???Global climate change is a serious problem calling for immediate national action.??? — Janet Yellen and other top economists

I received an urgent letter last month from Janet Yellen, the former Fed chair, asking me to join with other top economists, including 27 Nobel Prize winners, to sign a statement calling for a carbon tax to be imposed on American business and consumers to both counter a ???well-known market failure??? and to create a ???low-carbon future.???

I was surprised to see the letter had been signed by several market-friendly economists such as Glenn Hubbard, Greg Mankiw and Alan Greenspan. Did those three also drink the purple Kool-Aid?

First of all, air pollution is not really an example of market failure. Instead, it is a sign of the government’s failure to enforce property rights.

Second, air pollution is not a serious problem any longer in the United States and other industrial nations thanks to catalytic converters and other anti-pollution devices.

If you look at various charts of pollution in the United States, it has undergone a sharp decline over the past 50 years, as reflected by this chart that I show all my students. Before I show the chart to the class, I ask them, ???How many of you think that air pollution has gotten worse in Southern California???? Usually, about a third of the hands go up. Then I show them this chart:


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