THE END OF SUPPLY-SIDEISM. Chris Suellentropnotes that Republicans are beginning to abandon supply-side economics, one of the most overdue exoduses in economic history. Evidence comes from Bush's former chief economic adviser Greg Mankiw, who writes that "some supply-siders like to claim that the distortionary effect of taxes is so large that increasing tax rates reduces tax revenue. Like most economists, I don't find that conclusion credible for most tax hikes, and I doubt Mr.
TAPPED BOUND. Many TAPPED readers, I�m sure, will be happy to learn that Linda Hirshman will be guest-blogging with us for two weeks starting next Monday. Hirshman�s outstanding critique of �choice feminism,� which appeared in the Prospect�s December issue, helped spark a very heated debate about women, work, and the domestic glass ceiling. Hirshman has since extended her work for that piece into a book, Get to Work: A Manifesto for Women of the World, which will be released on June 8.
MORE ON IRAN. In addition to Garance and Laura Rozen's comments, it's worth heeding cautionary notes from both Kevin Drum and Ivo Daalder that Condoleezza Rice may be (whether in deliberate bad faith or not) putting too many demands for Iranian concessions on the table as preconditions for negotiation.
SOME PROGRESS, FINALLY. The United States, after much pushing, has finally acceded to engaging in direct talks with Iran, on the condition that it abandon its nuclear enrichment activities. This is the necessary next step in the diplomatic dance, but marks a dramatic departure from the Bush administration's approach toward Iran over the past six years. With the world looking to Iran for a counter-offer, Iran will now either have to chose the engagement with the United States it says it wants or else be perceived as the intransigent party in this conflict.
THE GOOD NEWS. While I was on vacation yesterday, I don't think any of my colleagues noted the ongoing developments in the Haditha massacre story. This is one of those things that makes you appreciate the old-fashioned print news media which, for all its flaws, can bring things like this to light and leaves your humble blogger with relatively little to add.
According to press accounts, Mr. Paulson is an ardent believer in a strong dollar. Regardless of what you think of the budget deficit, the strong dollar IS the reason for the trade deficit.
This is not really a contestable point. No one opts to buy imported goods rather than domestically produced goods because of the budget deficit. They buy imported goods because the strong dollar makes them cheaper. It really is that simple.
IN DEFENSE OF INTERNSHIPS. I'm going to break with Garancehere -- Anya Kamenetz's op-ed didn't make much sense to me. Her basic point is simple: Internships are a $124 million subsidy to corporate America. Well, maybe. But first you have to figure out how many internships are actually in "corporate America." The American Prospect, The Nation, the AFL-CIO, the Center for American Progress, the ACLU, People for the American Way, and all the other usual suspects have robust intern programs which allow them to train and try out kids they can't necessarily hire.
THE NEW ANTI-UNION TRAINING GROUND: UNPAID INTERNSHIPS.Anya Kamenetz, author of Generation Debt: Why Now is a Terrible Time to be Young, today penned a brilliant op-ed for The New York Times arguing that, rather than focusing solely on the impact of illegal immigrants on wages and jobs, we ought to take a good, hard look at the potential wage and other distortions created by the rise of the unpaid internship as a major factor in American economic life, and to treat internships as the "$124 million yearly contribution to the welfare of corporate America" that they are.
ZINSMEISTER'S RACE-CONSCIOUS NATION.Greg over at Horse's Mouth notes another peculiar article by new White House domestic policy chief Karl Zinsmeister, this 1996 American Enterprise essay on the always uncontroversial subject of race. While making appropriate hemming and hawing sounds and adding lots of caveats to his assertions, Zinsmeister still manages to come off sounding, well, like the kind of fellow an administration that's already alienated African-Americans might not chose to lead its domestic programs if it wanted to improve those relations.