Freedomnomics: Why the Free Market Works and Other Half-Baked Theories Don't

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Freedomnomics: Why the Free Market Works and Other Half-Baked Theories Don't Page 28

by John R. Lott Jr.


  103 Carlsson was later Sweden’s Prime Minister. See Roland Huntford, The New Totalitarians(New York: Stein and Day, 1972), 222 and 233.

  104 Huntford, 1972, 222. See also Sherwin Rosen, “Public Employment and the Welfare State in Sweden,” Journal of Economic Literature (June 1996): 729-740.

  105 John R. Lott, Jr., “Public Schooling, Indoctrination, and Totalitarianism,” Journal of Political Economy, vol. 107, no. 6, part 2 (December 1999): S127-S157.

  106 Robert Kaiser, Russia: The People and the Power (New York: Secker & W, 1976), 484.

  107 Edward Taborsky, Communism in Czechoslovakia (Princeton, NJ: Princeton University Press), 1961, 542.

  108 David K. Shipler, Russia: Broken Idols, Solemn Dreams (New York: Times Books, 1983): 116.

  109 Quote from John Loftus, former federal prosecutor, “Obsession: The Threat of Radical Islam,” FOX News, November 5, 2006, 5 p.m. to 6 p.m. (http://www.foxnews.com/video2/player06.html?103106/103106_Obsession2&FNL&Watch%20a%20Preview%20of%20%27Obsession%27&acc&World&320&News&422&&&new#).

  110 Discussion from Wayne Kopping on “Obsession: The Threat of Radical Islam,” FOX News, November 5, 2006, 5 p.m. to 6 p.m. (http://www.foxnews.com/video2/player06.html?103106/103106_Obsession2&FNL&Watch%20a%20Preview%20of%20%27Obsession%27&acc&World&320&News&422&&&new#).

  111 West argues that education in New York was essentially universal prior to government subsidies. “The term ‘universal’ is intended to mean, something like, ‘most,’ ‘nearly everybody,’ of ‘over 90 percent’ then we lack firm evidence to show that education was not already universal prior to the establishment of laws to provide a schooling which was both compulsory and free.” E.G. West, “The Political Economy of American Public School Legislation,” Journal of Law and Economics, 1967, 127.

  112 John R. Lott, Jr., “Alternative Explanations for Public Provision of Education,” UCLA Economics Ph.D. Dissertation, May 1984.

  113 E.G. West, “The Political Economy of American Public School Legislation,” Journal of Law and Economics (1967): 105.

  114 The argument here is not that there is a mistake being made here, but simply that teachers incentives are set up to reflect the desires of those who want to have larger government. This argument also applies to public ownership of the media—National Public Radio employees likely have the same type of incentives as pubic school teachers.

  115 Like the previous example, this compares totalitarian and free countries of the same total income.

  116 John R. Lott, Jr., “Public Schooling, Indoctrination, and Totalitarianism,” Journal of Political Economy, vol. 107, no. 6, part 2 (December 1999): S144-S146.

  117 A survey of 10 countries (Canada, England, France, Italy, New Zealand, Portugal, South Korea, Soviet Union, Sweden, and West Germany) found that citizens have much more choice in selecting between public doctors or different public hospitals than in selecting the public school or teacher for their child. Unlike schooling, customers of public medical care do not bear the large cost of changing their residence in order to change doctors. While public doctors and hospitals do not compete for patients on the basis of price, they do compete on the basis of quality, and doctors and administrators’ salaries vary depending on the number of patients served. Forbidding salaries to vary on this basis or stopping patients from choosing among doctors would seem to lower the quality of care produced. See John R. Lott, Jr., “The Institutional Arrangement of Public Education: The Puzzle of Exclusive Territories,” Public Choice, vol. 54, no. 1 (1987): 89-96.

  Conclusion: Parting Thoughts

  1 F. A. Hayek, “The Use of Knowledge in Society,” American Economic Review (September 1945): 519-530.

  Index

  A

  AAA

  ABA. See American Bar Association

  ABC

  ABC News

  abortion: in 1970s; crime and; out-of-wedlock births and; Roe v. Wade and; Supreme Court, U. S. and; “unwanted” children and; unwanted fatherhood and

  Abortion: Law, Choice, and Morality (Callahan)

  Abramoff, Jack

  ABSCAM

  academia. See universities

  academic freedom

  ACLU. See American Civil Liberties Union

  ACORN. See Association of Community Organizations for Reform Now

  ACT. See America Coming Together

  Adams, Frank

  Adelphia

  affirmative action: consent decrees and; crime and; norming and; in police departments; strength standards and; testing standards and

  Africa, HIV drugs and

  African Americans: affirmative action in police departments and; crime and; Election 2000 and; out-of-wedlock births and; voter turnout, suppression of and; voting machines and

  Airbus

  airline travel

  Alabama

  Alaska

  Allerca

  Alterman, Eric

  AMA. See American Medical Association

  Amazon.com

  America Coming Together (ACT)

  American Airlines

  American Bar Association (ABA)

  American Center for Voting Rights

  American Civil Liberties Union (ACLU)

  American Medical Association (AMA)

  Americans for Democratic Action

  AP. See Associated Press

  apartheid

  Apple

  Arizona

  Arkansas

  Arkansas Democrat-Gazette

  Ashenfelter, Orley

  Asher, Herb

  Associated Press (AP)

  Association of Community Organizations for Reform Now (ACORN)

  Association of Private Weather-Related Companies

  Association of Trial Lawyers of America

  AT&T

  auto insurance

  automobiles: lemon thesis and ig; LoJack antitheft device and

  B

  Bacanovic, Peter

  baseball

  Beckel, Bob

  Berry, Mary Francis

  Biden, Joseph

  black markets: price controls and; taxation and

  Blagojevich, Rod

  Bloomberg, Michael

  Blumenauer, Earl

  Blumstein, Alfred

  Blunt, Matt

  Brady Act (1994)

  Brady Campaign

  Brazil

  Breyer, Stephen

  “broken windows” policing methods

  Bronars, Steve

  Brown & Williamson cigarette makers

  Buckley v. Valeo

  Buffalo, University of

  Bush, George H. W.

  Bush, George W.: campaign finance and; Election 2000 and; gun control and; media and; reputation and

  Business Week’s

  Butterfield, Fox

  C

  California

  California, University of, Los Angeles (UCLA)

  Callahan, Daniel

  campaign finance: 527 groups and; “double-giving” and; elections, competitiveness of and; government spending and; incumbents, protection of and; McCain-Feingold bill (2002) and; media bias and; negative political advertising and; PACs and; reputation and; special interests and; Supreme Court, U. S. and; vote-buying and; vote buying and

  Campbell Soup

  Canada: abortion in; crime rates in; pharmaceuticals and

  Cantwell, Maria

  capitalism. See free market

  capital punishment. See death penalty

  car insurance

  Carnegie Mellon University

  Carrington, Ellsworth

  cars: lemon thesis and; LoJack anti-theft device and

  CarSense

  Carter, Jimmy

  Carter, Vince

  Carter-Baker commission

  CBS

  Center for Responsive Politics

  central planning: economic freedom vs.; free market vs.

  Cheung, Steven

  Chicago, Ill.

  Chicago, University of

  Chicago, Un
iversity of, Law School

  Chicago Tribune

  Chile

  China; economic success in; space program in

  cigarettes; predation and; smoking bans and

  Clemson University

  Clinton, Bill

  Clinton, Hillary Rodham

  Clinton Administration

  CNN

  Coke. See colas

  colas, price discrimination and

  Colorado

  Columbus, Christopher

  Communism: economic system of; education and; mass shortages and

  Communist Manifesto (Marx)

  concealed-carry laws; celebrities and; crime and; drawbacks of; research onig. See also gun control

  congressional elections (2006)

  Congressional Research Service

  Connecticut

  Conservative Victory Fund

  Constitution, U. S.

  Constitutional Initiative , Montana

  Constitutional Initiative , Montana

  Continental Airlines

  copyrights

  Cornell University

  corporations: crime and; free market, distrust of and; gas prices and; mergers and; monopoly power of; oil prices and; stock diversification and

  Coulter, Ann

  Count Every Vote Act (2005)

  crime: in 1990s; abortion and; affirmative action in police departments and; age and race and; arrest and conviction rates and; “broken windows” policing methods and; concealed-carry laws and; corporate; corporations and; death penalty and; education and; environmental; excessive penalties for; gun control and; incentives and; law enforcement and; minimum wage regulations and; prison populations and; rates of; rent control and; reporting of; reputation and; “unwanted” children and

  Culpepper, Daunte

  Cunningham, Randy “Duke,”

  Cuyahoga County, Ohio

  Czechoslovakia

  D

  The Daily News

  death penalty: crime and; international support for; public support for; requirements for; research on; Supreme Court, U. S. and

  Delaware

  democracy: education and; reputation and

  Democratic Party, Democrats

  Demsetz, Harold

  De Niro, Robert

  Deutsche Post AG

  divorce

  Dole, Bob

  Domenici, Pete

  Donohue, John

  Dorgan, Byron

  Dougan, Bill

  Downsize This! (Moore)

  Dreyfus, Jack

  Dubner, Stephen; free market, distrust of and; lemon thesis and; real estate agents and

  Duggan, Mark

  Duke University

  E

  eBay

  economic freedom

  economic self-interest

  The Economist

  education: academic freedom and; Communism and; crime and; democracy and; Free Schools Act of 1867 and; government subsidies and; as indoctrination; predation, public and; in totalitarian countries; voting and

  Ehrlich, Isaac

  Election Assistance Commission

  elections: 2006 congressional; competitiveness of; Election 1980; Election 1996; Election 2000; Election 2004

  eminent domain

  Emtriva

  Enron

  environment: common pool problem and; pollution, government regulation of and

  environmental crimes

  Europe: death penalty in; HIV drugs and

  European Commission

  Evans, David

  Expedia

  F

  Farrell, Chris

  fatherhood, unwanted

  FBI. See Federal Bureau of Investigation

  FDA. See Food and Drug Administration

  Federal Bureau of Investigation (FBI)

  Federal Election Campaign Act

  Federal Trade Commission

  FedEx

  527 groups

  527 Reform Act of 2005

  Fletcher, Ernie

  flood insurance

  Florida; Election 2000 and; voter fraud in

  Food and Drug Administration (FDA)

  football helmets, liability and

  Foote, Christopher

  Forssman, Hans

  FOX News

  France

  fraud: corporate; voting

  Freakonomics (Levitt and Dubner): abortion and crime and; campaign finance and; corporate crime and; free market, distrust of and; lemon thesis and; real estate agents and

  free competition. See free market

  freedom: academic; economic

  free market: academia and; central planning vs.; distrust of; economic self-interest and; failure of; failures of; incentives and; reputation and; success of; wealth and

  free-riding problems

  Free Schools Act of 1867

  Friedman, Milton

  Fund, John

  Furman v. Georgia

  G

  Gallup Poll

  Gandhi, Mohandas

  gas: full- vs. self-service; price of; shortages of. See also oil prices

  gas stations, franchising of

  GEICO insurance

  gender gap

  Genuardi’s

  George Mason University

  George Mason University School of Law

  Georgia

  Germany

  Ginsburg, Ruth Bader

  Giuliani, Rudolph

  Goetz, Christopher

  Goff, Donald

  Goldberg, Bernie

  Gordon, James

  Gordon, Slade

  Gore, Al

  Gould, Jay

  government: campaign finance and; eminent domain and; expeditions of; flood insurance and; free-riding problems and; growth in size of; inefficiency of; licensing, professional and; market failures and; pharmaceutical industry and; predation and; price controls and; search-and-rescue teams of; subsidies and; university funding and; women’s suffrage and

  Granholm, Jennifer

  Great Britain. See United Kingdom

  Great Falls Tribune

  Green Party

  gun control: accidental gun deaths and; assault weapons and; Brady Act (1994) and; crime and; gunlocks and safe-storage laws and. See also concealed-carry laws

  Guns & Ammo

  H

  Handgun Control

  Handguns magazine

  Hansen, Robert

  Harrison, Marvin

  Harvard University

  Hassett, Kevin,

  Hawaii

  health care, socialized

  Helmsley, Leona

  Hern, Misty

  higher education. See education; universities

  HIV

  Hobbes, Thomas

  Home Depot

  honesty: incentives for; reputation and

  Hoover, Herbert

  Hoover Institution

  hotels, price gouging and

  Houston, University of

  Houston Chronicle

  Hurricane Katrina

  I

  IBM

  Idaho

  illegal aliens

  Illinois

  ImClone

  Imus, Don

  incentives: in baseball; crime and; economic self-interest and; free market and; for honesty; misunderstanding; prices and; stock diversification and; in universities; voting and

  incumbents, protection of

  Indiana

  innovation

  insurance: car; deposit; flood

  Intel

  Iran

  J

  Jackson, Jesse

  James, Edgerrin

  Japan, stock diversification in

  Jefferson, William

  Jeffords, Jim

  John Birch Society

  John McLaughlin & Associates

  Johnson, Lyndon

  Johnson, Skip

  Journal of Political Economy

  J. P. Morgan

  judges, anti-corporate hostility of

  Julian, M
ichael

  June, Cato

  Justice Department, U. S.

  K

  Kahn, Alfred

  Kansas

  Karpinsky, Mary Anne

  Karpoff, Jonathan

  Katrina, Hurricane, oil prices and

  Keitel, Harvey

  Kelling, George L.

  Kelly, Amy

  Kelly Bluebook

  Kelo v. New London

  Kennedy, Anthony

  Kenny, Larry

  Kentucky

  Kerry, John

  King County, Wash.

  Klein, Ben

  Knight, Bobby

  Koch Industries

  Koito

  Kozlowski, L. Dennis

  Ku Klux Klan, real estate agents and

  L

  Landes, Bill

  Last Period Problem

  law enforcement, crime and

  lemon thesis

  Levitt, Steve; abortion and crime and; corporate fraud and; death penalty and crime and; free market, distrust of and; lemon thesis and; real estate agents and

  licensing, professional; minimum time limits and; teachers and; wages and

  LoJack anti-theft device

  Lott, John R., Jr., Constitutional Initiative and

  Louisiana

  Ludwig, Jens

  M

  McCain-Feingold bill (2002)

  McCarthy, Eugene

  McCries, Robert

  McGovern, George

  Mail on Sunday

  Maine

  market failures: court regulation and; government and; lemon thesis and; LoJack anti-theft device and; real estate agents and

  Marx, Karl

  Maryland

  Massachusetts

  media: bias in; Bush, George W. and; Montana Constitutional Initiative and; voting and; voting and early calls by

  Media Research Center

  Medicare

  Menken, H. L.

  mergers

  Mexico

  Microsoft

  Middle Ages

  Milken, Michael

  Miller, Alan

  Milwaukee County, Wisc.

  minimum wage regulations

  Minnesota

  Miranda v. Arizona

  Mississippi

  Missouri

  monopolies: availability of products and services and; benefits of; innovation and; pharmaceutical industry and; predation and; price discrimination and; publishing industry and; purpose of; secondary markets and; Supreme Court, U. S. and; U. S. oil industry and

 

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