Recently, a controversy raged in the blogosphere about whether neo-liberalism has been a bane or a boon for the world economy. The argument is rather coarse, in that it fails to distinguish between the various elements of neo-liberalism, or moderate deregulation vs. extreme deregulation. But if we take the argument at face value, one of the major claims of neoliberals is that countries in the world which are more neoliberal are more successful (because they are more neoliberal). I disagree.
My disagreement is not with the raw correlation between the Heritage Index and Per Capita GDP. A number is a number. My disagreement is with the composition of the index itself, and interpreting this correlation as causation between neo-liberalism and 'good things.'
My primary contention below is that many of these measures used in the composite Heritage Index have nothing to do with less government, and a lot more to do with good government. It is these measures of good government that correlate to economic growth and drive the overall correlation between the "Freedom Index" and positive outcomes. Secondarily, I will argue that many of the other items in the index (like investment freedom) are not causes of growth, but rather outcomes of growth.
Here we are again.Hard to find even the Gallows Humor in this story, so maybe we won't even try. Maybe it's time to admit that large chunks of America are in the hands of unreconstructed racists and vulgar idiots, and that the popular election of a black man as president just might've pushed these furious, economically doomed old white people into a final rage that is going to end very, very badly. Ready? Here you go: An Arizona elementary school mural featuring the faces of kids who attend the school has been the subject of constant daytime drive-by racist screaming, from adults, as well as a radio talk-show campaign (by an actual city councilman, who has an AM talk-radio show) to remove the black student's face from the mural, and now the school principal has ordered the faces of the Latino and Black students pictured on the school wall to be repainted as light-skinned children.
It is difficult to describe this emotion. I'm used to disappointment, fairly comfortable with heartbreak, and am well acquainted with rage. Over the course of my lifetime, my presidents have been Nixon, Ford, Carter, Reagan, Bush, Clinton, Bush, and now Obama…and each, in his own way, has been worse than the last.