No economist was more responsible for the appreciation, understanding and analysis of the fact that people invest in improving their productivity than was Gary Becker.
The Rise of Human Capital
The Rise of Human Capital
28 Jan 2024 Leave a comment
in Gary Becker, history of economic thought, human capital, labour economics, labour supply
My letter to the Chicago Maroon about Students for Justice in Palestine
25 Jan 2024 Leave a comment
in defence economics, discrimination, economics of crime, economics of education, law and economics, laws of war, liberalism, Marxist economics, politics - USA, war and peace Tags: Age of Enlightenment, free speech, Gaza Strip, Israel, Middle-East politics, regressive left, war against terror
Over the last several months, I’ve seen and read about demonstrations on our campus by the pro-Palestinian group Students for Justice in Palestine (SJP), which apparently has roughly 200 campus branches in the U.S., Canada, and New Zealand. SJP has been particularly active since last year’s October 7 massacre of Israelis and others, which they […]
My letter to the Chicago Maroon about Students for Justice in Palestine
Will Milei succeed in Argentina?
22 Jan 2024 Leave a comment
in applied price theory, budget deficits, comparative institutional analysis, development economics, economic growth, economic history, economics of bureaucracy, economics of regulation, fiscal policy, growth disasters, income redistribution, labour economics, liberalism, libertarianism, macroeconomics, Marxist economics, monetary economics, Public Choice, public economics, rentseeking Tags: Argentina
I give him a 30-40% chance, which is perhaps generous because I am rooting for him. Bryan Caplan, who is more optimistic, offers some analysis and estimates that Milei needs to close a fiscal gap of about five percent of gdp. I have two major worries. First, if Milei approaches fiscal success, the opposing parties […]
Will Milei succeed in Argentina?
Quotation of the Day…
21 Jan 2024 Leave a comment
in labour economics, Milton Friedman, unions
Tweet… is from page 124 of Milton and Rose Friedman’s essential 1962 volume, Capitalism and Freedom: If unions raise wage rates in a particular occupation or industry, they necessarily make the amount of employment available in that occupation or industry less than it otherwise would be – just as any higher price cuts down the…
Quotation of the Day…
MICHAEL BASSETT: TV ONE’S BEAT-UP ON THE TREATY AND THE KING’S HUI
21 Jan 2024 Leave a comment
in discrimination, economic history, income redistribution, law and economics, liberalism, Marxist economics, politics - New Zealand, property rights, Public Choice, rentseeking Tags: constitutional law
Last Friday night, TV One’s lead item on the 6pm news was a story by reporter Te Aniwa Hurihanganui. She had scored a leaked piece of advice not yet considered by Cabinet that was intended to warn ministers in the new government that they would run into trouble with Maori if they backed David Seymour’s…
MICHAEL BASSETT: TV ONE’S BEAT-UP ON THE TREATY AND THE KING’S HUI
Milei Speaks Truth to WEF Elite Power
19 Jan 2024 Leave a comment
in applied price theory, Austrian economics, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, entrepreneurship, growth disasters, growth miracles, history of economic thought, labour economics, law and economics, macroeconomics, property rights Tags: Argentina
Argentina’s President Javier Milei had a warning for those attending the annual WEF meeting in Davos, Switzerland; ‘the Western world is in danger’ from ‘collectivist experiments’ such as Diversity, Equity and Inclusion (DEI), and has called on the world to reject socialism and instead embrace “free enterprise capitalism” to end global poverty. H/T zerohedge “Today, […]
Milei Speaks Truth to WEF Elite Power
Shipwrecked: America’s Offshore Wind Industry Being Crushed By Rising Construction Costs
18 Jan 2024 Leave a comment
in energy economics, environmental economics, global warming, labour economics, unions Tags: wind power
2023 was the year when the offshore wind industry’s grand implosion began. Major investors bailed out as the insane cost of attempting to (occasionally) generate electricity with no commercial value in hostile marine environments began to bite. Dozens of projects have been scrapped and others are now highly doubtful. And for those wind power outfits […]
Shipwrecked: America’s Offshore Wind Industry Being Crushed By Rising Construction Costs
Unfettered: Fishback 25 Years Later
17 Jan 2024 Leave a comment
in applied price theory, discrimination, economic history, economics of information, economics of regulation, health and safety, history of economic thought, human capital, industrial organisation, international economics, labour economics, labour supply, liberalism, macroeconomics, Marxist economics, minimum wage, occupational choice, occupational regulation, poverty and inequality, unemployment, unions
A quarter century ago, economist Price Fishback published “Operations of ‘Unfettered’ Labor Markets: Exit and Voice in American Labor Markets at the Turn of the Century” in the prestigious Journal of Economic Literature. Fishback’s article is packed with insight… and understatement. But let’s back up. Virtually every standard history textbook describes U.S. labor markets before…
Unfettered: Fishback 25 Years Later
A congestion theory of unemployment fluctuations
17 Jan 2024 Leave a comment
in business cycles, econometerics, economic history, history of economic thought, job search and matching, labour economics, labour supply, macroeconomics, monetary economics, unemployment
Yusuf Mercan, Benjamin Schoefer, and Petr Sedláček, newly published in American Economic Journal: Macroeconomics. I best liked this excerpt from p.2, noting that “DMP” refers to the Nobel-winning Diamond-Mortensen-Pissarides search model of unemployment: This congestion mechanism improves the business cycle performance of the DMP model considerably. It raises the volatility of labor market tightness tenfold, […]
A congestion theory of unemployment fluctuations
The population bomb
17 Jan 2024 Leave a comment
in economic history, labour economics, labour supply, population economics Tags: ageing population
The Right and Wrong Way to Reduce Poverty, Part II
16 Jan 2024 Leave a comment
in applied price theory, economic history, human capital, income redistribution, labour economics, labour supply, occupational choice, politics - USA, poverty and inequality, Public Choice, public economics, welfare reform Tags: child poverty, family poverty
In Part I of this series, I explained that the War on Poverty, launched by Lyndon Johnson and expanded by other profligate presidents, has been bad news for both taxpayers and poor people. More specifically, I shared some academic research showing how it led to a big increase in dependency on government. Let’s expand on […]
The Right and Wrong Way to Reduce Poverty, Part II
Family leave and the gender wage gap
16 Jan 2024 Leave a comment
in applied price theory, discrimination, econometerics, economic history, gender, human capital, labour economics, labour supply, occupational choice, poverty and inequality Tags: economics of fertility, family leave, gender wage gap, marriage and divorce, sex discrimination
The gender wage gap has been decreasing slowly and steadily over time. At least, that’s what I thought until I read this 2023 NBER Working Paper by Peter Blair (Harvard University) and Benjamin Posmanick (St. Bonaventure University). They present the following graph of the gender wage gap in the US (for White women, compared with White men,…
Family leave and the gender wage gap
DON BRASH: WHY THE MAORI ELECTORATES MUST GO
14 Jan 2024 Leave a comment
in comparative institutional analysis, constitutional political economy, discrimination, politics - New Zealand Tags: constitutional law, racial discrimination
One of the strange omissions from the coalition agreements which marked the establishment of the new Government was any reference to the Maori electorates. Perhaps in one sense the omission was not strange: there had been little or no discussion about those electorates during the election campaign, either by those parties which might have…
DON BRASH: WHY THE MAORI ELECTORATES MUST GO
Colin Wright on sex and its distortion by the American Psychiatric Association
13 Jan 2024 Leave a comment
in discrimination, economics of education, gender Tags: Age of Enlightenment, free speech, political correctness, regressive left, sex discrimination
Reader Bryan sent me a link to the tweets by Colin Wright below (the first is most important) which is about the American Psychiatric Association’s (APA’s) new book on Gender Affirming Psychiatric Care. (For some reason I can’t download it.) The APA is the premier association of American psychiatrists, so this will carry a lot […]
Colin Wright on sex and its distortion by the American Psychiatric Association
Even More Evidence Against Minimum Wage Laws
13 Jan 2024 Leave a comment
in applied price theory, economics of regulation, labour economics, labour supply Tags: minimum wage
As explained by public intellectuals such as Milton Friedman, Johan Norberg, John Stossel, and Orphe Divougny, the argument against minimum wage requirements is very simple. If politicians dictate that people can’t be employed unless they receive, say, $15 per hour, then workers who are worth less than than amount (because of low skills, no experience, […]
Even More Evidence Against Minimum Wage Laws
Utopia, you are standing in it! 
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