in the Washington Examiner, there’s something wrong with a (post-?) constitutional culture where opinion leaders treat the very invocation of the “I-word” as akin to screaming obscenities in a church.
Impeachment talk is“industrial strength insane” says the Daily Beast’s Michael Tomasky; “serial madness,”per Richard Brodsky at the Huffington Post; Rachel Maddow compares it to incontinence; and for theAtlantic’s Philip Bump, it’s like the inevitable idiot in the comments thread invoking Hitler. True, Salon’s recent listicle of 14 “crazy times” right-wingers have called for Obama’s impeachment consists mostly of frivolous, even loopy proposals; but it also includes Bruce Fein’s 2011 call to impeach Obama “over the military intervention in Libya, alleging that it violated the Constitution’s mandate that only Congress can declare war.” Crazy talk!

Cato: Mandated Contraceptives: The Tragedy of the Sexless Law Student

Leave it to radio personality Rush Limbaugh to turn a serious policy issue into a personal attack. But the moral character of Georgetown law student Sandra Fluke doesn’t matter (except, presumably, to her). What should worry the rest of us is her apparent belief that we all are obligated to make sure that she can have sex for free.
Law school is typically a time of financial stringency. I know, since I also attended law school (though many years ago). I drove a 1966 Corvair, rented a room in a private home, and worked part-time. I don’t remember the cost of contraception being a major issue then, but if it had been I wouldn’t have expected “society” to pay for it.
Obviously Sandra Fluke lives in a different world. As, unfortunately, does President Barack Obama.
It should be obvious that, as Nobel Laureate Milton Friedman was fond of observing, “There ain’t no such thing as a free lunch.” Whether the pill, IUDs, condoms, or other, contraceptives must be developed, manufactured, and distributed. Someone has to cover that cost. Since contraceptives make sex easier for those who don’t want babies, one normally would expect that those who want to have sex to pay for them. After all, you get the personal pleasure of the act. Your wallet — and that of your partner — should get stuck with the corresponding financial pain.
Nor does calling contraception “preventive care” make it so. Sex is a great thing. But even 20- and 30-somethings, like Ms. Fluke, can survive without it. (Shock, horror, disbelief, I know, but still true!) What is more “essential” — getting a mammogram, colonoscopy, or chemotherapy, having bypass surgery or trauma care, or… making sure you can have a good time essentially without risk (at least of an unwanted pregnancy)? If you answered the latter on my final exam, you would earn an “F.”

Cato: Senators Levin and McCain: Two Peas All Up in our iPods


Earlier this year, Senator Carl Levin (D-MI) announced that he will be retiring after many, many, many decades of lawmaking when his term expires in January 2015. But he doesn’t intend to make for the exits without sealing his legacy of disdain for America’s wealth creators. After holding hearings last September to shed light on the “loopholes and gimmicks” employed by U.S. multinational companies to avoid paying their “fair share” of taxes, Levinresumed his inquisition today by holding a hearing intended to publically shame one of America’s most successful and most bountiful companies:
Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere. We intend to highlight that gimmick and other Apple offshore tax avoidance tactics so that American working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden, add to the federal deficit and ought to be closed.

Read more at http://www.cato.org/blog/senators-levin-mccain-two-peas-all-our-ipods

Cato: Go to Trial and Crash the System?


Yesterday, Law Professor Michelle Alexander wrote an op-ed for the New York Times with the title, “Go to Trial: Crash the Justice System.”  Here’s an excerpt:
AFTER years as a civil rights lawyer, I rarely find myself speechless. But some questions a woman I know posed during a phone conversation one recent evening gave me pause: “What would happen if we organized thousands, even hundreds of thousands, of people charged with crimes to refuse to play the game, to refuse to plea out? What if they all insisted on their Sixth Amendment right to trial? Couldn’t we bring the whole system to a halt just like that?”
The woman was Susan Burton, who knows a lot about being processed through the criminal justice system.
Her odyssey began when a Los Angeles police cruiser ran over and killed her 5-year-old son. Consumed with grief and without access to therapy or antidepressant medications, Susan became addicted to crack cocaine. She lived in an impoverished black community under siege in the “war on drugs,” and it was but a matter of time before she was arrested and offered the first of many plea deals that left her behind bars for a series of drug-related offenses. Every time she was released, she found herself trapped in an under-caste, subject to legal discrimination in employment and housing. …
I was stunned by Susan’s question about plea bargains because she — of all people — knows the risks involved in forcing prosecutors to make cases against people who have been charged with crimes. Could she be serious about organizing people, on a large scale, to refuse to plea-bargain when charged with a crime?
“Yes, I’m serious,” she flatly replied.
I launched, predictably, into a lecture about what prosecutors would do to people if they actually tried to stand up for their rights. The Bill of Rights guarantees the accused basic safeguards, including the right to be informed of charges against them, to an impartial, fair and speedy jury trial, to cross-examine witnesses and to the assistance of counsel.

Read more at http://www.cato.org/blog/go-trial-crash-system

Cato: Climate History: Cato Boffins Discovered “Anti-information”


While doing some historical studies in preparation for an article in Cato’s Regulationmagazine, we found that we  once discovered the information equivalent of antimatter, namely, “anti-information”.
This breakthrough came  when we were reviewing the first “National Assessment” of climate change impacts in the United States in the 21st century, published by the U.S. Global Change Research Program (USGCRP) in 2000.  The Assessments are mandated by the Global Change Research Act of 1990.  According to that law, they are, among other things, for “the Environmental Protection Agency for use in the formulation of a coordinated national policy on global climate change…”
One cannot project future climate without some type of model for what it will be.  In this case, the USGCRP examined a suite of nine climate models and selected two for theAssessment. One was the Canadian Climate Model, which forecast the most extreme warming for the 21st century of all models, and the other was from the Hadley Center at the U.K Met Office, which predicted the greatest changes in precipitation.

Cato: Trade Policy Lessons in WTO Challenge of China’s Rare Earth Restrictions


This morning the Obama administration lodged an official complaint with the World Trade Organization’s (WTO) Dispute Settlement Body over China’s ongoing restrictions of exports of “Rare Earth” minerals. Rare Earths are crucial ingredients used in the production of flat-screen televisions, smart phones, hybrid automobile batteries, and other high technology products.
The formal complaint was not entirely unexpected since the dispute has been on a low boil for nearly 18 months; the U.S. government recently prevailed in a WTO dispute over a similar issue concerning Chinese export restrictions on nine raw materials used in manufacturing; and, this is an election year in which President Obama has carte blanche to outbid the Republican presidential aspirants’ China-bashing rhetoric with administrative action. So, no surprises really.
Despite the added political incentive to look tough on China this year, the administration should be applauded for its efforts to compel China to oblige its WTO commitments. This is a legitimate complaint following proper channels. In fact, this is exactly the course of action I have long argued for. Negotiations, consultations, and formal WTO dispute resolution (which begin with a long consultation period in which the parties are encouraged to find solutions without formal adjudication) are precisely the methods of dispute settlement conducted by governments that respect the process, their counterparts, and the rule of law in international trade.