THE MARKET FOR INDUSTRY: WHERE ANGELS FEAR TO TREAD?

This paper investigates one of the perennial mysteries in the area of state and local finance, the provision of tax and other subsidies to business by federal, state and local governments in the face of solid evidence that such incentives do little to nothing to influence business location or job creation. The paper looks at the upsurge in such governmental aid in the last decade and considers whether this upsurge has occurred because such aid is more efficacious than it used to be or whether it has occurred for political reasons unrelated to its effectiveness.     

Reviews

Recently, various authors have examined the relationship between growth in government size and total economic growth. In each case, the authors permitted only a monotonic relationship. This paper examines the issue of a non-linear relationship between growth in government and overall growth in the economy.Government contributes to total economic output in various ways. The provision of Pigovian public goods enhances the productivity of the private sector inputs increasing total output. However, the public decision-making process can result in an inefficient quantity of public goods. The likelihood of this outcome increases with the size of government. Further negative effects are created by the revenue raising and spending mechanisms of government, and the increasing diversion of resources into unproductive rent-seeking activities. The magnitude of these effects is likely to increase with the relative size of government.     

From coercion to deception: the changing nature of police interrogation in America

Our police, with no legal sanction whatever, employ duress, threat, bullying, a vast amount of moderate physical abuse and a certain degree of outright torture; and their inquisitions customarily begin with the demand: If you know what's good for you, you'll confess. (Ernest Jerome Hopkins, 1931)¹ Today, Ness Said, interrogation is not a matter of forcing suspects to confess but of conning them. Really, what we do is just to bullshit them (William Hart, 1981)² There is an interesting irony at work here: restrict police use of coercion, and the use of deception increases. (Gary Marx, 1988)³ In both popular discourse and academic scholarship one continually encounters references to the tradition-bound police who are resistant to change. Nothing could be further from the truth. The history of the American police over the past 100 years is the history of drastic, if not radical, change. (Samuel Walker, 1977)⁴ A longer version of this paper was presented at the Annual Meeting of the American Society of Criminology in November, 1991.     

Project USA: American competitiveness and what must be done to restore it

The United States today faces a loss of influence as a world power, a reduction in American independence as a policymaker, and a decline in the standard of living on which Americans have come to depend. History teaches that nations weaker and less productive than the United States can rise to become economic powerhouses and rapidly increase their standards of living. History also teaches that nations failing to recognize their fundamental problems will inevitably decline. American politicians must face what is abundantly clear: the United States is losing ground and must act quickly to reverse its course. This White Paper outlines what must be done. Information about the nation's current status must be analyzed and communicated. Incentives to improve the level of competence in government must be provided and maintained. The emphasis of government policy must be changed to reflect broad economic and technological interests as opposed to special interests. Savings must be encouraged and increased. Infrastructure must be improved Tax laws must be modified to help bring these changes about. Economic and technological issues must be elevated to the importance they require. American thinking must reflect the new realities: that the age of leadership through military power is over, that the requirements for success in the world of the 1990s and beyond require a sound and growing economy that is internationally competitive. The US can accomplish these goals only through foundation-shaking, comprehensive, fundamental changealong the lines we propose herein.This paper is the executive summary (with minor editing modifications) of a white paper that is available from Cornell University's Johnson Graduate School of Management.     

Book reviews

Turkey in the Middle East By Philip Robins. Pinter for the Royal Institute of international Affairs. 1991.130 pp. £22.50. ISBNO 86187 198 7. PBk £8.95. ISBN 0 86187 1995.

Hitler Slept Late and other blunders that cost him the war By James P. Duffy. London: Praeger. 1991.176pp. £17.50.

Alliance within the alliance: Franco‐German Military Cooperation and the European Pillar of Defense By David G. Haglund. Boulder: Westview Press, 1991. 213 pp.

Homeward Bound? Allied Forces in the New Germany Edited by David G. Haglund and Olaf Mager. Boulder: Westview Press, 1992. 299 pp. £24.95

Avoiding War: Problems of crisis management By Alexander L. George (ed.), Westview Press, 1991. 590 pp. £16.95.

The Future of NATO: Facing an Unreliable Enemy in an Uncertain Environment By S.N. Drew et al. Praeger Publishers, New York, 1991. pp. 206.

Parliament and international relations Edited by Charles Carstairs and Richard Ware. Milton Keynes: Open University Press, 1991. 195 pp. £12.99 (paperback)     

Book Review

Radical myths and superpower relations in the 1980s

A review of Mark Kaldor, Gerard Holden, and Richard Falk (eds), The New Detente: Rethinking East‐West Relations, Verso, London, 1989.

Paul Taylor and A.J.R. Groom, Global Issues in the United Nations Framework, Basingstoke, Hampshire, The MacMillan Press Ltd., 1989.

Roger A. Coate, Unilateralism, Ideology, and US Foreign Policy: The United States in and out of UNESCO, Lynne Reinner Publishers, London, 1988.

Bary Buzan, Morten Kelstnip, Pierre Lemaitre, Elzbieta Tromer, and Ole Weaver, The European Security Order Recast: Scenarios for the Post‐Cold War Era, Pinter Publishers, London & New York, 1990, pp.x. 282, £8.95 pbk, £30 hbk.