Milken Institute Review Third Quarter 1999

September 1999

Bill Gale of the Brookings Institution andJohn Sabelhaus of the Congressional Budget Office say that the rate of savings by Americans is not as bad as some people argue. In fact, from one perspective, the rates are higher today than they have been in 40 years. Roger Noll of Stanford University looks at the peculiar economics of intercollegiate sports - and the even more peculiar consequences of its cartelization by the National Collegiate Athletic Association. Stephen-Gotz Richter, the head of TransAtlantic Futures, an economic intelligence group based in Washington, urges Europeans to stop worrying and learn to love the cheap euro. Uwe Parpart, a Bangkok-based columnist for Forbes Global magazine, offers a report on the East Asian recovery. Tom Kane, an economist at Harvard's Kennedy School of Government, who accurately predicted that ending affirmative action would drastically reduce minority enrollment at elite public universities, takes on an equally important topic in higher education: access for students from low-income families. This issue's book excerpt comes from George Borjas, the Cuban-born, Chicago-educated professor at Harvard's Kennedy School of Government, who has spent much of his academic career analyzing America's immigration policy - and finding it lacking in economic sense. Also in this issue are book reviews from Martin Mayer on Jean Strouse's biography of J.P. Morgan, and David Henderson on Dwight Lee and Richard McKenzie's book on how to get rich slowly. And we offer some sayings from Treasury Secretary Larry Summers in Summers Says.