The painful performance of the American economy in the past decade is not a function of bad luck. It is the product of flawed institutional design. Right now we are reaping the harvest of efforts to reinvigorate the progressive programs of the New Deal that stress high progressive taxes, large transfer payments, strong labor laws, and major barriers to free trade. This combination of public finance and market regulation has proved a potent force for disaster. High marginal tax rates expose the political system to strong factional strife that stifles initiative, adds uncertainty and reduces overall revenues. To these multiple ailments, Epstein argues that the best recipe is a return to the flat tax of the classical liberal tradition. The government has committed itself to substituting state mandates for voluntary arrangements in labor and real estate markets, disabling both by retarding job formation and roiling real estate markets. To these multiple ailments, Epstein argues that the best recipe is a reinvigoration of free markets that do not upset voluntary arrangements on the supposed grounds that they are unfair, one-sided or exploitive. Just change these two levers, and we can find an effective classical liberal antidote to excesses of the modern progressive age.

The painful performance of the American economy in the past decade is not a function of bad luck. It is the product of flawed institutional design. Right now we are reaping the harvest of efforts to reinvigorate the progressive programs of the New Deal that stress high progressive taxes, large transfer payments, strong labor laws, and major barriers to free trade. This combination of public finance and market regulation has proved a potent force for disaster. High marginal tax rates expose the political system to strong factional strife that stifles initiative, adds uncertainty and reduces overall revenues. To these multiple ailments, Epstein argues that the best recipe is a return to the flat tax of the classical liberal tradition. The government has committed itself to substituting state mandates for voluntary arrangements in labor and real estate markets, disabling both by retarding job formation and roiling real estate markets. To these multiple ailments, Epstein argues that the best recipe is a reinvigoration of free markets that do not upset voluntary arrangements on the supposed grounds that they are unfair, one-sided or exploitive. Just change these two levers, and we can find an effective classical liberal antidote to excesses of the modern progressive age.

Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine? Is it culture, the weather, geography? Perhaps ignorance of what the right policies are? Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence? Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions—with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories. Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including: - China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West? - Are America’s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority? - What is the most effective way to help move billions of people from the rut of poverty to prosperity? More philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson’s breakthrough ideas on the interplay between inclusive political and economic institutions? Why Nations Fail will change the way you look at—and understand—the world.

The ideas and policies that are percolating down from 1600 Pennsylvania Avenue and Capitol Hill—increased government intervention, calls to “spread the wealth around,” onerous regulations, and bailouts for all—are not new. We’ve been down this road before. We know where it leads. It is that forlorn byway that Friedrich von Hayek called the Road to Serfdom. The good news is we don’t have to go down that road again. Resurrecting 18th-century style pamphleteering, Encounter Broadsides provide the intellectual ammunition for the battle over America’s future. From the folly of Obamacare, to the politicization of the Justice Department, or disastrous efforts to nationalize our education system, each Encounter Broadside assaults a new tentacle of the rising statism. Now, for the first time, The New Leviathan collects these salvos in one essential handbook. The New Leviathan is edited by Roger Kimball with contributions from John R. Bolton, Daniel DiSalvo, Richard A. Epstein, Peter Ferrara, John Fund, Victor Davis Hanson, Andrew C. McCarthy, Betsy McCaughey, Stephen Moore, Michael B. Mukasey, Glenn Harlan Reynolds, Rich Trzupek, and Kevin D. Williamson. Together, they make the definitive case for liberty and democratic capitalism at a time when they are under siege from the resurgence of collectivist sentiment.

The outbreak of a deadly new form of pneumonia that began in Wuhan, China, in December 2019 has shown the world that the regime in Beijing poses the most serious threat to world peace and freedom since the Soviet Union. Early missteps by China’s ruling Communist Party — repressing doctors who sought to alert China and the world to the dangers of the novel coronavirus and permitting millions to travel out of Wuhan for a holiday — caused the global pandemic now devastating populations and economies around the world. In this important essay, Bill Gertz shows how China’s lies and obfuscations imperiled the world.

What would happen if the maniacal tyranny in Pyongyang took over the vibrant democracy of South Korea? Today, there is a real possibility that the destitute North Korean regime will soon dominate its thriving southern neighbor, with help from the government in Seoul itself. More than any South Korean president before him, Moon Jae-in is intent on achieving Korean union, even if it’s done on Pyongyang’s terms. To that end, he has been making South Korea compatible with the totalitarian North, and distinctly less free. He is also removing defenses to infiltration and invasion and taking steps to end his country’s only real guarantee of security, the alliance with the United States. If Moon’s policy results in handing Kim Jong Un a “final victory” and South Korea falls to despotism, America will lose the anchor of its western defense perimeter, and the free world will be at risk.

Democratic presidential candidates, including Hillary Clinton and Bernie Sanders, along with progressive economists like Thomas Piketty and Paul Krugman, have made a case for redistributing income from the wealthy to the poor as a means of reducing inequalities in income and wealth. Meanwhile, public opinion polls show that voters reject programs of redistribution in favor of policies designed to promote overall economic growth and job creation. While voters are concerned about inequality, they are more skeptical of the capacity of the government to do anything about it without making matters worse for everyone. In this Broadside, James Piereson explains why the voters are right and the progressive politicians and economists are wrong. As he demonstrates, the progressive case is based upon a serious fallacy: it assumes that the government is actually capable of redistributing income from the wealthy to the poor. For reasons of policy, tradition, and constitutional design, this is not the case. The United States currently has one of the more progressive income tax systems in the industrial world but it does little to redistribute income from the wealthy to the poor. One reason for this is that, though the government spends vast sums on programs to aid the poor, most of these funds flow to providers of services rather than to the poor themselves. Thus, whatever one may think of inequality, redistributive tax and spending policies are unlikely to do much to ameliorate it but will instead line the pockets of providers and advocates who wield great influence in Washington.

Cronyism is a serious problem in the United States, but unfortunately it is still not very well understood. In this new essay, Jay Cost explains what it is, and why we should be so worried about it. By mingling private and public interests, cronyism costs us hundreds of billions of dollars per year and threatens to transform our republic into an oligarchy, where the rich dominate the middle class. Worse, modern cronyism has become embedded into the laws themselves, so politicians in Washington assume that such corruption is just the way things should be. To confront the dangers of cronyism, reformers need to think outside the box, paying special attention to how the political process functions.

President Obama has laid the groundwork for an unprecedented centralization of education policy under the guise of promoting educational innovation, accountability, and improved student achievement. In reality, Obama’s new national standards, curricula, and testing – in addition to huge spending commitments by the federal government ¬– shift the policymaking power from individuals and communities to the federal bureaucracy. In this Broadside, Lance Izumi examines Obama’s education policies and shows us why Americans must protect and promote the power of individuals, especially parents, to control children’s education. We should look to the revolutionary school-choice and parental-empowerment laws passed by key states and other nations such as Canada. While Obama is pushing American education in the wrong direction, we can steer it back to local control.

The long-simmering crises challenging the European Union have worsened with the 2008 financial crisis, the influx of Middle East refugees in 2015, several bloody terrorist attacks, and England’s departure from the E.U. in 2016. Yet these are all the wages of persistent flaws in the idea of the Union itself. Excessive regulations, welfare, and taxes impede economic growth. Centralization of power in Brussels has created a “democracy deficit” and lessened autonomy and freedom. Populations are shrinking, and unvetted and unassimilated migrants have increased crime and terrorist attacks. All these problems reflect the lack of any unifying set of beliefs and principles that could unite 27 diverse cultures and peoples. Europe is fractured and adrift, its peoples unsure for what they should fight or die for.