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   - On America's Middle Class (by Don Boudreaux) <#12240482aa0c6ac7_1>
   - The Psychology of Climate Change and Intervention (by Don
Boudreaux)<#12240482aa0c6ac7_2>
   - Unintended Consequences (by Don Boudreaux) <#12240482aa0c6ac7_3>

  On America's Middle Class (by Don
Boudreaux)<http://www.cafehayek.com/hayek/2009/07/on-americas-middle-class.html>

Posted: 02 Jul 2009 02:09 PM PDT

In two of his *Forbes* columns, NYU's Thomas Cooley challenges - with data -
the widespread misunderstanding that America's middle-class is
disappearing.  
Here<http://www.forbes.com/2009/06/02/middle-class-income-inequality-technology-opinions-columnists-taxes.html>,
and then 
here<http://www.forbes.com/2009/06/30/middle-class-income-inequality-consumers-opinions-columnists-cooley.html>
.

(HT Greg Mankiw <http://gregmankiw.blogspot.com/>)  The Terry Fitzgerald
work that Cooley mentions was mentioned here at the Cafe a while
back<http://www.cafehayek.com/hayek/2008/10/ordinary-americ.html>
.

I raise, though, one objection to Cooley's otherwise excellent columns.  In
the first one linked to above, he credits technological change for the
explosive economic growth of the 1980s and 1990s.  I don't accept technology
as an explanation.  A rush of technology has causes; it must be explained.
Technology is not a variable exogenous to economic growth.
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The Psychology of Climate Change and Intervention (by Don
Boudreaux)<http://www.cafehayek.com/hayek/2009/07/kristof-is-right-and-wrong-on-climatechange-policy.html>

Posted: 02 Jul 2009 06:34 AM PDT

Writing in today's *New York Times*, Nicholas Kristof
argues<http://www.nytimes.com/2009/07/02/opinion/02kristof.html?ref=opinion>that
we're not as frightened of climate change as science counsels that we
should be, and that our fear's inadequacy is rooted in our evolutionary
past.  We are, Kristof correctly says, evolved to fear immediate, visible
threats and not so much those threats - such as climate change - that are
more distant, more speculative, and less visible.

Contrary to Kristof's conclusion, though, this fact doesn't necessarily
justify climate-change regulation.  The same evolved structure of our brains
that causes us to discount relatively distant and speculative climate-change
effects also causes us to discount relatively distant and speculative
economic effects.  So this economist, trained to see the invisible hand,
points out that too many people are insufficiently aware of - and, hence,
insufficiently fearful of - those relatively distant and invisible threats
posed to a healthy economy by government regulation.
<http://feeds.feedburner.com/%7Eff/CafeHayek?a=LxRIVphm3D8:DoQeLhDZT8c:yIl2AUoC8zA>
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Unintended Consequences (by Don
Boudreaux)<http://www.cafehayek.com/hayek/2009/07/unintended-consequences.html>

Posted: 02 Jul 2009 06:18 AM PDT

Here' my answer to my pop
quiz<http://www.cafehayek.com/hayek/2009/07/tired-protectionism.html>;
it's in the form of a letter-to-the-editor that I sent yesterday to
the *Washington
Post*:
You report that the "International Trade Commission recommended on Monday
that President Barack Obama impose additional duties for three years on
imports of low-cost Chinese tires the panel says are harming U.S. industry"
("U.S. trade panel favors stiffer duties on Chinese
tires<http://www.washingtonpost.com/wp-dyn/content/article/2009/06/29/AR2009062902307.html>,"
June 29).

Such a move by Mr. Obama would not save U.S. jobs on net, because fewer
dollars spent on imports means fewer dollars that foreigners have to spend
on U.S. exports or to invest in the U.S.

More importantly, in this case higher duties would actually kill people.
Higher duties mean higher tire prices, and higher tire prices will prompt
many motorists to ride longer than otherwise on tires that are threadbare.
Because riding on older tires is more dangerous than riding on new tires,
Mr. Obama will have blood on his hands if he accepts the I.T.C.'s
recommendation to stiffen duties on low-cost tires.

Sincerely,
Donald J. Boudreaux

Thanks to all of you who answered the quiz in the comments section of my
previous post (or in e-mails to me), and congrats to the many of you who
earned A+.
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