Asymptosis: Always Approaching

Category: Economics

  • Minimum Wage Laws are Bad for the Poor, Right? Wrong Again.

    Righties love to claim that minimum-wage laws hurt the poor because they discourage employers from hiring. They claim that the disemployment effect cancels out the higher-wage effect, making the poor worse off. But over and over again, research shows that it just ain’t so. Here’s more (PDF). A new and stunningly well-executed study comparing adjacent counties…

  • Fundamental Fallacies: Taxing Investments Reduces Investment

    Over at Angry Bear and Presimetrics, Mike Kimel makes his usual brilliant case for the stupidity of right-wing and many orthodox economic beliefs. But he makes one statement in the course of it which he considers to be unobjectionable by all, that as far as I can tell is almost completely false. It’s one of…

  • “Its not the Prius vs. the pickup truck, it’s the Prius vs. the Hummer.”

    “The red-state, blue-state war is happening in the upper half of the income distribution.” Or more accurately, I think, the red-blue war is happening… And it’s happening in the poor states. And it first reared its head in the 90s. Interpret. More graphs: Andrew Gelman

  • It’s The Health Care Costs, Stupid

    Get this straight: If health-care costs were rising at the same rate as inflation — even with our aging population — we wouldn’t have a budget problem. Congressional Budget Office: The red line is what Medicare plus Medicaid would look like in that scenario. So, for all you Democrats whining about how Obama should have tackled…

  • What ALL Americans – Liberals AND Conservatives – Want

    Washington’s Blog has a good list: Break Up the Unholy Alliance Between Big Government and Big Banks “the list of prominent economists and financial experts calling for the too big to fails to be broken up is wholly bipartisan:” Throw the Criminals In Jail “Everyone agrees that financial scammers must be tried and put in…

  • The Sky Is Falling

    According to the Congressional Budget Office, non-interest federal spending was 18.8 percent of GDP in 1980. In 2020 it is projected to be 18.6 percent of GDP. David Brooks is Upset that the Politicians Are Listening to Voters | Beat the Press. Related posts: Yowza. Now Even AEI is Dissing Austerity. Fed today: “fiscal policy is restraining…

  • Did Democrats’ Policies Create Big State Budget Deficits?

    Hooray. My friend Steve responded to my challenge. He posted some useless, misrepresentative data from the Wall Street Journal the other day, “showing” that blue states have bigger budget deficits, and suggesting that it’s “obviously” because of those blue-state policies. Once he’d abandoned the New-York-has-a-bigger-deficit-[in-dollars]-than-Arkansas argument, he reverted to (in my words): “New York and…

  • Where Did Our Debt Come From? – James Fallows – Politics – The Atlantic

    Just another reminder: Where Did Our Debt Come From? – James Fallows – Politics – The Atlantic. Hat tip to my sis. Related posts: Embarrassed Republicans Admit They’ve Been Thinking Of Eisenhower Whole Time They’ve Been Praising Reagan “You Deserve It” Part 243 Taxes: Obama vs. McCain The Macroeconomics of Chinese Kleptocracy Who Owns Congress?…

  • One Conservative Gets It Right

    Never in human history has a group so advantaged gone so far to cast itself as victim. “The Conservative Gene” by Robin A. Dembroff | Politics | The American Scene. Related posts: Choosing a VP For All the Right Reason Ratings Agencies and Real-Estate Appraisers: How Do You Keep ’em Honest? Delight and Abject Dismay…

  • Fiscalists and Monetarists

    Just one more example of how the left and the right are not equal ends of the spectrum. One is (at least near) the reasonable center. The other is a radical and deluded fringe — despite their numbers. I don’t think you could find a left/Keynesian/fiscalist-believing economist who would not stipulate to the spectacular, even…

  • Bleg: Why Hasn’t Europe Caught Up?

    (For blog non-cognoscenti: that’s a combination of blog and beg.) I’ve pointed out with tiresome regularity that since Europe got back on its feet after World War II,  even with its higher taxes, larger social support systems, etc., it’s grown just as fast as the U.S. But the champions of our smaller-government system have a very…

  • Jim Manzi Makes the Case for Doing Whatever We’re Doing Right Now — Or Nothing

    I have to start this post by saying how much I like Jim’s recently-bruited notion (and coinage): “causal density.” I’ve been sharing it with my friends. In my words: An event in physics — a ball being bit by a bat and landing in center field  — has very few causes, so it’s pretty easy…

  • Is the Welfare State a Free Lunch?

    We know that prosperous countries with bigger governments (mostly as a result of larger social support systems) don’t grow any more slowly than those with small governments. How can that be? The deadweight loss from those additional taxes should hurt national GDP growth, right? Answer: there are many economic effects that are exogenous to the…

  • Trickle Down: Here’s How It Happens

    Our country’s 40-year experiment in trickle-down Reaganomics has shown us one thing: left to its own devices, a free market pumps the money to the top. It’s the nature of the beast, an inherent property of the system. Despite wild-eyed assertions to the contrary, trickle-down doesn’t happen unless we make it happen. Here’s further demonstration…

  • Have Domenici and Rivlin Been Reading My Notes?!

    Their proposed deficit/debt reduction plan is here. They’re chairs of the Bipartisan Policy Center’s Deficit Reduction Task Force. Here are the notes I jotted down this morning for a planned “If I Were Dictator” post. I was planning on adding, explaining, changing, organizing, etc., but I’m simply pasting them here, unedited and unsorted. Eliminate the mortgage…

  • I Balanced the Budget!

    I cut the 2030 deficit by $2 trillion! Or by $1.4 trillion — balancing the budget — without resorting to death panels or touching the Medicare budget that Republicans are fighting so hard to preserve. http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html?choices=d3b306qv Your turn. Related posts: Pubs: You Had a Blank Piece of Paper for Eight Years Tea Partiers: Old, White,…

  • Greenspan: “certainly illegal and fairly criminal”

    At the Fed’s Return to Jekyll Island Forum last week, Greenspan had some eye-opening comments (emphasis mine): There are two fundamental reforms we need – to get adequate capital and, two, to get far higher levels of enforcements of statutes of fraud statutes, existing ones. I’m not even talking about new ones. Things were being…

  • Krugman on Raising the Retirement Age: Janitors vs. Lawyers

    So you’re going to tell janitors to work until they’re 70 because lawyers are living longer than ever. Here. He’s got the numbers here: since 1977, the life expectancy of male workers retiring at age 65 has risen 6 years in the top half of the income distribution, but only 1.3 years in the bottom…

  • Is the Social Security Trust Fund a Liberal Own-Goal?

    The Social Security trust fund is one key rhetorical crux of our budget debates. (I’m punting on Medicare here for the moment; it’s obviously the elephant in the room.) Liberals think of the trust fund as a big national savings account. They point to the trust fund’s promises to future retirees, their multi-decade contributions to…

  • Murray, Manzi, McCardle, and Coastal Elites: Who Knows What?

    Undoubtedly spurred by Charles Murray’s recent (and reliably predictable) op-ed, Megan McArdle comments on Jim Manzi’s anti-elitism: extremely well-educated people from a handful of metropolitan areas, few of whom have ever, say, been responsible for a profit and loss statement, or tried to bring a gas station into compliance with local and federal EPA regulations. You don’t…

  • The Deadweight Loss From Taxes: Anti-Taxers Don’t Care

    Anti-tax zealots are wont to point to the problem of “deadweight loss” when trying to demonstrate how awful taxes are. The rule/theory of deadweight loss says that a tax in general makes us all worse off than we would be without taxes, because a certain amount of production and value simply disappears as a result…