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	<title>popular logistics &#187; WMD</title>
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		<title>US: &quot;We&#8217;re Prepared to Listen&quot; &#8211; to possible Iranian compromise on uranium</title>
		<link>http://popularlogistics.com/2010/02/us-were-prepared-to-listen-to-possible-iranian-compromise-on-uranium/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=us-were-prepared-to-listen-to-possible-iranian-compromise-on-uranium</link>
		<comments>http://popularlogistics.com/2010/02/us-were-prepared-to-listen-to-possible-iranian-compromise-on-uranium/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 13:56:01 +0000</pubDate>
		<dc:creator>Jonathan Soroko</dc:creator>
				<category><![CDATA[Iran]]></category>
		<category><![CDATA[Levinson]]></category>
		<category><![CDATA[WMD]]></category>

		<guid isPermaLink="false">http://popularlogistics.com/?p=19433</guid>
		<description><![CDATA[Laura Rozen reports on Politico.com: In what was being reported as a potentially significant shift, Iran&#8217;s Mahmoud Ahmadinejad told Iranian State Television today that Iran is ready to send its uranium abroad. &#8220;We have no problem sending our enriched uranium abroad,&#8221; Ahmadinejad told state television, according to Reuters. &#8220;We say: we will give you our [...]]]></description>
			<content:encoded><![CDATA[<p></p><blockquote><div id="attachment_19458" class="wp-caption alignleft" style="width: 150px">
	<a href="http://popularlogistics.com/wp-content/uploads/2010/02/mahmoud-ahmadinejad1.jpeg"><img class="size-thumbnail wp-image-19458" title="Mahmoud Ahmadinejad" src="http://popularlogistics.com/wp-content/uploads/2010/02/mahmoud-ahmadinejad1-150x150.jpg" alt="Mahmoud Ahmadinejad" width="150" height="150" /></a>
	<p class="wp-caption-text">Mahmoud Ahmadinejad</p>
</div>
<p>Laura Rozen reports on <a href="http://www.politico.com/">Politico.com</a>:</p>
<p style="padding-left: 30px;">In what was being reported as a potentially significant shift, Iran&#8217;s Mahmoud Ahmadinejad told Iranian State Television today that Iran is ready to send its uranium abroad.</p>
<p style="padding-left: 30px;">&#8220;We have no problem sending our enriched uranium abroad,&#8221; Ahmadinejad told state television, <a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/02/AR2010020202319_pf.html">according</a> to Reuters.</p>
<p>&#8220;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,&#8221; he said. &#8220;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.&#8221;</p>
<p style="padding-left: 30px;">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.</p>
<p><span id="more-19433"></span>Without detracting from the importance of the uranium/nuclear weapons issue, we note the following from Ms. Rozen&#8217;s post:</p>
<p style="padding-left: 30px;">Ahmadinejad also reportedly&nbsp;<a href="http://www.businessweek.com/news/2010-02-02/ahmadinejad-seeks-prisoner-exchange-with-u-s-for-hikers-held.html">told</a> Iranian State TV&nbsp;that Iran would consider exchanging U.S. citizens being detained in Iran for Iranians being held abroad. &#8220;We are having talks to have an exchange if it is possible,&rdquo; Ahmadinejad was cited. &#8220;We are hopeful that all prisoners will be released.&rdquo;</p>
<p>[<a href="http://www.politico.com/blogs/laurarozen/0210/Ahmadinejad_says_Iran_willing_to_send_uranium_abroad.html?showall">National Security Council spokesman Mike</a>] Hammer stressed that the reports of what Ahmadinejad said are fragmentary, and the U.S. has not entered into any discussion with Iran about an exchange.</p>
<p style="padding-left: 30px;">&#8220;We have made clear that we would like the cases of all our missing and detained Americans citizens to be resolved,&#8221; Hammer said, including those of &#8220;Sarah Shourd, Josh Fattal, Shane Bauer, Kian Tajbakhsh, Reza Taghavi, and Robert Levinson.&#8221;</p>
<p style="padding-left: 30px;">Shourd, Fattal and Bauer have been detained in Iran since accidentally wandering into Iran while hiking in northern Iraq last summer. Tajbakhsh is an Iranian-American scholar arrested in Iran in the post-elections dispute. Robert Levinson is a former FBI agent who went missing while meeting a contact in Kish Island almost three years ago.<!--more--></p>
<p style="padding-left: 30px;">&#8220;If President Ahmadinejad&rsquo;s comments suggest that they are prepared to resolve these cases, we would welcome that step,&#8221; Hammer continued. &#8220;But we have not entered into any discussion with Iran about an exchange. As we have indicated publicly, if Iran has questions about its citizens in U.S. custody, we are prepared to answer them.&#8221;</p>
</blockquote>
<p style="padding-left: 30px;">POLITICO previously <a href="http://www.politico.com/blogs/laurarozen/1209/Iran_links_US_hikers_case_to_detained_Iranians.html">reported</a> that Swiss diplomats acting as intermediaries have told U.S. officials that Iran was seeking to link the case of the three U.S. hikers detained in Iran, and several Iranians&nbsp;detained in the U.S., Europe and Canada, many on export control violation-related charges.</p>
<blockquote><p><a href="http://www.politico.com/blogs/laurarozen/0210/Ahmadinejad_says_Iran_willing_to_send_uranium_abroad.html?showall#">We&#8217;re prepared to listen&#8217;: U.S. reacts cautiously to Ahmadinejad uranium offer,&#8221;</a> by <a href="http://www.politico.com/blogs/laurarozen">Laura Rozen</a> on <a href="http://www.politico.com/">Politico.com</a>.    </p>
</blockquote>
<p><a title="Iran's actions " href="http://www.investors.com/NewsAndAnalysis/Article.aspx?id=512029" target="_self">Investors.com</a> reported in November, 2009, that Iran was threatening to execute various prisoners.&nbsp; Payvand News of Iran is reporting (<a title="Payvand News: Reformists rally Green Movement" href="http://www.payvand.com/news/10/feb/1030.html" target="_self">here</a>) that reformists rally Green Movement for demonstrations on Feb. 11, 2010, the anniversary of the Islamist revolution.</p>]]></content:encoded>
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		<title>The False Assumptions of Neo-Conservatives</title>
		<link>http://popularlogistics.com/2009/06/the-false-assumptions-of-neo-conservatives/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=the-false-assumptions-of-neo-conservatives</link>
		<comments>http://popularlogistics.com/2009/06/the-false-assumptions-of-neo-conservatives/#comments</comments>
		<pubDate>Thu, 25 Jun 2009 19:41:29 +0000</pubDate>
		<dc:creator>L J Furman, MBA</dc:creator>
				<category><![CDATA[Deep Economy]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Iraq]]></category>
		<category><![CDATA[Keynesian Economics]]></category>
		<category><![CDATA[Tax Policy]]></category>
		<category><![CDATA[GW Bush]]></category>
		<category><![CDATA[Iraq War]]></category>
		<category><![CDATA[Jude Wanniski]]></category>
		<category><![CDATA[WMD]]></category>

		<guid isPermaLink="false">http://popularlogistics.com/2009/06/25/the-false-assumptions-of-neo-conservatives/</guid>
		<description><![CDATA[To paraphrase John Kennedy, &#8220;Ich bin ein Keynesian.&#8221; Jude Wanniski coined the term &#8220;Supply Side Economics&#8221; in 1976 as a reaction to  Keynesian and monetarist thought. In his book, The Way The World Works, Wanniski argues against taxes. &#8220;Working together three men can build three houses in three months. Working separately, they can build three [...]]]></description>
			<content:encoded><![CDATA[<p></p><strong>To paraphrase John Kennedy, <em>&#8220;Ich bin ein Keynesian.&#8221;</em></strong>

Jude Wanniski coined the term &#8220;Supply Side Economics&#8221; in 1976 as a reaction to  Keynesian and monetarist thought. In his book, <a title="The Way the World Works on Amazon " href="http://www.amazon.com/World-Works-Anniversary-Gateway-Contemporary/dp/0895263440/ref=sr_1_2?ie=UTF8&amp;s=books&amp;qid=1245947621&amp;sr=8-2" target="_self">The Way The World Works</a>, Wanniski argues against taxes. &#8220;Working together three men can build three houses in three months. Working separately, they can build three houses in six months&#8230;. If the tax rate on home building is 49% they will work together &#8230; 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. &#8230; the government loses all the revenue and the economy loses the production&#8230;&#8221;

Here are Wanniski&#8217;s assumptions:
<ol>
	<li>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.</li>
	<li>A 4% change in the tax rate, from 49% to 51%, is significant enough to cause someone to &#8220;drop out.&#8221;</li>
	<li>The government taxes people when they work together but not when they work separately.</li>
</ol>
These assumptions are flawed.<span id="more-2360"></span>

Working alone each gets 100% of the profits on two houses. Working together each gets one third of the profits on 12 houses. If the profit of each house is $100,000, then working alone each gets $200,000 per year. Working together each gets one third of $1,200,000, or $400,000.

The tax rate does not effect the decision. All things being equal, any intelligent person would rather pay 49% than 51%. But if the choice is 49% on $200,000 versus 51% of $400,000, every sane and intelligent person would choose to be taxed at a rate of 51% on earnings of $400,000 as opposed to a tax of 49% on $200,000.  In the first case he or she takes home $101,000. In the second case he or she takes home $198,000.
If the government will take a chunk of the profits of the houses the men build working together it will also take a chunk of the profits of the houses of the men working separately. Wanniski postulates that men can choose to work in the underground economy. Last I checked the mafia didn&#8217;t advertise jobs for wiseguys.

If you want a real economics book, check out <a title="Economics Explained, Heilbroner &amp; Thurow" href="http://www.amazon.com/s/ref=nb_ss_b_1_17?url=search-alias%3Dstripbooks&amp;field-keywords=economics+explained+by+heilbroner&amp;x=0&amp;y=0&amp;sprefix=economics+explain" target="_self">Economics Explained</a>, by Heilbroner &amp; Thurow, or <a title="The Wealth of Nations" href="http://www.amazon.com/Wealth-Nations-Books-Complete-Unabridged/dp/144214792X/ref=sr_1_2?ie=UTF8&amp;s=books&amp;qid=1245955883&amp;sr=1-2" target="_blank">The Wealth of Nations, by Adam Smith</a>.

Unfortunately, Wanniski was not just another crackpot with a web-site and publishing contract.  Wanniski is credited with teaching economics to Jack Kemp and, as an adviser to Ronald Reagan from 1978 to 1981, with designing the Reagan tax cuts. (<a title="Jude Wanniski on Wikipedia" href="http://en.wikipedia.org/wiki/Jude_Wanniski" target="_self">click here for wikipedia</a>).

While Wanniski wrote the book &#8211; literally &#8211; on neo-conservative supply side economics, he was critical of American policy toward Iraq. Wanniski wrote that UNSCOM inspectors found and destroyed all of Iraq&#8217;s Weapons of Mass Destruction, with the help of Saddam&#8217;s regime in the months following the first Gulf War, and never found  WMD&#8217;s in Iraq after November 1991 . Wanniski not only recognized the prospective importance of the Iraqi WMD question before other journalists, he argued correctly that Iraq didn&#8217;t have any WMD and stated that the U.S. would never allow UNSCOM to end the inspections regime no matter what Iraq did.

He vocally opposed the impending US War with Iraq at the beginning of 2003. On October 27, 2004, he publicly denounced George W. Bush, saying that &#8220;Mr. Bush has become an imperialist — one whose decisions as commander-in-chief have made the world a more dangerous place&#8221;. Eventually Wanniski endorsed John Kerry.]]></content:encoded>
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