Capitol Hill Campus

Keith Hall discusses Unemployment at Capitol Hill Campus

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 19 Feb 2013 05:00:00 +0000

Capitol Hill Campus: Running the BLS Numbers on Jobs

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 27 Sep 2012 04:00:00 +0000

What does the unemployment rate really mean? Does it suggest our economy is slowly growing, stuck in neutral, or in fact slipping back into recession? Do the monthly numbers on total jobs created and the unemployment rate tell the full economic story? In order to examine the results of the economic policies pursued since the Great Recession of 2008 effectively, it is critical to understand what the employment numbers mean and what information lies behind them.

Successful Tax Reform: Dealing with the Near Term, Planning for the Long Term

mercatus@gmu.edu (Mercatus Center at George Mason University) — Fri, 21 Sep 2012 04:00:00 +0000

The "Midnight Regulations" Phenomenon

mercatus@gmu.edu (Mercatus Center at George Mason University) — Wed, 18 Jul 2012 04:00:00 +0000

In this Capitol Hill Campus event, Mercatus scholarnbsp;Patrick McLaughlin provided annbsp;overview on midnight regulations:What exactly is the “midnight regulations” phenomenon, and what evidence demonstrates that it is real?Why should policymakers be concerned about midnight regulations?Is there empirical evidence that midnight regulations are different from other regulations?What can be done to limit midnight regulations?

Taxes: Fooling Ourselves and Fooling the Voters

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 17 May 2012 04:00:00 +0000

nbsp;The tax code is complicated, making it difficult for all but a few to understand the impact it has on our day-to-day lives. While most taxes are enacted for innocent reasons such as raising funds for a devastated community after a natural disaster, these taxes and others have unintended consequences that fool voters and create a more shrouded tax system. Furthermore, Congress constantly deals with phantom assumptions about the tax code, which lead it to pass taxes that do not achieve their desired goal. These issues will be addressed by Prof. Antony Davies, Associate Professor of Economics at Duquesne University, who will answer important questions such as:nbsp;Are temporary taxes truly temporary?How do withholdings in taxes affect voters’ thinking about their money?When figuring out who paid what, which are better; marginal or average tax rates?How accurate are CBO projections with the assumptions they are given by Congress?How much does the Federal revenue change in relation to GDP when taxes are high or low?What happens to tax revenue per capita as taxes rise and fall?Can the government control who pays taxes?nbsp;The tax code is complicated, making it difficult for all but a few to understand the impact it has on our day-to-day lives. While most taxes are enacted for innocent reasons such as raising funds for a devastated community after a natural disaster, these taxes and others have unintended consequences that fool voters and create a more shrouded tax system. Furthermore, Congress constantly deals with phantom assumptions about the tax code, which lead it to pass taxes that do not achieve their desired goal. These issues are addressed by Prof. Antony Davies, Associate Professor of Economics at Duquesne University.Are temporary taxes truly temporary?How do withholdings in taxes affect voters’ thinking about their money?When figuring out who paid what, which are better; marginal or average tax rates?How accurate are CBO projections with the assumptions they are given by Congress?How much does the Federal revenue change in relation to GDP when taxes are high or low?What happens to tax revenue per capita as taxes rise and fall?Can the government control who pays taxes?nbsp;

Getting the Job Done Right: Essential Skills for Regulatory Oversight

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 01 Mar 2012 05:00:00 +0000

Several key debates this year will focus on the economic impact of federal regulations. The Mercatus Center at George Mason University is pleased to offer a series of courses designed to help congressional staff better understand the regulatory process. The first course uses examples from newly-minted financial markets regulations to review: The stages involved in developing and finalizing a regulationHow to find and use information about a regulationThe best tools to help policy makers make the case for or against a change in regulation

Creating a Shovel-Ready Economy: Lessons from the Recovery Act

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 17 Jan 2012 05:00:00 +0000

In this presentation, Mercatus Senior Scholar Garett Jones provides a useful framework for promoting economic growth. Professor Jones's presentation examines the state of the economy today, why short-term policies do not necessarily provide the biggest bang for the buck, and what Congress can do to get the economy going both in the short-term and long-term.

A Sustainable Approach to Entitlement Reform

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 20 Oct 2011 04:00:00 +0000

Any credible plan to significantly improve the nation’s fiscal outlook must address the greatest drivers of future debt: Medicare, Medicaid, and Social Security. But while the need for entitlement reform is no longer in question, policy makers are far from consensus on how, or even when, to begin. This event featured both public trustees for social security and medicare, Charles Blahous and Robert Reischauer. It also featured Alice M. Rivlin, the founding director of the CBO as well as Mercatus' own Jason Fichtner.Any credible plan to significantly improve the nation’s fiscal outlook must address the greatest drivers of future debt: Medicare, Medicaid, and Social Security. But while the need for entitlement reform is no longer in question, policy makers are far from consensus on how, or even when, to begin. This event featured both public trustees for social security and medicare, Charles Blahous and Robert Reischauer. It also featured Alice M. Rivlin, the founding director of the CBO as well as Mercatus' own Jason Fichtner.

Practical Lessons in Budget Reform

mercatus@gmu.edu (Mercatus Center at George Mason University) — Fri, 16 Sep 2011 04:00:00 +0000

Economists’ research of other nations’ experiences provides insight on the most effective way to deal with unsustainable debt. There is also much to be learned from our own past attempts — successful or not — to meaningfully reform the budget.This discussion will focus on the following questions:Which fundamental spending, tax, and budget process reforms have proven most effective in reducing debt? nbsp;Is there an ideal combination of budgetary reforms for reducing debt? nbsp;What about the economy? Can we improve our fiscal situation without making our economic situation even worse?How can we avoid repeating our own past failures in addressing unsustainable debt?

The Future of Internet Privacy Regulation

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 19 May 2011 04:00:00 +0000

The Internet has revolutionized the way we live, work, and play. It's evolved, with relatively little oversight, to be an enormously powerful tool and a major factor in the world economy. But it has a seedier side. Large companies collect an enormous amount of data about Internet and gadget users and recent news has been filled with high profile breeches of private information.

Reforming GSE's - Fannie, Freddie, and the Future

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 26 Apr 2011 04:00:00 +0000

Dr. Arnold Klingnbsp;discusses two ways to look at GSE’s. One approach, the “devil you know” strategy, would restore the status quo ante, meaning that Freddie Mac and Fannie Mae would be returned to the investing public as private corporations with government backing, able to purchase loans for securities and able to hold securities in portfolio, subject to limits on loan amounts and subject to safety-and-soundness regulation. The other approach, the “Jimmy Stewart banker” strategy, would get the government out of the mortgage-guarantee business and let the mortgage market evolve in a decentralized way. In this system, mortgage lending would return to local banks, which would retain the loans that they originate.Dr. Anthony Sandersnbsp;asks “can the private sector offer a less costly alternative to Fannie and Freddie, with far less government involvement in the housing and mortgage market?” What is unique about Fannie/Freddie that the private sector could not provide? Both Fannie/Freddie and the private sector have loan-underwriting models; both can purchase loans and create mortgage-backed securities (MBS); both the private and public sector can offer mortgage insurance.The one thing that Fannie and Freddie have that the private sector does not is an explicit guarantee from the federal government. If the private sector can replicate Fannie and Freddie’s only defining “virtue”—a federal-government guarantee—then there is no justification for keeping Fannie and Freddie around either in conservatorship or in their pre-conservatorship forms. Is that possible? What are the potential consequences?

Quarterly Economic Update February 2011

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 10 Feb 2011 05:00:00 +0000

In December 2010, the Bureau of Labor Statistics reported there were 131 million working Americans. Some 14.5 million Americans were counted as unemployed. Of those, 6.4 million had been without work for 27 weeks or more. Job prospects were, and remain, bleak. There was a small silver lining in the dark announcement: the BLS noted that some 1.1 million private-sector jobs were added in 2010. Job availability, according to the Gallup organization, was the number one worry plaguing the U.S. population in January 2011. So where do jobs come from? Real jobs that can be sustained by normal economic activity? Is there a role for government in the process? How do government policies enhance or reduce the long-run pace of job creation? Dr. Bruce Yandle explores these questions, and gives an update on recent economic activity. He discusses his recent paper Jobs, Jobs, Jobs: Where do Jobs Come From? and examines the decision making process made by employers engaged in adding workers to their payrolls and incentives faced by employers and employees.

Practical Lessons in Budget Cuts: The WWII and Canadian Experiences

mercatus@gmu.edu (Mercatus Center at George Mason University) — Mon, 06 Dec 2010 05:00:00 +0000

According to some polls, more than 70 percent of Americans believe the stimulus is not working. They worry that Washington isn’t offering effective solutions to our persistent economic malaise. Instead of the endless – and useless -- debate over whether stimulus theory works, are there concrete examples of how countries can escape a debt crisis?nbsp;Cutting spending is the recipe for economic growth. Several historical examples make this clear. How can we learn from the lessons of the past, and the example of our neighbors?After World War II, Keynesian economists predicted that 10 million service men suddenly joining the labor market, at the same time the government stopped spending money on war, would result in “the greatest period of unemployment… ever faced.”Fortunately, they were dead wrong. The economy’s ability to absorb 10 million new workers (as well as keeping half the “Rosies” in the workforce) as government slashed spending shows that people can shift quickly to productive private-sector employment, if investors have a high degree of certainty about property rights and the rules of the game.In Canada, a left-wing government turned a federal debt of 70 percent of GDP to 29 percent and a surplus of 1.8 percent GDP in 10 years – without raising individual income taxes or losing control of the parliament.nbsp;Reforms came more than 85 percent from spending cuts, the remainder in closing tax loopholes or limiting growth in spending.The architect of the budget reform, Paul Martin, issued a specific plan for how to make cuts both for the first year and then how to make other cutting decisions in the future, creating a standard to judge politicians’ performance.Martin was consistently re-elected for nearly 10 years and was later elevated to Prime Minister.Join the Mercatus Center and Professor David Henderson as he explains how these concrete examples of spending contraction helped the economy grow, and what lessons we can draw.This course is free and open to all full-time Congressional and Agency staff. Due to space constraints, please no interns without prior approval. For more information, please contact Aaron Merrill, Program Manager for Outreach, at 703.993.7729 or amerril2@gmu.edu.

At What Cost? Basic Economics of a Value Added Tax

mercatus@gmu.edu (Mercatus Center at George Mason University) — Wed, 03 Nov 2010 04:00:00 +0000

Most developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rise.Most developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rise.Randall G. Holcombe is DeVoe Moore Professor of Economics at Florida State University. He received his Ph.D. in economics from Virginia Tech and taught at Texas Aamp;M University and Auburn University prior to coming to Florida State in 1988. Dr. Holcombe is also senior fellow at the James Madison Institute, a Tallahassee-based think tank that specializes in issues facing state governments. He served on Florida Governor Jeb Bush’s Council of Economic Advisors from 2000 to 2006, was president of the Public Choice Society from 2006 to 2008, and was president of the Society for the Development of Austrian Economics in 2007.nbsp;Dr. Holcombe is the author of twelve books and more than 100 articles published in academic and professional journals. His books include The Economic Foundations of Government, Public Policy and the Quality of Life, From Liberty to Democracy: The Transformation of American Government, and Entrepreneurship and Economic Progress.nbsp;due to space constraints, please no interns without prior approvalost developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rMost developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rise.Why is a Value Added Tax (VAT) wrong for the United States? How much would it cost? What would the unseen or unanticipated effects likely be? Join the Mercatus Center and learn more about this controversial suggestion.Randall G. Holcombe is DeVoe Moore Professor of Economics at Florida State University. He received his Ph.D. in economics from Virginia Tech and taught at Texas Aamp;M University and Auburn University prior to coming to Florida State in 1988. Dr. Holcombe is also senior fellow at the James Madison Institute, a Tallahassee-based think tank that specializes in issues facing state governments. He served on Florida Governor Jeb Bush’s Council of Economic Advisors from 2000 to 2006, was president of the Public Choice Society from 2006 to 2008, and was president of the Society for the Development of Austrian Economics in 2007.Dr. Holcombe is the author of twelve books and more than 100 articles published in academic and professional journals. His books include The Economic Foundations of Government, Public Policy and the Quality of Life, From Liberty to Democracy: The Transformation of American Government, and Entrepreneurship and Economic Progress.This course is free and open to all full-time Congressional and Agency staff. Due to space constraints, please no interns without prior approval. For more information, please contact Aaron Merrill, Program Manager for Outreach, at 703.993.7729 or amerril2@gmu.edu.nbsp;Most developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rise.Randall G. Holcombe is DeVoe Moore Professor of Economics at Florida State University. He received his Ph.D. in economics from Virginia Tech and taught at Texas Aamp;M University and Auburn University prior to coming to Florida State in 1988. Dr. Holcombe is also senior fellow at the James Madison Institute, a Tallahassee-based think tank that specializes in issues facing state governments. He served on Florida Governor Jeb Bush’s Council of Economic Advisors from 2000 to 2006, was president of the Public Choice Society from 2006 to 2008, and was president of the Society for the Development of Austrian Economics in 2007.nbsp;Dr. Holcombe is the author of twelve books and more than 100 articles published in academic and professional journals. His books include The Economic Foundations of Government, Public Policy and the Quality of Life, From Liberty to Democracy: The Transformation of American Government, and Entrepreneurship and Economic Progress.nbsp;due to space constraints, please no interns without prior approvalost developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rMost developed economies rely on a value VAT nbsp;for a substantial share of their tax revenue, so it is natural for the United States to look at the possibility of implementing a VAT, especially while huge budget deficits are forecast as far out as the forecasts go. While one can debate the merits of a VAT in other countries, the tax is clearly not a good fit for the United States. It would tax a base that has traditionally belonged to state governments, its introduction would bring with it intergenerational inequities, its cumbersome structure would impose large compliance and administrative costs, and it would slow economic growth. Reduced economic growth would diminish tax revenue from all tax bases. This study projects that if the United States introduced a VAT in 2010, its net effect on tax revenue would be minimal by 2030 because VAT revenue would mostly be offset by declines in revenue from other tax bases. Meanwhile, slower gross domestic product (GDP) growth would also mean that government spending as a share of GDP would rise.

Continuing Legal Education: Privileges or Immunities Clause in McDonald v. City of Chicago

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 14 Oct 2010 04:00:00 +0000

This course examines the role of the Privileges or Immunities Clause of the Fourteenth Amendment in the protection of individual rights and its application to state-imposed limits on the Second Amendment right to bear arms in McDonald v. City of Chicago. The Privileges or Immunities Clause of the Fourteenth Amendment has long been relegated to the backstage of constitutional jurisprudence. Justice Thomas’s concurring opinion in McDonald v. City of Chicago, however, brings the Privileges or Immunities Clause to center stage. Is this simply a brief appearance for the constitutional clause or something more? Professor Eric Claeys considers the role of the Privileges or Immunities Clause in the protection of individual rights, and reviews three leading theories on the interpretation of the Privileges or Immunities Clause. Professor Joyce Malcolm provides a brief history of Second Amendment law, a critique of the Supreme Court opinions District of Columbia v. Heller and McDonald v. City of Chicago, and a discussion about the competing standards for incorporation as well as Justice Thomas’s effort to return the Privileges or Immunities Clause to its original purpose.

Continuing Legal Education: Legal Challenges in African Development and Their Impact on U.S. Policies to Promote Trade and Human Rights

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 21 Sep 2010 04:00:00 +0000

Over the past decade a number of African countries have made important strides in improving their economies. nbsp;Higher rates of economic growth are contributing to poverty alleviation in this poorest region of the world.nbsp; Increased regional and global integration, coupled with reduced levels of conflict, are making sub-Saharan Africa a more appealing venue for foreign investment. A number of serious legal and institutional barriers, however, continue to deter economic development and the advancement of human rights in sub-Saharan Africa.nbsp; Insecure property and tenure rights drive conflict, contribute to human rights violations, stifle agricultural productivity, and lead to environmental degradation.nbsp; In addition, government corruption deters economic investment and growth and perpetuates human rights abuses

Paved With Good Intentions - When Federal Spending Hurts State Budgets

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 17 Aug 2010 04:00:00 +0000

Since 2000, the Federal government has sent a tidal wave of money to state and local governments. Federal grants to states and localities increased by 73% in the past decade and will reach roughly $439 billion this year alone. Designed to aid states struggling with budget shortfalls and to promote particular federal policy objectives, this flood of cash is widely seen as an unqualified good by both Federal and State legislators. Mercatus Senior Research Fellow Eileen Norcross and Mercatus Research Fellow Matt Mitchell lay out the many ways that well-intentioned federal grants to state and local governments contributes to skyrocketing state budget shortfalls, and how the interplay of state and federal budgeting rules promotes a cycle of pernicious deficits.

Cutting Spending the BRAC Way

mercatus@gmu.edu (Mercatus Center at George Mason University) — Wed, 21 Jul 2010 04:00:00 +0000

Federal spending, debt, and deficits are at record highs. Both parties acknowledge the need for spending cuts. However, reform is easier said than done. Independent commissions are often suggested as a way to tackle such intractable political problems, but not all commissions are the same. The Base Realignment and Closing (BRAC) commission of the late 1980’s and early 1990’s proved an exemplary solution to such public choice problems. In the 1980’s, we faced a similar deficit, debt, and spending problem. What lessons can we learn from BRAC? What made it special? What made it successful? Can those lessons be implemented to curb spending now?

Challenges to Corporate Governance: Policy and Ethical Considerations in a Time of Change

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 15 Jul 2010 04:00:00 +0000

This Continuing Legal Education course examines the interplay of federal and state common law with an emphasis on the impact of changes in federal law upon common law fiduciary duties in corporate governance.

Foreigners Welcome? The Economics Of High-Skilled Immigration

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 31 Mar 2009 04:00:00 +0000

Although the United States is in the midst of a financial crisis and an economic recession, immigrants keep coming, but who is coming?nbsp; Immigration is often categorized into various distinctions; legal vs. illegal, low-skilled vs. high-skilled.nbsp; Within the political debate a significant amount of emphasis is placed on low-skilled illegal workers, but what about the high-skilled immigrants? How do they impact our country?Each year companies from around the United States are able to temporarily employee foreign workers in specialty occupations. These occupations include and are not limited to positions in architecture, medicine, engineering, mathematics, and education.nbsp; For these workers to legally reside in the country, the federal government issues them an H-1B visa which is meant only for high-skilled foreigners.Now that our economy has weakened and many people are unemployed, the debate around immigration may shift towards these H-1B visas and if foreigners should be able to enter the country for jobs that could otherwise be employing Americans. To address the issue of high-skilled immigrants, the Mercatus Center at George Mason University is proud to present a lecture by Dr. Antony Davies, Associate Professor of Economics at Duquesne University.nbsp; Dr. Davies presents the latest research on high-skilled immigration and its impact on the American Economy.

The Economics of Taxation

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 03 Mar 2009 05:00:00 +0000

Taxation has always been a major part of American politics and continues to be a focus for debate and discussion.nbsp; Policymakers aim to create a tax system that meets the government’s needs and goals yet does not hinder the individual or corporation to a significant extent.nbsp; To better understand the economics of taxation and our current tax system, the Mercatus Center at George Mason University is pleased to present a two-day course on the American Tax System.As April 15th approaches and families and corporations start filing tax returns, the affect of taxes becomes more apparent.nbsp; How will taxes influence firms’ and people’s actions and how will it affect the economy as a whole?nbsp; To better understand the economics of taxation, Dr. Garett Jones of George Mason University will provide a fundamental overview and explore how shifts in tax policy affect individual behavior and the economy as a whole.Join us as we examine such questions as:What factors do economists consider when studying tax policy?How do taxes affect the incentives of individuals and firms?What are the economic and social trade-offs of different types of taxes and taxation systems?What does the demographic breakdown of our American tax burden look like?How will tax cuts change where our federal revenue comes from?

Where Are Our Cars Produced?

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 19 Feb 2009 05:00:00 +0000

When the top executives from the “Big Three” auto manufacturers came to Washington to seek aid from the federal government they claimed that the domestic auto industry was vital to the overall U.S. economy.nbsp; Certainly, it has been key to Michigan’s economy for many decades. Yet while the state continues as the center of the U.S. auto industry, its role has been diminished as foreign automakers tended to locate their production facilites in the southern states.nbsp; As a result, the geography of the auto industry has changed rather dramatically in the last 30 years.In addition to the auto manufacturers, the auto industry includes many motor vehicle parts suppliers. That part of the industry is large – parts suppliers contribute about 70% of the value added of a motor vehicle – but not as well understood as the assembly sector.Dr. Thomas Klier from the Federal Reserve Bank of Chicagoand co-author of the new book, “Who Really Made Your Car? Restructuring and Geographic Change in the Auto Industry” will join the Capitol Hill Campus Program for a special look at the auto industry.In this session we will address questions such as:What role do parts suppliers play in the overall auto industry and why are they important?Where are auto manufacturers locating new plants? What is the “auto corridor”? Are producers moving out of the Midwest?What may the auto industry look like in the next decade?

Laying Out the TARP

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 12 Feb 2009 05:00:00 +0000

With the first phase of TARP behind us, and TARP II ready to begin, this course will examine some of the potential challenges and hazards of this extraordinary involvement in the financial sector. With the federal government taking various degrees of ownership of banks, what can policymakers expect will be the outcome? In the third installment of our ongoing series on the current financial crisis, the Mercatus Center will present a panel of experts to discuss these issues and answer important questions, such as:What conflicts could arise between the interests of shareholders and those of taxpayers?What will be the Treasury’s duties to shareholders and how will companies pursue their traditional ends of wealth maximization?What’s the difference between preferred and common stock, and how does each change the role the government will play?What are the benefits and costsnbsp;of creating an Aggregator Bank?What lessons can we draw from other countries’ experiences in similar interventions in light of this new role for government?What alternatives are available under TARP to recapitalize banks using existing resources?

The Budget Process

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 22 Jan 2009 05:00:00 +0000

Every year the president presents a proposed budget to the Congress and the Congress drafts a budget resolution, spurring heated discussion about the nation’s spending and tax policies and the resulting deficits or surpluses. Though this year’s process will follow this basic pattern, the financial crisis and the economic recession have significantly increased our nation’s budgetary challenges.nbsp; The Congressional Budget Office recently announced a projected budget deficit of $1.2 trillion for the current fiscal year, which does not count the likely costs of an economic stimulus package and additional appropriations for war fighting.nbsp; Medium- and long-term projections show budgets that most think are unsustainable.In recent years, discontent with the current budget process has grown.nbsp; In response, congressional leaders and others have proposed a variety of budget reforms, such as stronger PAYGO rules, earmark limits, procedural triggers for excessive mandatory spending, and budget policy commissions.nbsp; While many of these proposals have not yet received sufficient support to be adopted, the exploding debt of the U.S. will soon force the Congress to consider credible reforms to its budget process.To discuss the current budget situation and possible reforms to the federal budgetary process, the Mercatus Center at George Mason University will host a lecture by Dr. Roy Meyers, a budgetary expert and former analyst at the Congressional Budget Office (CBO). Join us as we address such questions as:What is our current budget situation and how will the projected deficits affect us?What are the symptoms of a broken budget process? What are the major proposals to fix it?Will these proposed reforms work? Are there better alternatives?

Economic Opportunity at Home and Abroad

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 15 Jan 2009 05:00:00 +0000

Why do some societies prosper, while others remain stagnant and poor? Why do some economies remain strong while others fail? The Mercatus Center’s Global Prosperity Initiative works to answer these important questions by conducting scholarly research that helps policy makers better understand the driving forces behind international economic development as well as economic growth and opportunity in the United States. In this program, Mercatus scholars will share some of their recent findings and explore the problems of domestic and international economic development and how scholarly nbsp;research is helping to address these questions.Fear of a deep recession has led policymakers to propose an unprecedented stimulus package to save the economy, a sort of Main Street economic recovery package that would rely heavily on federally-funded infrastructure projects to create jobs and stimulate economic activity. How have similar measures performed in the past, and what concerns should policymakers consider when evaluating such policy? What institutional structures support economic growth and opportunity?Looking across the Atlantic Ocean leads us to another but related question: While most regions of the world witness increased standards of living, better health care, and greater economic opportunity, why does sub-Saharan Africa continue to face famine, wide-spread disease, high levels of political corruption, and war? While South Africanbsp;has managed to avoid some of the most catastrophic problems associated with their neighbors, they have still been plagued with economic and social troubles that no promised silver bullet has yet addressed.In April, South Africa faces the most important election in since that transition. nbsp;What effect will the emergence of a new major party have on the election? What implications does the election have for US policy towards South Africa and the continent?

Understanding the Financial Crisis

mercatus@gmu.edu (Mercatus Center at George Mason University) — Wed, 14 Jan 2009 05:00:00 +0000

In part two of our successful ongoing series, the Mercatus Center’s Financial Markets Working Group will present a panel of experts on various aspects of the financial crisis and its implications for policy. What does Congressional staff need to know about financial markets? How should policy be crafted in light of lessons from economics? What should regulation of the financial and banking sectors looks like?Drawing upon the Mercatus Center’s expertise in regulatory analysis, the Financial Markets Working Group combines scholarly research with a deep understanding of the policy process to offer productive ideas to address the serious problems in financial markets. In this, the Group’s second event for Congressional and Agency staffers, our scholars will provide a substantive briefing of some of the underlying issues currently being debated in Congress, such as:How does industry react in the face of regulatory reform? What insights can economics provide on the issues of regulatory capture and rent seeking by regulated industries? What steps can policymakers take to ensure they are making the best decisions?What exactly does it mean when a company files for bankruptcy? What is the difference between a Chapter 11 and a Chapter 7 filing? What role can courts play in reorganization of insolvent firms?What rights do shareholders have when disagreements arise about the management of a firm? How can the use of proxies help or hinder the exercise of these rights? How does the Governments role as a large stakeholder in the financial services sector change this dynamic?How are economists viewing the overall situation still unraveling in the financial markets? What unique perspective can academics bring to the table?

Quarterly Economic Update January 2009

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 13 Jan 2009 05:00:00 +0000

This month the National Bureau of Economic Research dating committee officially listed December 2007 as the start of the current recession due to weakness in labor and consumer markets. As the unemployment rate inches up to 6.5% workers may receive a little comfort from sinking gasoline prices, but they still wonder how long this period will last and how severe it will become. Taking cues from economic indicator data and other forecasts, Dr. Bruce Yandle will provide perspective on the latest economic trends in a way that is understandable to the economist and non-economist alike. This “birds-eye-view” of the economy will be valuable to staffers interested in promoting policies intended to aid economic performance.Topics to be discussed shall include:Is it possible to predict the length and severity of a recession?How can we tell which states or regions may fare better or worse in a recession?Should we be glad to see lower gasoline prices and what does the dramatic shift from the summer mean for the economy?

Regulation in the 21st Century

mercatus@gmu.edu (Mercatus Center at George Mason University) — Wed, 10 Dec 2008 05:00:00 +0000

The start of a new administration will offer the nation’s next president the opportunity to put his stamp on regulation and the regulatory process. Every president in the last generation has modified the way the federal government utilizes regulation as a tool to solve problems that all Americans care about, including a healthy environment, stable financial markets, safe consumer goods, and workplace health and safety.Though the goal of regulation remains the same, today the regulatory process is confronted with a rapidly-changing world and a globally integrated society. Currently regulators face fragile financial markets, new technologies and interdependent economies. In order for regulation to remain ahead of the curve it must adjust to the advancing world, but what does this look like?Mercatus scholars will presented an insightful look on regulation and offer innovative ideas for reforming regulation to suit the needs of the 21st century. We addressed such questions as:How can the regulatory process be effectively reformed to meet the needs of a rapidly-changing world?How can the lessons of economics be applied to the regulatory process?How can regulations be used to better address the problems of the 21st century?

Globally Bound: Exploring Issues In Trade Policy

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 09 Dec 2008 05:00:00 +0000

Trade policy is a perennial issue continually debated in the national forum by pundits and policy makers alike since it is so closely linked to the overall health of the economy. Now, as we head into 2009, some things look a lot different from a year ago. With changing economic conditions, fears of recession, a new legislative session, and a President-elect promising to transform the way America interacts with the world, it is clear that trade and globalization issues will continue to weigh heavily on the economic mindset. While most debate usually centers on the hot-topics in trade, such as Free-Trade Agreements passing through Congress or the decline of American industry, less attention is paid to the overall qualities and characteristics of the U.S. trading system.To take a look at a few of the current realities in American trade policy, the Mercatus Center will host a lecture by Edward Gresser, the Director of the Project on Trade and Global Markets at the Progressive Policy Institute and author ofnbsp;Freedom From Want: American Liberalism and the Global Economy. Specifically, Mr. Gresser will speak on trade with the developing world, protectionism and the effects of various trade policies.Join us as we take a closer look at:How are goods assembled and traded through the global supply train? How does this process relate to Free-Trade Agreements or a nation’s preferred trading partner status?Does the United States still employ trade barriers to protect U.S. markets? If so, on what types of goods from which countries?What is the role of trade in the United States and what are some options for the next President to create greater welfare at home and abroad?

Midnight Regulations and Regulatory Review

mercatus@gmu.edu (Mercatus Center at George Mason University) — Wed, 19 Nov 2008 05:00:00 +0000

The midnight regulation phenomenon has been well documented. The reasons behind it range from the desire of the outgoing administration to extend its influence into the future to the opportunity to impose costs on the incoming administration. But regardless of the rationale, the high political costs faced by a new administration to overturn those last minute rules makes it an effective strategy for the outgoing administration to project its influence beyond its term.The debates surrounding midnight regulations have been fierce during the last few transitions of power. Not only donbsp;midnight regulationsnbsp;raise issues concerning accountability, but they also seem to be at odds with a democratic process. During the midnight period the regulatory review process is seriously weakened. As we have seen, at the end of each administration–and especially between administrations of opposite parties–there is a dramatic spike in regulatory activity without a corresponding increase in the resources available to the Office of Information and Regulatorynbsp;Affairs (OIRA). If the number of regulations OIRA must review goes up significantly, and the man-hours and resources available to it remain constant, we can expect the quality of review to suffer.Several solutions have been tried in the past such as delaying the effects of new rules and rescinding unpublished rulesnbsp;by using the 1996 Congressional Review Act. However, these solutions have proven to be quite ineffective. To discuss these problems and address the proposed solutions to this important issue, two of the Mercatus Center’s Senior Research Fellows, Jerry Brito and Veronique de Rugy, will present an insightful look on midnight regulations and their consequences.nbsp; Join us as we address such questions as:What are the specific effects of midnight regulations and how do they impact the new administration?How does the regulatory review process change during the midnight period?Why have previous attempts to solve the problem been proven ineffective and should others be considered?

Parallels In Financial Crises - Lessons from the Japanese Experience

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 21 Oct 2008 04:00:00 +0000

While every nation weathers periodic economic storms and disarray, total and widespread financial collapse is rarely seen. It falls to history, then, to help us glean lessons from past actions and gain perspective on current situations. Most notably, an understanding of the United States' Great Depression and Japan's 1990 housing bubble could provide insight on how to emerge from today's financial turbulence.In the 1990s, Japan faced its own financial crisis that crippled the nation. Prior to 1990, the land beneath Japan's Imperial Palace in Tokyo was said to be worth more than the entire state of California; but by 2001, land had reportedly dropped 70% in value. The collapse of the real estate bubble rocked the Japanese economy and launched what became known as The Lost Decade in Japan when GDP growth slowed to only 1% a year. To help policy makers understand the economics behind these events, Dr. Garett Jones, a professor with George Mason University, will present an overview of the similarities between the 1990s Japanese turmoil and the United States' credit crunch in addition to new policy ideas to avoid replicating the elements of previous strategy and avoid such a slowdown in the American economy.

Quarterly Economic Update - October 9, 2008

mercatus@gmu.edu (Mercatus Center at George Mason University) — Thu, 09 Oct 2008 04:00:00 +0000

This summer has proved to be a turbulent time with troubled financial markets seeking to rebuild capital, rising and falling gas prices, presidential campaigns, and destructive hurricanes - but what will this mean for the American economy?nbsp; In order to keep Congressional staffers up to date on the latest economic trends, the Mercatus Center at George Mason University hosts quarterly briefings that survey the economic scene. Specific attention will be paid to trends in GDP growth, employment, inflation and interest rates, all conveyed in a way that is understandable to the economist and non-economist alike. This birds-eye-view of the economy will be valuable to staffers interested in promoting policies intended to aid economic performance.

Understanding New Trends in Outsourcing

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 23 Sep 2008 04:00:00 +0000

In the 1950's it would have been difficult to imagine the American economy without a strong manufacturing sector, but many changes have led to the rise of the service economy. With the information revolution we saw the rise of jobs in high-tech IT positions, computer programming, and communications while new tools paved the way for opportunities in scientific fields like research and development, engineering, and medicine. These highly productive fields have led to higher wages, but with the rise of high-skilled workers overseas, some have started to worry about outsourcing risk to these new service sector positions.To investigate these issues, Dr. J. Bradford Jensen of Georgetown University presents an insightful look at new trends in outsourcing in the services sector and at the impact seen on the labor market.

Economic Turbulence: A Look At Change In The American Economy

mercatus@gmu.edu (Mercatus Center at George Mason University) — Tue, 20 May 2008 04:00:00 +0000

Job security is a primary concern to workers in any economy - the prospect of job loss creates anxiety precisely because real economic hardship can result. But at the same time, moving from an old job to a new one can mean higher wages because of increased productivity and innovation, benefiting not only the worker but the economy at large.Job security is a primary concern to workers in any economy - the prospect of job loss creates anxiety precisely because real economic hardship can result. But at the same time, moving from an old job to a new one can mean higher wages because of increased productivity and innovation, benefiting not only the worker but the economy at large.This dynamic is particularly true in the United States, which is characterized by an extremely fluid and turbulent economy. Jobs are constantly shuffled from one firm to another as firms emerge and disappear. nbsp;The popular press highlights the concerns that this turbulence creates, but what do the facts show?Dr. Julia Lane, from the University of Chicago's National Opinion Research Center, will share some of her research and experience using large scale datasets in analyzing our volatile economy. By focusing on specific industry sectors, the number of jobs in the economy, and the effects of market turbulence on worker's wages and career paths, Dr. Lane analyzes the complex nature of the economy and labor markets.