Wednesday, April 08, 2009

In lieu of posting today 

I'll outsource my posting to Ed Glaeser:
The most disturbing trend may be an increased taste for arbitrary expropriation. People don't invest if the government rewrites the rules to take their earnings. When the House of Representatives voted a 90 percent tax on bonuses, economic populism trumped responsibility. Allowing bankruptcy judges to cram down mortgages expropriates lenders and creates more uncertainty and lawyers' fees. Giving aid to people who lose their homes is a better way to help those in pain.

Few variables are as reliably correlated with economic growth as respect for private property. America's economic strength reflects, in part, the fact that investors have historically found this a legally reliable place. That reputation is a golden goose, and destroying it would be like adding trillions to the debt.
Wednesdays have eight hours of lecturing for the next five weeks, with administrative duties in between. See you tomorrow.