As a software developer and company co-founder who has lived in Palo Alto since the early 1990s, I understand the extraordinarily important contribution that immigrants have made to our technology industry over the last half century and the crucial role they play in maintaining American competitiveness. I've found it unfortunate that for years top Silicon... Read More
Schools like Harvard have become tax-exempt hedge funds with huge returns. Ending tuition would be a form of payback.
Although Harvard is widely known as one of America's oldest and most prestigious colleges, that public image is outdated. Over the last couple of decades, the university has transformed itself into one of the world's largest hedge-funds, with the huge profits of its aggressively managed $36 billion portfolio shielded from taxes because of the educational... Read More
Raising the Minimum Wage to $12 an Hour
During the 1950s peak of America’s post-war prosperity, Detroit was our wealthiest city, General Motors our biggest employer, and GM CEO “Engine Charlie” Wilson delivered the famously misquoted claim that “what was good for our country was good for General Motors, and vice-versa.” Times have changed. These days retail giant Wal-Mart is our largest corporation,... Read More
Millions of California immigrants work in low-wage service industries. They would be among the greatest beneficiaries of our ballot initiative to raise the state minimum wage to $12 per hour. Latinos, many of whom come from a relatively recent immigrant background, would gain the most. The data shows that around half of all Latino wage-earners... Read More
Aerospace execs sell their industry to Japan—one part at a time.
At a welcoming banquet in Japan in the 1980s, Ford Motor chairman Philip Caldwell received a memorably double-edged compliment. “There is no secret about how we learned to do what we do, Mr. Caldwell,” said the head of Toyota Motor, Eiji Toyoda. “We learned it at the Rouge.” Toyoda was referring to Ford’s fabled River... Read More
Lifting Our State Above Mississippi and Alabama
California is home to both Silicon Valley and Hollywood, two of the world's greatest wealth-producing engines, and much of the state enjoys tremendous affluence. By some estimates, my own town of Palo Alto has the world's highest per capita concentration of billionaires. But California also has pockets of enormous poverty. The U.S. Census recently estimated... Read More
From Making Low Wages Livable - A Symposium in The New York Times Tens of millions of low-wage workers in the United States are trapped in lives of poverty. Many suggestions have been put forth to improve their difficult situation, ranging from new social welfare programs to enhanced adult education to greater unionization. But I... Read More
Congress is currently considering bipartisan legislation providing an amnesty for America’s 11 million illegal immigrants, probably combined with extra visas for skilled workers and an agricultural guestworker program. But principled liberals and conservatives should both demand that any immigration reform proposal also include a sharp rise in the federal minimum wage. The reason is simple.... Read More
DUBLIN --CONGRESS might be at loggerheads, the unemployment rate might be too high and America's infrastructure might be crumbling -- but Americans of all political viewpoints comfort themselves with the notion that at least they lead the world in high technology and always will. It's a pleasing, convenient idea. China can't outrun the United States,... Read More
Harvard's academic mission is dwarfed by its $30 billion endowment.
From its 1636 foundation Harvard had always ranked as America’s oldest and most prestigious college, even as it gradually grew in size and academic quality during the first three centuries of its existence. The widespread destruction brought about by the Second World War laid low its traditional European rivals, and not long after celebrating its... Read More
A simple remedy for income stagnation
With Americans still trapped in the fifth year of our Great Recession, and median personal income having been essentially stagnant for forty years, perhaps we should finally admit that decades of economic policies have largely failed.
Why won’t anyone talk about Tokyo’s auto protectionism?
Mitt Romney was in his element a few years ago as the Obama administration struggled to rescue the Detroit auto industry. In an eat-your-spinach tone, he ticked off his recommendations for reform. Top management should go, executive dining rooms should be shut, and factory wages slashed. Then there were the industry’s “legacy costs”: given how... Read More
In contrasting China and America, pundits often cite our free and independent media as one of our greatest strengths, together with the tremendous importance which our society places upon individual American lives. For us, a single wrongful death can sometimes provoke weeks of massive media coverage and galvanize the nation into corrective action, while life... Read More
Which superpower is more threatened by its “extractive elites”?
The rise of China surely ranks among the most important world developments of the last 100 years. With America still trapped in its fifth year of economic hardship, and the Chinese economy poised to surpass our own before the end of this decade, China looms very large on the horizon. We are living in the... Read More
Tokyo--DESPITE some small signs of optimism about the United States economy, unemployment is still high, and the country seems stalled. Time and again, Americans are told to look to Japan as a warning of what the country might become if the right path is not followed, although there is intense disagreement about what that path... Read More
The sources of America’s immigration problems—and a possible solution
Will mass immigration destroy the GOP? Can our middle-class society survive high immigration levels? Is there any political solution to our current immigration difficulties? Last June the U.S. Census disclosed that non-white births in America were on the verge of surpassing the white total and might do so as early as the end of this... Read More
How currency manipulation destroyed American manufacturing
TOKYO—In the mid 1990s, I published a book entitled Blindside: Why Japan Is Still on Track to Overtake the U.S. By the Year 2000. The prediction in the subtitle did not, as they say, pan out. But it was more soundly based than casual readers of the U.S. financial press might imagine. The book offered... Read More
Meet the heterodox economists challenging globalism.
“I don’t care who writes a nation’s laws, or crafts its advanced treatises, if I can write its economics textbooks.” So said one of the greatest textbook writers of them all, Paul Samuelson. But even Samuelson didn’t live forever—he died in 2009 aged 94—and now others decide what the rising generation is reading. It is... Read More
The Pentagon sells out American manufacturing for Japanese bases.
TOKYO—When German executives visit Tokyo, they are often treated to a session at Bernd’s Bar, a notably authentic German pub. A bit too authentic, perhaps, given its Axis-era accoutrements. The last time I was there, one of the walls still featured a huge photograph of Willy Messerschmitt in conversation with Charles Lindbergh. It had evidently... Read More
The Betrayal of American Prosperity: Free Market Delusions, America’s Decline, and How We Must Compete in the Post-Dollar Era, Clyde Prestowitz, Free Press, 340 pages How the Economy Was Lost: The War of the Worlds, Paul Craig Roberts, CounterPunch, 264 pages George W. Bush’s under secretary of commerce for international trade, Frank Lavin, was once... Read More
America goes Ottoman shopping.
Here’s an economic history test: 1. Which Great Power pioneered the secular trend towards freer international trade? 2. Which Great Power first resorted to spiraling foreign indebtedness to pay for its wars? 3. Which Great Power first permitted large-scale foreign direct investment in its domestic industries and infrastructure? If you guessed such latter-day globalizers as... Read More
Before there was Beatlemania, there was Reischauermania. Admittedly, the latter was more localized and, of course, it is not much remembered these days. But it was huge at the time, and in the end it may prove to have left a bigger mark on history. The object of adoration, a dapper, middle-aged Harvard East Asian... Read More
Libertarians plan to build floating islands to house casinos, hospitals, hotels, offices—and even new societies. Will...
The year is 2020 and I have just turned 72. Not far off the California coast, I and several other wobbly-looking people are on a boat, chugging towards a bizarre floating structure. From a distance, it looks like a luxury hotel, or something from a James Bond movie—but it’s an orthopaedic hospital. Beside fond memories... Read More
For years, economists said Germany was doing everything wrong. But today it's thriving, even in the wake of the global...
American and British commentators have told three stories about the German economy over the past decade, all of them derogatory. Articulating a standard conservative view, Adam Posen of the Peterson Institute for International Economics in 2006 characterized Germany's performance as "lastingly poor." In a similar vein, Jude Blanchette, blogging for the libertarian Mises Institute, predicted... Read More
Getting the American economy back on solid ground will require new financial regulations. Goldman Sachs alums aren’t...
As bewildered Americans survey the wreckage of their nation’s once vaunted financial system, they could do worse than reacquaint themselves with one of Wall Street’s oldest and most revealing parables. The story goes that an out-of-town customer dropped by to talk to his broker and afterwards was ushered around Lower Manhattan’s yacht-filled docks. “Here is... Read More