Category: History
Early Amazon civilization discovered
Researchers have now found hard evidence that the Amazon had a sophisticated and populous civilization, before the arrival of Columbus.
The finds lay to rest the notion that the region was pristine forest when the explorer landed in 1492…Although there was probably some untouched forest in the region, Heckenberger [the researcher] reckons that most was managed by the inhabitants and kept for cultural and symbolic, rather than economic, reasons. “It was probably very important to them just as Central Park is important to New Yorkers,” he says.
Here is the original link from Nature. Many individuals have been attached to “crankier” versions of this theory, suggesting that “prehistory” in the Americas was quite advanced, see here for a more skeptical take.
General Wesley Clark and progressive taxation
Was America founded on a principle of progressive taxation? General Wesley Clark told us “yes.” My friend and co-blogger Eugene Volokh relates some political and economic history and offers a qualified “no.”
Iraq and the Marshall Plan
According to some estimates, we will spend $20 billion on Iraqi infrastructure over the next year, half of Iraqi gdp (don’t take Iraqi gdp statistics too seriously!). Andrew Sullivan has been asking how our assistance to Iraq compares to the Marshall Plan of postwar Europe. Here are some answers, drawn from a 1985 piece I wrote “The Marshall Plan: Myths and Realities,” click here for an on-line summary, the piece appeared in Doug Bandow’s U.S. Aid to the Developing World.
The Marshall Plan did not ever exceed 5 percent of the gross national product of the recipient nations. In the case of Germany, note that we were taking more out of Germany, in the forms of reparations and occupation cost reimbursements (11 to 15 percent of West German gnp), than we were ever putting in. Then throughout the mid-1950s, Bonn repaid half of the aid it had received. Note that German economic recovery followed from liberalization and reforms, which predated Marshall Plan aid.
In 1949-50, our Marshall Plan aid to France was roughly equivalent to French military expenditures abroad in Indochina and North Africa.
Of the European nations, arguably Belgium recovered from World War II most rapidly, and this happened before Marshall Plan aid kicked in.
At the end of World War II, the Austrian economy was one of the most desperate in Europe. Austria received high per capita aid sums, but the economy stagnated. Austria later recovered, when it improved its monetary and fiscal policies. Marshall Plan supporter Franz Nemschak wrote: “The radical cuts in foreign aid in the last year of the Marshall Plan and the stabilization tendencies in the world economy forced Austria to make a basic change in economic policy.” Greece received high per capita aid as well, but had a poor recovery.
The lesson for Iraq?: Simply spending money won’t get us there. See these Rand Corporation figures, showing that per capita aid does not correlate obviously with the eventual success of a reconstruction. The key question is whether the Iraqis can build healthy institutions. Walking away is not the answer, but don’t feel good just because you see more money being spent.
Addendum: I have scanned the whole essay and put it on-line.
Who is Leo Strauss?
Leo Strauss is often considered a leading influence behind the neo-conservatives in the Bush administration. Or perhaps you have met a “Straussian” at a Liberty Fund conference. Or perhaps you have read Allan Bloom praising Strauss. To my mind Strauss is one of the most important twentieth century intellectuals, either directly or indirectly, he taught several generations of scholars how to read classic texts. I’ve had many economists ask me about Strauss (note: I am not a Straussian), here is one good recent summary, by Steven Lenzner and William Kristol, drawn from The Public Interest.