Vol. 1, No. 15
Nevada Taxpayers Association
for an Injustice
Christian Science Monitor Editorial
'This ruling's basic reasoning...should force
Congress to reconsider its onerous requirements
for record-keeping in the post-Enron accounting
reform law known as Sarbanes-Oxley'
Supreme Court decision on Tuesday
overturned the 2002 criminal conviction of
former Enron accounting firm Arthur Andersen.
The decision comes too late for 28,000 of the
firm's largely innocent workers who lost their
jobs simply because public reaction to the
original indictment sank the company.
Sarbanes-Oxley was a costly mistake
By John Berlau
this year, an unusual full-page ad
appeared in the Wall Street Journal and other
ad attempted to refute claims from businessmen
about the costs imposed by the mandates of the
Sarbanes-Oxley Act, the “corporate reform” law
Congress passed in 2002 after accounting
scandals hit Enron, Worldcom, and other
procedures stemming from that law “are neither
simple nor inexpensive,” the ad said, but the
costs are well worth it if the result is
restored investor confidence.
[law’s] greater goal and promise,” the ad
proclaimed, “is that the rigorous demands of
compliance can lay the groundwork for improved
and more reliable financial reporting, leading
to a higher level of public trust.”
Section 8.2 Housing?
by Tim Rowland
may be the only government construction
project that draws greater cheers when it comes
down than when it goes up. And for good reason.
Through the middle part of the century, public
housing basically replaced inner city slums with
nicer slums, or at least slums with more
amenities, like nonworking toilets.
JP Morgan's Pretend
New York Sun
by Steven J. Milloy
Chase's CEO, William Harrison, appeared
to retreat on a major element of his company's
capitulation to the radical environmental
movement at the company's annual shareholder
meeting last week.
In April, after about a year of being pressured by
the eco-activist group Rainforest Action
Network, JPMorgan Chase announced its adoption
of environmental policies restricting the bank's
ability to provide financial services for energy
and land-use projects.
by Roger Pilon
longer can we go on playing
constitutional pretend — pretending that there's
a serious connection between the Constitution
and so much of what passes today for
Rarely faced head-on, the question arises on the
few fortunate times when we're presented with a
judicial nominee who's been so bold as to
publicly doubt the connection. At the moment
that's Janice Rogers Brown.
Grasp the Nettle
Nobel Prize winner F. A. Hayek saw
and addressed political predicaments similar to those
facing Nevada business.
By Steven Miller
a deeply insightful thinker and economist, had, by early
in the 20th Century, clearly identified why
socialism, as an economic system, was bound to fail.
From the 1920s through the ’40s, he—and Ludwig von
Mises, his fellow Austrian—pointed out in innumerable
books and papers that only free market prices can
provide the economic information that a modern, viable
society requires to function. Because a socialist order
lacks market pricing, they noted, the best that such an
economy can do is to always remain parasitic on outside,
Hayek, teaching at the prestigious London School of
Economics in the 1930s and the ’40s, became very
well-known. Often publicly debating the fundamental
questions of economic policy with his friend, John
Maynard Keynes—world-famous as the author of the 1936
General Theory of Employment, Interest and Money—Hayek
was soon second in fame only to Keynes himself.
Nevertheless, the political winds of the day were
against him. Even as his fellow economists were hailing
his 1945 essay on market pricing as a rational economy’s
indispensable signaling function, socialism was
triumphing politically everywhere around him—left, right
Soon Hayek was being seen, wrote Thomas W. Hazlett in a
1992 feature for Reason magazine, as “an academic
outcast, a throwback, a marginal character whose ideas
had been neatly disproven to all reasonable men in the
scientific journals of his day.” In 1950, the University
of Chicago would not offer him an appointment in
economics, but—recognizing the breadth of his
intellect—made him chair of its Committee on Social
Thought. In 1962, Hayek returned to posts at European
universities and continued to break new ground. His
focus, however, remained outside economics; his new
writings were works in psychology, political theory and
Notwithstanding demagoguery from politicians, or
ignorant cupidity from voters, reality remains reality.
And it was not done with Hayek the economist. For “the
late 20th century,” as Hazlett put it, had “decided to
provide a reality check on the academic scribblers.”
In the very countries that had so enthusiastically
embraced the dogmas of Keynesianism, inflation spiraled
skyward while stagnation spread throughout the economy
like kudzu. Supercilious government-employed economists
suddenly began learning humility as their conventional
economic wisdom proved fatuous.
“The macro models of Cambridge, Harvard, Berkeley, and
MIT fell apart,” wrote Hazlett, “and by the 1980s the
very solutions that Keynes had hustled were being
painfully thwacked as precisely the root of our
troubles.” And so the old became new again. The
classical economic medicines—savings, investment,
balanced budgets, competition, and productivity
growth—received new respect. Even the pols, always so
eager to receive Keynes’s justifications for government
spending, abandoned Keynesianism (publicly, at least).
Then out of the blue in 1974, Hayek was awarded a Nobel
Prize in Economics. “Quickly,” wrote Hazlett, “he was
transformed from goofball to guru.”
UAW Endorses Sweeney
for AFL-CIO Re-Election
Key Endorsement Will
Prolong the Labor Civil War
By Thomas Edsall
The Washington Post
John J. Sweeney,
the embattled chief of the AFL-CIO, yesterday was
virtually assured of election to a fifth term, after a
key labor leader threw his support to Sweeney and
undermined a long-festering challenge by labor
While Sweeney, 71, now appears certain to win,
the nation's largest union, the Service Employees
International Union, is more likely to follow through on
threats to bolt from the AFL-CIO. "The challenge here is
to make sure we have a labor movement that can change
people's lives," said SEIU President Andrew L. Stern,
noting that all of his union's locals are voting on a
proposal that would authorize the union to sever its
ties to the labor federation.
Vegas Valley gained two new hospitals in the past
two years and there are plans to add others, but some
say the valley will soon need more hospital capacity.
Bill Welch, president and chief executive of the
Nevada Hospital Association, said Nevada ranks near the
worst among states for its bed-to-population ratio.
"That's based on what our population is today,"
he said. "You add two new hospitals in the next 18 to 24
months we will probably move up from the bottom to the
middle initially, but within one or two years if the
population continues to grow we'll be behind the 8-ball
He said Nevada will also remain behind the
average or break even unless hospital expansions ramp up
or the population growth slows.
"Based on everything in the legislature and the
criticism of the industry, I don't see that the hospital
community is going to get any more aggressive in
building hospitals," he said.
'Core' inflation doesn't work -- in
either your stomach or your gas tank
by Doug Gillespie
people who do not eat, heat, air condition, drive
a car or use public transportation, the "official" U.S.
inflation data of the past several months have not been
as bad as they have for people who engage in the
forgoing. Trouble is, people in the real world regularly
engage in those activities!
This clearly explains why people are becoming
increasingly perturbed at how big a deal Wall Street --
and the Federal Reserve, too -- make of the difference
between inflation results that are computed and
expressed both ways, but most particularly, with the
inordinate emphasis that is placed on the so-called
"core" results. And this does not take into account how
few people think that even the higher set of numbers
vaguely reflects their own experience.
about tying wages to CPI
Outreach Political Action Committee has an
on- line petition against the minimum wage hike
-- plus an analysis of a competing Senate GOP
advocates say they prefer the Nevada Senate's
version of legislation to raise the state's minimum wage
-- which is higher than the original version approved by
the state Assembly, while local labor advocates say the
new Senate version guts the bill's most effective
The Senate Commerce and Labor Committee approved
a version of Assembly Bill 87 to raise the minimum wage
from $5.15 an hour to $6.40 an hour beginning Oct. 2006.
Sickness: Who’s to
Blame for Airline Woes?
Capital Research Center Labor Watch
Summary: Business travelers, family visitors,
tourists—all are affected by the airline industry’s
woes. But who knows what really caused the problems in
the first place? Industry expert and former pilot Vaughn
Cordle blames management-labor relations for preventing
fair competition. Next month: a closer look at how
unions have harmed airlines.
specter is haunting America’s airline industry:
It’s the ghost of Eastern Airlines. Once one of
America’s largest carriers, Eastern went out of business
in 1991 following a prolonged, crippling and acrimonious
strike. The episode was a nadir for labor relations in
the airline industry.
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