This month’s Cato Unbound looks at the intersection of education, work, and gender, and asks: Are men in decline? As women have advanced in education, the workplace, and even politics, some fear that the emerging new economy—or perhaps some other factors—are dragging men down. We’ve all heard talk of the Mancession, and it’s well known that men are in the minority now on many college campuses. How long will the trend continue?

Lead essayist Kay Hymowitz makes the case for male decline; Jessica Bennett, Amanda Hess, and Myriam Miedzian give reasons to be skeptical. Hymowitz replies to her critics. (Men, alas, were so far in decline that I couldn’t find a single one to write for this issue.)

The conversation is just getting started, so be sure to drop by again or subscribe to Cato Unbound so you’ll never miss a post.

The Washington Post is reporting that President Obama has assigned his staff with the task of designing a new set of government guarantees behind the U.S. mortgage market. Although as the Post also reports the “approach could even preserve Fannie Mae and Freddie Mac.” That’s correct. Despite their role in driving the housing bubble and the already $160 billion in taxpayer losses, President Obama appears to be considering just putting the same failed system in place. Of course, we’ll be promised that it will all work better this time.

Perhaps most offensive is that the Post reports that Obama “officials don’t want to punish the thousands of Fannie and Freddie employees who have specialized knowledge about the mortgage market.” Seriously? What about the many blameless employees of AIG, Lehman Brothers, or Bear Stearns? Or New Century for that matter. Did the janitors and receptionists at those firms really cause the crisis? The truth is that the employees of Fannie and Freddie have been lining their pockets at the expense of the taxpayer for years. What the Administration is really saying is that they wouldn’t want all the political operatives at these favored firms to lose their perks. After all, Obama officials will need somewhere to land after 2012 and Goldman Sachs has only so many slots.

What’s most depressing is that you can’t say Obama hasn’t been given the facts. As the Post makes clear, his economic advisers spelled out the case against massive subsidies for the mortgage market. Austan Goolsbee, chair of Obama’s Council of Economic Advisers, points out: by subsidizing mortgage investments, the government drives capital away from other types of investments. If Obama truly wants to help the middle and working class, then he’d want capital to flow into investments that increase labor productivity, which is the ultimate source of wage growth. Running up asset prices, like houses, does not make us wealthier in the long run.

But then what should I expect. The President has already entered campaign mode. It would be nice to see the economics win over the politics. But it looks like such a thing will have to wait for another administration.

In 1980 Milton Friedman made a splash with his 10-part PBS documentary, Free to Choose, which also became a bestselling book. Thirty years later Cato senior fellow Johan Norberg travels in Friedman’s footsteps to see what has actually happened in those places Friedman’s ideas helped transform. From Stockholm to Estonia to India, from New York to Hong Kong to Chile and Washington, D.C., Norberg examines the contemporary relevance of Friedman’s ideas in the 2011 world of globalization and financial crisis. The result is a one-hour documentary, Free or Equal: A Personal View, which is now running on PBS stations across the country.

Visit the Free to Choose Network page to find out more about the documentary. Click on “Carriage Grid” to find showings in your area. Note that it’s arranged by size of media market, so New York is first, then Los Angeles, and so on down through 210 media markets. It’s searchable.

I missed the first Washington showing on Sunday, so check it out today. But note that showings will run into mid-September, so your friends will have many chances to catch the show.

And for a book by Norberg on related issues, check out In Defense of Global Capitalism.

I’ve poked fun at Paul Krugman for his views on health care and British fiscal policy, and I’ve semi-defended him about unemployment subsidies and housing bubbles.

Now it’s time for some more mockery.

Back in 2001, Paul Krugman received some much-deserved criticism for stating that the 9/11 terrorist attacks would be stimulative for the economy.

He committed the “broken-window” fallacy, explained more than 150 years ago by a famous French economist, Frederic Bastiat.

Breaking a window at the local bakery, Bastiat explained, might generate business for the town glazier, but only at the expense of some other merchant, like a tailor, who would have benefited if the baker didn’t have to spend money on a new window.

In other words, the destruction of wealth is not good for an economy. At best, it makes us poorer and then shifts how current income is allocated. This is why Bastiat wrote (perhaps predicting the emergence of Krugman):

There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.

But we have to give Krugman credit for a bizarre form of ideological consistency. He is willing to advocate bigger government, no matter how sloppy the reasoning or how quirky the rationale.

His latest outburst was to say on CNN how wonderful it would be for the economy if the people of earth mistakenly thought we were on the verge of an alien invasion, which would lead to lots of military spending.

He even cited an episode of Twilight Zone to justify his assertions. I’m surprised he didn’t also mention the 1996 film, Independence Day.

As I wrote in a previous blog post, this is one of those moments when your only response is to say “wow.” This is even worse than when Keynesians assert that it would be stimulative to pay people to dig holes and fill them in again.

For those who want more info on why government spending does not boost the economy in the short run, here’s my video on Keynesian economics.

And if you want to know why government spending does not boost the economy in the long run, here’s a video looking at some empirical evidence about economic performance and the size of the public sector.

Warren Buffett’s at it again. He has a column in the New York Times complaining that he has been coddled by the tax code and that “rich” people should pay higher taxes.

My first instinct is to send Buffett the website where people can voluntarily pay extra money to the federal government. I’ve made this suggestion to guilt-ridden rich people in the past.

But I no longer give that advice. I’m worried he might actually do it. And even though Buffett is wildly misguided about fiscal policy, I know he will invest his money much more wisely than Barack Obama will spend it.

But Buffett goes beyond guilt-ridden rants in favor of higher taxes. He makes specific assertions that are inaccurate.

Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.

His numbers are flawed in two important ways.

1. When Buffett receives dividends and capital gains, it is true that he pays “only” 15 percent of that money on his tax return. But dividends and capital gains are both forms of double taxation. So if he wants honest effective tax rate numbers, he needs to show the 35 percent corporate tax rate.

   Moreover, as I noted in a previous post, Buffett completely ignores the impact of the death tax, which will result in the federal government seizing 45 percent of his assets. To be sure, Buffett may be engaging in clever tax planning, so it is hard to know the impact on his effective tax rate, but it will be significant.

2. Buffett also mischaracterizes the impact of the Social Security payroll tax, which is dedicated for a specific purpose. The law only imposes that tax on income up to about $107,000 per year because the tax is designed so that people “earn” a corresponding retirement benefit (which actually is tilted in favor of low-income workers).

   Imposing the tax on multi-millionaire income, however, would mean sending rich people giant checks from Social Security when they retire. But nobody thinks that’s a good idea. Or you could apply the payroll tax to all income and not pay any additional benefits. But this would turn Social Security from an “earned benefit” to a redistribution program, which also is widely rejected (though the left has been warming to the idea in recent years because their hunger for more tax revenue is greater than their support for Social Security).

If we consider these two factors, Buffett’s effective tax rate almost surely is much higher than the burden on any of the people who work for him.

But this entire discussion is a good example of why we should junk the corrupt, punitive, and unfair tax code and replace it with a simple flat tax. With no double taxation and a single, low tax rate, we would know that rich people were paying the right amount, neither too much based on class-warfare tax rates nor too little based on loopholes, deduction, preferences, exemptions, shelters, and credits.

So why doesn’t Buffett endorse this approach? Tim Carney offers a very plausible answer.

For more information about why class-warfare taxes are misguided, this video may be helpful.

A wave of violence spread across Iraq today with 70 dead and some 300 injured. Iraqi security forces are blaming al Qaida affiliates, but no group has officially claimed responsibility. The New York Times puts the events in context:

Coming a little less than two weeks after the Iraqi government said it would negotiate with the United States about keeping some of its 48,000 troops here after the end of the year, the violence raised significant questions about the capabilities of the Iraqi security forces.

This is indeed a tragic loss of life, but this level of violence actually has become less common and usually occurs when the Iraqi government is making important decisions on the future of the country and U.S. troop presence. Each time a bomb is detonated in Iraq, commentators argue that it proves we cannot leave Iraq yet; the job is not done.

If the job isn’t done, it should be. And soon. There will certainly be violence in Iraq for the foreseeable future, but a U.S. troop presence is not going to prevent these horrific incidents and often serves as a pretext for them. The continued violence shouldn’t obscure one unalterable fact: the Iraqis must solve their internal security problems. That, in turn, will likely require them to also solve their political problems, something that they have so far refused to do.

As Ted Galen Carpenter and Doug Bandow have explained those calling for an extended U.S. presence in Iraq base their arguments on faulty logic that is devoid of serious considerations about strategic U.S. interests in the region. The most committed of the stay longer/​forever crowd hopes our presence in Iraq will resemble that of U.S. troops in South Korea or Germany. But this isn’t only a false analogy; it is based on false premises about vital U.S. interests: namely, that the U.S. government, and U.S. taxpayers, should be responsible for the security of other countries.

Those who worry about us leaving too soon/​ever shouldn’t fret too much, however. Regardless of what happens in the negotiations over an extension of the U.S. troop presence, the United States will still maintain a staff of 17,000 employees (including contractors) based out of the world’s largest embassy.

Through it all, President Obama has been relatively silent. He has claimed that we are “winding down” the nation’s wars, but the prospect of tens of thousands of Americans remaining in Iraq hardly constitutes an end-game there. And no one knows what sort of long-term presence the president has in mind for Afghanistan.

President Obama won the presidency due in part to his opposition to the Iraq war at a time when most other politicians were either supportive or silent. This stand allowed him to build credibility with the American people, despite his relative lack of foreign policy experience. While other so-called experts were calling for war, he was concerned that the Iraq war was likely to undermine American and regional security, cost hundreds of billions of dollars, and claim many tens of thousands of lives. Tragically, he was correct.

The combat mission may have ended, but Americans are still dying in Iraq. It is time for the President and his administration to keep the promise of ending U.S. military involvement there, and hasten the day when Iraqis are fully responsible for their own affairs.

Cross-posted from the National Interest.

In my weekly Britannica column, I respond to the charge that I am dumb and expand the discussion of sweeping legislation, the apparently increasing use of waivers by Cabinet officials, and how that comports with the rule of law:

We’ve been reminded in the past few weeks that we live in a world where Congress passes vast, expansive laws that make grand promises and that few if any members of Congress actually read, and then inserts into them the power for the president or his appointees to waive sections of them when they become unworkable or bump up against the interests of the well connected. …

Over the past decade Congress has passed many such expansive and aspirational laws—the Patriot Act, the No Child Left Behind Act, TARP, the stimulus bill (“the Democrats’ Patriot Act“), the Patient Protection and Affordable Care Act—that put power into the hands of the bureaucracy. My colleagues at the Cato Institute and I have often warned members of Congress about the dangers of that practice, often pointing out that someday the White House will be in the hands of the other party, and they may not like what their opponents do with such sweeping powers. Appealing to conservatives in a column on the detention of Jose Padilla, Robert A. Levy wrote, “Even persons convinced that President Bush cherishes civil liberties and understands that the Constitution is not mere scrap paper, must be unsettled by the prospect that an unknown and less honorable successor could exploit some of the dangerous precedents that the Bush administration has put in place.” In a column on President Obama’s intervention into the economy, I asked Democrats, “If you still have warm feelings toward Obama and his good intentions, ask yourself this: Will you feel comfortable one day when the appointees of President Romney or President Palin are exercising unconstitutional, unauthorized, unreviewable authority to restructure the economy the way they see fit?”

And that’s why I wrote in the Britannica entry on libertarianism, “A fundamental characteristic of libertarian thinking is a deep skepticism of government power.” Would that liberals and conservatives displayed the same skepticism.

Full column here.