Archive | December, 2011

AustrianSchool

Did The Economist Present Austrian Theory Accurately?

As krlatham pointed out yesterday, it is wonderful to see the Austrian school get a shout out in such a noted publication as The Economist. While it is true, in a sense, that all publicity is good publicity, there were some shortcomings in The Economist’s representation of Austrian theory. The author writes that “Austrians see…
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monopoly

The Monopoly Bogeyman

As this late 2010 article predicted, 2011 was indeed a year for mergers. The most noteworthy was AT&T’s attempt to buy T-Mobile. The attempted move by AT&T would have given them an estimated 43% of the market share for cellular phone providers. This number drew the ire of United States regulators which eventually landed AT&T…
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Bridge to Nowhere

Bridge to Nowhere

Krugman makes his latest argument with nothing but a few words and a lonely chart which shows the recent drop-off in government infrastructure “investment.” Contrary to Krugman’s worldview in which “full employment” is the only feasible economic ideal, employment is only “good” when it occurs voluntarily under market processes.  Why?  Because working for working’s sake…
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Incomplete Logic Strikes Again!

Pat Garofalo of Think Progress bemoans the worsening housing crisis as housing prices fall ever lower despite marginal gains in employment. To be clear, Pat is just expanding on a recent Wall Street Journal piece. What both articles highlight is the fact housing prices have failed to rebound. Low home values have made it much…
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The Economist

The Economist Speaks!

http://www.economist.com/node/21542174 Is fiscal stimulus not working? Then do more of it, say the neo-chartalists. Are monopolies and price controls a problem? Then get rid of the central bank’s monopoly in setting the price of credit and the supply of government money, say the Austrians The Economist, beloved and respected throughout the profession, ridiculed by outsiders…
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Crystal Ball

Do Economists Have a Crystal Ball?

It’s not uncommon to see a host of economists offer their predictions concerning economic conditions for the new year. This recent MSNBC article is a case in point. Unfortunately for those who rely on these forecasts, it turns out that they are less reliable than the weatherman. These faulty forecasts are a result of a…
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What is Elizabeth Warren Talking About?

“There is nobody in this country who got rich on their own. Nobody. You built a factory out there – good for you. But I want to be clear. You moved your goods to market on roads the rest of us paid for. You hired workers the rest of us paid to educate. You were…
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Minimum Wage 2

Minimum Wage: $100/hr!

San Francisco is not the only area on the precipice of a minimum wage increase. This NYT article states that 8 states will see an increase in minimum wage on the new year. While most economists do, indeed, agree that the inevitable result of minimum wage is increased unemployment, the article, nonetheless, trots out several…
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Minimum Wage

Think Progress? Think Again.

The fallacy of the minimum wage has reared it’s ugly head yet again! Progressive political blog Think Progress announced on Wednesday that San Francisco will be the first US city to have a minimum wage above $10. Citing the Economic Policy Institute, they wrote: There are eight states that have legislated annual, inflation-linked increases in…
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