A recent review by the Wall Street Journal of a Standard & Poor’s (S&P) credit analysis of Boeing in relation to the U.S. Export-Import (Ex-Im) Bank appears to have missed the point. The article sums up the report with the quote, “We don’t believe that the expiration of Ex-Im’s authorization in September would hurt Boeing’s credit quality or ability to make planned deliveries in 2014 and 2015.” However, this ignores the fact that this statement relates only to planes already in production being prepared for delivery. S&P goes on to conclude that alternative financing sources would not be able to match the demand for Boeing airplanes, and that Boeing would lose out on new orders of aircraft. In addition, it states that the effect of an Ex-Im Bank dissolution on Boeing’s credit quality would be significant, especially in sales to emerging markets or to start-up and financially weak airlines. Judging by 2014 data, Boeing’s new financing needs would total between $7 billion and $9 billion if it lost the support of the Ex-Im Bank.
This ‘misunderstanding’ seems to stem from a desire to portray the Ex-Im Bank—which has been quietly … Read the rest
In 2004, the Department of Veterans Affairs was forced to scrap a multimillion-dollar computer system that was designed to streamline the agency’s costs. Ironically, the project cost taxpayers $265 million, and is one of many examples of federal IT projects which go massively over budget and under deliver. Part of the reason for these failures is the last time we made significant changes to how our government acquired its own IT was the Clinger-Cohen Act of 1996. This law was enacted the year before Google.com was registered as a domain name, back when Windows 95 was the new big thing. Almost two decades later, while innovation has continued to press forward, our government’s ability to efficiently acquire new IT has lagged miserably behind.
Luckily, a few lawmakers are trying to remedy that. In March 2013, Congressmen Darrell Issa (R-CA) and Gerry Connelly (D-VA) introduced H.R. 1232, the Federal Information Technology Acquisition Reform Act (FITARA), to overhaul the federal government’s approach to acquiring IT. The bill seeks to designate clear responsibility and authority over federal IT investment, enhance the government’s ability to get good IT, strengthen the federal IT … Read the rest
In 1895, Lord Kelvin, the renowned physicist, declared “Heavier than air flying machines are impossible” and dismissed those who were pursuing such research. Had the scientific community heeded his words and those of other skeptics, the advancements in aviation that define our modern world would have sadly been held back. Yet, unfortunately some in the scientific community have not learned the lesson that betting against human ingenuity is a fool’s game. The most recent example of this comes from Arvind Narayanan and Ed Felten who in a recent paper declared that de-identification has never and will never work. (Their paper was intended as a rebuttal to a piece written by Dr. Ann Cavoukian, the former Ontario Privacy Commissioner, and me, which demonstrated that the claims made in the popular press about academic research on re-identification methods often overstate the findings or omit important details.)
The authors are making an incredible claim. They are not saying that de-identification sometimes fails (which is painfully obvious to even the casual observer), but rather that there is no such thing as anonymous data. Narayanan and Felten write, “there is no evidence that de-identification works … Read the rest
It doesn’t take long to get the drift of a new report from the Center for Immigration Studies, a non-partisan, anti-immigration think tank. The title basically sums it up: “All Employment Growth Since 2000 Went to Immigrants.” The only question left to the reader is, why they didn’t simply title it “Immigrants stole all of our jobs”?
Perhaps it’s because immigrants didn’t steal our jobs, and the authors have no evidence that they did, but they’re doing their best to insinuate that they do.
Their main findings certainly look surprising at first blush: immigrant employment has increased significantly since 2000, but native employment has not increased at all, despite the fact that native population has increased twice as much as immigrant employment. It seems like a closed case: all the new jobs went to immigrants, therefore we should decrease immigration.
If only it were that simple. As intuitive as it might seem to argue that a job is a job and an unemployed person is an unemployed person, this is not how economies work. The Center makes a mistake common to many casual observers of the labor market: what economists … Read the rest
A recent NBER working paper offers up some interesting new survey data on innovation in U.S. manufacturing industries. Authors Ashish Arora, Wesley M. Cohen, and John P. Walsh surveyed more than 5000 U.S. manufacturing firms in 2010, asking whether or not they brought new products to market in the previous three years.
Most notably, the data shows that the number of truly innovative manufacturing firms is relatively small. In the aggregate, it finds that 43 percent of firms introduced new products in the past three years, but only 18 percent of firms introduced new products that were wholly new to their market. In other words, one quarter of firms, and more than half of firms introducing new products, introduced “imitation” products following the lead of other companies. The percent of firms introducing totally new products ranged significantly between industries, from just 10 percent of firms in the “Wood” and the “Metals” industries, to 44 percent in the “Instruments” industry.
The survey also breaks down the results in a number of interesting ways, including where the innovations originated. It finds that the most common source of innovation is customers. This is … Read the rest