Utopia, you are standing in it!

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Originally posted on The Everyday Economist:
Paul Krugman explains why one should believe in the Keynesian model. There are two main points he emphasizes: First, we’re talking about a model, not just a prediction about the impact of spending increases. So you can ask about the ancillary predictions of that model as opposed to rival…

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Originally posted on The Everyday Economist:
I have noticed that there is concern, notably from my friends who are left-of-center, that the Citizens United decision will ruin the political process. Jeffrey Toobin has an excellent article in the New Yorker about the actual process through which the decision came to be. Toobin laments the decision…

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All I said was “optimal tax theory including that pioneered by Stiglitz and Merrlees, economists of impeccable left-wing credentials, show that taxes on the income from capital should be low because the deadweight social costs of taxes on capital are very high”.

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Originally posted on spottedtoad:
Academics and activists who advocate a policy of large cash transfers to combat poverty should pay attention to what happens to individual lower-income people who suddenly receive large cash transfers; for example, NFL players (from the Freakonomics podcast):  If you follow sports even a little bit, you’ve heard many, many stories…

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Originally posted on spottedtoad:
It has been fashionable in some quarters to claim that solving poverty is a simple matter of generosity and will. A typical headline states: We know how to eliminate poverty. So why don’t we? The claim is that more generous cash transfers will lift families out of poverty and even relative…

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Originally posted on spottedtoad:
Neither political party has much incentive to point it out (Republicans because they are in the opposition, Democrats because it weakens the argument for state action), but the United States is still a very wealthy country. Here, based on 2014 Census Data, are median incomes for 4-person households by state– above…

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Source: Mankiw, N. Gregory, Matthew Weinzierl and Danny Yagan. 2009. "Optimal Taxation in Theory and Practice." Journal of Economic Perspectives, 23(4):147-74. The Morgan Foundation gave optimal tax theory a pass in yesterday’s publication about taxes on land and capital. Gareth Morgan is keen on a comprehensive capital tax. Source: Taxing Wealth & Property – What …

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