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In the Boston Globe, Yvonne Abraham tells a heartwarming story about a teen’s service to a grateful family.
On Tuesday night, Patty and Rick Parker were in their cramped kitchen with their 8-year-old son Ben. Dinner was over. Bedtime was near.
Ben’s twin brother, Sammy, lay on a cot in the narrow hallway just outside the kitchen. Unable to see or speak or control his limbs, he coughed or let out a little moan every now and then. Rick and Patty took turns feeding Sammy, who has cerebral palsy, through a stomach tube. He cooed when they kissed his face or stroked his cheek, and when they cooed back, he opened his mouth into a wide, joyful O.
A few feet away was the narrow, winding stairway that is the family’s biggest burden lately.
Which is where 17-year-old Rudy’s simple, life-changing act of kindness comes in. …
More good news. In the Jerusalem Post, Yaakov Katz writes about the damage to the Iranian nuclear operations reportedly created by the Stuxnet virus.
…Last week, The Jerusalem Post interviewed Ralph Langer, a top German computer consultant who was one of the first experts to analyze Stuxnet’s code. It was possible the worm had set back Iran’s nuclear program by two years, Langer said.
…David Albright, president of the Institute for Science and International Security, told the Post that during a study of the Stuxnet code, he discovered that the virus caused the engines in Iran’s IR-1 centrifuges to increase and decrease their speed. The report cited an unnamed government official who claimed that Iran usually ran its motors at 1,007 cycles per second to prevent damage, while Stuxnet seemed to increase the motor speed to 1,064 cycles per second.
…Albright said that the number of centrifuges damaged – 1,000 – also appeared to indicate that Stuxnet – if it caused the breakage – was meant to be subtle and work slowly by causing small amounts of damage to the systems that would not make the Iranians suspect that something foreign – like malware – had been infiltrated into their computers. “It could be that Stuxnet was meant to be subtle to disrupt and break more and have less enriched uranium produced,” he said.
Mark Perry and Robert Dell, in the American.com, posit that the recession was due to government failure, and identify six government policies that created the most damaging incentives in the economy.
…To fully explain the banking crisis, one must account for its timing, severity, and global impact. One must also confront a startling historical contrast. … we find that in the period 1875-1913, a period of marked expansion in international trade and capital flows comparable to the last three decades, there were only four banking crises worldwide.1 By contrast, in the period 1978-2009, a period of much more extensive bank regulation, central bank intervention, government protection of depositors and other bank creditors, and government control of mortgage markets, about 140 banking crises occurred worldwide. Of these, 20 were more severe than any crisis from the earlier period of 1875-1913, in terms of total bank losses as a percent of GDP.
In answer to the questions posed above about what specific factors explain the…causes and timing of the banking crisis and the extraordinary departure from historically sound underwriting and securitization standards for residential mortgages, we identify a potent mix of six major government policies that together rewarded short-sighted collective risk-taking and penalized long-term business leadership…
Underlying all these six government policies is the underappreciated problem of government failure, a problem rooted in the absence of incentives to reconcile a policy’s social costs and benefits with the costs and benefits to the policy makers. Therefore, the banking crisis should be understood more fundamentally as a government failure than as a market or business failure.
…The crisis certainly could not have occurred without certain private firms (e.g., Citigroup, UBS, Merrill Lynch) engaging in excessive corporate short-termism (or perhaps “greed”) along the same lines as Fannie and Freddie. But greed is a timeless and universal component of human nature, and it influences the public sphere at least as much as the private sector. As such, greed has little relevance in explaining the timing and crucial facts of the recent crisis—such as why credit standards and due diligence practices in housing finance deteriorated so much more dramatically than in any other credit segment. …
…A more accurate interpretation of the financial crisis as predominantly a government failure could pave the way for real financial reforms that would contribute to both future financial stability and productivity. These reforms would include: 1) the gradual reduction of government intervention in mortgage markets through legislation such as the GSE Bailout Elimination and Taxpayer Protection Act (HR 4889), sponsored by Representative Jeb Hensarling (R-Texas); 2) a reduction in federal deposit insurance and other transparent policy rules to reduce or eliminate creditor expectations of future bailouts, especially the “too big to fail” guarantee; 3) the replacement of elaborate regulatory micromanagement with more equity capital; and 4) a monetary policy rule or quasi-rule to govern the Federal Reserve’s policy making. …
The WSJ editors comment on how Oregon raised taxes and collected less than expected.
Oregon raised its income tax on the richest 2% of its residents last year to fix its budget hole, but now the state treasury admits it collected nearly one-third less revenue than the bean counters projected. The sun also rose in the east, and the Cubs didn’t win the World Series.
…The biggest loss of revenues came from capital gains receipts. The new 11% top tax rate applies to stock and asset sales, which means that Oregonians now pay virtually the highest capital gains tax in North America. Instead of $3.5 billion of capital gains in 2009, there was only $2 billion to tax—43% less. Successful entrepreneurs like Nike owner Phil Knight don’t get rich by being fools with their money. They don’t sell tens of millions of dollars of assets when capital gains taxes go up.
…All of this is an instant replay of what happened in Maryland in 2008 when the legislature in Annapolis instituted a millionaire tax. There roughly one-third of the state’s millionaire households vanished from the tax rolls after rates went up.
If Salem officials want to find where the millionaires went, they might start the search in Texas, the state that leads the nation in job creation—and has a top income and capital gains tax rate 11 percentage points lower than Oregon’s.