Saturday, March 12, 2016

Since the time of Adam Smith, economists have understood that free trade is good for countries as a whole.

Of course, trade creates winners and losers. The most common opinion expressed on TV talk shows and in the current presidential campaign is that the winners are on Wall Street and the losers are ordinary people.

However, the latest research suggests the opposite is true. The biggest winners from free trade are in the bottom half of the income distribution. What’s more, these gains are so large that if real income were measured properly, inequality in the US has been falling not rising – precisely because of increased trade.

The argument for trade is straight forward. Trade is ultimately the trade of goods for goods. In any voluntary exchange, both parties are made better off. Both give up something they value less for something they value more.

But what if other countries sell to us without buying from us? That’s what a trade deficit means. It turns out that trade deficits aren’t bad. If China sells to us and just holds onto the dollars it gets in return, then China is holding paper and we are consuming the real goods they produced. That’s not bad for us.

What is more likely is that China uses the dollars it obtains to buy stocks and bonds and other financial assets back here in the United States. That’s not bad either. It means we get to consume the goods that China sends us and instead of buying goods from us China decides to increase the size of our capital market. Capital is something poor countries lack. Financial capital buys newer and better factories and equipment. It makes workers more productive and allows them to earn higher wages.
On Friday, a planned Donald Trump rally in Chicago was canceled after protestors swarmed the event venue. In a statement released by the Trump campaign, they said that the decision to cancel the rally was made after meeting with law enforcement.

According to the Chicago Police, this isn't true, and no threats were issued. Specifically, the police say they were "not consulted" until after the rally was canceled.
The Chicago Police Department said it was informed shortly before 6:30 p.m. that the Trump campaign had canceled the event. Police were not consulted before this decision was made, according to spokesman Anthony Guglielmi, and he said police did not issue any public safety threats or safety risks before the cancellation.

NPR touts Muhammad’s example as means to counter “extremism”
By Robert Spencer / Jihad Watch


NPR touts Muhammad’s example as means to counter “extremism”
This article is more ridiculous than most. Muhammad loved dates, melons and cucumbers and that’s supposed to make Muslims less susceptible to “extremist propaganda”? His non-snoring blowing sound while sleeping is supposed to make Muslims “emphasize charity and respect for other faiths”? “Hassan argues that if Muslims had more knowledge of how the Prophet Muhammad […]
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OBAMA: I’m more worried about climate change than ISIS
Pamela Geller / Atlas Shrugs

This extraordinary disconnect from reality spells disaster looming for the U.S. and the free world.

“OBAMA: I’m more worried about climate change than ISIS,” by Rob Wile, Fusion, March 10, 2016:
Obama Muslim IslamIn a new interview published in The Atlantic magazine, President Obama says he is more worried about climate change than the terrorist group ISIS.
“ISIS is not an existential threat to the United States,” he told Atlantic correspondent Jeffrey Goldberg.
“Climate change is a potential existential threat to the entire world if we don’t do something about it.”
Climate change is particularly worrisome, Obama said, because “it is a political problem perfectly designed to repel government intervention. It involves every single...