Nearly all economists reject monopsony rationale for doubling the minimum wage! @NeumarkDN: countering employer market power over 1/3rd of the workforce with a higher minimum wage is supposed to increase employment and output. Monopsony depresses wages and employment.
19 Jan 2019 Leave a comment
in applied price theory, labour economics, minimum wage, politics - USA
Weekend long read
19 Jan 2019 Leave a comment
1) Writing at the New York Times, Matti Friedman explains why “There Is No ‘Israeli-Palestinian Conflict’”.
“There isn’t an Israeli-Palestinian conflict in the way that many outsiders seem to think, and this perception gap is worth spelling out. It has nothing to do with being right-wing or left-wing in the American sense. To borrow a term from the world of photography, the problem is one of zoom. Simply put, outsiders are zoomed in, and people here in Israel are zoomed out. Understanding this will make events here easier to grasp.
In the Israeli view, no peacemaker can bring the two sides together because there aren’t just two sides. There are many, many sides. […]
If you see only an “Israeli-Palestinian” conflict, then nothing that Israelis do makes sense. (That’s why Israel’s enemies prefer this framing.) In this tightly cropped frame, Israelis are stronger, more prosperous and more numerous…
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California Renewables to Lose PG&E $$$
19 Jan 2019 Leave a comment
The investigation continues into the origin of the Camp fire, which some say started with a faulty PG&E wire in Pulga, California. (Carolyn Cole / Los Angeles Times / TNS)
Sammy Roth of LA Times digs deeper than others into the fallout from PG&E’s wildfire-induced bankrupcy. The article published in The Seattle Times is PG&E bankruptcy could undermine utilities’ efforts against climate change. Excerpts below with my bolds.
Solar and wind developers depend on creditworthy utilities to buy electricity from their projects under long-term contracts, but that calculus changes in a world where a 30-year purchase agreement doesn’t guarantee 30 years of payments.
The Golden State has dramatically reduced planet-warming emissions from the electricity sector, largely by requiring utilities to increase their use of solar and wind power and fund energy-efficiency upgrades for homes and businesses. Lawmakers recently set a target of 100 percent climate-friendly electricity by 2045.
But those…
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How the populists came to power
19 Jan 2019 Leave a comment
Rather good: The left, once legitimately concerned with the conditions of the poor, ignored that the best solution for poverty is the free market. Instead, they decided they would crush the common people they swore to protect, calling them homophobic, misogynists and so on. Common people answered by voting for whoever was on the other side of the political spectrum.
Jair Bolsonaro was elected president in Brazil. Donald Trump in the US. In other countries, similar politicians are gaining popular support. Some are calling these politicians “populists”. I don’t really know what they mean by this term. The populists that I know better are Getúlio Vargas, Brazil’s president for almost 20 years in the mid-20th century and Juan Peron, a leading political figure in Argentina in the same time period. What they had in common? Both fought the communist influence in Latin America, favored the labor movement and were anti-liberal. They were also extremely personalist, leading to something that could be understood as a cult of personality. I completely fail to see important similarities between Trump and Bolsonaro on the one hand and Vargas and Peron on the other. But I can see some similarities between Trump and Bolsonaro. The latter two both came to power against what the left…
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Primitive tribesmen complain about technologically superior invaders
18 Jan 2019 Leave a comment
There is a new article in the New York Times Magazine (Is Ancient DNA Research Revealing New Truths — or Falling Into Old Traps?) , in which some pinhead repeats complaints about David Reich crushing his enemies [archaeologists] , driving them before him, and hearing the lamentations of their women. He doesn’t give them much respect.
They don’t deserve respect. Sure, he has a far more powerful method. Sequencing DNA gives you billions of bits, orders of magnitude more than staring at potsherds. But it is fair to look at how archaeologists did with the tools they had: terrible, horrible, no good, very bad. They really, really wanted to create detailed stories of local social change, stories that didn’t sound like something by Robert E, Howard, full of thud and blunder. Not stories about barbarian conquest, population replacement, and mating with nonhuman races.
But that’s what happened.
The origin of…
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Brilliant Hayek Lecture 2017: “Is the World Over or Underpopulated, and How Would We Know?”
18 Jan 2019 Leave a comment
in applied price theory, applied welfare economics, development economics, economics of education, economics of media and culture, economics of regulation, energy economics, entrepreneurship, environmental economics, financial economics, health economics, human capital, international economics, labour economics, labour supply, law and economics, population economics, Rawls and Nozick Tags: The Great Enrichment
RE: Economists’ Statement on Carbon Dividends
18 Jan 2019 Leave a comment
I just got an email asking me to sign on to an open letter arguing for some carbon tax policies. I’m seeing some push back from (smart, economically literate) Facebook friends, but I think it’s a viable step in the right direction.
Here’s the statement paraphrased:
We think global warming is an important and urgent issue and we recommend these five things:
1. A carbon tax is the best, most cost-efficient way to do as much about carbon as needs to be done. [For a given level of carbon reduction, I agree. How much carbon reduction should happen (and how much at government behest) I am deeply agnostic about.]
2. We think this should be phased in over time and should be revenue neutral. [Yes on both points, but the rest of the statement makes it seem like they’re talking about a pretty short time horizon. I’m not sure how…
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The Blow Monkeys – It Doesn’t Have to Be This Way
18 Jan 2019 Leave a comment
in applied price theory, Music
Center For Consumer Freedom Launches “Dumbest PETA Campaign”
17 Jan 2019 Leave a comment
The Center for Consumer Freedom has started the Dumbest PETA Campaign Contest. Will Coggin with the Center for Consumer Freedom, which is hosting the contest, is also managing director of the PETAKillsAnimals.com website. Coggin says his group wants the public to log in to vote for PETA’s dumbest campaign.
Coggin says they got idea for the contest after PETA’s latest Facebook posting and that many consumers get the wrong idea about what PETA’s goals are.
From now until January 31st, you can vote by going to the website to vote. Remember, PETA stands for People for the Extortion, Torture and Abuse of human beings. Below is a video excerpt from the show South Park that featured a segment poking fun at the human hate group.
How Expert Are Expert Stock Pickers?
17 Jan 2019 Leave a comment
in applied price theory, economic history, entrepreneurship, financial economics Tags: active investing, efficient markets hypothesis, passive investing
How I awoke from being a socialist to a sane person – A review of ‘The Anti-Capitalistic Mentality’, by Ludwig von Mises
17 Jan 2019 Leave a comment
By Andy Duncan, Vice-Chairman of Mises UK
Back in 1998, I was working in the filthy world of trade. I’d received this book from Mises.org one morning and had to wait until lunchtime before I could read it. I then sat in my car in a dreary supermarket car park and opened it up. It took less than an hour to get through. However, the clarity, the penetration, the directness, the sheer thrill of all those dense scales falling from my eyes melted my mind. Who was this Mises? And why had he made me feel so very uncomfortable?
Via the pages of this book, Mises had told me the truth about life, the universe, and everything. He’d tumbled the monuments in my mind, to Marx, by taking a wrecking ball to them.
This book essentially details the societally destructive power of human envy. Like a fine Bossa Nova dancer…
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Paul Romer: The view from economic history
16 Jan 2019 Leave a comment
by Nuno Palma (University of Manchester and CEPR). Republished with minor adjustments from the blog “Economic Growth in History”
In this post I write about the connections between Paul Romer’s work, which is essentially applied theory, and the empirical work on long-run economic growth done by economic historians. How was Romer influenced by the work of economic historians? has he influenced economic history? and have his theories been confirmed by the recent work of economic historians? (preview: I will argue that the answers are: yes; not much; and no). Nevertheless, my point above is not that Romer is wrong in general; in fact some of his ideas *about ideas* are fundamental for us to think about growth in the past (read on if this isn’t clear yet.)
Paul Romer in 2005. Wikimedia Commons
Paul Romer’s was a well-deserved and long-anticipated prize. Many predicted he would eventually win, including myself in my very…
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The House of Commons and the Brexit deal: A veto player or a driver of policy?
16 Jan 2019 Leave a comment
With parliament set to vote on the government’s Brexit deal today, there is much speculation about what will happen if it is rejected. Here, former Clerk of Committees Andrew Kennon analyses the potential scenarios, including whether or not the House of Commons could end up running the country directly.
A key concern for the House of Commons when voting on the proposed deal with the European Union will be not only the merits of the agreement itself, but what happens if it is defeated. In theory, parliament – and in particular the House of Commons – is the ultimate source of constitutional authority within the UK system. But, in this particular circumstance, if MPs reject what is on offer, will they be able to take the initiative and impose a different course of action, or will they simply have to wait for the government to act?
The key problem for…
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The Price of the Poor’s Words: Social Relations and the Economics of Deposing for One’s “Betters” in Early Modern England
15 Jan 2019 Leave a comment
by Hillary Taylor (Jesus College, Cambridge)
This article is published by The Economic History Review, and it is available on the EHS website
Poverty and Wealth. Available at Wikimedia Commons
Late sixteenth- and early seventeenth-century England was one of the most litigious societies on record. If much of this litigation was occasioned by debt disputes, a sizeable proportion involved gentlemen suing each other in an effort to secure claims to landed property. In this genre of suits, gentlemen not infrequently enlisted their social inferiors and subordinates to testify on their behalf.[1] These labouring witnesses were usually qualified to comment on the matter at hand a result of their employment histories. When they deposed, they might recount their knowledge of the boundaries of some land, of a deed or the like. In the course of doing so, they might also comment on all sorts of quotidian affairs. Because testifying…
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