We are in a world where Republican budgets cut government and taxes—including government spending that is truly investment—and where Democratic budgets increase spending and taxes— including taxes on corporations that compete globally. And so it should be no surprise that the President’s budget mostly conformed to this pattern.
To be sure, there are many things to like in the President’s Fiscal Year 2015 Budget. On the positive side of the ledger is the budget’s call for a slate of programs designed to boost U.S. advanced manufacturing and industrial competitiveness—such as the Administration’s call for $1 billion to create a National Network for Manufacturing Innovation (NNMI) comprised of 45 Institutes of Manufacturing Innovation that are poised to play a key role in revitalizing U.S. manufacturing. The President’s budget also calls for $1.5 billion in funding for the National Nanotechnology Initiative (NNI), $5.1 billion for the Office of Science at the Department of Energy (DOE), and $3.8 billion for the Networking and Information Technology Research and Development (NITRD) program, which plays an important role in keeping the United States at the leading-edge of advanced research into high-performance computing and cybersecurity. It … Read the rest
Last month something evil happened in Las Vegas: Netflix was invited into the inner cloister of the Last Mile Cabal, where a blood sacrifice sealed a dark pact with Comcast. What was in that pact, what were the terms on which the sacrifice was made? I’ll tell you: a commercial transaction that will reduce congestion at points of interconnection, improving Netflix performance across Comcast’s network, bringing joy and good cheer to video streamers across the country. Wait, what – you may ask – what’s evil about that? I’m not quite sure either, although reading the coverage of this deal, you’d think it was.
To be clear, this is an interconnection issue, not a net neutrality issue. Let me repeat that: this is not a net neutrality issue. It is unfortunate timing for the parties – with the recent opinion from the D.C. Circuit vacating the Commission’s non-discrimination and no-blocking rules some industry watchers are on hair-trigger to find a would-be violation. Accusations that Comcast was “throttling” Netflix, or that Netflix is “paying off” Comcast for a “premium” connection are simply wrong. Netflix is not getting priority treatment of its traffic, … Read the rest
The Bureau of Labor Statistics (BLS) is considering cutting more of its data reports, this time weighing the elimination of Import-Export Pricing Data. Far from saving tax-payers money, the potential cut will hobble the ability for both our government and our exporters to have the information they need to innovate and compete in a changing global marketplace.
The BLS’s Import-Export Pricing is a valuable part of its Price and Cost of Living report. The report collects data on goods entering and exiting the country and the prices of those goods by polling U.S. companies. The data gives producers vital information on trends in world prices and provides the public with information on U.S. inflation, economic output, and the overall well-being and competitiveness of American business.
Unfortunately, eliminating Import-Export Pricing is not an isolated example of the government’s growing information crisis. Across the board, budget cuts and sequestration has severely reduced efforts by the BLS, the Bureau of Economic Analysis, the National Science Foundation, the Department of Labor, and the Department of Commerce to produce timely and high-quality data to assess traded sector competitiveness. The BLS has already eliminated its … Read the rest
A March 3, 2014 story from Reuters by Carey Gillam presents claims by organic farmers that the federal government needs to step in to prevent “contamination” of their fields. So what is the problem that has organic growers hunting for help?
According to the press release uncritically recycled by Reuters, “Growing crops free from contamination by genetically modified crops and the pesticides used on those biotech versions is getting more difficult and more costly for U.S. farmers, and new government rules to control contamination are needed, according to [sic] report… by an environmental organization and an organic food group.”
The first problem with the story is the use of the term “contamination.” What does it mean to “contaminate” something? According to Merriam-Webster, to “contaminate” means “to make something dangerous, dirty, or impure by adding something harmful or undesirable to it.” So is it the right word to use in this context?
Farming is not a sterile endeavor. Farmers literally work in the dirt, and try as they might, it can be a very messy business. Harvests invariably reflect this truth, and nobody who’s ever spent any time on … Read the rest
A Paul Krugman op-ed in The New York Times today, “No Big Deal,” incorrectly argues that completing a trans-pacific trade pact would be of little consequence to the U.S. economy. Rather, successfully concluding The Trans-Pacific Partnership (TPP), which includes 12 Asia-Pacific region countries—Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States—is vitally important to the U.S. economy and to future global economic integration, as ITIF argues in Concluding a High-Standard, Innovation-Maximizing TPP Agreement.
Krugman argues that the “glory days” of trade deals are over, in part because previous trade pacts significantly reduced many countries’ tariff levels, such that “there just isn’t much more protectionism to eliminate.”
Unfortunately this line of thinking fails to acknowledge the pernicious and growing impact of NON-TARIFF barriers (NTBs) on innovation industries. These barriers include a range of unfair and distortionary practices, such as inadequate intellectual protections on foreign intellectual property (IP), restrictions on trade in services, barriers to digital trade and cross-border data flows, currency and standards manipulation, and localization barriers to trade—policies that mandate local production or the transfer of technology or intellectual property … Read the rest