Policy bubble alert: Technology adoption costs swamp invention costs
30 Oct 2014 Leave a comment
in applied welfare economics, industrial organisation Tags: innovation, R&D, The fatal conceit, The pretence to knowledge
Deirdre McCloskey on the fatal conceit
30 Oct 2014 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, development economics, entrepreneurship, liberalism Tags: Deirdre McCloskey, The fatal conceit, The pretence to knowledge
HT: Cafe Hayek
Policy bubbles alert: most innovation is not about R&D (and boffins in lab coats)
29 Oct 2014 Leave a comment
in applied price theory, applied welfare economics, economic growth, industrial organisation Tags: economic growth, innovation, R&D, The fatal conceit, The pretence to knowledge
Coalition Celebrating Equal Pay Case Outcome
29 Oct 2014 Leave a comment
in applied price theory, applied welfare economics, economics of regulation, gender, income redistribution, minimum wage, politics - New Zealand, rentseeking Tags: gender wage gap, living wage, minimum wage, pay equity
I wonder who will pay for this? Caregiver wages are funded out of a fixed budget allocated by the government.
A higher wage will change the type of worker that the caregiving sector will seek to recruit, as happened after increases in the teenage went minimum wage.
When the teenage minimum wage went up in New Zealand, employment of 17 and 18-year-olds fell, while the employment of 18 to 19-year-olds increased because the latter were more mature and reliable than the younger contemporaries.
Media release: Pay Equity Challenge Coalition
28 October 2014
Coalition Celebrating Equal Pay Case Outcome
“The Court of Appeal’s decision declining the employers’ appeal in the Kristine Bartlett case is a huge victory for women workers” said Pay Equity Coalition Challenge spokesperson Angela McLeod.
“The Courts’ decision that equal pay may be determined across industries in female-dominated occupations revitalises the Equal Pay Act 1972 and will be a major factor in closing New Zealand’s stubborn 14 percent gender pay gap”.
The judgement by the Court of Appeal upholding the Employment Court decision again validates the work of caregivers and that they are underpaid, she said.
“We commend the Service and Food Workers Union Nga Ringa Tota in taking this case and exposing the underpayment and undervaluation of aged care workers. And the decision is a victory for all the women’s organisations who have never given up fighting for equal pay,”…
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Not too long ago, the left promoted the pointlessness of minimum wage – Whale Oil Beef Hooked
29 Oct 2014 Leave a comment
in applied price theory, applied welfare economics, economics of regulation, labour economics, Marxist economics, minimum wage Tags: minimum wage
Policy bubbles alert: the R&D fetish is a major threat to innovation and economic growth
28 Oct 2014 Leave a comment
How to cut prison numbers | vox
26 Oct 2014 Leave a comment
in applied welfare economics, economics of crime, labour economics, occupational choice Tags: economics of crime, three strikes laws
The idea of selective incapacitation is to make a distinction between offenders with a high and a low propensity to commit crime.
Figure 1. Average rate of theft from car and domestic burglary – pre and post-introduction of the Dutch habitual offender law
Note: Plotted coefficients show the average crime rate relative to the month preceding introduction of the habitual offender law. The bars show the 95% confidence intervals. Based on monthly data for 31 cities during 1998-2007.
A habitual offender law adopted in the Netherlands in 2001 (Vollaard 2012). Only offenders with ten or more offenses on their criminal record faced enhanced prison-terms.
Between 2001 and 2007, 1,400 mostly non-violent, relatively old and invariably drug-addicted offenders were sentenced under the law. They accounted for 5% of the prison population. The law implied sentence enhancements of some 1,000%, typically a two-year rather than a two-month sentence for the affected offender population.
These sentence enhancements resulted in a 25% drop in acquisitive crime – the crimes that the affected offenders committed. The law did not have an impact on violent and sexual crimes, offenses that were rarely committed by the affected offenders.
Making the length of prison sentences more dependent on prior criminal records is a cost-effective crime policy. The Dutch policy affected only 5% of the prison population, but reduced property crime rates by 25% to 40%.
The Top 1% of income earners in NZ are lazy – the Occupy Movement have nothing to protest about – updated
25 Oct 2014 Leave a comment
in applied welfare economics, income redistribution, Marxist economics, politics - New Zealand, rentseeking Tags: lost decades, occupy movement, poverty and inequality, prosperity and depression, top 1%
The NZ top 1% share has been steady at 8-9% since the mid-1990s. The top 1%’s share rose strongly in the USA in recent decades, from 13% in the mid-1980s to 19% in 2012.
Figure 1: Top 1% income shares, USA, New Zealand and Sweden, 1970-2012
Source: The World Top Income Database at http://topincomes.g-mond.parisschoolofeconomics.eu/#Database
The top 1% in New Zealand is so lazy that Sweden is overtaking it – See figure 1.
The Occupy crowd blame everything from the global financial crisis to a bad environment on growing inequality and the top 1%. Such an argument has no foundation in fact in New Zealand.
Income inequality as measured by the Gini coefficient has not risen much in New Zealand for 20 years – See figure 2. How can the poor be getting getting poorer, ground under by the yoke of capitalism, if the rich are not getting richer. The occupy movement should apply for unemployment benefits and seek career guidance.
Figure 2: Gini coefficient New Zealand 1980-2015
![clip_image002[7]](https://utopiayouarestandinginit.com/wp-content/uploads/2014/10/clip_image00271.png "clip_image002[7]")
Source: Bryan Perry, Household incomes in New Zealand: Trends in indicators of inequality and hardship 1982 to 2013. Ministry of Social Development (July 2014).
The last major increase in income inequality in New Zealand was in the late 1980s and early 1990s and that was followed by a long economic boom – See figure 3 .
Figure 3: Real GDP per New Zealander and Australian aged 15-64, converted to 2013 price level with updated 2005 EKS purchasing power parities, 1956-2012
Source: Computed from OECD Stat Extract and The Conference Board, Total Database, January 2014, http://www.conference-board.org/economics .
This long boom was after two decades of next to no economic growth in the 1970s and 1980s in New Zealand – see figure 3 . This depression between 1974 and 1992 was New Zealand’s lost decades.
Figure 4 shows that both the lost decades of economic growth in New Zealand and the emergence of the trans-Tasman income gap the seemed to somewhat coincide with the top 1% of earners in Australia increasing their share of income from 6% to 10% of total incomes while the New Zealand top 1% sat on their hands. They are such lazy devils.
Figure 4: Top 1% income shares, USA, New Zealand and Australia, 1970-2012
Source: The World Top Income Database at http://topincomes.g-mond.parisschoolofeconomics.eu/#Database
Utopia, you are standing in it! 
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