Joshua Foust on May 06 2008 | Filed under: Domestic Politics, Economics
Congress is behaving atrociously: cutting assistance to hungry children abroad right when food prices are spiking, and preventing competition amongst our sugar producers. There’s more, of course.
I normally scoff at the talk of “lobbyists” and “special interest groups.” I know several lobbyists, and the only thing that makes them special is they’ve learned how [...]
Keith_Indy on May 06 2008 | Filed under: Economics, Keith's Page, energy
If being upside down on your mortgage isn’t bad enough, consider how many people are into large pickups and SUVs for more then they are worth. And now with gas prices climbing they want to get out of them.
The sale of new SUVs and pickup trucks has dropped precipitously in recent months amid soaring [...]
Lance on May 01 2008 | Filed under: Domestic Politics, Economics, Education, Lance's Page
Thanks to Don Boudreaux, I found this “Inconvenient Truth” about the struggles of the middle class. As readers here know, I have long been a bear on housing, but as always those who want their hands on our wallet can take any crisis or problem as a license to take from us. Todd Zywicki writes [...]
Peg on Apr 25 2008 | Filed under: Economics, Environment, Peg's Page, energy, science
Sooner rather than later.
And this:
Perhaps turning food into transportation fuel would make sense if massive amounts of grain spoiled every year from a lack of demand, but that certainly isn’t the case. Farmers love the higher prices that come from the new demand to fill gas tanks, but higher prices have consequences for poorer nations [...]
Peg on Apr 25 2008 | Filed under: Domestic Politics, Economics, Education
From a Wall Street Journal reader:
“The courageous thing for Congress to do would be to get rid of student-loan subsidies entirely. Then watch tuitions tumble towards ‘the affordable’ as academe realizes nobody’s throwing money at it any more.”
– John K. Lunde
Why is it so difficult for so many to miss this simple truth? If [...]
Peg on Apr 24 2008 | Filed under: Domestic Politics, Economics, Election 2008, Peg's Page, energy
At least on this topic.
Economists in general oppose a tax holiday because it would encourage consumption of gasoline at a time of soaring demand.
Billionaire oilman T. Boone Pickens, a longtime Republican donor, criticized Sen. McCain’s policy in an interview with The Wall Street Journal and other news organizations last week.
Mr. Pickens said suspending the federal [...]
Peg on Apr 23 2008 | Filed under: Economics, Health Care, Peg's Page
We all expect to eat - but we don’t get insurance to guarantee food. We all need various sorts of transportation. But, other than some insurance to cover the value of a valuable vehicle, we don’t need insurance to make sure that we can get around.
Why then, do we need health insurance for routine exams, [...]
Peg on Apr 23 2008 | Filed under: Developmental economics, Economics, Peg's Page
As an update to this previous post, be sure to read this from The Economist.
Governments ought to liberalise markets, not intervene in them further. Food is riddled with state intervention at every turn, from subsidies to millers for cheap bread to bribes for farmers to leave land fallow. The upshot of such quotas, subsidies and [...]
Peg on Apr 23 2008 | Filed under: Domestic Politics, Economics, Peg's Page
So shall ye reap.Am I the only one who finds massive government interference in agricultural markets to be insanity? And, surely our own nation’s recent love affair with ethanol is a significant contribution to world wide inflationary food costs - and starvation.
I would say we should vote for politicians that will end government [...]
Lance on Apr 19 2008 | Filed under: Economics, Lance's Page
While spending increased in March by 1.8% over a year ago, adjusted for inflation it was way down. The only reason sales were positive was gasoline, though food sales were positive. Even there, that is mostly due to inflation and rising prices of food and staples.
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Joshua Foust on Apr 17 2008 | Filed under: Developmental economics, Economics, Foreign affairs, regulation
Posted first at Registan.net
When last I touched on the global food crisis and how it is impacting Afghanistan and the rest of Central Asia, I noted that countries continuing to ban wheat exports would make the problem worse by restricting the global market, driving up prices even more, and limiting national coping mechanisms. One of [...]
Lance on Apr 12 2008 | Filed under: Domestic Politics, Economics, Election 2008, Firearms, Lance's Page
Given the discussion at this post about Obama’s condescension, I suggest Tom Maguire’s roundup of the coverage of Obama making the mistake of speaking his mind about the rubes who he needs to vote for him:
I can’t believe that in all those Harvard classes they never emphasize that you can’t tell the rubes what you [...]
Joshua Foust on Apr 10 2008 | Filed under: Developmental economics, Economics, Foreign affairs
Cross-posted to Registan.net, which also has lots of other commentary, news, and analysis from and about Central Asia.
Paul Krugman had a mostly-good column in the New York Times the other day, exploring the world food crisis. After digging through his typically overheated political boilerplate, one finds he narrows down the crisis into several unavoidable and [...]
Lance on Apr 07 2008 | Filed under: Economics, Investing, Lance's Page
Personally I think we have been negative since November. Given the large positive number in the third quarter, the barely above break even number in the fourth quarter virtually guarantees that the economy went negative sometime in November and December. However, if we are not, it is highly likely coming. Here is a graphic which [...]
Joshua Foust on Apr 01 2008 | Filed under: Around the Web, Economics
Germany is optimistic it has reduced its unemployment to 3.5 million. According to the Bureau of Labor Statistics, U.S. unemployment is down in February to around 7.3 million.
For comparison’s sake, Germany has around 82 million people. The U.S. has around 300 million people. Yet it is in the U.S. that we are speaking of a [...]
Joshua Foust on Mar 24 2008 | Filed under: Economics, Foreign affairs, Notes on the war
Posted first on Registan.net, this is the latest in a series I’ve been writing there for the past two years on the many problems with our counternarcotics operations in Afghanistan, and how bad policy has fueled the insurgency to record strength.
Over at Abu Muqawama, Kip has posited a very interesting hypothesis:
Already in the 2007 annual [...]
Keith_Indy on Mar 21 2008 | Filed under: Domestic Politics, Economics, Election 2008, Keith's Page
Some interesting parallels with our current situation and the period before the Great Depression. Interestingly, it seems the Democrats are intent on not learning from history, at least not about what led us to the Depression. Or maybe they want a replay of the policies that helped drag us out of the Depression.
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_shlaes&sid=alBsmRS72DyM
Schumer [...]
Keith_Indy on Feb 28 2008 | Filed under: Developmental economics, Domestic Politics, Economics, Foreign affairs, Keith's Page
A short portrait of President Bush from Sir Bob Geldof, on the Presidents recent trip around Africa. Really shows what we’ve been accomplishing in Africa the last several years.
In 2003, only 50,000 Africans were on HIV antiretroviral drugs — and they had to pay for their own medicine. Today, 1.3 million are receiving medicines [...]
Lance on Feb 25 2008 | Filed under: Domestic Politics, Economics, Investing, Lance's Page, regulation
Regular readers know that I have been harping on the likely collapse in housing since this blog began. At this point I am hardly an outlier in being concerned, which means now the politicians and experts are ready to ride to the rescue. Proposals to increase regulation, bailout mortgage insurers, banks and even homeowners are [...]
MichaelW on Feb 21 2008 | Filed under: Economics, Education, Foreign affairs, Health Care, MichaelW's Page
A Cuban medical office with a sign reading “No prescriptions available.” Photo by: Dr. Darsi Ferrer [via The Real Cuba].
News of Fidel Castro’s retirement has elicited some interesting responses. Chris Bertram’s has to be one of the most arrogant and least informed:
So let’s hear it for universal literacy and decent standards of health [...]
Lance on Feb 19 2008 | Filed under: Economics, Lance's Page
Robert Reich gets his clock cleaned in very few words by Donald Boudreaux:
At least a full-sized op-ed is required to address the many wrong-headed presumptions, factual errors, and non sequiturs that mar Robert Reich’s “Totally Spent” (February 13). The most blatant mistake, however, is Mr. Reich’s assertion that women entering the [...]
Lance on Feb 18 2008 | Filed under: Developmental economics, Domestic Politics, Economics, Foreign affairs, Lance's Page, social science
The Bayesian Heresy tipped me to a profile of economist Ben Olken, who has published a couple of papers on the effect of political leaders on economic and political development:
Olken wonders whether economic development and the path to democratization are shaped more by broad historical forces or by the actions of specific leaders—be [...]
Lance on Feb 15 2008 | Filed under: Economics, Lance's Page
Courtesy of Barry Ritholtz, we get a look at some black humor being passed around on the trading desks of Wall Street:
Go here to see the whole slideshow.
I would have more humor about this if I didn’t just get some bad news.
My new house has a leak in the roof, and an air conditioner that [...]
Lance on Feb 14 2008 | Filed under: Economics, Lance's Page, Urban planning and development, regulation
So claims Alex Tabarrok. Alex and his blogmate Tyler are two of my favorite bloggers, but on this matter I think Alex is wrong. Unlike for some, his argument doesn’t invite scorn from me, because humility should teach us that sometimes things are different, and we cannot always fully understand why, at least not until [...]
Peg on Feb 13 2008 | Filed under: Domestic Politics, Economics, Peg's Page
One of my liberal friends routinely rails at me for being such a selfish, uncaring conservative. When I remind him, though, that he is the one who moved from Minnesota to Florida because he “could not afford the taxes” in his former home state, and I am the one who remains here - [...]
Lee on Feb 11 2008 | Filed under: Economics, Foreign affairs, Lee's Page
photo: Simón Pais-Thomas
Toronto police recently seized shipments of 10,320,000 counterfeit cigarettes from China (PRC authorities themselves intercepted nine billion in 2007). Chinese made counterfeits bearing fake American branding such as Marlboro, are produced “in underground operations, caves and old warehouses,” and shipped through Vancouver for sale on a vast black market that has developed [...]
Lance on Feb 11 2008 | Filed under: Economics, Lance's Page
Anybody see a bottom when this kind of thing is happening?
“Luxury builder Toll Brothers Inc (TOL), hurt as many buyers to try to get out of contracts for new homes amid falling prices, says a member of its founding family is trying to walk away from an agreement to buy a new condominium.
The daughter of [...]
MichaelW on Feb 11 2008 | Filed under: Economics, Foreign affairs, Hugo Chavez, MichaelW's Page, energy
Joseph Kennedy II supports blood for oil.
In recent months, my TV has been bombarded with ads from Joe Kennedy promoting his Citizens Energy program, such as the following:
The heating oil distributed by Citizens Energy comes from Venezuela on a subsidized basis (which its been doing since 1979). Since Hugo Chavez took the reins of [...]
Peg on Feb 11 2008 | Filed under: Domestic Politics, Economics, Peg's Page
The behavior of humans can be altered with incentives. What motivates us, though, is not identical for all. Find the right incentive, and you can encourage someone to change their behavior. Conversely, different incentives can promote an unwillingness to change.
In general, most of us believe that earning a higher income is beneficial [...]
Keith_Indy on Feb 11 2008 | Filed under: Domestic Politics, Economics, Environment, Keith's Page, Technology, energy, regulation
And by eventually, they mean decades down the road.
This is a perfect example of government getting in the way of the innovation we need to dig ourselves out of our fossil fuel dependency.
http://www.ecogeek.org/content/view/1362/1/
If you want to build a wind farm in Minnesota right now, you’re in for a nasty surprise. A 612-year nasty surprise in [...]
Lee on Feb 11 2008 | Filed under: Economics, Lee's Page
photo: Simón Pais-Thomas
Mick at Uncorrelated has another lovely post on the essentially vile character and politics of Mike Huckabee. Toward the end of his remarks he briefly hits Huckabee’s proposed Fair Tax:
…and politically DOA policy planks like the fair tax.
(Uncorrelated)
Politically DOA we must hope, because Huckabee’s tax plan would do more than “eliminate the IRS.” [...]
Peg on Feb 07 2008 | Filed under: Domestic Politics, Economics, Election 2008, Peg's Page
Have you ever met a politician who didn’t make promises that could not be delivered? I haven’t, either.
Of course, there are promises… and then there are promises.
If you are someone with an adjustable rate mortgage who has run aground, then you might like Hillary Clinton’s promise to freeze interest rates for five years. [...]
Lance on Feb 06 2008 | Filed under: Developmental economics, Domestic Politics, Economics, Election 2008, Lance's Page
In electing a President we are rarely presented with candidates who represent our views, so in the end it really comes down to prioritizing. Frankly I may yet again not vote for a major party candidate, but if I do one issue of great importance to me, though not mentioned nearly often enough, is a [...]
Lee on Feb 05 2008 | Filed under: Culture, Economics, History, Lee's Page
photo: Tal Bright
Thomas Barnett bemoans the grotesque state of economics education in Europe, which often ranges from the anti-capitalist to the simply fatuous. But consider this item he cites:
Great French HS textbook: “Globalization implies subjugation of the world to the market, which constitutes a true cultural danger.”
(Thomas P.M. Barnett)
Somewhat bemused by this, Barnett asks “why [...]
Lee on Feb 02 2008 | Filed under: Books, Developmental economics, Economics, Foreign affairs, Interviews, Lee's Page
Gas flaring in the Niger Delta (photo: Ellie)
John Ghazvinian is a journalist and historian of considerable insight into African affairs. He also happens to have written one of the best recent books on the emergent international struggle for African petroleum: Untapped: The Scramble for Africa’s Oil (the paperback edition is due out in April). Whilst [...]
Lance on Feb 02 2008 | Filed under: Economics, Investing, Lance's Page
The Fourth quarter GDP numbers came in this week, and then the Fed went ahead and cut rates further. That is 125 basis points in about a week.!
I have a roundup of news, related opinion and other reactions at Risk and Return.
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Joshua Foust on Feb 01 2008 | Filed under: Economics, Foreign affairs
My weeks have a remarkable tendency to fill up. I suppose moving up the job ladder does that—constricts your time to blog, that is. Alas.
Did you ever wonder why, years after Bill Clinton scored one of the biggest geopolitical coups we’ll see in our lifetimes—the building of the Baku-Ceyhan pipeline—George W. Bush still can’t seem [...]
Lance on Jan 30 2008 | Filed under: Economics, Society
youwalkaway.com
I really have little to add to my declaration of extreme discomfort.
Much more on this here.
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Sphere: Related Content
MichaelW on Jan 29 2008 | Filed under: Economics, Libertarianism, MichaelW's Page, regulation
Commenting on Bill Gates’ advocacy for “kinder capitalism,” Steven Bainbridge notes:
But when did Bill Gates ever believe in capitalism? He’s an inveterate monopolist and has been since the beginning. Monopolists hate real capitalism, precisely because they hate competition. Monopolists love corporate social responsibility because it creates barriers to entry. So of course Bill Gates is [...]
ChrisB on Jan 29 2008 | Filed under: Chris' Page, Domestic Politics, Economics
Tyson Foods suffers 40% decline in profits and will now raise food prices. That’s a huge decline, huge! All because people kept clamoring for the federal government to “do something” about the rising cost of oil. This is why I don’t really ever trust the government to solve anything. They’re usually going to make only [...]
Keith_Indy on Jan 29 2008 | Filed under: Domestic Politics, Economics, Keith's Page, Libertarianism
Maybe that’s overstating things a bit, but probably not by much. My parents experienced a similar cascade of events when my grandmother was injured in December of ‘06, and died several weeks later. Even before then, her treatment was one of visiting any number of specialists with problems never being resolved completely.
When consumers [...]
Lance on Jan 28 2008 | Filed under: Economics, Lance's Page, Media
Paul Krugman roasted in study:
Left Out: A Critique of Paul Krugman Based on a Comprehensive Account of His New York Times Columns, 1997 through 2006
Daniel B. Klein with Harika Anna Barlett
I have only glanced atProgrammed into the next level how to! Songs and the last composer free us cellular ringtones handset most other. this [...]
Lance on Jan 28 2008 | Filed under: Economics
Banks May Need $143 Billion for Insurer Downgrades: Banks that raised $72 billion to shore up capital depleted by subprime-related losses may require another $143 billion should credit rating firms downgrade bond insurers, according to analysts at Barclays Capital. Banks will need at least $22 billion if bonds covered by insurers led by MBIA Inc. [...]
Lance on Jan 25 2008 | Filed under: Economics, Investing
As I noted earlier, Dale Franks was curious about how Harley Davidson (HOG) would do on its latest earnings release:
One earnings report to watch this week, though, is Harley-Davidson (HOG). It’s a solid company with a loyal customer base—I’m one of them actually—but, motorcycles are a luxury item. For every guy [...]
Lance on Jan 24 2008 | Filed under: Economics
(Cross Posted at Risk and Return)
Of course prices have just started to decline. First you have to have sales volume decline and inventory build up:
Sales of existing homes fell in December, closing out a horrible year for housing in which sales of single-family homes plunged by the largest amount in 25 years. The median home [...]
Lance on Jan 23 2008 | Filed under: Economics, Lance's Page, Libertarianism, Technology, Urban planning and development, regulation
From Peter Gordon:
This morning’s WSJ op-ed (“Gas Taxes Are High Enough”) by Mary E. Peters, Secretary of Transportation, suggests that this appointment belongs on the plus side of the ledger. She is the highest-ranking federal transportation official to openly embrace electronic road tolls on major highways. Highway congestion is often cited as a market failure [...]
Lance on Jan 23 2008 | Filed under: Economics, Election 2008, Investing, Lance's Page
Richard Rahn pushes for the indexing of capital gains due to inflation as part of the stimulus.
Accounting for inflation in this way has the advantages of producing more short-term revenue to the Treasury as long-term gains are “unlocked.” Furthermore, lowering the cost of capital would stimulate investment and the stock markets, and would increase the [...]
Lance on Jan 23 2008 | Filed under: Blogs, Developmental economics, Economics, Lance's Page, social science
Hat tip: Tyler.
Chris Blattman has a conjecture, possibly high wages in Africa are holding back growth:
One thing that has always struck me in the African countries I have worked is that the real wages (i.e. wages adjusted for the cost of living) of African formal sector workers seem to be incredibly high, at least compared [...]
Lance on Jan 23 2008 | Filed under: Developmental economics, Economics, Foreign affairs, Hugo Chavez, Lance's Page
Haven’t we said this is the way things were heading once Hugo Chavez instituted price controls? Why yes we did.
From CNN via Pejman
President Hugo Chavez threatened on Sunday to take over farms or milk plants if owners refuse to sell their milk for domestic consumption and instead seek higher profits abroad or from cheese-makers.
With [...]
Lance on Jan 22 2008 | Filed under: Domestic Politics, Economics, Lance's Page
Megan McCardle looks at some silly arguments at Max Sawickey’s old place on trade. Read the whole thing, but she hits the nail on the head here:
There are three possibilities for what will happen if we liberalize trade:
1) We will sell more stuff to foreigners than they sell to us. Since we can’t use all [...]
Risk and Return