BUSH LENDS SUPPORT TO BAILOUT

President Bush on Wednesday urged Congress to approve his administration's $700 billion bailout proposal. "I'm a strong believer in free enterprise, so my natural instinct is to oppose government intervention," he said. But "these are not normal circumstances." Cato scholars don't agree, and have been sharply critical of the proposed bailout.
- Comment on Bush's address, by William Niskanen
- 'Wall Street' No Longer Exists, by Alan Reynolds
- Political Perils of Overregulation, by Patrick Basham
- Additional Cato research on this topic



CATO SUPREME COURT REVIEW NOW AVAILABLE

In this annual review from the Cato Institute, Ilya Shapiro and leading legal scholars analyze the 2007-2008 Supreme Court term, specifically the most important and far-reaching cases of the year, plus cases coming up. Now in its seventh edition, the Review is the first scholarly journal to appear after the term's end and the only one grounded in the nation's first principles of liberty, and limited government.



COMMENTARY

Political Perils of Overregulation, by Patrick Basham. The big news last week was that Wall Street banks and finance houses are toppling into New York's East River and the financial splash threatens to drown the nation's economy. But the really big news is that economic populism in this country has taken a turn toward less government intervention rather than more. It was a horrendous week for the finance industry. The only encouraging sign is the American voter's growing awareness that bigger government is not the answer to the current crisis.

NEW! The Bush Legacy: Deflation or Inflation? by Steve Hanke. Since 2001, the Bush administration has entangled the United States in a war that is undefined in terms of its scope, scale and duration. It has also been interventionist in the domestic economy, overseeing what the U.S. Congressional Budget Office terms a "substantial increase in spending" which has put the economy "on an unsustainable path." Indeed, according to the CBO's baseline budget projections issued in September 2008, the federal debt held by the public will grow to $7.9 trillion (in 2008 dollars) over the next decade, a 46% increase over this year's $5.4 trillion estimate. And that's only the tip of what could be a huge debt iceberg. The trustees of the Social Security System estimate that the present value of the system's unfunded liabilities is $13.6 trillion. A similar present value calculation by the trustees of the Medicare System results in a whopping $85.6 trillion estimate. To put these numbers into perspective, keep in mind that last year the United States generated a GDP of $13.8 trillion.


DAILY PODCAST (Subscribe on iTunes, )

NEW! South Africa after Mbeki, featuring Marian L. Tupy, 9/25/2008

NEW! Socialized Risks, Private Rewards, featuring James A. Dorn, 9/24/2008

(Rationally) Ignorant Voters, featuring Ilya Somin, 9/24/2008


CATO BLOG HIGHLIGHTS - "WAKERIDING" THE GSE COLLAPSE

On Cato's daily blog, Cato@Liberty, Jim Harper examines recent legislative proposals related to financial bailouts. "On the WashingtonWatch.com blog, I’ve reviewed some of the bills introduced and moved in Congress the last few days to respond - or at least react - to the collapse of Fannie Mae and Freddie Mac. These bills deserve skepticism - the market for political posturing and other silliness is obviously high right now - but they might not all be bad ..." To read more, check out Harper's recent post.


VIDEO HIGHLIGHTS (Subscribe on iTunes, )

On today's video highlight, William Niskanen discusses government bailouts on Reuters TV.


RECENT PAPERS, TESTIMONY, & LEGAL BRIEFS

NEW! Medical Licensing: An Obstacle to Affordable, Quality Care, by Shirley Svorny (September 17, 2008)

Trade, Protectionism, and the U.S. Economy: Examining the Evidence, by Robert Krol (September 16, 2008)

Executive Pay: Regulation vs. Market Competition, by Steven Van Putten and Ira T. Kay (September 10, 2008)

Markets vs. Monopolies in Education: A Global Review of the Evidence, by Andrew J. Coulson (September 10, 2008)

Freddie Mac and Fannie Mae: An Exit Strategy for the Taxpayer, by Arnold Kling (September 8, 2008)


BOOKS AND PERIODICALS

NEW! Cato Supreme Court Review: 2007-2008, edited by Ilya Shapiro

Economic Freedom of the World: 2008 Annual Report, by James Gwartney and Robert Lawson with Seth Norton

Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It, by Chris Edwards and Daniel J. Mitchell

New Frontiers in Free Trade: Globalization’s Future and Asia’s Rising Role, by Razeen Sally

Cato Handbook On Policy, 6th Edition, edited by Edward H. Crane and David Boaz