Milken Institute Review Third Quarter 2001

September 2001

Edward N. Wolff of New York University dispels the notion that the rising economic tide of the 1990s carried all boats, helping everyone from the wealthiest investor to the poorest working stiff. In reality, America's middle class benefited little from the '90s economic boom, he says.

William Gale and two of his colleagues at the Brookings Institution find more than a few holes in the logic behind the Bush administration's tax cuts.

Michael S. Bernick, director of the California Employment Development Department, shows that it is far easier to create entry-level jobs than to help the unskilled work their way out of poverty.

Josh Lerner of Harvard Business School says the temptation to regulate away the profits of very high risk, very high return enterprises may be irresistible, but doing so could deter innovation in the most productive industries.

Tim Ferguson ofForbes magazine describes how in Santa Monica, CA, the national city-planning vogue of New Urbanism has run up against a more powerful force - the demand for easy traffic flow.

Louis A. Guth of National Economic Research Associates andMichael D. Shagan, a consultant specializing in gaming industries, make the economic case for eliminating many of the rules for how horse racing is organized.

Marsha Vande Berg, editor ofThe World Report newsletter, looks at the competition between India and China to become the leading low-cost producer of computer software.

Glenn Yago andTom Hall of the Milken Institute explain their new Opacity Index, developed with PricewaterhouseCoopers, and why transparency in markets is crucial to economic growth.

This issue's book excerpt is from Damned Lies and Statistics: Untangling Numbers from the Media, Politicians and Activists, by Joel Best of the University of Delaware, a witty, if sobering, explanation of how the media mangle statistics.

And, of course, we have our regular features: The Charticle (this time on the baby boomer tsunami), Puzzler, a briefing on the latest economic research, and Mark Alan Stamaty's cartoon, Ekinomix.