Tuesday, July 31, 2012
Monetary policy: Rethinking macro | The Economist
Monetary policy: Rethinking macro | The Economist:
We can move past this intellectual limitation. Monetary policy can influence demand, plain and simple. This economy could plainly use more of it; millions of unemployed workers are a testament to that. Not to do more to get them to work is to leave the sword at one’s side during a battle, because it looks prettier there. And the Fed should be careful. If it doesn’t use it, someone might try to take it away.
Kling responds
We can move past this intellectual limitation. Monetary policy can influence demand, plain and simple. This economy could plainly use more of it; millions of unemployed workers are a testament to that. Not to do more to get them to work is to leave the sword at one’s side during a battle, because it looks prettier there. And the Fed should be careful. If it doesn’t use it, someone might try to take it away.
Kling responds
Monday, July 30, 2012
For Many New Yorkers, Gunfire Is Part of the Soundtrack of Their Lives
Read the comments to understand why progress on gun control is so difficult.
For Many New Yorkers, Gunfire Is Part of the Soundtrack of Their Lives - NYTimes.com
For Many New Yorkers, Gunfire Is Part of the Soundtrack of Their Lives - NYTimes.com
Sunday, July 29, 2012
Mish's Global Economic Trend Analysis: Federal Bankruptcy Court Lets Stockton, California Cut Retiree Health Care Benefits; Flood of City Bankruptcies Coming
Repubs say it is okay to cut retiree benefits but not okay to cut AIG bonuses because of contracts.
Mish's Global Economic Trend Analysis: Federal Bankruptcy Court Lets Stockton, California Cut Retiree Health Care Benefits; Flood of City Bankruptcies Coming
Mish's Global Economic Trend Analysis: Federal Bankruptcy Court Lets Stockton, California Cut Retiree Health Care Benefits; Flood of City Bankruptcies Coming
Why Can’t We End Poverty in America?
Why Can’t We End Poverty in America? - NYTimes.com:
The wealth and income of the top 1 percent grows at the expense of everyone else. Money breeds power and power breeds more money. It is a truly vicious circle.
A surefire politics of change would necessarily involve getting people in the middle — from the 30th to the 70th percentile — to see their own economic self-interest. If they vote in their own self-interest, they’ll elect people who are likely to be more aligned with people with lower incomes as well as with them. As long as people in the middle identify more with people on the top than with those on the bottom, we are doomed.
The wealth and income of the top 1 percent grows at the expense of everyone else. Money breeds power and power breeds more money. It is a truly vicious circle.
A surefire politics of change would necessarily involve getting people in the middle — from the 30th to the 70th percentile — to see their own economic self-interest. If they vote in their own self-interest, they’ll elect people who are likely to be more aligned with people with lower incomes as well as with them. As long as people in the middle identify more with people on the top than with those on the bottom, we are doomed.
Saturday, July 28, 2012
Caterpillar strike: in the US, it's open season on unions
Caterpillar strike: in the US, it's open season on unions | Michael Paarlberg | Comment is free | guardian.co.uk:
What could really drive Caterpillar to demand its workers tighten their belts in a period of unprecedented prosperity? "Greed," might be the moralist response; "capital accumulation" the Marxist one. But a better explanation is even simpler: because they can.
What could really drive Caterpillar to demand its workers tighten their belts in a period of unprecedented prosperity? "Greed," might be the moralist response; "capital accumulation" the Marxist one. But a better explanation is even simpler: because they can.
Recession Looks a Bit Less Bad Thanks to Government
Rare bit of honest reporting from the WSJ since Murdoch took over.
Look for denial in the comments.
Recession Looks a Bit Less Bad Thanks to Government - Real Time Economics - WSJ
Look for denial in the comments.
Recession Looks a Bit Less Bad Thanks to Government - Real Time Economics - WSJ
Friday, July 27, 2012
An Epic Downpour Exposes a Creakier Beijing
The difference between US and China. In five years China will have fixed its drainage system. Washington DC will still have week long blackouts.
An Epic Downpour Exposes a Creakier Beijing - NYTimes.com
An Epic Downpour Exposes a Creakier Beijing - NYTimes.com
Thursday, July 26, 2012
Ex-Citi chief Weill urges bank break-up - FT.com
Ex-Citi chief Weill urges bank break-up - FT.com:
"As a former banker, it is interesting to see that all these senior executives Sandy Weil, John Reed, Phil Purcell etc, who made huge amounts of money by putting together these structures, which destroyed the inherent cultures and core competencies of these institutions, now opining on how these should be broken up. Between Weil and Reed, they destroyed a fine institution which went back more than a hundred years."
"As a former banker, it is interesting to see that all these senior executives Sandy Weil, John Reed, Phil Purcell etc, who made huge amounts of money by putting together these structures, which destroyed the inherent cultures and core competencies of these institutions, now opining on how these should be broken up. Between Weil and Reed, they destroyed a fine institution which went back more than a hundred years."
Help Wanted: Small Firms Can't Find Skilled Workers
Help Wanted: Small Firms Can't Find Skilled Workers - WSJ.com:
These ridiculous articles surface from time to time. Always blaming workers and not management. The real reason is buried:
"The rest may be qualified but don't take his offer because they seek higher pay or they are looking for easier [better] work, he says."
These ridiculous articles surface from time to time. Always blaming workers and not management. The real reason is buried:
"The rest may be qualified but don't take his offer because they seek higher pay or they are looking for easier [better] work, he says."
Wednesday, July 25, 2012
Can Financial Regulation Be Fixed?
Can Financial Regulation Be Fixed? | The Baseline Scenario:
A sad comment on the financial industry.
"Goldman gets a reputation for screwing its customers, but they don’t lose any business because those customers (a) figure it’s just a cost of doing business and (b) don’t have any meaningfully different choices."
A sad comment on the financial industry.
"Goldman gets a reputation for screwing its customers, but they don’t lose any business because those customers (a) figure it’s just a cost of doing business and (b) don’t have any meaningfully different choices."
Tuesday, July 24, 2012
Should I Quit My Job? And Other Dilemmas
Should I Quit My Job? And Other Dilemmas Tackled by Dan Ariely | Ask Ariely - WSJ.com:
When I graduated, I asked Ziv Carmon—one of my academic advisers—where to take my first academic job. His answer was that I should go to the place where, five years down the line, I would be most likely to emerge as a very different person. He explained that life is about learning and improving, and that I should take advantage of my relative flexibility (no wife and kids at the time) and invest the next few years in my own growth
When I graduated, I asked Ziv Carmon—one of my academic advisers—where to take my first academic job. His answer was that I should go to the place where, five years down the line, I would be most likely to emerge as a very different person. He explained that life is about learning and improving, and that I should take advantage of my relative flexibility (no wife and kids at the time) and invest the next few years in my own growth
Peter Thiel’s CS183: Startup - Class 13 Notes Essay
You are not a lottery ticket. Skill and hard work matters.
Peter Thiel’s CS183: Startup - Class 13 Notes Essay
Peter Thiel’s CS183: Startup - Class 13 Notes Essay
Comparing US states with countries: Stateside substitutes
Mississippi as Bangladesh. In so many ways.
Comparing US states with countries: Stateside substitutes | The Economist
Comparing US states with countries: Stateside substitutes | The Economist
Permission to Live: How I lost my fear of Universal Health Care
Universal health care experience in Canada.
Permission to Live: How I lost my fear of Universal Health Care
Permission to Live: How I lost my fear of Universal Health Care
Bubble Standards: Why the Poor Are on the Hook for the Housing Crash
Another driver of inequality. Business and sophisticated investors can walk away from bad debts.
Individuals find it harder and the punishment is more severe.
Bubble Standards: Why the Poor Are on the Hook for the Housing Crash | Next New Deal
Individuals find it harder and the punishment is more severe.
Bubble Standards: Why the Poor Are on the Hook for the Housing Crash | Next New Deal
Monday, July 23, 2012
Sunday, July 22, 2012
Do Drone Strikes on al-Qaida Make Us Safer?
Short term, the answer might be yes. Long term?
Do Drone Strikes on al-Qaida Make Us Safer? | Flashpoints
Do Drone Strikes on al-Qaida Make Us Safer? | Flashpoints
Saturday, July 21, 2012
Thursday, July 19, 2012
Wednesday, July 18, 2012
Monday, July 16, 2012
David Brooks Repeats Himself
David Brooks Repeats Himself, Arnold Kling | EconLog | Library of Economics and Liberty:
Great quote from the comments:
But the humble are disadvantaged relative to the arrogant in the status competitions that produce most leaders.
Great quote from the comments:
But the humble are disadvantaged relative to the arrogant in the status competitions that produce most leaders.
Hedge Funds Tap Into Early Views of Stock Analysts
Hedge funds make money the old fashioned way...
Hedge Funds Tap Into Early Views of Stock Analysts - NYTimes.com
Hedge Funds Tap Into Early Views of Stock Analysts - NYTimes.com
Sunday, July 15, 2012
Saturday, July 14, 2012
Why High-Speed Rail Could Spur a Golden Age in the Northeast -
An embarrassment that the US does not already have this in the Northeast.
Why High-Speed Rail Could Spur a Golden Age in the Northeast - Business - The Atlantic
Why High-Speed Rail Could Spur a Golden Age in the Northeast - Business - The Atlantic
Friday, July 13, 2012
Thursday, July 12, 2012
Outsourcing: Take this job and ship it
Outsourcing: Take this job and ship it | The Economist:
The rise in worker bargaining power that occurred in the first half of the last century was a product of social movements, but those movements were enabled by the production technologies of the time,�and it is the dissolution of those production technologies that has been most responsible for the weakening of labour's position. As Mr Krugman understands very well (his work on the topic helped earn him a Nobel Prize) the transportation technologies of the industrial revolution dictated in favour of large, industrial agglomerations. Geographic concentration enabled worker solidarity, and the benefits of the agglomeration meant that employers couldn't credibly threaten to move elsewhere. But the days of the large, urban industrial agglomeration are gone.
The rise in worker bargaining power that occurred in the first half of the last century was a product of social movements, but those movements were enabled by the production technologies of the time,�and it is the dissolution of those production technologies that has been most responsible for the weakening of labour's position. As Mr Krugman understands very well (his work on the topic helped earn him a Nobel Prize) the transportation technologies of the industrial revolution dictated in favour of large, industrial agglomerations. Geographic concentration enabled worker solidarity, and the benefits of the agglomeration meant that employers couldn't credibly threaten to move elsewhere. But the days of the large, urban industrial agglomeration are gone.
Lindsey Graham: 'It's Really American' To Avoid Taxes Like Mitt Romney Does
The only people who can avoid taxes in the US are small business owners and the 1%: the Republican base.
Lindsey Graham: 'It's Really American' To Avoid Taxes Like Mitt Romney Does
Lindsey Graham: 'It's Really American' To Avoid Taxes Like Mitt Romney Does
A Controversial Issue Resolved With Econometrics, Bryan Caplan
Voters do not vote with their economic self interest.
A Controversial Issue Resolved With Econometrics, Bryan Caplan | EconLog | Library of Economics and Liberty
A Controversial Issue Resolved With Econometrics, Bryan Caplan | EconLog | Library of Economics and Liberty
Monday, July 09, 2012
Sunday, July 08, 2012
Saturday, July 07, 2012
Friday, July 06, 2012
Thursday, July 05, 2012
Wednesday, July 04, 2012
Tuesday, July 03, 2012
National - James Fallows - Let's Talk Infrastructure (and Extreme Weather, and Pepco) - The Atlantic
National - James Fallows - Let's Talk Infrastructure (and Extreme Weather, and Pepco) - The Atlantic:
As the good-government website OurDC notes,"From 2008 to 2010, Pepco CEO Joe Rigby earned $8.8 million and Pepco top officers earned more than $22 million. During that same period, Pepco reported $882 million in profits, paid no federal and state income taxes and received $817 million in tax refunds." Yet as the money rolled in, the Maryland Public Service Commission allowed Pepco to cut back on maintenance, in order to divert funds to dividends and management bonuses....
Pepco faces a simple reliability equation: The more it spends on improving service, the less is available for dividends and executive bonuses. CEO Rigby is a major shareholder, so in effect awards himself a commission when he keeps infrastructure spending low and dividends high. After the mega-thunderstorm, Dominion Power [another provider in the area] took 14 hours to restore all its transformers and main feeder lines... while Pepco took 36 hours... Within 48 hours of the storm, Dominion had 2,000 out-of-state workers present to assist in restoration; Pepco had just 300. If Pepco drags its feet on recovery, the utility avoids paying doubletime or tripletime, plus expenses, to out-of-state crews.
As the good-government website OurDC notes,"From 2008 to 2010, Pepco CEO Joe Rigby earned $8.8 million and Pepco top officers earned more than $22 million. During that same period, Pepco reported $882 million in profits, paid no federal and state income taxes and received $817 million in tax refunds." Yet as the money rolled in, the Maryland Public Service Commission allowed Pepco to cut back on maintenance, in order to divert funds to dividends and management bonuses....
Pepco faces a simple reliability equation: The more it spends on improving service, the less is available for dividends and executive bonuses. CEO Rigby is a major shareholder, so in effect awards himself a commission when he keeps infrastructure spending low and dividends high. After the mega-thunderstorm, Dominion Power [another provider in the area] took 14 hours to restore all its transformers and main feeder lines... while Pepco took 36 hours... Within 48 hours of the storm, Dominion had 2,000 out-of-state workers present to assist in restoration; Pepco had just 300. If Pepco drags its feet on recovery, the utility avoids paying doubletime or tripletime, plus expenses, to out-of-state crews.
Monday, July 02, 2012
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