Today, two officials from the US-China Economic and Security Review Commission speak with Elizabeth Economy about the current state of US-China relations; David Leal considers the implications for Britain’s once-dominant major parties of a recent special election in the UK; and Terry Anderson explains how establishing markets with strong property rights can lead to surprising improvements in natural resource stocks and the quality of the environment.
Confronting and Competing with China
In the latest episode of China Considered, Senior Fellow Elizabeth Economy speaks with Randall G. Schriver and Distinguished Visiting Fellow Mike Kuiken of the US-China Economic and Security Review Commission about national security and economic policy toward China, and how the two are intertwined. Schriver and Kuiken explain how the commission monitors emerging risks—from advanced technologies like AI and quantum computing to vulnerabilities in supply chains and tracking scam centers abroad—culminating in a yearly report to Congress. The discussion also covers rising geopolitical tensions, particularly around Taiwan, and China’s support for Russia and Iran, as well as the implications of these powers’ growing coordination. Schriver and Kuiken conclude by emphasizing the importance of strengthening alliances and US domestic capabilities to compete effectively in both economic and security domains.
Hear how the Commissioners think the current US approach to “economic statecraft” might be improved.
British Politics and Institutions
At Defining Ideas, Senior Fellow David L. Leal argues, based on his analysis of the result of a minor but meaningful UK special election, that the major British parties continue to lose public support while insurgent political groupings are battling for vote share. The Green candidate—the first ever to win a British by-election—gave signs of shifting toward a “unite the left” message, with less emphasis on her party’s traditional environmental stance. At the same time, the Greens’ strength seemed to indicate that such tactical voting might be keeping Nigel Farage’s insurgent Reform Party at bay. The implications for the next parliament will not be clear for a long while, Leal writes, but local elections May 7 are expected to offer additional clues.
Learn why Leal says the Conservative and Liberal Democratic parties were “missing in action” in this recent UK election.
Environmental Policy
Humans naturally hunt for solutions to problems, but economists know that every answer involves shifts in costs and benefits. As Senior Fellow Thomas Sowell is fond of reminding us, “There are no solutions, only trade-offs.” This is especially true in managing the environment, Senior Fellow Terry Anderson argues at Freedom Frequency, because natural resources are limited and must somehow be shared. Governments create mandates to reach for economic and environmental goals, but the voluntary exchange of rights to resources can work as an alternative to government decrees, Anderson says. His essay makes the case that water, air, land, fisheries, and timber can all be managed by clear and enforceable property rights, exercised through a dynamic market.
Discover how market mechanisms can improve environmental management efforts.
Economic Research
In a new episode of Economics, Applied, Senior Fellow and Director of Research Steven J. Davis speaks with Evan Starr, a leading expert on the economics of noncompete clauses. They discuss the prevalence of noncompete clauses in employment agreements; the pros and cons for employers, workers, and society of such agreements; and where to draw the line in disallowing noncompete clauses. Davis and Starr also evaluate the role of antitrust laws in policing noncompete clauses; their effects on the pace of innovation; and whether the United States should adopt a national policy on noncompete clauses.
Are noncompete clauses accelerating or delaying the pace of innovation?
In this special Grumpy Economist Weekly Rant, John Cochrane highlights a new Hoover Institution Press volume honoring Senior Fellow John Taylor and his far-reaching contributions to macroeconomics, monetary policy, international economics, public service, and economic liberty. Cochrane explains why Taylor’s most famous contribution—the Taylor rule—became central to modern monetary theory and practical central banking. Cochrane also shows how Taylor helped shift the way economists and central bankers think about the Federal Reserve: away from a narrow focus on money supply and toward a systematic framework for setting interest rates in response to inflation and output fluctuations.
Unpack why the Taylor rule changed both academic debates and economic policy conduct.
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