Comparing Economic Growth: United States vs. Europe
06 Feb 2022 Leave a comment
A key principle of economics is convergence, which is the notion that poorer nations generally grow faster than richer nations.
For instance, battle-damaged European nations grew faster than the United States in the first few decades after World War II.
But, starting in the 1980s, that convergence stopped. And not because Europe reached American levels of prosperity. Even the nations of Western Europe never came close to U.S. levels of per-capita economic output.
Moreover, European countries then began to lose ground for the rest of the 20th century.
And that process is continuing. Here’s a recent tweet from Robin Brooks, the Chief Economist of the Institute of International Finance, which shows that the United States was growing faster than Europe before the pandemic and is now growing faster than Europe after the pandemic.
In other words, we’re seeing divergence.
Sven Larson addressed this same issue in a new…
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Parliamentary reports recommend passage of Religious Discrimination Bills
06 Feb 2022 Leave a comment
Two committees of the Australian Federal Parliament examining proposed legislation on religious discrimination handed down their reports on Friday 4 February, 2022. Both committees recommended that the Bills introduced in November 2021 be passed by the Parliament, with some minor amendments. The report of the Parliamentary Joint Committee on Human Rights (“PJCHR”) can be found here, and that of the Senate Legal and Constitutional Affairs Legislation Committee can be found here.
While each report mentions a number of objections to the legislative package, it is significant that these cross-party committees both end up by recommending the enactment of the laws in substantially their current form. In my view this is an encouraging sign, that may signal that the legislation might find sufficient support to pass the Parliament before an election is called this year.
(There were “additional comments” made by ALP members of both Committees, but they did…
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California Democrats Reject Single-Payer Health Scheme
05 Feb 2022 Leave a comment
I wrote last month about a tax-and-spend proposal for single-payer healthcare in California (sort of a state version of “Medicare for All“).
I also analyzed the scheme in this discussion with Gene Tunny of Australia.
What’s remarkable, as Gene mentioned in his preface, is that the left’s push for single payer failed – even though Democrats have complete control of the Golden State, including more than three-fourths of the seats in both chambers of the state legislature.
So why didn’t those politicians hasten the state’s slow-motion economic suicide?
Almost certainly, the biggest reason is that even folks on the left have second thoughts about the enormous tax increase that would have been required.
As I noted back in 2016, big government is only fun when somebody else is picking up the tab.
Which motivates me to unveil a Twelfth Theorem of Government.
Let’s take a closer…
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SPQR: A History of Ancient Rome by Mary Beard (2015) 4. Republican timeline
05 Feb 2022 Leave a comment
This is a timeline of the Roman Republic, cobbled together from various sources with some details added from Mary Beard’s history of Rome, SPQR.
As you can see, it consists almost entirely of wars because Rome was one of the most aggressive and relentlessly militaristic states in the ancient world, which is the basic reason for its eventual world domination. And when, by about 80 BC, they’d run out of people to conquer, they started fighting each other.
Military campaigning was a defining feature of Roman life and Roman writers organised the history of this period…around its succession of wars, giving them the shorthand titles that have often stuck till the present day.
…the Roman tradition [viewed] war as the structuring principle of history…
The Romans directed enormous resources to warfare and, even as victors, paid a huge price in human life…somewhere between 10 and 25 per cent of the…
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But @Facebook is decried as a monopoly!?
05 Feb 2022 Leave a comment
in applied price theory, entrepreneurship, financial economics, industrial organisation, law and economics, politics - USA Tags: competition and monopoly, competition law, creative destruction

Larry White | UCLA Price Theory and Macroeconomics | Economic Forces Podcast Episode 1
05 Feb 2022 Leave a comment
in applied price theory, history of economic thought, macroeconomics, monetary economics
The political foundations of Northern Ireland are at risk of crumbling
04 Feb 2022 Leave a comment
Not for the first time in recent memory, Northern Irish politics is in flux, the UK government’s Brexit deal is causing ructions and the power-sharing institutions are on the brink of collapse. Alan Whysall assesses the current crisis and argues that the foundations of the Belfast/Good Friday Agreement are at serious risk of crumbling.
Northern Ireland appears headed for further political turbulence, and it is not clear that devolved government will survive. Two steps within 24 hours by the Democratic Unionist Party (DUP), currently the largest party in the Assembly, have triggered this.
On Wednesday night, the DUP Agriculture Minister, Edwin Poots, announced that his staff would no longer carry out checks required at Northern Ireland ports under the Northern Ireland Protocol.
On Thursday afternoon, the DUP First Minister (FM) of Northern Ireland, Paul Givan, announced that he would resign his office on Friday morning over the Protocol, although…
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Vernon Smith on Behavioral in 2008
04 Feb 2022 Leave a comment
Like last week, this post is adjacent to the internet chattering over whether behavioral economics is “dead”.
Vernon Smith wrote a book Rationality in Economics that came out in 2008. I’m going to pull some quotes from that book that I think are relevant. This is not an attempt to summarize the main point of the book.
I began developing and applying experimental economics methods to the study of behavior and market performance in the 1950s and 1960s…
Preface, pg xiii
Repetitive or real-time action in incomplete information environments is an operating skill different from modeling based on the “given” information postulated to drive the economic environment that one seeks to understand in the sense of equilibrium, optimality, and welfare. This decision skill is based on a deep human capacity to acquire tacit knowledge that defies all but fragmentary articulation in natural or written language.
Preface, pg xv
I think…
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Not Green: Offshore Wind ‘Industry’ Destroying Fishing Grounds, Birds & Marine Life
04 Feb 2022 Leave a comment
Taking wind turbines out to sea not only escalates the cost of the occasional power they produce, it destroys coastal landscapes, birds and other marine life.
Millions of birds of battered out of existence by these things every year. And offshore turbines are driving puffins and other threatened species to the brink of extinction.
Wind turbine noise has been proven to disrupt whales’ sonar guidance and communication systems, creating another threat to the already threatened Atlantic Right Whale.
The damage done by offshore wind farms to fishing grounds is met with practiced contempt by wind power outfits and malign indifference by their political enablers.
And, as Viv Forbes puts it, offshore wind power facilities threaten the lives and lifestyles of coastal communities, everywhere.
Whirling ‘Triffids’ are now cluttering our coastlines
Spectator Australia
Viv Forbes
29 December 2021
‘I saw them now with a disgust that they had…
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Teaching Price Controls (Poorly)
04 Feb 2022 Leave a comment
Economics textbooks differ in their treatment of price controls. None of them does a great job, in my opinion. The reason is mostly due to the purpose of textbooks. Despite what you might suspect, most undergraduate textbooks are not used primarily to give students an understanding of the world. They are often used as a bound list of things to know and to create easy test questions. If a textbook has to change the assumptions of a model too much from what the balance of the chapter assumes, then the book fails to make clear what students are supposed to know for the test.
I think that this is the most charitable reason for books’ poor treatment of price controls – even graduate level books. The less charitable reasons include sloppy exposition due to author ignorance or an over-reliance on math. I honestly would have trouble believing these less charitable…
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Josh Wright | UCLA Law and Economics, Relational Contracts, and Antitrust
04 Feb 2022 Leave a comment
in applied price theory, applied welfare economics, Armen Alchian, comparative institutional analysis, economics of regulation, F.A. Hayek, history of economic thought, industrial organisation, law and economics, Ronald Coase, theory of the firm Tags: competition law
It’s Energy Will Make or Break the World Now
02 Feb 2022 Leave a comment
Ayaan Hirsi Ali explains how Energy has become the first and foremost world public concern in her Spectator article Energy is the most important issue in the world. Excerpts in italics with my bolds and added images.
Gas prices are climbing, Russia is building pipelines, yet we’re focused instead on appeasing climate activists
One issue more than any other will dominate airtime and influence policy in 2022: energy.Americans are seeing the highest prices at the pump in seven years. Since Biden took office, average gas prices are up by more than $1 a gallon. In November, gas prices in Mono County, California hit more than $6 per gallon, forcing some residents to drive to Nevada (where gas taxes are lower) to buy fuel.

The price of natural gas in the US is at its highest in seven years, and up more than 180 percent in the last year…
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