Author: Art Diamond

“Seek Truth from Facts”

(p. A15)  . . . 2019 . . .  marks the anniversary of the result of a . . . defiant protest—one that will receive little attention in or out of China, even though it launched the economic reforms that kick-started the country’s rise.

Forty years ago this spring, corn farmers in Xiaogang village, in the central province of Anhui (where Pearl Buck set “The Good Earth”), reported a grain yield of 66 metric tons. This single harvest equaled the village’s total output between 1955 and 1970—but for once the figure was not exaggerated. In fact, villagers underreported their actual yield by a third, fearing officials would not believe their record haul.

What caused this massive spike in production? A new fertilizer or hybrid seed? Better equipment? A catchy, rhymed propaganda slogan? No; Xiaogang’s farmers were starving. After taking power in 1949, China’s Communist Party had effectively abolished private land ownership, grouping farms into “people’s communes” subservient to the state. By 1978 villages were crippled by quotas that seized most of what they grew for redistribution.

Continue reading ““Seek Truth from Facts””

Private Property Unleashed Innovation

(p. A17)  Enlightenment philosophers recognized that the crown, guild, church and village sometimes acted as rent-seekers stripping away the rewards for work, thrift and innovation, and in the process inhibiting productive effort and progress. The Enlightenment established the principle that labor and capital are private property and not communal assets subject to involuntary sharing, and thus unleashed the explosion of knowledge and production that drives human flourishing to this day.

Extraordinarily in America, the crown jewel and greatest beneficiary of the Enlightenment, political movements are afoot that seek to overturn the individual economic rights secured in the Enlightenment and return to a medieval world of subjects and subjugation.

For the full commentary, see:

Phil Gramm and Michael Solon.  “Enemies of the Economic Enlightenment.”  The Wall Street Journal  (Tuesday, 9):  A17.

(Note:  the online version of the commentary has the date 9.)

Janet Yellen Values Non-Ph.D.s at Fed

(p. A2)  Sen. Ben Sasse, a Nebraska Republican, nicely captured this sentiment by saying about Mr. Moore, an advocate for lower taxes and other conservative causes: “Steve’s nomination has thrown the card-carrying members of the Beltway establishment into a tizzy, and that says little about Steve and his belief in American ingenuity, but a lot about central planners’ devotion to groupthink.”

Anti-elitism is an odd look for Mr. Sasse, Ph.D. (Yale) and former college president (Midland University), but he’s hardly alone.

. . .

Economics can be insular, and even Janet Yellen, who chaired the Fed before Mr. Powell, agrees the Fed has been top-heavy with Ph.D. economists like her. “It’s not always been clear that this led to an improvement in policymaking,” she said in a 2012 interview for an oral history of the Fed, released Friday [April 12, 2019]. She praised the contribution of non-economist governors who, she says, are always asking themselves if the arguments of economists are “relevant to the world as I’m experiencing it through my contacts, whether they’re bankers or businesspeople or whatever?”

For the full commentary, see:

Greg Ip.  “What You Need to Be on the Fed…and It Isn’t a Ph.D.”  The Wall Street Journal  (Monday, 9):  A2.

(Note:  ellipsis, and bracketed date, added.)

(Note:  the online version of the commentary has the date 9.)

“If You Write a Best-Selling Book, You Can Be a Millionaire, Too”

(p. A14) WASHINGTON — Senator Bernie Sanders, whose $18 million fund-raising haul has solidified his status as a front-runner for the Democratic presidential nomination, said Tuesday [April 9, 2019] that he would release 10 years of tax returns by Tax Day on Monday and acknowledged that he has joined the ranks of the millionaires he has denounced for years.

. . .

Reminded that he is a millionaire, he did not shirk from the description.

“I wrote a best-selling book,” he declared. “If you write a best-selling book, you can be a millionaire, too.”

For the full story, see:

Sheryl Gay Stolberg.  “Sanders Says He’ll Release Tax Returns.”  The New York Times (Wednesday, April 10, 2019):  A14.

(Note:  ellipsis, and bracketed date, added.)

(Note:  the online version of the story has the date April 9, 2019, and has the title “Bernie Sanders, Now a Millionaire, Pledges to Release Tax Returns by Monday.”)