Non-Paper Daily, 12.16.2008

*The Federal Reserve cut a key interest rate to nearly zero in hopes of urging our economy away from depression. The Fed has been cutting interest rates regularly for months now and they essentially can go no further. It is a bit disconcerting when the tools in their toolbelt can no longer be deployed.

*Obama named Chicago school's chief Arne Duncan as the next Secretary of Education. Fairly bland pick. The guy is an old friend and basketball buddy who Obama has known for years. He could have done better. I see the problems with our education system every day and I'm in a good school setting. Here was an area Obama could have picked someone with big ideas and he chose to play it safe. Unfortunate.

*New York politicians are looking into an %18 tax increase on soda. Their rationale: It's a way to generate revenue that will be used to treat obesity that is caused, in part, by soda. I haven't read the details, but philosophically I'm a fan. Gas taxes pay for road repairs. Cigarette taxes pay for anti-youth smoking campaigns. Etc. They taught us in the education program that the punishment should always fit the crime. Often the same principle can be applied to taxes: the tax should fit the expenditure.

Reduced Urban Driving

For many reasons it would be a positive development to reduce vehicular congestion in urban areas: pollution and noise reduction, greenhouse gas emission reduction, improved pedestrian and bicycle safety, to name a few. Through the years I have read about a variety of ways municipalities have attempted to reduce city traffic; for example, London imposes a fee to enter city center. Here's another idea: raise the price of parking. Basically Chicago has sold the right to set and enforce parking rates for the next 75 years. As Kevin over at Mother Jones points out, 75 years seems a bit excessive, but the idea of charging more for parking may work in much the same way a high gas tax could reduce overall driving. Worth a shot!