Role of Government

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How We Teach Reading Really Does Matter

Reading is the most important skill taught in school. If students don’t learn how to read, not much else that happens there is going to matter. That’s because being able to read is important in virtually every job. Without the ability to read, life itself will be a...

The Great Misallocators: What Barack Obama and General Electric have in common..

President Obama on Tuesday night stressed U.S. economic competitiveness as a new policy theme, accentuating the point he made last week by naming General Electric CEO Jeffrey Immelt to lead his new jobs council. This is welcome, though not solely because it may signal less Administration hostility to business. The pairing is also instructive because both Mr. Obama and GE symbolize a major reason the U.S. has become less competitive—the misallocation of resources.

Studying the Biases of Bureaucrats

“There is a fashionable new science—behavioral economics, they call it—which applies the insights of psychology to how people make economic decisions. It tries to explain, for instance, the herd instinct that led people during the recent bubble to override common sense and believe things about asset values because others did: the ‘bandwagon effect.'”

Did 2010’s Man of the Year Die in 1897?

“If you’re a renter who reads the newspapers, you have spent the last few years in a constant state of low-level anger at this “bizarre spectacle”—the unexamined assumption that perpetually escalating housing prices are the natural state of human affairs, and certainly a good enough proxy for economic health that the two quantities are freely interchangeable. How much more bizarre must it look in England?”