XYBERNAUT. To get the full scoop on the awesome tech company on whose board George Allen sat in the late nineties and whose stock options Allen repeatedly failed to disclose to Congress (according to a new AP investigation), definitely read Garance 's piece from the September print issue of the Prospect . --Sam Rosenfeld
  • GO WEST.

    GO WEST. On Sunday, the New York Times Magazine ran a piece by Mark Sundeen on the Democrats and their rising fortunes out West, with a focus on Montana Gov. Brian Schweitzer . Good reading and, obviously, a trend which I agree is crucial to, and an indicator of, the Democrats� revival nationally. And it�s not just Schweitzer and Montana, folks: If Bill Ritter , who in recent polls has a comfortable lead in Colorado�s governor race, wins next month, the Democrats will have five governors (at least: Democrat Dina Titus has an outside shot in Nevada of making it six) in the eight Interior West states by January 2007. Six years ago, they had none. --Tom Schaller

    HELP AMERICA BELIEVE IT CAN VOTE. E.J. Dionne has a good column today about H.R 515 , Rep. Rush Holt 's augmentation of the Help America Vote Act to ensure paper trails, create routine, random audits of two percent of precincts, and keep voting machines offline where they can't be remotely tampered with. The bill currently has 219 sponsors (which means, a majority of the House), a fair chunk of them dragging an "R" behind their names. That no similar legislation has yet been passed is a remarkable -- and to some, telling -- shame. Whether you believe in tampered machines or eschew such theories, that our elections should be heavily fortified against suspicion seems rather obvious. Obvious to the Democrats, with their sour memories of 2000 (and Ohio 2004), but also to the Republicans, who believe they've detected their own instances of vote tampering. Protecting against doubts in our democracy doesn't mean you buy into theories about fraud or theft: It just means you acknowledge that...

    FOLEY THE SCAPEGOAT. So, if the GOP loses Congress next month, will it be because of Foleygate? Were the Republicans on the upswing and set to hold on to their majorities as of September 28, when the scandal broke? We're going to be hearing arguments along these lines preemptively for the next month and (depending on what actually happens on November 7) possibly for a long while after. In a must-read post over at Midterm Madness , Steve Benen takes a close look at the data and says, basically, it just ain't so. Be sure to take a look . --Sam Rosenfeld

    TOO MUCH INFORMATION . Data, questions, and commentary abound on the North Korean nuclear test. Most interesting to me is how the bomb performed. The inital Russian report indicated the detection of an explosion of 5-15 kilotons, a respectable weapon. Later reports from French, South Korean, and American sources indicate a much smaller blast, around .55 kilotons (a kiloton equals 1000 tons of TNT). If the latter reports are right, the explosion was either not nuclear or was a failure. See Defense Tech for a discussion of the possibility that the explosion was a dud. This leaves a couple of questions, the first regarding the Russian reaction. Were the Russians lying, or have their analytical capabilities collapsed to the degree that they couldn't even accurately assess the detonation of a weapon on their own border? I'd bet on the second, since they must have known that other states would quickly produce their own estimates. I suppose it's possible that the Russians may even have been...

    OUR TERRORIST . Be sure to read Peter Kornbluh 's Nation article on the curious case of Luis Posada Carriles . Posada is suspected of blowing up a Cuban jetliner in 1976, killing 73 people. He has a history of anti- Castro violence, and worked for the CIA during the 1960s and 1970s. Posada has been in the United States for some time, yet the Bush administration has refused to turn him over to the Venezuelan government on the grounds that Venezuela might extradite him to Cuba, which could result in torture. That is to say, in something of a reverse of "extraordinary rendition," the United States is refusing to send a suspected terrorist to Cuba because he might be tortured. The U.S.'s refusal to extradite Posada would be laudable if it stemmed from a genuine desire to prevent the torture of a criminal suspect. Of course, it does not; the Bush administration has refused to declare Posada a terrorist, and has refused to deny his extradition (which would put the responsibility of...
  • The Gas Price Conspiracy

    The Washington Post published the results of a poll today showing that almost 40 percent of those expressing an opinion believe that the recent fall in gas prices is attributable to political manipulation of the market. While I don�t consider this a credible proposition (of course I also didn�t believe that Enron could be actively manipulating California�s electricity market in 2001), it is striking how many people are willing to believe the worst about the Bush administration. --Dean Baker
  • Edmund Phelps and the Natural Rate of Unemployment

    The awarding of the non-Nobel prize (this prize was created by the Bank of Sweden in 1968, not Alfred Nobel) to Columbia University Professor Edmund Phelps, in part for his work on the theory of the natural rate of unemployment, provided the media with a good opportunity to talk about the current status of the natural rate theory. Unfortunately, they seem to have largely missed the opportunity. The great innovation that Phelps, along with Milton Friedman, brought to the theory of the natural rate of unemployment is that workers would develop expectations of inflation, so that they could not be systematically fooled about the true value of the real wage. This fooling process was important for at least some strains of Keynesian economics at the time, because they held that inflation could be used to reduce unemployment by fooling workers. According to this Keynesian view, because workers fail to recognize inflation, they can effectively be tricked into working for a lower real wage...

    HAPPY COLUMBUS DAY. Tapped is off duty today, but will resume regular posting tomorrow (Tuesday). --The Editors
  • Benchmark Revisions and Productivity Growth

    Most of the news articles on yesterday's employment report noted that the Labor Department's benchmark revision will add 810,000 jobs to the numbers reported in the establishment survey, as of March of 2006. This is an extraordinarily large revision that implies that job growth was considerably more rapid between March of 2005 and March of 2006 than the unrevised data show. However, there is another important implication to this data. If job growth was faster, than productivity growth was slower. The unrevised data show productivity growth of 2.7 percent over the year from the first quarter of 2005 to 2006. If the additional job growth is evenly divided across sectors, productivity growth will be revised down to 2.1 percent for this period. This is a substantial slowing from the 3.4 percent growth rate over the prior 4 years. Of course, readers of CEPR's job bytes know this. -- Dean Baker