Intergenerational mobility in 1 chart
20 Nov 2014 Leave a comment
in applied welfare economics, human capital, labour economics, occupational choice, politics - USA, Rawls and Nozick Tags: intergenerational mobility
Steven Landsburg on the difference between an absurdity and a lie about Obamacare
20 Nov 2014 Leave a comment
in applied price theory, applied welfare economics, health economics, politics - USA
The New York Times announces the Death of Snow
20 Nov 2014 Leave a comment
in climate change, environmental economics, environmentalism, politics - USA Tags: climate alarmism, global warming
Jon Stewart demolishes Gruber and the Democrats on Obamacare
20 Nov 2014 Leave a comment
in applied price theory, applied welfare economics, economics, economics of regulation, health economics, politics - USA Tags: health insurance, Jon Stewart, Obamacare
US corporate earnings vs. European corporate earnings
19 Nov 2014 Leave a comment
in Euro crisis, great recession, macroeconomics, politics - USA Tags: Euroland, GFC, great recession
The great stagnation continues
19 Nov 2014 Leave a comment
in global financial crisis (GFC), great recession, politics - USA Tags: GFC, Great Deviation, The Great Recession
Real GDP per New Zealander and Australian aged 15-64, PPP, 1956-2013, $US
18 Nov 2014 1 Comment
in business cycles, economic growth, geography, global financial crisis (GFC), great recession, macroeconomics, politics - Australia, politics - New Zealand Tags: lost decades, prosperity and depression
Figure 1: Real GDP per New Zealander and Australian aged 15-64, converted to 2013 price level with updated 2005 EKS purchasing power parities, 1956-2013, $US
Source: Computed from OECD Stat Extract and The Conference Board, Total Database, January 2014, http://www.conference-board.org/economics
Figure 1 shows that New Zealand lost two decades of growth between 1974 and 1992 after level pegging with Australia for the preceding two decades.
New Zealand returned to trend growth between 1992 and 2007. New Zealand did not make up the lost growth of the previous two decades to catch up to Australia.
Figure 2: Real GDP per New Zealander and Australian aged 15-64, converted to 2013 price level with updated 2005 EKS purchasing power parities, 1.9 per cent detrended, base 100 = 1974, 1956-2013, $US
Source: Computed from OECD Stat Extract and The Conference Board, Total Database, January 2014, http://www.conference-board.org/economics
In Figure 2, a flat line equates to a 1.9% GDP annual growth rate; a falling line is a below trend growth rate; a rising line is an above 1.9% growth rate.
Figure 2 shows that there was a 34% drop against trend between 1974 and 1992; a return to trend growth and slightly better between 1992 and 2007; and then a recession to 2010.
Australia had its ups and downs since 1956 but essentially grew at the trend growth rate of 1.85% since 1970. The so-called resources boom in Australia does not show up in Figures 1 or 2.
There was no growth rebound in New Zealand to recover the lost ground, either in the lost decades between 1974 and 1992, or after the Global Financial Crisis. The strong GDP growth in Australia after that Keating recession in 1991 is an example of the country recovering lost ground after a recession – See Figure 2.
A trend growth rate of 1.9% is the 20th century trend growth rate that Edward Prescott currently estimates for the global industrial leader, which is the United States of America.
Economic freedom in America and Scandinavia, excluding taxes
17 Nov 2014 Leave a comment
in international economics, macroeconomics, politics - USA Tags: capitalism and freedom, capitalism and prosperity, Trans-Atlantic gap
Net and average tax in NZ | Kiwiblog
17 Nov 2014 Leave a comment
Thoughts on the special votes and the Greens
16 Nov 2014 Leave a comment
in liberalism, politics - New Zealand Tags: 2014 New Zealand general election, green party, Leftover Left
A rather good analysis of the abysmal failure of the green party in the 2014 New Zealand election to increase its party vote despite the disastrous result of its main rival for left-wing votes.
Two-thirds of New Zealand gave their party vote to non-left-wing parties.
Tax Burdens: Some Facts (For a Change) | Pundit 2011
16 Nov 2014 Leave a comment
in income redistribution, liberalism, politics - New Zealand, Public Choice, public economics Tags: tax burdens, tax incidence
The 47% is bigger than you think
16 Nov 2014 2 Comments
in politics - USA, public economics, Rawls and Nozick Tags: 47%, tax incidence, who pays taxes
What if We’re Looking at Inequality the Wrong Way? – NYTimes.com
16 Nov 2014 Leave a comment
in applied welfare economics, entrepreneurship, human capital, labour economics, labour supply, liberalism, Marxist economics, occupational choice, politics - USA, poverty and inequality, public economics, Rawls and Nozick, technological progress Tags: Piketty, poverty and inequality
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