Econ book acclaimed by left based on faulty premise, factual errors, study finds

A book by a French economist who became a darling of 99 percenters and his lefty peers is riddled with errors, cherry-picked data and flawed premises, according to two new studies.

Thomas Piketty's “Capital in the 21st Century,” which New York Times columnist and Nobel-prize winner Paul Krugman called “the most important economics book of the year — and maybe of the decade,” calls for an 80 percent income tax to stop wealth inequality from increasing. The book earned its author an invitation to the White House to meet with Obama administration Treasury Secretary Jack Lew.

But it contains more than 10 factual errors, according to one new study accepted by the Journal of Private Enterprise and conducted by economists Phillip Magness of George Mason University and Robert P. Murphy of the Institute for Energy Research. The errors they report range from relatively simple mistakes such as getting several historical dates wrong to mis-attributing a massive tax increase to President Franklin Roosevelt that was actually passed by President Herbert Hoover, to incorrectly claiming that the minimum wage never increased under either George W. Bush or George H.W. Bush, who both oversaw increases.

The authors write that they see a pattern in the errors.

They also conclude that, in building some of his charts, Piketty switched between data sets in a way that was biased in favor of his argument. In his graph on wealth in the U.S., for instance, Piketty relied on data from one study going up until 1950, then for 1960 he switched to another study, and then for 1970 he went back to relying on the first study again.

The authors conclude that Piketty used “cherry-picked data points to construct a trend line that mirrors his predictions.”

The authors also found that, in one Piketty graph about US historical tax revenue, he only had data going back until 1900; yet he made the graph go back to 1870 by assuming those years were the same as 1900 and by adding or subtracting a seemingly arbitrary number to make the data appear plausible.

For Piketty's response and other alleged errors, see the article on FoxNews.com.

Botched environmental predictions for 2015

By Maxim Lott | Published January 01 | FoxNews.com

You’ve heard the warnings: Global warming could doom humanity. Overpopulation and deforestation will destroy the planet. We’re going to run out of energy.

It isn’t happening right now, experts say, but it could happen in a few decades. Yet, decades ago, experts warned that many catastrophes would happen now – by the year 2015. Yet they have not. FoxNews.com found five predictions that went astray.

1) UN overestimated global warming by 2015

Two decades ago, the UN came up with several models that all predicted that by 2015, the Earth would have warmed by at least a degree Fahrenheit. Yet in the last two decades, there has instead been virtually no warming according to satellite temperature measurements.

Most climate scientists say this is just a temporary pause and that warming will soon pick up again, though some say they now expect to see less warming in the future due to the pause.

2) All Rainforest Species Will Be Extinct

Dr. Paul Ehrich, the President of the Center for Conservation Biology at Stanford University, got famous for his 1968 book “the Population Bomb” which predicted that increasing human populations would spell doom.

One part of that doom, he warned in his 1981 book “Extinction,” was that all rainforest species would likely soon go extinct due to environmental destruction.

“Half of the populations and species in tropical moist forests would be extinct early in the next century [the 2000s] and none would be left by 2025,” he warns on page 291. He added that that his model indicated that, on the upper bound, complete extinction would occur as soon as 2010.

Elsewhere in the book, he also wrote that his model’s assumptions were “more realistic” than those typically used and that “unless appropriate steps are taken soon… humanity faces a catastrophe fully as serious as an all-out thermonuclear war.” Continue reading at FoxNews.com to find out what Obama Science Advisor John Holdren predicted in the 1980s...

Death spiral? Short-term health plans grow as cheap alternative to ObamaCare

A fast-growing, short-term alternative to ObamaCare that allows customers to get cheap, one-year policies could put the government-subsidized plan into a death spiral.

The plans, the only ones allowed for sale outside of ObamaCare exchanges, generally cost less than half of what similar ObamaCare policies cost, and are increasing in popularity as uninsured Americans grapple with the requirements of the Affordable Care Act. The catch -- that the policies only last for a year -- is not much of a deterrent, given that customers can sign up for ObamaCare during open-enrollment periods if their short-term coverage is not renewed.

“Applications rose 30 percent compared to last year,” eHealthInsurance.com Enrollment Specialist Carrie McLean told FoxNews.com.

Continue reading on FoxNews.com...

Digital 'bitcoin' currency surpasses 20 national currencies in value

More than $1 billion dollars worth of a digital currency known as "bitcoins" now circulate on the web – an amount that exceeds the value of the entire currency stock of small countries like Liberia (which uses “Liberian dollars”), Bhutan (which uses the “Ngultrum”), and 18 other countries.

So what is a “bitcoin,” and why would anyone use it?

Unlike traditional currency, bitcoins are not issued by a government or even a private company. Instead, the currency is run by computer code that distributes new bitcoins at a set rate to people who devote web servers to keep the code running. The bitcoins are then bought and sold for regular U.S. dollars online.

Continue reading at FoxNews.com...

Private city in Honduras will have minimal taxes, government ( Maxim Lott | Fox News)

Small government and free-market capitalism are about to get put to the test in Honduras, where the government has agreed to let an investment group build an experimental city with no taxes on income, capital gains or sales.

Proponents say the tiny, as-yet unnamed town will become a Central American beacon of job creation and investment, by combining secure property rights with minimal government interference. 

Continue reading at FoxNews.com...

Many Medical Devices Still Taxed Under Baucus Health Bill

Tucked into the Democrats' proposal to partially fund health care reform is a provision to tax medical appliances -- including some manufactured replacement parts for your body.

Under pressure, the Senate recently exempted medical items that cost under $100 -- such as tampons and condoms. But the tax, expected to raise about $40 billion over the next decade, is still in the bill and includes items like:

Continue reading at FOXNews.com

Critics Assail Congress for Using Subpoena Powers and Strong-Arm Tactics

On Oct. 23 last year, William Frey, the president of a company that puts together mortgage-backed securities, told the New York Times that he had been contacting banks and threatening to sue them if they renegotiated mortgages for homeowners facing foreclosure.

Providing better terms for homeowners, Frey explained, would mean reducing the value of the mortgage-backed securities held by investors like himself.

Continue reading at FOXNews.com

Free Market Meltdown? Economists Fret Over Return to Price Controls

It isn't only the federal government that is trying to fix the economy. Across the country, from Vermont to Alaska, state and municipal governments are doing what they can to ease the burden for Americans who are increasingly out of work and unable to pay their bills.

One controversial solution being considered is a move back to price controls. The New York Legislature and the San Francisco City Council are considering expanding rent controls. Some politicians in Vermont are trying to limit the price of milk. And in Alaska, a bill to cap oil prices is pending in the state legislature.

Continue reading at FOXNews.com

Top Ten Deadliest Stretches of Road in America

While Congress is busy hammering out the details of the $838 billion-and-counting economic recovery bill, the 50 states are already releasing their wish lists for the projects they want to see funded. Among those are numerous roads and highways that they want to see improved.

But where do you start? Which pothole do you fill first?

FOXNews.com analyzed data from crash reports over the last five years to determine which stretches of the nation's roads had the highest number of deadly accidents.

Continue reading at FOXNews.com

Automakers' Jobs Bank Program Pays Laid-Off Workers to Do Nothing

Thousands of laid-off auto workers get paid $31 an hour to sit around and do nothing all year under a controversial program that could continue even if American taxpayers bail out the American auto industry.

The program, called "Jobs Banks," has been around for 24 years. Some of the employees at jobs banks choose to do community service, but others do crossword puzzles and watch TV all day -- or just stare at a wall. If you're a laid-off auto worker, it's what comes with your pink slip, thanks to a deal struck in 1984 between the United Auto Workers and the Big Three carmakers.

Foretelling the Future: Online Prediction Markets

By JOHN STOSSEL and MAXIM LOTT

ho will win the Democratic nomination? Who will be the next president? When might Britney Spears go back to rehab? And who will be the next "American Idol"?
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Online prediction markets let buyers invest in the outcome of current events.

Don't look for guidance from TV pundits or gossip magazines. Instead, go to the Web site where people are putting their money where their mouths are: Intrade.com.

Continue reading at ABCNews.com