Why the Global Free Market Will Save the World
23 Apr 2024 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, constitutional political economy, development economics, economic growth, economic history, energy economics, environmental economics, global warming, growth disasters, growth miracles, health economics, history of economic thought, income redistribution, labour economics, law and economics, liberalism, macroeconomics, Marxist economics, politics - Australia, politics - New Zealand, politics - USA, poverty and inequality, property rights, Public Choice, public economics, rentseeking Tags: anticapitalist mentality, capitalism and freedom
“The Simple Macroeconomics of AI”
21 Apr 2024 Leave a comment
in applied price theory, economic growth, entrepreneurship, human capital, industrial organisation, labour economics, labour supply, macroeconomics, poverty and inequality Tags: artificial intelligence
That is the new Daron Acemoglu paper, and he is skeptical about its overall economic effects. Here is part of the abstract: Using existing estimates on exposure to AI and productivity improvements at the task level, these macroeconomic effects appear nontrivial but modest—no more than a 0.71% increase in total factor productivity over 10 years.…
“The Simple Macroeconomics of AI”
The Pandemic and Swedish Fiscal Policy
21 Apr 2024 Leave a comment
in budget deficits, fiscal policy, health economics, macroeconomics, public economics Tags: economics of pandemics, Sweden
When I wrote about long-run policy lessons from the pandemic, I mostly focused on the incompetence of the bureaucrats at the FDA and CDC. I also wrote that Sweden had a very sensible approach. Politicians did not panic. They advised prudence, but kept schools open and did not mandate lockdowns. Interestingly, Sweden also had better […]
The Pandemic and Swedish Fiscal Policy
19 Apr 2024 Leave a comment
in budget deficits, business cycles, economic growth, economic history, fiscal policy, great depression, history of economic thought, labour economics, macroeconomics, monetarism, monetary economics, unemployment
The US debt is worse than it was after WWII
17 Apr 2024 Leave a comment
in budget deficits, defence economics, economic history, fiscal policy, macroeconomics, Public Choice, public economics Tags: economics of pandemics, World War II
Over the last few years I’ve made a number of posts about the ever growing US government spending, deficits and debt, which has reached the point where US Debt is now rising $1 trillion every 100 days. But there are many people who look at the debt as 120% of GDP and shrug their shoulders that […]
The US debt is worse than it was after WWII
12 Apr 2024 Leave a comment
in budget deficits, business cycles, fiscal policy, macroeconomics, politics - New Zealand, public economics
MICHAEL REDDELL: Not very bothered by deficits
03 Apr 2024 Leave a comment
in budget deficits, business cycles, economic history, fiscal policy, macroeconomics, monetary economics, politics - New Zealand
I was away last week so have been rather late in getting to the Budget Policy Statement and associated material released last Wednesday. It does not make for pleasant reading, at least if one cares at all about governments not borrowing to pay for the groceries. Once upon a time – still not that long…
MICHAEL REDDELL: Not very bothered by deficits
Productivity Syndrome and the Investment Prescription
30 Mar 2024 Leave a comment
in applied price theory, development economics, economic growth, economic history, growth miracles, history of economic thought, human capital, industrial organisation, labour economics, labour supply, macroeconomics
Economic productivity is about growing the size of the pie. I sometimes point out that no matter what your goal–spending increases, tax cuts, greater support for the poor, environmental protection–that goal is easier when the economic pie is growing. When the economic pie isn’t growing, after all, then all priorities have to pit potential winners…
Productivity Syndrome and the Investment Prescription
Universal Basic Income: The Freiman-Caplan Debate
27 Mar 2024 Leave a comment
in applied price theory, applied welfare economics, fiscal policy, human capital, income redistribution, labour economics, labour supply, macroeconomics, politics - USA, poverty and inequality, Public Choice Tags: child poverty, family poverty, negative income tax
As expected, I really enjoyed the Institute for Liberal Studies’ UBI debate between myself and Chris Freiman. Chris was definitely the least enthusiastic UBI supporter I’ve debated. All the way to the point of, “Given all the truly promising ideas we have, and the downside risks of the UBI, perhaps I shouldn’t even publicly defend…
Universal Basic Income: The Freiman-Caplan Debate
NZ’s problem is too much spending, not a lack of tax
26 Mar 2024 Leave a comment
in budget deficits, economic history, fiscal policy, macroeconomics, politics - New Zealand, public economics
Labour and Greens in 2017 campaigned on capping core crown expenditure at no more than 30% of GDP. This was their election pledge. At one Budget I asked Grant Robertson about the policy and he (admirably) replied it was a limit, not a target. The latest forecast had expenditure at 33.4% of GDP. That 3.4% […]
NZ’s problem is too much spending, not a lack of tax
How credible is the Milei plan?
24 Mar 2024 Leave a comment
in applied price theory, budget deficits, business cycles, development economics, economic growth, financial economics, fiscal policy, growth disasters, income redistribution, international economics, macroeconomics, monetary economics, Public Choice, public economics Tags: Argentina
Here is a good Substack essay by Nicolas Cachanosky, excerpt: Inflation expectations depend on what is expected to happen to the budget in the months to come. It is natural, then, to ask whether the observed surpluses are sustainable in the months ahead. Answering this question requires looking at two things. First, how was the fiscal […]
How credible is the Milei plan?
Eat the Rich: Warren Plan Would Impose Wealth Tax, Captivity Tax, and $100 Billion for Increasing Tax Audits
23 Mar 2024 Leave a comment
in applied price theory, applied welfare economics, economic growth, fiscal policy, income redistribution, labour economics, labour supply, macroeconomics, poverty and inequality, Public Choice, public economics Tags: taxation and entrepreneurship, taxation and investment, taxation and labour supply
The wealth tax is back. We have previously discussed the constitutional and policy concerns surrounding the push by Democrats like Sen. Elizabeth Warren (D., Mass.) to introduce a wealth tax that would start with billionaires. It would not likely end there. The law would also apply the same type of California approach to wealthy families […]
Eat the Rich: Warren Plan Would Impose Wealth Tax, Captivity Tax, and $100 Billion for Increasing Tax Audits
One Year Since the Meltdown at Silicon Valley Bank: Commercial Real Estate and Ongoing Threats
13 Mar 2024 Leave a comment
in applied price theory, economics of information, economics of regulation, financial economics, macroeconomics, monetary economics, politics - USA Tags: banking panics
One year ago in March 2023, Silicon Valley Bank melted down, quickly followed by similar meltdowns at Signature Bank and First Republic Bank. Measured by the nominal size of bank assets, these were three of the biggest four US bank failures in history. (The failure of Washington Mutual Bank in 2008 remains the largest.) Was…
One Year Since the Meltdown at Silicon Valley Bank: Commercial Real Estate and Ongoing Threats
Environmentalism Perverted by Climatism
08 Mar 2024 1 Comment
in applied price theory, comparative institutional analysis, development economics, economic growth, economic history, economics of climate change, economics of crime, energy economics, environmental economics, environmentalism, global warming, growth miracles, law and economics, liberalism, macroeconomics, Marxist economics, property rights Tags: climate alarmism, free speech, regressive left, The Great Enrichment
J. Scott Turner explains how the roots of environmental stewardship were poisoned, resulting in the perverted modern decarbonization movement. His Spectator Australia article is Environmentalism: from concern about clean air to throwing soup at the Mona Lisa. Excerpts in italics with my bolds and added images. H/T John Ray Garrett Hardin was a professor of biology […]
Environmentalism Perverted by Climatism
CALLUM PURVES: National preparing to keep Labour’s 15% App Tax
03 Mar 2024 Leave a comment
in fiscal policy, macroeconomics, politics - New Zealand, public economics
Labour’s App Tax is a 15% sales tax paid for by the mum and dad accommodation providers, takeaway joints, and ride share drivers. The App Tax hits sole-traders who sell their services through an app or website such as Uber or Airbnb. It will add even more to the costs of living for every Kiwi…
CALLUM PURVES: National preparing to keep Labour’s 15% App Tax
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