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Navigator, October, 2004

Navigator, October, 2004
Articles
Law and Punishment
William Perry
(10/1/2004)
The Benefits of Price Gouging
Frank Bubb
(10/1/2004)
The Freedom Olympics
Roger Donway
(10/1/2004)
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News
Sightings, October 2004
Bidinotto Watch, Ideas in Iraq, Contribution reminder, Postmodernism book published, Camp Indecon update
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Suggested Readings: Liberty


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October, 2004 Soundings

"In 1990, the reported value of [North Korean] imports was nearly $3 billion (in current U.S. dollars). Eight years later, the reported level had dropped below $1.2 billion—a catastrophic fall of over 60 percent. After 1998, however, North Korea's imports rebounded markedly. By 2001, the reported level exceeded $2 billion—and it appears to have risen through 2003."

How was North Korea able to pull this off? "It may be perplexing and counterintuitive to see the United States . . . . described as a major backer of the North Korean state. Yet this is now in fact the case. . . . In the 1996-2002 period, Washington awarded Pyongyang just over $1 billion in food aid, concessional fuel oil, and medical supplies. . . . We can never know what would have happened if the United States and her allies in Asia and Europe had refrained from underwriting the survival of the North Korean state in the late 1990s and the early years of the present decade. . . . What we know—or think we know—is that the DPRK was failing economically in the mid-1990s. But in the late 1990s and early years of the current decade the prospect of 'economic collapse' was diminished materially by an upsurge in provisions of goods from abroad—goods that were financed in considerable measure by new flows of Western foreign aid.

"What thus seems beyond dispute is that the upsurge of Western aid for the DPRK under 'Sunshine' and 'engagement' policy played a role—possibly an instrumental role—in reducing the risk of economic collapse and increasing the odds of survival for the North Korean state." "The Persistence of North Korea," Nicholas Eberstadt, Policy Review, October and November 2004.


"[Stanley] Crouch places himself in the ranks of black conservatives, like John McWhorter, who denounce the cancer of barbarism growing in black popular culture. He is vocally disgusted by hip-hop music's 'neo-Sambo … mugging or scowling' with 'gold teeth, drop-down pants, and tasteless jewelry.' He bravely chastises producers and 'artists' who peddle the same 'bullying, hedonistic buffoons' D. W. Griffith portrayed in Birth of a Nation. The spark and originality of Crouch's criticism—what will make it impossible to ignore him—is that he takes the customary disgust of conservative critics and goes it one better. He derides the purveyors of crudity because they are, after all, guilty, but he sees the real danger in a wider cultural trend, one more to do with 'authenticity anxiety' than race. That trend is the belief, slipped into circulation by the liberal intellectual elite, that what is most 'real' is what is most base, most closely allied to the loutish ways of the lower orders." "Authenticity Blues," Stefan Beck, The New Criterion, November 2004.


In "Why Americans Work So Much More Than Europeans," Edward C. Prescott, co-winner of the 2004 Nobel Prize in economics, writes: "Residents of the United States work much more than do Europeans. Using labor market statistics from the Organisation for Economic Co-operation and Development (OECD), I find that Americans on a per person aged 15-64 basis work in the market sector 50 percent more than do the French. This was not always the case. In the early 1970s, Americans allocated less time to the market than did the French. The comparisons between Americans and Germans or Italians are the same. . . . The periods considered are 1970-74 and 1993-96. The later period was chosen because it is the most recent period prior to the U.S. telecommunications/dot.com boom of the late 1990s, a period when the relative size of unmeasured output was probably significantly larger than normal. . . . The relative numbers after 2000 are pretty much the same as they were in the pretechnology boom period 1993-96. I emphasize that my labor supply measure is hours worked per person aged 15-64 in the taxed market sector. The two principal margins of work effort are hours actually worked by employees and the fraction of the working-age population that works. . . . The important observation for the 1993-96 period is that labor supply (hours per person) is much higher in Japan and the United States than it is in Germany, France and Italy. Canada and the United Kingdom are in the intermediate range. Another observation is that U.S. output per person is about 40 percent higher than in the European countries, with most of the differences in output accounted for by differences in hours worked per person and not by differences in productivity, that is, in output per hour worked.


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