IP: Security == Permanent tax

[David Farber <dave () farber net>]

> From: "Ridgely C. Evers" <revers () evers org>
> To: <farber () cis upenn edu>
>
> Dave,
>
> Dave,
>
> Don't know if you caught this in yesterday's NYT.
>
> Interesting perspective; the 'tax' Berner refers to is one that much of the
> rest of the world has borne for decades, so perhaps a better way to look at
> it is as a leveling of the economic playing field.  If so, then the freedom
> we've enjoyed has indeed had direct economic benefits.
>
> --Ridge
>
> October 23, 2001
> The Terror Economy
> By RICHARD BERNER (chief United States economist for Morgan Stanley)
>
> <snip>
> ...terrorism is imposing new costs that are unlikely to go away. For every
> business, insurance and security costs will be higher.
> <snip>
> Together, those costs could represent a new form of supply shock, like a
> longer-term tax on the economy that will hurt growth and could boost
> inflation.
> <snip>
>
> http://www.nytimes.com/2001/10/23/opinion/23BERN.html


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