The latest Case-Shiller data indicate that housing prices increased in December for the 7th straight month.  Most news accounts regarded this as good news.

But between 2000 and 2006, housing prices rose 80-90 percent, and they are still 35-40 percent above the 2000 level.  If most of the 2000-2006 increase was a bubble, then housing prices should be lower, not higher, based on fundamentals.

In that case, the U.S. is continuing to overinvest in housing.  So the higher prices are bad news.

This does not imply that policy should attempt to lower housing prices; it should just not care one way or the other.

Every time I fly, the urge to rant about airport security becomes irrepressible.

But what exactly is the alternative to the current system? Specifically, what would happen if airlines and airports could design and pay for their own systems? Here are some possibilities.

1. Trusted flyer programs. To join, you undergo an extensive initial security check. From then on, you just show a high-security ID at the airport and skip all the screening. (TSA has experimented with these, but they have been small scale so far.)

2. Flights that prohibit carry-on luggage. In exchange for being bored for a few hours, you get faster screening and a cheaper flight.

3. Expanded air marshal programs, with both uniformed and undercover marshals on every flight. Terrorists realize their chances of success are minuscule even if they get a weapon on a plane, so less screening is necessary.

I have no idea whether any of these would be cost-effective. But I would like to see what the private sector could figure out if it were free to innovate, and I bet it would work better, at lower cost, than what TSA does now.

According to today’s New York Times,

The Obama administration is planning to use the government’s enormous buying power to prod private companies to improve wages and benefits for millions of workers, according to White House officials and several interest groups briefed on the plan.

This kind of intervention cannot possibly be beneficial; it is an excuse for redistribution to organized labor and politically connected businesses.  It is hard to imagine a worse idea.

See also Alex Tabarrok’s excellent critique at Marginal Revolution.

The marriage laws in Massachusetts specify the following:

No man shall marry his mother, grandmother, daughter, granddaughter, sister, stepmother, grandfather’s wife, grandson’s wife, wife’s mother, wife’s grandmother, wife’s daughter, wife’s granddaughter, brother’s daughter, sister’s daughter, father’s sister or mother’s sister.

No woman shall marry her father, grandfather, son, grandson, brother, stepfather, grandmother’s husband, daughter’s husband, granddaughter’s husband, husband’s grandfather, husband’s son, husband’s grandson, brother’s son, sister’s son, father’s brother or mother’s brother.

Presumably the demand for such marriages is small.  But should policy prohibit them?

Thanks to Joel Pollak for the tip (he noticed a sign with this information when he applied for his own marriage license).

Pollak is the Republican (libertarian sympathizing) candidate for the 11th Congressional district in Illinois; see here for more information.  I met Pollak recently when he visited Harvard.

See here for a faceoff over subprime lending between Pollak and Barney Frank; see here for a follow-up interview of Pollak by Greta Van Susteren.

Greg, a loyal reader,, emails me this query:

I live near Chicago Illinois. It must be one of the least libertarian places in the US. Chicago is famous for its preposterously large (and horrendously run) government. All this government has created very large operating deficits for the city, county and state. The government has gotten so big and burdensome that Chicago has had to think creatively to solve its debt problems.

Here’s my dilemma: To solve their budget problems, Chicago has ironically been at the leading edge of some very libertarian-friendly policies.

For example, the city became one of the first municipalities to privatize a major tollway (the Skyway)… and is now trying to privatize a major airport (Midway). Chicago also privatized its parking meter operations. With that privatization, parking rates rose to a more competitive and unsubsidized rate. This deal has been criticized – but now more parking spaces are available and the company that runs the meters has upgraded all the facilities so that now people no longer need 500 quarters to feed the meters… you can pay with cash, credit card, etc.

The obvious paradox is that as government gets worse (and budgets get bigger), the city has resorted to more libertarian-friendly options. So what’s the hopeful libertarian to do?

So does this mean that Frankin Roosevelt, Lyndon Johnson, George W. Bush, and Barack Obama are big time libertarians?

In Butch Cassidy and the Sundance Kid, Butch hatches a plan to escape a posse and avoid culpability for the duo’s past crimes by joining the Army.  The plan did not work for Butch and Sundance, but a similar scheme seems to have worked for Mathew Meineke:

A man who helped arrange a drug deal that brought a large amount of cocaine into Maine is being allowed to return to the Army – and do a second combat tour in Afghanistan.

Mathew Meineke faced the prospect of five years in prison because of the drug deal in 2006. Afterward, the Colorado native cleaned up his life, enlisted in the Army, and served in Afghanistan as a forward observer for his infantry unit from July 2008 to June 2009. While in Afghanistan, he was indicted.

This month, Meineke got a rare break. Defense lawyer Tim Zerillo asked federal prosecutors to consider dropping the charges, and they agreed to do that.

“All he wants to do is to be able to serve his country,’’ Zerillo told the Portland Press Herald. “His highest and best use is not in a federal prison, it’s in Afghanistan protecting us and everyone else.’’

Butch and Sundance would be proud.

I have three reactions to this news:

1. On balance, antitrust policy does more harm than good and should therefore be repealed.  Then the insurance exemption would be moot.

2. If we have an antitrust policy, I see no good argument for exempting the insurance industry.

3. I cannot figure out what health insurers are currently doing that violates the antitrust laws. So repeal of the exemption would make no difference.

Am I misssing something here?

According to the current plan, all combat forces are to leave by the end of August.  Yet

The top U.S. commander in Iraq said Monday that the planned withdrawal of all U.S. combat forces by the end of August could be delayed if conditions worsen in the coming months as Iraqis choose a new government.

Since violence has ticked upward in recent weeks (see, e.g., here), the likelihood of delay is real.  Recall my earlier prediction that the U.S.

will have at least 200,000 troops in Iraq / Afghanistan in November, 2012.

Aside: The same general who issued the above statement also announced this week that he supports open gay service in the military.

California may soon place animal abusers on the same level as sex offenders by listing them in an online registry, complete with their home addresses and places of employment.

Is this a good idea? I think not.

First, as awful as animal abuse can be, it is ridiculous to think of animal abuse as similar to rape or molesation.  Animals are not people.

Second, registries for sex offenders seem unlikely to be the right policy.  If offenders still pose risks to others, keep them in jail.

In an earlier post, I stated that conservatives who decry federal spending are nevertheless loath to name specific programs they would cut.  One exception is Paul Ryan, whose “Road Map for America’s Future“ advocates substantial reductions in Medicare and Social Security spending.

You can read an interview with Ryan in yesterday’s NYTimes.  He’s from Wisconsin, so he’s a cheesehead!