Subject: AEI Economics Ledger: Dont forget the older long-term unemployed environmentalists stand

with Russia deadly substandard drugs

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Gray-haired and unemployed

NEW PAPER Solutions to get the older long-term unemployed back to work. Aparna Mathur and
Peter Hansen: We examined nationally representative unemployment and demographic data from the
Current Population Survey from May 2012 to April 2013. . . . Almost 16 percent of unemployed younger
workers found jobs, compared to 10 percent of unemployed older workers. Though that six-percentage-
point difference may seem small, it actually means that a younger long-term unemployed worker has a 60
percent better chance of getting rehired than an older one.

Fiscal reform

An alternative to Piketty, blueprint for the middl e cl ass. Stan Veuger: [Pikettys] ideal society, like
President George W. Bush's ownership society, is well within reach. Piketty is not as optimistic, because
the policy proposals he came up with in response to his findings are both detrimental to growth and highly
unrealistic. The set of policies I have presented here are neither. They are based on ideas that have been
around for some time, and not only would they make Piketty's dreams reality, but they would also secure
the fiscal health of the federal government for the foreseeable future.

Puerto Ri cos big problem is our big problem. J im Glassman: As U.S. officials and private investors
become more concerned about the financial fate of Puerto Rico after nearly a decade of economic
decline, attention has turned to an $8.5 billion bank, which may be the key to whether this island of 3.7
million people flourishes or self-destructs.

International economics

Environmentalists stand with Russia. Kevin Hassett: Vladimir Putin has an unappreciated ally in his
aggression against Ukraine: Western environmentalism. Europe collectively has little will to stand up to
him, in part because Europe has given Russia the key to its economy its energy supply.

Ukraine and the need for IMF reform. Desmond Lachman: If ever an International Monetary Fund
(IMF) lending program highlighted the need for basic reform in the IMF's lending practices, it has to be
that of its recently concluded Ukrainian stand-by arrangement. Despite Ukraine's poorest of track records
with past IMF loan performance and despite the unusually high risks that surround the country's political
and economic prospects, the IMF is choosing to provide this country with exceptional access.

Is China on the road to become Japan? Derek Scissors: The economy has been weakening and may
continue to weaken. Natural resources are inadequate, the population is aging, and the country is starting
to sink into debt. China in 2014? Yes, also J apan in 1994. The conclusion many observers drew then was
that J apan had to sharply boost innovation to renew economic expansion. Unfortunately, it hasn't
happened yet.

Making sense of the European Parli ament. Stan Veuger: The European Parliament is a powerfully
named organization that is a part of the European Union bureaucracy. Its name could trick one into
believing that is the European Unions legislative body, similar to the United States House of
Representatives. This is incorrect. It cannot actually initiate legislation. It also doesnt feature
representatives of the people.

Club de Pari s called. It wants its money back. J ames Glassman: Argentina has already made a
mockery of the international rule of law merely through its continued membership in the G-20. It should
have been expelled long ago. The Paris Club was the latest redoubt for defending financial probity and
sanity.

In other news

Dealing with deadl y, substandard drugs. Roger Bate, Aparna Mathur, and Ginger Zhe J in:
Concerns about US drug quality are increasing. With 80 percent of the ingredients and 40 percent of the
final products coming from overseas (notably India and China), the U.S. Food and Drug Administration
(FDA) faces a daunting task to ensure drug quality throughout the global supply chain. It has issued
multiple warnings to myriad firms ranging from data manipulation to sanitation issues.

Income inequality and risk-taking in the 21
st
century. Edward Conard: It is inaccurate to conclude
that the middle and working classes have not benefited from innovation. The U.S. economy has grown
about 75 percent since 1991; U.S. employment grew 50 percent since 1980. Over these same periods,
the French and German economies grew by less than half that amount, J apan by less than a third. The
U.S., moreover, achieved this growth with median incomes that were already 25 to 30 percent higher.
Fantasy commencement address. Michael Strain: Right off the bat, our culture has made a mistake: It
is unfortunate to think of a 22-year-old as beginning his adult life. Wed be better off if undergraduates
thought of themselves as adults and comported themselves accordingly. Sadly, many 22-year-olds,
thanks to the subtle mores they absorb, wont think of themselves as adults for another half decade or so.
So heres my first piece of advice to recent grads: You are an adult. Act like one.

Mark your calendar

TODAY! The May employment situation report
6.12 AEI EVENT: After Snowden: The road ahead for cybersecurity
6.12 Weekly jobless claims
6.23 AEI EVENT: A conservative vision for social justice

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