10 Aug 2021
by Jim Rose
in applied price theory
Point of Order
The headlines said it all.
“High power demand forces blackouts in some areas”: Radio NZ.
“Things are running tight this morning: Transpower boss’ warning to Kiwis”: NZ Herald.
“’So Third World’ : Government faces pressure after power blackout” : Stuff
But doesn’t NZ have plenty of energy? After all, the Ardern government – in 2018 – could rule out any further offshore exploration for oil and gas.
And Energy Minister Megan Woods, more recently, has been complaining that wholesale power prices are too high.
It all hit home with dismaying force this week when – for the first time in several decades – NZ experienced enforced power blackouts.
As Stuff reported:
“The government is facing serious pressure after rolling power blackouts on one of the coldest nights of the year, with National saying the situation is ‘third world’.”
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10 Aug 2021
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, constitutional political economy, David Friedman, development economics, economic history, economics of bureaucracy, economics of crime, economics of regulation, growth disasters, growth miracles, history of economic thought, human capital, income redistribution, industrial organisation, labour economics, labour supply, law and economics, liberalism, libertarianism, Marxist economics, poverty and inequality, property rights, Public Choice, rentseeking
Tags: economics of socialism
09 Aug 2021
by Jim Rose
in applied price theory
No Minister
While his competitors continue to fumble around with much delayed, modest successes like getting spaceships into sub-orbital flights, Elon Musk’s SpaceX corporation continues to power ahead with stuff that’s at least a decade in front of them, not to mention national space agencies like China’s and NASA.
Following the successful atmospheric test flight of Starship SN15 – after a few catastrophic landings for earlier models – the next test ship, SN16, was simply scrapped while work moved ahead on a sub-orbital / orbital test vehicle.
This is entirely in keeping with SpaceX’s iterative development process of rapid design-build-test prototyping.
Only a few days ago, it was observed that the Super Heavy Booster (formerly called the BFR), the 1st stage of the Starship system, had been moved to its launchpad in Texas.
But just the other day, it was seen that an actual Starship sub-orbital/orbital model, SN20, was lifted…
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09 Aug 2021
by Jim Rose
in applied price theory
They should found a hedge fund then to prove John Cochrane wrong when he testified that “But climate change poses no measurable risk to the financial system. This emperor has no clothes. “Risk” means unforeseen events. We know exactly where the climate is going over the horizon that financial regulation can contemplate. Weather is risky, but even the biggest floods, hurricanes, and heat waves have essentially no impact on our financial system.
Moreover, the financial system is only at risk when banks as a whole lose so much, and so suddenly, that they blow through their loan-loss reserves and capital, and a run on their short-term debt erupts. That climate may cause a sudden, unexpected and enormous economic effect, in the next decade, which could endanger the financial system, is an even more fantastic fantasy.
Sure, we don’t know what will happen in 100 years. But banks did not fail in 2008 because they bet on radios not TV in the 1920s. Banks failed over mortgage investments made in 2006. Trouble in 2100 will come from investments made in 2095. Financial regulation does not and cannot pretend to look past 5 years or so, and there is just no climate risk to the financial system at this horizon.”
09 Aug 2021
by Jim Rose
in applied price theory
STOP THESE THINGS

Giant lithium-ion batteries have an alarming habit of exploding and, when they do, literally burning for days.
Following up on our recent post concerning just such a case – where a Tesla mega-battery exploded in a toxic fireball in southwest Victoria – here’s a couple from the team at Jo Nova and Watts Up With That? that detail the aftermath.
The Tesla battery fire burned for longer than it operated for
Jo Nova Blog
Jo Nova
3 August 2021
We all heard about the Tesla Megabattery fire in Victoria last Friday, but you may not know it only started operating on Thursday night. Or that 30 fire trucks and 150 firefighters took 76 hours to get the blazing battery under control.
So it burned for three times longer than it operated.
When they burn, Tesla batteries produce smoke with aluminum, cadmium, arsenic, mercury, lead, selenium, manganese and chromium.
Luckily no…
View original post 798 more words
09 Aug 2021
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, development economics, discrimination, economic history, economics of education, human capital, labour economics, labour supply, minimum wage, occupational choice, poverty and inequality
Tags: racial discrimination, The fatal conceit
09 Aug 2021
by Jim Rose
in applied price theory
croaking cassandra
Several years ago the Law and Economics Association hosted an event in Wellington in which the New Zealand Initiative’s Eric Crampton and I each told our stories about New Zealand immigration policy. My account is here, and a link to the talk I gave is here.
A few months ago a couple of Victoria University of Wellington academics responsible for a Masters class (in a programme I didn’t even know existed (Masters in Philosophy, Politics and Economics)) invited us to do something similar for their class. We did that today.
My text is here (if Eric chooses to link to his slides on his blog I will include a link) (UPDATE: link here). My focus was solely on the economic dimensions of immigration policy, and in particular on the implications for economywide productivity (as the best proxy for whether large-scale policy-led non-citizen immigration has been beneficial for…
View original post 1,306 more words
09 Aug 2021
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, David Friedman, economics of crime, economics of information, economics of regulation, financial economics, industrial organisation, law and economics, property rights
08 Aug 2021
by Jim Rose
in applied price theory
Plain-speaking Economics
This week it has been reported that the pharmaceutical giant AstraZeneca is ‘exploring options’ for its COVID-19 vaccine business, including a sale. This is not entirely surprising. The company has not traditionally focused on vaccines and its vital contribution to the fight against the coronavirus may never make a profit.
However, AstraZeneca’s experience still reflects badly on many politicians and policy-makers, especially in Europe. At every stage, certain national governments, and the European Commission itself, appear to have done their best to make life as difficult as possible for those trying to help.
Some mistakes were probably inevitable during the fog of the pandemic, and hindsight is a wonderful thing. The EU was not alone in messing things up either. The Australian government has also been widely criticised for ‘anti-AstraZenecism’ and for mixed messages about the safety of the company’s jab. The US authorities have been…
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08 Aug 2021
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, David Friedman, development economics, econometerics, economic growth, economics of bureaucracy, economics of education, economics of regulation, entrepreneurship, growth disasters, growth miracles, health economics, human capital, income redistribution, industrial organisation, labour economics, labour supply, liberalism, libertarianism, Marxist economics, occupational choice, occupational regulation, P.T. Bauer, poverty and inequality, property rights, Public Choice, survivor principle, urban economics, welfare reform
Tags: economics of fertility, economics of immigration, The Great Enrichment
07 Aug 2021
by Jim Rose
in applied price theory
STOP THESE THINGS

Virtue signalling anti-coal/pro-wind and solar groups are picking a fight they can only lose. NWO/NGOs have launched rabid attacks on any company with the temerity to back coalmining and/or coal-fired power.
The activists’ line goes that any company that isn’t telling its shareholders that coal and coal-fired power plants are already dead, is lying to them (and the market) and must be brought to book by the corporate regulator, ASIC.
In one targeted attack, a crowd using the entirely misleading moniker, ‘Market Forces’ -their methods and mantra are anything but – went after Australian coal miner, New Hope in an effort to spook its management, scare off shareholders and wreck its market value. Doesn’t sound much like Adam Smith’s “invisible hand”, to STT.
Unlike plenty of other timid corporates, New Hope wasn’t going to be rattled by a bit of undergraduate ranting from wind and solar cultists. Instead, New Hope…
View original post 1,186 more words
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