Matters Financial

1 September 2003


WorldCom/MCI Faces Criminal Prosecution
The state of Oklahoma has decided to criminally prosecute WorldCom, now MCI, for its alleged defrauding of shareholders. The company has already settled some civil charges, and concern now exists that the new case will damage efforts to bring the company out of bankruptcy. The suit is foolish, not because WorldCom is innocent, nor because it is piling more punishment on the firm, but rather because corporations are not real people but legal fictions. They don't deserve criminal trials. Click here to read more.

US Economy Isn't Out of the Woods, Yet
The US GDP grew 3.1% in the second quarter of 2003 according to the Commerce Department. Consumer spending was strong, defense spending increased faster than it had since the Korean War, and there was evidence that businesses are spending more than in recent months. Analysts are up-beat, and stock brokers should come back to their desks after the Labor Day week-end ready to make profits. A lousy job market, though, could still sink the whole thing. Click here to read more.

Ireland Weighs Fat Tax
The Irish are playing around with a silly idea for their tax system. As a pro-health measure, Health Minister Michael Martin is "very tentatively" thinking about taxing high-fat foods. The flawed logic in this is the belief that tax policy can influence every spending decision. Click here for our view.