TweetHere’s a letter to the Wall Street Journal. Editor: Greg Ip’s argument that cryptocurrencies, being privately issued, will fail as money relies heavily on his historical claim that privately issued bank notes in the 19th-century United States failed as money (“Stablecoins Are Private Money. That’s Why They’re a Risk to the Economy.” May 25). Mr.…
On Private Money
On Private Money
28 May 2026 Leave a comment
in applied price theory, economic history, financial economics, history of economic thought, macroeconomics, monetary economics
The Courts and Climate Change
28 May 2026 Leave a comment
in economics of climate change, energy economics, environmental economics, environmentalism, global warming, law and economics, politics - New Zealand, property rights Tags: climate activists, climate alarmism, nuisance suits
Legislation or Litigation The Smith v Fonterra case was brought by climate change spokesperson for the Iwi Chairs Forum Michael Smith (Ngāpuhi, Ngāti Kahu) against several major emitters. Smith was attempting to use tort law to address the diffuse, cumulative harms of climate change to his property, culture, and iwi. When the matter came before the Court […]
The Courts and Climate Change
Trade Deficit Illiteracy, Part III
28 May 2026 Leave a comment
in applied price theory, budget deficits, economic growth, fiscal policy, history of economic thought, international economics, macroeconomics, politics - USA
Looking at Part I and Part II, and considering the focus of today’s column, this series should actually be entitled “Trade Deficit Literacy.” That’s because the material I cite explains that a trade deficit is merely the flip side of an investment surplus. And it is good that the United States is a magnet for […]
Trade Deficit Illiteracy, Part III
Edmund Phelps, 1933-2026
28 May 2026 Leave a comment
in business cycles, history of economic thought, labour economics, macroeconomics, monetary economics, unemployment
Economics has recently lost another of the greats, Nobel Prize-winning economist Edmund Phelps, who passed away last week. Phelps was a macroeconomist, and among his many contributions he helped to formalise the concept of the natural rate of unemployment. Phelps won the Nobel Prize in 2006 for “his analysis of intertemporal tradeoffs in macroeconomic policy”.Surprisingly,…
Edmund Phelps, 1933-2026
NZ First’s foray into transgender issues might be ethically dubious, but politically it could be a winner
27 May 2026 Leave a comment
in discrimination, economics of regulation, gender, law and economics, liberalism, Marxist economics, politics - Australia, politics - New Zealand, politics - USA, property rights Tags: 2024 presidential election, sex discrimination
One political advertisement stood out from the thousands that blitzed the US presidential campaign of 2024. It inflicted enormous damage on the Democratic Party’s flagbearer, Kamala Harris. The ad’s central tagline deployed just two sentences: “Kamala is for they/them. President Trump is for you.” Former President Bill Clinton urged the Harris Campaign to come back […]
NZ First’s foray into transgender issues might be ethically dubious, but politically it could be a winner
Blame Washington for the Great Depression, Part III
27 May 2026 Leave a comment
in budget deficits, business cycles, economic growth, economic history, fiscal policy, great depression, history of economic thought, macroeconomics
To follow up on Part I and Part II in this series, let’s start with this Stossel video featuring Professor Don Boudreaux of George Mason University. The message is simple and accurate. Starting nearly 100 years ago, we got terrible statist policy from Herbert Hoover, followed by terrible statist policy from Franklin Roosevelt. No wonder […]
Blame Washington for the Great Depression, Part III
Schumpeter comes to Wellington
27 May 2026 Leave a comment
in economic growth, economic history, economics of bureaucracy, macroeconomics, politics - New Zealand, Public Choice
(And what we can learn from the Luddites) In 1987 Telecom New Zealand employed about 25,000 people. By 1997 it employed under 8,000. A single corporation shed 17,000 jobs in a decade, in a country of 3.3 million. The cost of Telecom’s long-distance calls fell by 60 per cent between 1987 and 1992. The decade that followed […]
Schumpeter comes to Wellington
The corporate tax rate really matters
26 May 2026 Leave a comment
in applied price theory, econometerics, economic growth, economic history, entrepreneurship, fiscal policy, macroeconomics Tags: taxation and entrepreneurship, taxation and investment
Three findings emerge. First, improvements in aggregate tax competitiveness are positively and significantly associated with real GDP per capita growth, robust to a wide range of controls. Second, this aggregate effect is driven entirely by the corporate tax pillar; no other component displays a significant growth effect. Third, the corporate tax effect materializes contemporaneously and…
The corporate tax rate really matters
Rage, Rage Against the Dying of the Net Zero Dream
26 May 2026 Leave a comment
in economics of climate change, economics of natural disasters, economics of regulation, energy economics, environmental economics, environmentalism, global warming Tags: climate alarmism
Human welfare, not abstract emissions targets, must remain the lodestar. History shows that technological progress and energy abundance, not central planning, have lifted billions from poverty and improved environmental outcomes along the way. The post Rage, Rage Against the Dying of the Net Zero Dream appeared first on Watts Up With That?.
Rage, Rage Against the Dying of the Net Zero Dream
Quotation of the Day…
26 May 2026 Leave a comment
in applied price theory, history of economic thought, international economics
Tweet… is from pages 171-172 of Menzie Chinn’s and Douglas Irwin’s excellent 2025 textbook, International Economics: The Lerner Equivalence Theorem – that an import tariff is equivalent to an export tax – carries a powerful message: a country that tries to protect import competing industries from foreign competition may be able to help those industries…
Quotation of the Day…
1,600 more homes in Upper Hutt, if the Council doesn’t block it
26 May 2026 Leave a comment
in economics of regulation, politics - New Zealand, urban economics Tags: housing affordability, land supply, zoning
Radio NZ reports: A developer is calling on the Upper Hutt City Council to let it build what it believes to be a crucial road, so it can construct 1600 homes. Guildford Timber Company (GTC) wants to build the road through an area of council-owned land known as the Silverstream Spur, home to a number…
1,600 more homes in Upper Hutt, if the Council doesn’t block it
Are Living Standards Higher in France or Mississippi?
25 May 2026 Leave a comment
in applied price theory, economic growth, economic history, income redistribution, labour economics, macroeconomics, poverty and inequality, Public Choice Tags: France
Earlier this month, in Part V of my series on the U.S. vs. Europe (previous versions available here, here, here, and here), I shared a chart showing the OECD calculations of “Actual Individual Consumption.” The AIC numbers are designed to give people an apples-to-apples comparison of living standards. I’m re-sharing the chart today, and I’ve […]
Are Living Standards Higher in France or Mississippi?
Thomas Poole and Elena De Nictolis: The English Devolution and Community Empowerment Act 2026
25 May 2026 Leave a comment
in constitutional political economy Tags: British constitutional law, British politics
After months of parliamentary debate, the English Devolution and Community Empowerment Act 2026 (‘English Devolution Act’) received Royal Assent on 29 April 2026. The Act has important implications for the relationship between central and local government and the long-running ‘English question’ in UK constitutional politics. This post situates the Act within almost three decades of […]
Thomas Poole and Elena De Nictolis: The English Devolution and Community Empowerment Act 2026
Liberal Economists Score an Own Goal Against Bezos
25 May 2026 Leave a comment
in applied price theory, fiscal policy, James Buchanan, labour economics, labour supply, macroeconomics, Public Choice, public economics
Jeff Bezos tweeted: Yes, the United States has the most progressive tax system in the world. The top 1% pay 40% of taxes, the bottom 50% pay 3% of taxes. We can make it even more progressive by zeroing out taxes on the bottom half. It’s a small amount of the total tax revenue but…
Liberal Economists Score an Own Goal Against Bezos
Scotland 2026: A normal election for its MMP design
24 May 2026 Leave a comment
in constitutional political economy, Public Choice Tags: Scotland
The electoral system used for the Scottish Parliament is more restrictive than the Westminster parliamentary electoral system, and recognizing this characteristic is key to understanding the result of this election.
Scotland 2026: A normal election for its MMP design
Utopia, you are standing in it! 
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