Tuesday, February 21, 2006

What If..."Catholics Riot over Da Vinci Code"

We all seem to take for granted that millions of Muslims all over the world naturally take to the streets when a couple of obscure Danish cartoonists insult their faith by depicting the prophet Mohammed with a bomb in his hair.

But imagine if Catholics were rioting all over the world about Dan Brown’s The Da Vinci Code the best-selling thriller that depicts Opus Dei as a dangerous and ruthless force, condoned by the pope, bent on supressing the real truth about Jesus.

Imagine no more. David Aaronovitch has done it for you. “In a parallel universe...”

Cardinal Loopi, of the Office of the Defence of the Faith, condemned the book for defaming Catholicism and, in its suggestion that Jesus Christ was married, of heresy. “We demand that the book be destroyed and that the author be punished,” said Loopi, “otherwise we cannot be held responsible for how Catholics throughout the world may react.”

Quite so. Who could blame those Catholics for expressing their “rage,” as the media likes to say? News items like this would be routine:

Bookseller shot dead in Poland, by teenager shouting: “For God, and the Pope!”


Ten killed in Lisbon Dan Brown riots, when police opened fire on mob ransacking the Canadian Embassy. “We thought he was Canadian,” says riot leader.

It would be comical if it weren’t so serious. Read the whole thing.

Monday, February 20, 2006

National Savings Down, But National Wealth Up. Explain


Last year the US savings rate was the lowest since the Great Depression, according to the Associated Press. And that was on top of the huge balance of payments deficit and the Federal government deficit.

How long can this go on? As long as you like, according to supply-side economist Alan Reynolds. That’s because even though people didn’t put more cash in the bank, national wealth went up. Writes Reynolds:

In last year’s third quarter, the Fed’s measure of household net worth amounted to $51.1 trillion -- up more than $5 trillion from a year earlier.

Even though Americans didn’t put anything in the piggy bank, national wealth went up 10 percent. And that’s the point. People save money to add to their wealth. If their wealth is already going up, because of increases in their 401(k) and the real estate market, they can meet their wealth goals without reducing consumption.

Is that a problem? Well, you tell me, senator.

By the way, household net worth “measures assets minus debts,” in case you were worried about the debt explosion.

Here’s something else that Reynolds points out.

To put one year’s $5 trillion wealth gain in perspective, personal income was just $9 trillion after taxes. Even if we had saved half of all personal income, that could not have added as much to household net worth as was, in fact, added.

Let’s put it in personal terms. If you earned $90,000 last year in salary and your home value and your 401(k) went up by $50,000, why would you be worried that you hadn’t put another $10,000 into savings?

People start to save when the economy turns south, as they should. But don’t expect the chaps at Associated Press to understand that.

Sunday, February 19, 2006

WSJ Sneers at Newt


First Newt Gingrich was a dangerous “bombthrower.” Then he was the bombastic Speaker of the House of Representatives. Then he was a guy who just talked too much.

Now apparently, the former Speaker is just a figure of fun, as Brian M. Carney sneers at Newt’s office, Newt’s chairs, and Newt’s proposals for this year’s elections.

So what is Newt proposing? He wants the Republicans to cut “down on earmarks and pork-barrel spending” by publishing conference reports on the web so that all the bloggers in the country can find the earmarks. “He’d also `simply ban all fund-raising in Washington. You can do that by straight out rules of the House and Senate.’”

Sounds pretty nifty to me.

Newt has lots of ideas to push Republican reforms and gin up the Republican base, but Carnes can’t get a word in edgeways.

But Newt is positive that if Republicans get their act together and put together sensible reform plans that are straightforward and easy for people to understand, they can win in the Fall.

So if you’re asking me, is it possible to be inarticulate, confused and uncertain and win a major policy battle, the answer is no. Do I think the president, the House and the Senate--if they systematically went to the country and laid out a positive plan that would make more sense--could they win? The answer is yes.


Do I think it’s possible to offer a Social Security plan for people under 40 years of age in a positive savings account model that you could pass? Yes. Do I think it’s possible to make it so complicated, so impossible to understand that you can’t build any momentum for it? Yes.

Years ago, someone published a cartoon of a long filing cabinet with each drawer labeled “Newt’s Ideas.” On the end was a single cabinet with drawers labeled “Newt’s Good Ideas.” Very jolly. But many of us grasp that the only way to good ideas is by slogging through drifts of “ideas.” Ideas are easy. Good ideas are hard.

And you can say this for Newt Gingrich. As he slogs away at his pile of ideas, there’s a chance he might come up with one good one. Then you can put him down as a genius.

Friday, February 17, 2006

Islamic World Choosing Segregation from West


When African Americans first started entering selective colleges in significant numbers after the civil rights revolution of the 1960s they found that they were ill-prepared for the challenge of life at the top and they were ashamed. They were ashamed because they were confronted, as Shelby Steele writes in The Content of Our Character, with overcoming in their own lives, right then and there, the centuries-old myth of racial inferiority. Were they good enough, could they make it in competition with the white kids? So they adopted the defensive strategy of keeping themselves apart, of segregating themselves in the cafeteria, of pressuring college administrations for minority dorms, and in general aggressive behavior.

And they held themselves back from full participation in the great American experiment.

Now we are seeing the same behavior in the Islamic Middle East, reported by Daniel Pipes. The cartoon war, he feels is going to hurt, not the west, but the Islamic world.

I predict it is helping bring on not a clash of civilizations but their mutual pulling apart. This separation, which has been building for years, has dreadful implications.

The sectors involved include trade, consumer items, financial investments, aid, and tourism. The problem is that, just like the African Americans held back by centuries of slavery and discrimination, the Islamic world needs not separation but full involvement in—indeed surrender to—the culture of the west with its magic brew of reason, capitalism, and democracy.

Disengagement will only worsen the Muslim predicament. Reduced contact with the world’s most modern, powerful, and advanced countries would likely cause Muslims to do even worse in those indexes and lapse deeper into a condition characterized by self-pity, jealousy, resentment, anger, and aggression.

Compare the Islamic attitude with the Chinese, reported by Michael Novak in his review of Rodney Stark’s The Victory of Reason. For a century or more the Chinese have been cudgeling their brains about the rise of the west. What is it, they have asked themselves? Why has the west overtaken China, the most advanced country in the world, and put China to shame? The answer, they concluded, was Christianity.

At first, we thought it was because you had more powerful guns than we had. Then we thought it was because you had the best political system. Next we focused on your economic system. But in the past twenty years, we have realized that the heart of your culture is your religion: Christianity. That is why the West is so powerful. The Christian moral foundation of social and cultural life was what made possible the emergence of capitalism and then the successful transition to democratic politics. We don’t have any doubt about this.

So the Chinese are converting in their tens of millions to Christianity, as told by David Aikman in Jesus in Beijing.

If that is true then the Islamic world is in deeper trouble than we thought. And they have an additional problem. They lack the cultural confidence of the Chinese, the knowledge that China is the first and the best of all civilizations.

Thursday, February 16, 2006

After Cheney Tantrum Is MSM Still Relevant?


Will the Bush Administration get away with stiff-arming the Mainstream Media over the Cheney shooting incident?

Obviously, the tactics after the hunting accident, in which Vice President Cheney shot lawyer Harry Whittington Saturday afternoon, were intended to keep the whole thing low key. But the Vice President and the White House miscalculated over one thing. They did not forsee that the MSM White House corps would go ballistic over the insult to their customary right to be the first to report on White House matters.

Or did they? Could they be that smart? Did they figure that the MSM would spend the next week in outrage, proving the adage that hell hath no fury like, let’s say, a prima donna scorned? No, surely not. They called the local Corpus Christi newspaper in order to slide the news of the accident into the public consciousness gently. Next thing they knew, the MSM went ballistic.

But when on Wednesday the vice president gave an exclusive interview to Fox News, the administration insulted the fading CNN, which thought that they should have got in on the action.

And the Democrats are in on the act too. They are outraged too. But then they are outraged about everything.

At least the Washington Post is staying on an even keel and reporting the news pretty straight. After all, the real takeaway is the vice president’s statement:

"Ultimately, I’m the guy who pulled the trigger and fired the round that hit Harry," Cheney said in a hastily arranged White House interview with Fox News Channel anchor Brit Hume. "And you can talk about all of the other conditions that existed at the time, but that’s the bottom line. And there’s no -- it was not Harry’s fault. You can’t blame anybody else. I’m the guy who pulled the trigger and shot my friend. And I say that is something I’ll never forget."

It’s something to think about. That the story is about Dick Cheney accidentally shooting his friend, not about the wounded feelings of insulted news media celebrities.

The question is: Can the Bushies get away with this? Can they ignore the wails and the ragings of the MSM?

If they can, it will be another sign that the world is changing, that a new world is aborning.

Wednesday, February 15, 2006

A Small Step for Dynamic Tax Analysis


President Bush has budgeted “an additional $513,000 for the Treasury Department’s Office of Tax Analysis to create a new division of dynamic analysis,” according to Bruce Bartlett. Ho hum.

Actually, this is a big deal. It goes to the heart of the supply-side theory of marginal tax rates that has been the intellectual foundation of the Reagan and the Bush tax cuts. And let us be clear about this.

The reason that the Reagan tax cuts of 1983 and the Bush tax cuts of 2003 have resulted in gangbuster growth is that both were focused upon broad tax rate cuts.

By contrast, Democrats still believe that the way to jumpstart the economy is with “targeted” tax cuts.

The Reagan tax cuts in 1983 lowered the top income tax rate from 70 percent to 50 percent, and the tax bill of 1986 lowered the top rate from 50 percent to 28 percent. The result? The share of taxes paid by the rich went up.

The Bush tax cuts of 2003 cut the top rate on dividends and capital gains to 15 percent. The result? The economy took off like a rocket.

But guess what? The government’s official estimate of the effects of these tax rate cuts, the so-called “scoring” of tax changes, make no allowance for the idea that people might change their behavior when tax rates are cut.

That’s what the $513,000 is all about. To advance the adoption of “dynamic” economic analysis in forecasting tax revenues.

The first attempt to cut tax rates occurred in 1978 when the Steiger Amendment cut the top capital gains rate to 25 percent.
Writes Bartlett:

After Congress cut the capital-gains tax in 1978, the Treasury Department studied the effect and concluded the tax cut had indeed raised federal revenue. There was also a huge jump in venture capital financing that many economists credit for starting the high-tech revolution of the last 25 years.

Tax experts eventually determined that there was a reflow effect of about 35 percent. That is, if you reduced a tax rate and crudely assumed that the revenue would be reduced by the same amount, you would be wrong. The loss in revenue would be 35 percent less than you estimated. Equally, if you raised taxes, the increased take would be about 35 percent less than you expected.

The new office of dynamic analysis will be tasked with getting more accurate revenue estimates after tax rate changes. That can’t happen soon enough.

Tuesday, February 14, 2006

Hugh Hewitt Demolishes Jonathan Chait


On Monday, talk show host Hugh Hewitt (perm) did another of his in-depth interviews of an MSM chappie, this time Jonathan Chait, who had run a piece in the LA Times denying that Hillary Clinton was angry. (He’s probably right. She isn’t angry; she just sounds angry.)

But Hewitt did another forensic interview job, as he did with Joel Stein recently. At the end of the interview, Chait sounded like a insufferably pompous MSM liberal. Which is what he is.

Hugh Hewitt is emerging as one of the best interviewers in the United States. And you can see why. He is a lawyer, and when he interviews he sounds just like a lawyer examining an unfriendly witness. First he sets his witness up, and then he sets about exposing him as uncooperative and evasive. Not the sort of witness that a jury of American voters would want to believe.

Hewitt understands, instinctively, that there are certain things that an MSM liberal doesn’t want to admit. Number One is that the news media puts out a biased news product. Number Two is that Democrats are not noble and lofty, but angry and ruthless.

Think about it. The MSM talks a lot about “objective” news reporters. They have to. Given that the MSM folk are overwhelmingly liberal, they have to insist that they can put all that aside and deliver an unbiased product. If they admitted they had a problem, then they would have to do something about it. They might have to hire conservatives.

The rise of the new media has put them in a box. The new media is frankly partisan. Conservative pundits are frankly conservative, and liberal pundits are frankly liberal. But the news product of the MSM is slowly getting unmasked as partisan, especially as the advance of conservative speech in the media and the difficulties of the Democrats makes the liberal MSMers more and more protective of their liberal friends.

Thus when Jonathan Chait comes on Hugh Hewitt’s radio show he is trapped into defending the indefensible. He has to admit that the MSMers are all liberal, but insists that their news product is moderate. Hillary Clinton is not angry, but Bush Haters like himself are angry, well sort of. They are angry, but in a formal, rational way, because they rationally disapprove of the president’s policies.

MSMers have an image of themselves as being superior, rational, above the lower orders. But actually, of course, they are just as committed as any other participant in the political square.

Hugh Hewitt understands all this, and so, with his lawyerly wiles, knows how to examine his liberal interview subjects and mercilessly discredit them in the eyes of the jury.