U.S. Stops Guaranteeing Ukrainian Debt

For every story of the appearance of proposed handouts, there’s one of their disappearance:

“This week, we received an official refusal from the U.S. government to provide loan guarantees to Ukraine,” the ministry said in a statement. “Therefore, we have nothing to do but to file a lawsuit against Ukraine if the borrower fails to fulfil its liabilities in full on December 20, 2015, which will mean Ukraine’s sovereign default.”

Here’s me writing back when Congress first approved $1 billion in loan guarantees to Ukraine. Via Cassad.
On the relevant Marginal Revolution thread, I asked
What counts as a “success”?

Art Deco replied

1. Lower administrative costs; and

2. No observable decline in labor for participation; and

3. No declines in labor force participation in population subsets of any size.

N.B. withdrawal of subsidies to frequently replenished commodities in favor of market allocation will have benefits. I expect, however, that this scheme will merely be a lard on and that the rent controls, public housing, and subsidies will remain (unless, of course, Finland does not have such measures as we speak).

I reply

Good benchmarks. I’d also add increased real expenditure among recipients (rather than all just going to rising prices), lower poverty, and greater satisfaction with life. Also, better health outcomes and long-run tax increases not highly damaging to economic activity. And lower crime and higher test scores among recipients.

And my current background is #df1a1a , a form of red, not plum.

Author: pithom

An atheist with an interest in the history of the ancient Near East. Author of the Against Jebel al-Lawz Wordpress blog.

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