Tag Archives: WMD

US: "We’re Prepared to Listen" – to possible Iranian compromise on uranium

Mahmoud Ahmadinejad

Mahmoud Ahmadinejad

Laura Rozen reports on Politico.com:

In what was being reported as a potentially significant shift, Iran’s Mahmoud Ahmadinejad told Iranian State Television today that Iran is ready to send its uranium abroad.

“We have no problem sending our enriched uranium abroad,” Ahmadinejad told state television, according to Reuters.

“We say: we will give you our 3.5 percent enriched uranium and will get the fuel. It may take 4 to 5 months until we get the fuel,” he said. “If we send our enriched uranium abroad and then they do not give us the 20 percent enriched fuel for our reactor, we are capable of producing it inside Iran.”

The U.S. reacted cautiously to the interview, saying it was willing to listen if Iran has genuinely changed its position on the fuel swap deal, while indicating it was continuing preparations with key allies on sanctions for further pressuring Iran. Iran has previously publicly said it was willing to send its low enriched uranium abroad, but it had balked at sending it out all in one batch, as a proposal worked out by the UN atomic energy agency last fall had stipulated. U.S. officials said it remained to be seen if Iran had changed its position on that.

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The False Assumptions of Neo-Conservatives

To paraphrase John Kennedy, “Ich bin ein Keynesian.”

Jude Wanniski coined the term “Supply Side Economics” in 1976 as a reaction to  Keynesian and monetarist thought. In his book, The Way The World Works, Wanniski argues against taxes. “Working together three men can build three houses in three months. Working separately, they can build three houses in six months…. If the tax rate on home building is 49% they will work together … if the tax goes to 51% they will suffer a net loss because of their teamwork and so will work separately in the barter economy and pay no taxes. … the government loses all the revenue and the economy loses the production…”

Here are Wanniski’s assumptions:

  1. Working alone three men can build a total of six houses in one year. Working together they can build 12 houses in the same year.
  2. A 4% change in the tax rate, from 49% to 51%, is significant enough to cause someone to “drop out.”
  3. The government taxes people when they work together but not when they work separately.

These assumptions are flawed. Continue reading