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May 16,
2006
Vol. 2, No.
8
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Also in
this issue:
Unions and majority rule
China to let yuan
strengthen quicker
Long-awaited study shows Nevada program a waste
Nevada meth use
out of control
The Net's not-so-secret economy of crime
How gas price controls
sparked '70s shortages
Commentary:
$3-a-gallon gas: Blame Washington, not Big Oil
Energy debates lead
to wrong answers
China’s war-time economy
Ready for a
Pelosi tax hike?
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Recently
from NPRI:
Is Nevada public education
'adequate'?
Funding adequacy study ignores the most
important issue
By
Joe Enge
Has the
Silver State’s public education system
become an underperforming, expensive, and
obsolete security blanket?
Is
it really age-appropriate for a society facing
global competition and technology advances in
the 21st century?
These are heretical questions, judging from the
study commissioned by the Legislative Committee
on School Financing Adequacy.
[continued] |
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Gas prices
$3-a-gallon gas: Blame the pols, not Big
Oil
What's driving up gas prices? It's not just
higher crude costs; it's new regulations
By Nelson D. Schwartz
Fortune Magazine
WITH GAS PRICES ROARING past $3 a gallon and
consumer fury rising even faster, Congress and
the White House are engaged in a Kabuki-like
ritual: pointing fingers at each other over
who's to blame, while furiously attacking Big
Oil for reaping gargantuan profits - as drivers
get hosed at the pump.
If the politicians really want to figure out
who's responsible for the latest round of price
increases, though, they'd be better off looking
in the mirror. That's because the rise isn't
only due to higher crude costs. It's also
fallout from some little-noticed provisions in
the energy bill passed by Congress and signed
into law by President Bush last summer.
[continued]
Ignorance
Energy debates lead to wrong answers
By Jack Kemp
Human Events
There's an old
saying that it is better to be thought ignorant
than to open one's mouth and remove all doubt.
This has never been more evident than in the
debate over oil companies, gasoline prices, oil
profits and windfall profits taxes.
Some in the GOP leadership suggest everything
from $100 rebates and windfall profit taxes to
Federal Trade Commission investigations and
congressional hearings on so-called price-fixing
and/or gouging. I'm reminded of Richard Nixon in
the early 1970s, when he called for devaluing
the dollar, wage and price controls, and higher
taxes and tariffs - all of which helped cause
his downfall and set the economy on a course of
simultaneous inflation and unemployment, the
likes of which we hadn't seen in our nation's
history.
What is sickening is to hear that the GOP would
offer a $100 bribe to poor and low-income
people. Can you imagine a political party,
ostensibly on the center right, telling people,
"Don't earn too much or you won't get a rebate
check"? Compare that to Abraham Lincoln, who
said, "I don't believe in laws that prevent a
man from getting rich. I want every man to get
rich. He should be able to earn, save, invest
and someday hire others to work for him. That is
the American system."
[continued]
The Fed
China’s war-time economy
By
Peter Schiff
Euro
Pacific Capital
The mainstream
of economic thinking holds that China will
continue to finance America’s current account
deficit indefinitely because American
consumption is vital, if not critical, to the
survival of China’s export driven economy.
While I have written several commentaries
exposing the fallacy of this argument, I thought
one more analogy might be helpful.
During the Second World War, America’s
industrial might was concentrated on supplying
the war effort. We had ten million men under
arms spread across three continents, our ships
patrolled the Atlantic and Pacific and our
bombers blackened the skies. Factories that had
previously produced passenger cars, sewing
machines, and farm equipment had been retooled
to make fighter planes, jeeps, tanks, rifles,
bullets, artillery shells, destroyers, aircraft
carriers, submarines, uniforms, helmets, boots,
mess kits, and military radios.
[continued]
Taxes
Ready for
a Pelosi tax hike?
Editorial
Human Events
When House
Minority Leader Nancy Pelosi (D.-Calif.) appeared on
NBC’s “Meet the Press” on May 7, host Tim Russert
repeatedly pressed her on whether she would try to
repeal the tax cuts enacted by President Bush and the
Republican Congress. Pelosi eventually broke down and
gave a partial answer.
“Well, I, myself, am against them,” she said. “But the
point is, there are choices to be made in our budgets,
and, and I will tell you more the Democrats are going to
do when we take over the Congress of the United States.”
Count on it: If Pelosi takes over as speaker in a
Democrat-controlled House, she will let all of the Bush
tax cuts—which are scheduled to sunset by 2011—expire.
[continued]
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WHY
BusinessNevada
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Politics
Canadian meds scheme unneeded
Nevada
drug importation scheme
‘a solution in search of a problem’
By Tommy Thompson
Former Secretary,
U.S. Dept. Health & Human Services
ACROSS THE COUNTRY,
including Nevada, there continue to be efforts by state
officials to encourage the importation of drugs from
Canada as a way to reduce health care costs for
America's seniors.
Just last month, the Nevada State Board of Pharmacy
voted to allow residents to purchase drugs from Canadian
mail-order pharmacies. With all due respect to these
officials, I would argue that importation has largely
become a solution in search of a problem. The more
effective approach to ensure access to safe and
affordable prescription drugs is the new Medicare
prescription drug benefit, Part D.
While there have been some initial stumbles getting out
of the blocks, there is clear evidence that the new
Medicare benefit is providing our seniors, including
Nevada's, with access to needed prescription drugs at
lower rates than they previously paid, all without
looking beyond our borders. In fact, 75 percent of
Nevada's Medicare beneficiaries have drug coverage under
Part D -- the sixth-highest in the nation. Overall,
enrollment -- and beneficiary satisfaction -- is
exceeding expectations, both nationally and at the state
level, with more than 30 million currently receiving
coverage. Simply put, the debate on importation should
now be moot.
According to the AARP, the new prescription drug benefit
provides seniors with a cheaper alternative to drugs
advertised as "Canadian," noting that "for many
Americans, Medicare drug plans that cover all of a
beneficiary's drugs can cost less than buying the same
drugs across the border."
[continued]
Labor
Unions and majority rule
By Mike Antonucci
EIA Online
The State of
Nevada has provided us with an object lesson on
the stranglehold incumbent unions have on their members,
their privileges and their power.
After a four-year court battle, Teamsters Local
14 finally won the right to challenge the NEA-affiliated
Education Support Employees Association (ESEA) to
represent some 10,500 custodians, bus drivers and other
support personnel in the Clark County School District.
NEA sent UniServ directors from other states into Nevada
to defeat the challenge. The mail-in ballots were
counted last week. Here are the results:
Teamsters: 2,711
ESEA: 1,932
No union: 93
The Teamsters win, right? Wrong. The Nevada
Supreme Court upheld a rule that a challenging union
must gain a majority of the eligible voters, not just
the votes cast. So to win, the Teamsters needed 5,259
votes, even though only 4,736 votes were cast.
ESEA remains the exclusive bargaining agent,
despite being outpolled by 779 votes, receiving only
40.8 percent of the votes cast, and only 18.4 percent of
the eligible vote. ESEA announced the victory on its web
site without mentioning the vote totals.
There are several overlapping issues at play
here:
a) almost 5,800 employees couldn't bring
themselves to vote at all;
b) the utter hopelessness of ousting an
incumbent union under such onerous rules; and
c) the danger of letting card checks replace
secret ballot elections as a means of determining
initial union representation.
For all the talk of democracy and majority rule,
most teachers' unions in the United States won their
exclusive bargaining status in the 1960s and 1970s, and
have not faced a representation election since. Many
education employees today are members of locals that
were voted into power before they were born. In AFT, it
is not uncommon for local presidents to hold that office
for 20 or 30 years. Most NEA affiliates practice term
limits, yet the line of succession is as structured (and
archaic) as that of the Bourbons.
Exempt from anti-trust laws, unions can form
partnerships, set up jurisdictions, and enforce
"no-raid" agreements. For all the ink on choice in
education, no one seems very interested in examining the
definitive monopoly NEA/AFT hold in the field of teacher
representation.
Currencies
China to
let yuan
strengthen quicker
By Andrew Browne
The Wall Street Journal
HONG KONG -- Beijing, in a move that ends weeks
of stalling and should help President Bush contain
complaints in the U.S. about China, gave the go-ahead
for a stronger Chinese currency.
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FAQ: The
Yuan Rally
[continued]
See Also:
Peter Schiff column
at right:
China's War-time
Economy |
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China's central bank allowed the yuan to briefly break
through the symbolically important level of 8.0 to the
dollar. The move came just days after the U.S. Treasury
Department drew back from confrontation with China by
determining that Beijing wasn't manipulating its
exchange rate to artificially boost its exports.
[continued] These articles will be available to
non-subscribers of the Online Journal for up to
seven days after being e-mailed.
Teaching
Long-awaited study shows Nevada program a waste
National board teachers -- on which the state spends
large funds -- found to be no better than other
educators
By Bess Keller
EdWeek
Students of
teachers who hold certification from the National Board
for Professional Teaching Standards achieve, on average,
no greater academic progress than students of teachers
without the special status, a long-awaited study using
North Carolina data concludes.
The research, which draws on one of the largest data
sets used so far to examine the credential, was
completed well over a year ago. But the board did not
provide any public information about the
less-than-flattering portrait until earlier this month,
when an “overview” was posted on the organization’s Web
site. And it put out the summary only after being
pressed by a prominent education blogger. National-board
officials say they do not intend to release the full
study.
[continued]
Crime
Nevada
meth use
out of control
State no. 1 in crime, meth said behind 80 percent
By Caroline Fontein
Las
Vegas Business Press
Illicit drug use
is a
growing problem in Las Vegas, yet many people do not
recognize it, nor the negative impact it has on all
aspects of society. For instance, when Nevada was
recently ranked as the state with the most crime, few
probably thought of drug use as the main culprit.
[continued]
The Web
The Net's not-so-secret economy of crime
The people who want to rip you off are very polite with
each other when they're buying and selling credit card
numbers
By David Kirkpatrick
Fortune Magazine
Raze Software
offers a product called CC2Bank 1.3, available in
freeware form - if you like it, please pay for it.
Raze's attractively designed Web site, registered in
Belarus, may suggest a shaky command of English -"I
shall pleased any estimation in respect of my programs
and this page," it reads - but it displays the classic
characteristics of web commerce, like visitor
statistics, advertising, and links to Web sites of
partners.
But CC2Bank's purpose is the management of stolen credit
cards. Release 1.3 enables you to type in any credit
card number and learn the type of card, name of the
issuing bank, the bank's phone number and the country
where the card was issued, among other info.
[continued]
Demagoguery
How gas price controls sparked '70s shortages
By Patrice Hill
The Washington Times
Proposals to control gasoline prices and tax producers' windfall
profits were popular ideas that were tried -- without
much success -- during the oil shocks of the 1970s and
1980s.
The era of price controls is most remembered for
long lines at gas stations. The controls were put in
place by the Nixon and Ford administrations in reaction
to a jump in fuel prices caused by cuts in production by
the newly formed international oil cartel, the
Organization of Petroleum Exporting Countries.
[continued]
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