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5811. Rediscovering the Underclass

Author:
Charles Murray
Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Watching the courage of ordinary low-income people as they deal with the aftermath of Katrina and Rita, it is hard to decide which politicians are more contemptible—Democrats who are rediscovering poverty and blaming it on George W. Bush, or Republicans who are rediscovering poverty and claiming that the government can fix it. Both sides are unwilling to face reality: We have not rediscovered poverty, we have rediscovered the underclass. The underclass has been growing during all the years that people were ignoring it, including the Clinton years; and the pro- grams politicians tout as solutions are a mismatch for the people who constitute the problem. We have rediscovered the underclass. Newspapers and television understandably prefer to feature low-income people who are trying hard—the middle-aged man working two jobs, the mother worrying about how to get her children into school in a strange city. These people are rightly the objects of an outpouring of help from around the country, but their troubles are relatively easy to resolve. Tell the man where a job is, and he will take it. Tell the mother where a school is, and she will get her children into it. Other images show us the face of the hard problem: those of the looters and thugs, and those of inert women doing nothing to help themselves or their children. They are the underclass.
Topic:
Civil Society, Economics, Government, and Human Welfare

5812. North Korea Triumphs Again in Diplomacy

Author:
Nicholas Eberstadt
Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Contrary to conventional wisdom, which holds the North Korean state to be an unremittingly hostile “negotiating partner,” history actually demonstrates that Pyongyang can be a highly obliging interlocutor under certain very specific conditions. All that is necessary to “get to yes” with the Democratic People's Republic of Korea (DPRK) is to concede every important point demanded by the North Korean side while sacrificing vital interests of one's own. The mid-September “breakthrough” at the six-party talks in Beijing would appear to conform precisely to this long-established pattern. The vaunted outcome—a long-desired “consensus statement” inked by North Korea and the other five governments engaged in protracted discussions over North Korean denuclearization—is being celebrated by diplomatic sophisticates in Seoul, Beijing, Moscow, Tokyo, and Washington.
Topic:
International Relations, Diplomacy, and Nuclear Weapons
Political Geography:
Washington, Beijing, Asia, North Korea, Tokyo, Korea, and Seoul

5813. Beware the Arafat Model in Iraq

Author:
Michael Rubin
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Iraqis gathered around television sets as midnight approached on August 22. They watched as constitutional-drafting committee members and political elites whispered among themselves. When the speaker of the national assembly, Hachim al-Hasani, declared, “We have received a draft of the constitution,” the assembly erupted in applause. “But,” he added, “there are some points that are still outstanding and need to be addressed in the next three days.” Late into the night, politicians and activists continued to meet in the Baghdad homes of the major powerbrokers, grappling with the roles of federalism and Islam in the new Iraq. While U.S. diplomats and Washington advisers continue to facilitate compromise among Iraq's disparate sectarian, ethnic, and political groups, the reality emerging outside Baghdad is directly challenging Iraq's aspirations to constitutionalism. The U.S. government has spent hundreds of thousands of dollars to bring outside experts to Baghdad for a period of a few days or a few weeks, but Iraqi powerbrokers dismiss their advice as naive or irrelevant. Massoud Barzani in the Kurdish north and Abdul Aziz al-Hakim and Muqtada al-Sadr in the Shiite south have rejected the experts' academic proposals, and have chosen instead a model perfected by Yasser Arafat, the late chairman of the Palestine Liberation Organization.
Topic:
International Relations and Politics
Political Geography:
United States, Iraq, Washington, Middle East, and Baghdad

5814. Junk Science Reigns

Author:
John E. Calfee
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
If we know anything about the American tort liability system, we know that it works badly when it gets infected by junk science. The recent Vioxx verdict in Angleton, Texas, is a case in point. The jury awarded $253 million to the widow of a man who died after taking the now-infamous pain reliever. The award will almost certainly be reduced to something like $5 million or $10 million because it ignored statutory limits on punitive damages, and it may eventually get thrown out because of mistakes by the judge. But even at “only” $10 million a case, a string of adverse Vioxx decisions would prove an expensive example of the triumph of the junk lawsuit over science. Most press accounts portray the jury's decision as simply a reflection of medical science, which supposedly has indicted and convicted Vioxx of causing excess heart attacks. This view prevailed in the four months after September 30, 2004, when Merck voluntarily pulled Vioxx from the market. Those months saw vituperous debate and criticism of both Merck and the Food and Drug Administration in leading medical journals. A renegade FDA staffer testified at congressional hearings along with other critics.
Topic:
Development, Government, Human Welfare, and Science and Technology
Political Geography:
America

5815. Why Does College Cost So Much?

Author:
Richard Vedder
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
As college students begin a new academic year, many parents are reeling from tuition charges. This fall's estimated 8 percent average increase at public universities, added onto double-digit hikes in the two previous years, means tuition at a typical state university is up 36 percent over 2002—at a time when consumer prices in general have risen less than 9 percent. In inflation-adjusted terms, tuition today is roughly triple what it was when parents of today's college students attended school in the 1970s. Tuition charges are rising faster than family incomes, an unsustainable trend in the long run. This holds true even when scholarships and financial aid are considered. One consequence of rising costs is that college enrollments are no longer increasing as much as before. Price-sensitive groups such as low-income students and minorities are missing out. A smaller proportion of Hispanics between eighteen and twenty-four attends college today than in 1976. The United States is beginning to fall below some other industrial nations in population-adjusted college attendance.
Topic:
Development, Economics, Education, and Government
Political Geography:
United States

5816. Market Comrades

Author:
R. Glenn Hubbard
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Ceremonial gift-giving is an integral part of doing business in China. The value lies not so much in the gift (whose packaging is often more elaborate), but in the possibility of cementing a mutually beneficial relationship. And so it was a few weeks ago with the headline-grabbing announcement that China would revalue the yuan against the U.S. dollar. The modest gesture may make more possible a comprehensive economic dialogue between China and the United States in the interest of both nations. The announcement on July 21 by the People's Bank of China that it would revalue the yuan, abandoning the eleven-year-old peg of 8.28 yuan per U.S. dollar, caught financial markets by surprise. The jolt led market participants to gauge effects of current (and perhaps future) revaluations on currency values and interest rates. And, some U.S. political leaders claimed a victory in the campaign to blame Chinese “market manipulation” for external imbalances facing the United States.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States, China, and Asia

5817. Bring Them Home

Author:
Nicholas Eberstadt
Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
In the nearly six decades since the United Nations approved the Universal Declaration of Human Rights, more than one constitutional democracy presiding over an ethnically homogeneous populace—governing a nationality, if you will—has been faced with the prospect of a humanitarian crisis afflicting compatriots living beyond its borders. And on more than one occasion, such states have been moved by those same crises to affect the rescue of their countrymen—by welcoming them into the homeland, embracing them as fellow citizens, and permitting them to enjoy the opportunities and benefits of life under secure, constitutional, and democratic rule. The Federal Republic of Germany faced one such crisis in the very earliest days of its existence. That particular humanitarian emergency entailed the plight of the unlucky people who came to be called Vertriebene: ethnic Germans—most of them women and children—who, by no fault of their own, had to flee before the harsh and vindictive specter of Soviet expansion.
Topic:
International Relations, United Nations, and War
Political Geography:
Asia, Soviet Union, and Germany

5818. Small Leaps or Giant Leaps

Author:
Scott Gottlieb
Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
There are seldom eureka moments in health care. Few new drugs or medical devices save scores of lives or cure diseases when they first hit the market. New technologies rarely translate into immediate life expectancy gains, and it is uncommon that results of a single study will transform how medicine is practiced. Medical progress is not magic, and sudden discoveries do not lead to dramatic cures, although a new book by Marcia Angell, a former editor of The New England Journal of Medicine, would lead you to think all of our gains in health have been achieved from just a handful of the most potent new medicines. Instead, medical breakthroughs unfold over time, and gains in life expectancy and health are realized only after a series of small technological advances are collected into new ways of practicing medicine or attacking a disease. The practice of medicine unfolds not in a series of certainties, but in a series of doubts.
Topic:
Civil Society, Development, Human Welfare, and Science and Technology
Political Geography:
England

5819. The Great Shift to Specialty Drugs

Author:
Scott Gottlieb
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
When drug maker GlaxoSmithKline held a showcase day for investors late last year, the company bragged about its burgeoning pipeline of new medicines, but also a fruitful restructuring it undertook a few years ago. Glaxo broke its sprawling research shop into smaller units focused on a dozen or so disease areas. In was an emphasis on major health problems, such as cancer, heart disease, and brain disorders like Alzheimer's dis- ease. Gone were the same concerted efforts to focus the majority of its research on more routine medical problems such as sniffles, sore muscles, and nicotine addiction. Like a lot of other drug makers, Glaxo is moving its research upstream into weighty maladies that have remained unsolved by modern medicine and away from primary-care problems.
Topic:
Civil Society, Economics, Emerging Markets, and Human Welfare

5820. Yuan Answers?

Author:
Phillip L. Swagel
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
If China decides to adopt a flexible exchange rate, as many U.S. policymakers have urged, gains in U.S. exports and national savings in the long term will be offset by higher prices on Chinese goods and higher interest rates in the short term.
Topic:
Economics, International Trade and Finance, and Politics
Political Geography:
China and Asia