flinthills

June Arunga in Kansas

What a treat we've had to host June Arunga in Kansas -- thanks to the efforts of Greg Rehmke of EconomicThinking.org, Jean Garvey (founder of The Independent School), George Pearson of the Flint Hills Center and many others.

June will be speaking tonight at Friends University at 7pm. The Flint Hills Center website has the details. I am so impressed by this young woman's passion and intelligence. She's been around some tough blocks and seen a lot of scary stuff and still manages to stay optimistic in her demeanor and outlook.

She can also hold her own in a debate, as demonstrated when she appeared recently in a John Stossel "Give Me a Break" 20/20 segment countering anti-globalism / anti-free trade protestors' claims. If you missed the Wichita Eagle article this Sunday on her, you can read it here.

On the fun side, we've had the opportunity to introduce June to horses. She was cantering by the end of her first ride.

Greg said that their experience up at the Kansas State Fair with the High School debate workshops was a smash hit and that June's talks made a big impression on the kids. He'll probably have more to say, along with pics, over at EconomicThinking.org.

So it's been an eventful week! We'll miss Greg and June when they leave but look forward to seeing them again in the future.

I'm off to London again next week - on Thursday next week I hope to be over at the Institute for Economic Affairs on Lord North Street for the book launch of "The Strange Death of Moral Britain" by Professor Christie Davies. If my schedule allows I'll be sure to write about it here.

The Burden of Regulation

This week's Economist has a great article (requires subscription) reviewing the World Bank's newly released study "Doing Business in 2005."

What a treasure trove of examples documenting the unintended consequences of well-intentioned regulation. In the Economist article and the World Bank report you'll find out that it's at least twice as hard for entrepreneurs in poor countries vs. their counterparts in rich countries to start, operate or even close a business. And those in poor countries enjoy less than half the property rights protections afforded to businesses in rich countries. From the World Bank report:

"On average, it takes a business in a rich nation six procedures, 8 percent of income per capita, and 27 days to get started; in a poor or lower-middle-income economy, the same process takes 11 procedures, 122 percent of income per capita, and 59 days. In more than a dozen poor countries, registering a new business takes more than 100 days."

It shouldn't take a rocket scientist to predict that if it takes more than 1400 days to collect on bad debts due "protective" regulations that it might be difficult to find loans (Guatemala); that you probably won't see many Help Wanted signs in a place where terminating an employee costs the equivalent 18 months wages (Burkina Faso); that by forcing firms to pay high severances to women who decide to quit their jobs due to marriage it almost guarantees that only men will be hired (Turkey).

Amazing lessons can be learned from developing countries... Unfortunately we don't seem to be paying attention. For the last ten years, the US has been dropping in the Heritage Economic Freedom Index, from the fourth freest economy to the tenth as of the latest 2004 report. If it is true that the road to Hell is paved with good intentions, we may be in for a smooth hot ride.

Wichita Eagle Letter to Editor

The original editorial in the Sunday Eagle is here; My response in the letters section is here under the "Opportunity Cost" heading.