This short note shows that accounting for capital adjustment is critical when analyzing the long-run effects of trade wars on real wages and consumption. The reason is that trade wars increase the relative price between investment goods and labor by taxing imported investment goods and their inputs. This price shift depresses capital demand, shrinks the […]
Long-Run Effects of Trade Wars
Long-Run Effects of Trade Wars
24 Apr 2025 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, development economics, econometerics, history of economic thought, industrial organisation, labour economics, labour supply, politics - USA, unemployment Tags: 2024 presidential election, free trade, tariffs, unintended consequences
Guest Post: Cultural reports: You didn’t think you’d get rid of me that easily, did you?
24 Apr 2025 Leave a comment
in economics of crime, law and economics, politics - New Zealand Tags: crime and punishment, criminal deterrence, law and order
A guest post by a reader: I regret to inform you that cultural reports are back, wearing a wig and a false mustache. In March 2024, Parliament passed the Legal Services Amendment Bill, which abolished public legal aid funding for section 27 reports, also known as “cultural reports”. Justice Minister Paul Goldsmith stated: “This will […]
Guest Post: Cultural reports: You didn’t think you’d get rid of me that easily, did you?
Where Britain has gone
23 Apr 2025 Leave a comment
in discrimination, economics of crime, economics of education, gender, law and economics, liberalism, Marxist economics, politics - New Zealand, property rights, sports economics Tags: sex discrimination
Ele Ludemann writes – New Zealand First has introduced a Member’s Bill to define the biological definition of man and woman in law. . . . “This is not about being anti-anyone or anti-anything. This is about ensuring we as a country focus on the facts of biology and protect the term ‘woman’ in law”, says New Zealand First Leader […]
Where Britain has gone
Same scandal, different script: how the Herald protects one MP and targets another
23 Apr 2025 1 Comment
in discrimination, economics of crime, economics of religion, law and economics, politics - New Zealand
Centrist reports – In brief NZ Herald gave Green MP Benjamin Doyle 4,000+ words of forensic coverage. National MP Hamish Campbell got 1,300 words and no expert input. Doyle’s social media scandal, with no police angle, was softened by cultural context and framed as a moral panic. Campbell’s ties to a sect under FBI/NZ Police […]
Same scandal, different script: how the Herald protects one MP and targets another
It shouldn’t take a Minister for common sense to prevail
23 Apr 2025 Leave a comment
in discrimination, economics of bureaucracy, gender, health economics, law and economics, liberalism, Marxist economics, politics - New Zealand, Public Choice Tags: free speech, political correctness, regressive left, sex discrimination
Radio NZ reports: The coalition has directed Health New Zealand to say “women” instead of “pregnant people” in its communications about health issues. Associate Health Minister Casey Costello wrote to interim chief executive Dr Dale Bramley on 27 March, telling the agency to use “clear language”. “Recent documents that have reached my office from the […]
It shouldn’t take a Minister for common sense to prevail
My debate with Dani Rodrik about tariffs and free trade
22 Apr 2025 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, development economics, economic history, history of economic thought, industrial organisation, international economic law, international economics, labour economics, politics - USA, unemployment Tags: 2024 presidential election, free trade, tariffs
This occurred in Knoxville, you can watch it here. Lots of fun, and p.s. I am more of a free trader than he is. We did have some disagreements.
My debate with Dani Rodrik about tariffs and free trade
The test of time
22 Apr 2025 Leave a comment
in economics of climate change, economics of natural disasters, energy economics, environmental economics, environmentalism, global warming, liberalism, Marxist economics, politics - USA Tags: climate alarmism
From Refineries to Fiefdoms: Is Newsom Orchestrating a State Takeover of California’s Oil Industry?
22 Apr 2025 Leave a comment
in economics of bureaucracy, economics of climate change, economics of regulation, energy economics, environmental economics, environmentalism, global warming, industrial organisation, law and economics, liberalism, Marxist economics, politics - USA, property rights, Public Choice, survivor principle Tags: California, climate activists, regressive left
California’s refining capacity is collapsing—not because demand has disappeared, but because it is being deliberately dismantled by regulatory fiat. The recent announcement that Valero Energy will idle or shutter its Benicia refinery by 2026 isn’t just a business decision. It’s the calculated result of a hostile policy environment designed to punish traditional energy producers until they either leave the state or fall into government hands.
From Refineries to Fiefdoms: Is Newsom Orchestrating a State Takeover of California’s Oil Industry?
Time to Axe the Climate-Industrial Complex
22 Apr 2025 1 Comment
in economics of climate change, economics of regulation, energy economics, environmental economics, environmentalism, global warming, politics - USA Tags: climate alarmism
Kevin Mooney makes the urgency case in his Real Clear Energy article Celebrating American Independence With an All-Out Assault on Anti-Constitutional Climate Measures. Excerpts in italics with my bolds and added images. Now is the time to double down against the “Climate-Industrial Complex” with accelerated regulatory reforms that will hopefully endure beyond Donald Trump’s second […]
Time to Axe the Climate-Industrial Complex
“When Must We Kill Them?”: George Mason Student Captures the Growing Violent Ideation on the Left
21 Apr 2025 1 Comment
in economics of crime, law and economics, liberalism, Marxist economics, politics - USA Tags: free speech, political correctness, regressive left
There is controversy at George Mason University after Nicholas Decker, an economics PhD student published an essay asking “When Must We Kill Them?” in reference to Trump and his supporters. The essay captures the growing violent ideation on the left, fueled by rage rhetoric from politicians and commentators. The danger is that, for some on […]
“When Must We Kill Them?”: George Mason Student Captures the Growing Violent Ideation on the Left
University backs down in sex-gender debate
21 Apr 2025 Leave a comment
in discrimination, economics of education, gender, law and economics, liberalism, Marxist economics, politics - New Zealand Tags: free speech. academic bias, political correctness, regressive left, sex discrimination
Graham Adams writes – As Auckland University continues down the path of transforming itself into a seminary for Māori nationalists and others with “progressive left” views, it is perhaps inevitable that it would try to force fashionable views about sex onto academic staff members. Unfortunately, it made a tactical error by trying to bully Elizabeth […]
University backs down in sex-gender debate
Ronald Reagan in 1982 on Free Trade
20 Apr 2025 Leave a comment
in applied price theory, economic history, history of economic thought, industrial organisation, international economic law, international economics, liberalism, libertarianism, politics - USA, Public Choice, rentseeking Tags: free trade, tariffs
TweetWhen President Ronald Reagan delivered this address in November 1982, I was a 24-year-old graduate student. Radically libertarian at that point for almost six years, I was sufficiently astute enough to know that Reagan wasn’t terrible on most of the issues that I cared about, but I was nevertheless insufficiently mature and astute enough to…
Ronald Reagan in 1982 on Free Trade
The Supreme Court Halts Venezuelan Deportations as the Fourth Circuit Upholds Garcia Order
20 Apr 2025 Leave a comment
in labour economics, labour supply, law and economics, politics - USA Tags: economics of immigration
It has been a busy 24 hours in the courts. Early this morning, the Supreme Court blocked (for now) the deportations of any Venezuelans held in northern Texas under the Alien Enemies Act, a law only used three times before in our history. At the same time, the United States Court of Appeals for the […]
The Supreme Court Halts Venezuelan Deportations as the Fourth Circuit Upholds Garcia Order
Home detention for vicious assault
19 Apr 2025 Leave a comment
in economics of crime, law and economics, politics - New Zealand Tags: crime and punishment, criminal deterrence, law and order
The Herald reports: A teen who took part in a violent and unprovoked street attack, king hitting one of his victims, has narrowly avoided jail after a judge ruled it would not be the “just” outcome. Just? Just for who? The victim? Hunia did the following: So this was not a moment of madness, or […]
Home detention for vicious assault
Victor Davis Hanson Should Stick to the Classics
18 Apr 2025 Leave a comment
in applied price theory, comparative institutional analysis, economic history, history of economic thought, industrial organisation, international economics, politics - USA Tags: 2024 presidential election, free trade, tarrifs
TweetHere’s a letter to The Daily Signal. Editor: Suppose I submitted to you an essay in which Thucydides is described as a first-century Roman senator who wrote a biography of Charlemagne – would you publish it? Of course not. The ignorance of such an essay would be palpable. But I would never write such a…
Victor Davis Hanson Should Stick to the Classics
Utopia, you are standing in it! 
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