Explained: Three Things that the Keynesians Can’t

Posted: October 7, 2015 by Jim Rose in economics

Originally posted on jesscarswell:

“…the Misesian theory of the business cycle accounts for all of our puzzles: The repeated and recurrent nature of the cycle, the massive cluster of entrepreneurial error, the far greater intensity of the boom and bust in the producers’ goods industries.”

Murray N. Rothbard, “Economic Depressions: Their Cause and Cure

Firstly, why is the cycle repeated and recurrent in nature?

The Keynesians assume that the cause of the business cycle is endogenous to the free market, yet have no causal explanation for this assumption.

The Austrian Theory of the Business Cycle (ABCT) explains that the boom is caused by government issuing cheap credit. The problem is, that – unlike here, where the capital structure lengthens due to a lowering of real time preferences, – when cheap credit is issued, the capital structure also extends in a similar fashion, but it is due to false price…

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Jim Rose:

As you may know, this tosser has been targeted by the British police for hate speech. Let her flourish in all her dottiness.

Her outburst was not an incitement to immediate lawlessness nor did it incite a riot. Nor was her bile a threat against a specific person nor could cause any particular person to be alarmed. Basically, big talk in the pub which unfortunately had Wi-Fi. If the police had left her alone she would not have even got 15 seconds of fame.

Her manifesto says that she has “ZERO TOLERANCE on homophobia, queer-phobia, trans*phobia, racism, Islamaphobia, misogyny, ableism, cis-sexism, and classist behaviour.” Seems as though blasphemy is OK as long as it is not against Islam. Anti-Semitism seems to be okay as well by her.

If you want to go around rounding up the lefties for hate speech, the police would have nothing else to do given all bile they spit at capitalism and the successful.

Originally posted on bahar4welfare:

About Me: Experience


As part-time Women’s Officer at Goldsmiths I committed to weekly Women’s Drop in service open to ALL self-defining women and none-binary folk who have struggled with issues ranging from harassment, to childcare and access needs.

One in seven women are subjected to sexual assault on campus[1], and as promised, I worked closely with liberation officers to form a Safer Spaces Working Group in which we produced a system for reporting such incidents to ensure the aftercare of survivors. In light of these statistics I set up the Women’s Forum and the Survivor’s Support Network for students who had experienced sexual violence and abuse.

Campaigns and Awareness

I organised Feminist Society events, open to all genders, as a site for cultivating a strong sense of political growth and arousing discussion about issues affecting our daily experiences. Topics varied from “Intersectionality 101” and…

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New Zealand is a humble 37th in the running. Mind you, the New Zealand resident population of the UK on a per capita basis of the home population and compares well with Canada and Australia are much larger countries such as the Philippines and the USA.

Source: Population by Country of Birth and Nationality Report, August 2015 – ONS.

Source: 3412.0 – Migration, Australia, 2013-14

Video  —  Posted: October 7, 2015 by Jim Rose in classical liberalism, F.A. Hayek, libertarianism, Marxist economics, politics - Australia, politics - New Zealand, politics - USA, Rawls and Nozick

Originally posted on Mostly Economics:

Robert W. Fairlie of University of California, Santa Cruz  asks this question in this paper:

Boys are doing worse in school than are girls, which has been dubbed “the Boy Crisis.” An analysis of the latest data on educational outcomes among boys and girls reveals extensive disparities in grades, reading and writing test scores, and other measurable educational outcomes, and these disparities exist across family resources and race. Focusing on disadvantaged schoolchildren, I then examine whether time investments made by boys and girls related to computer use contribute to the gender gap in academic achievement. Data from several sources indicate that boys are less likely to use computers for schoolwork and are more likely to use computers for playing games, but are less likely to use computers for social networking and email than are girls. Using data from a large field experiment randomly providing free personal computers to schoolchildren for…

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Image  —  Posted: October 7, 2015 by Jim Rose in applied price theory, energy economics, environmental economics, global warming, industrial organisation, survivor principle
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How zoning rules would work in a free society

Posted: October 7, 2015 by Jim Rose in economics

Originally posted on Australian Libertarian Society:

Guest post by Ben O’Neill, originally published at www.mises.org on 17 June 2009. Be warned that this article is a bit longer than most ALS posts.


It is well known that the libertarian political philosophy is antagonistic to coercively imposed rules that limit people’s freedom to use their private property as they see fit. Indeed, the very essence of libertarianism is the nonaggression principle that condemns the initiation of force against person or property. As a result, libertarians have been critical of zoning laws, which restrict the ability of property owners to develop their property or use it for their desired purposes.[1]

Because of this antipathy to zoning laws, some critics of libertarianism fear that a libertarian society would leave people incapable of exercising any control over their neighborhood and preserving the character of their surroundings. They worry that the decisions of surrounding property owners could change…

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An NGO that “does nothing”

Posted: October 7, 2015 by Jim Rose in economics

Originally posted on Cherokee Gothic:

The blog “Africa is a country” has a good interview with Hussein Kurji, the creator of a Kenyan mockumentary of aid NGOs. The show is called Samaritans and it chronicles the daily travails of working at an NGO called Aid for Aid.  Like Seinfeld was a “show about nothing,” this NGO is an organization that “does nothing.”

Here’s Kurji talking about one of the stories of Season 1 that sounds particularly funny: “The major story arc of Season 1 is that Aid for Aid is about to apply for the largest grant that the Nairobi field office has ever applied for. In Episode 2, their first task is to come up with an acronym before figuring out what the grant’s about.”

My favorite part of the interview though was when the blog asked him for the craziest story he’s heard about an NGO.

He replies: “I heard from someone…

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How Not to Fight Corruption, Mexico Edition

Posted: October 7, 2015 by Jim Rose in economics

Originally posted on Cherokee Gothic:

Ernesto Villanueva has a great post up about the uselessness of Mexico’s new anti-corruption scheme currently being debated in the Mexican Senate.  He also has a hilarious (but sadly, accurate) description of the background to this constitutional amendment:

It was precisely a corruption scandal involving the president, his wife and his treasury secretary, Luis Videgaray, that led high-level figures to prioritize anti-corruption legislation in the first place. President Peña appointed Virgilio Andrade — a close friend of Secretary Videgaray from their university days — to investigate a conflict of interest case involving Peña, his wife and Secretary Videgaray. To be clear: Andrade was asked to investigate a conflict of interest case involving a party with whom he had a conflict of interest. The result was predictable.

And here are some reasons he is skeptical about the new amendment:

a. It would “leave the president untouched and outside the scope of…

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I am surprised that Ireland and Switzerland are so high up in the game. Swedes are poorer than the British despite a much more generous welfare state. France is low in the rankings as is Finland. Japan is doing very poorly on a PPP basis, down there with Italy.

Source: OECD Economic Outlook, Vol. 2015, No. 1.

Data are unavailable on in New Zealand.

Originally posted on :

Today’s post is co-authored by Michael Greenstone (University of Chicago) and Catherine Wolfram (UC Berkeley) Faculty Directors of The E2e Project.

As featured in the New York Times For Government That Works, Call In the Auditors

The urgency of climate change demands solutions that work. And so, a clear-eyed assessment of how well existing policies and programs are performing is critical, no matter the results. Using rigorous evidence to inform policy design and implementation is the only way to ensure that we effectively confront climate change. The need for objective evidence is particularly important in the case of energy efficiency investments because they play a central role in virtually every single climate change mitigation plan.

Recently, we conducted a first-of-its-kind, randomized controlled trial of the nation’s largest residential energy efficiency program, the federal Weatherization Assistance Program (WAP). The trial consisted of a sample of more than 30,000 WAP-eligible households in…

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