Archive | February, 2012

Change

Some Things Never Change

I have really enjoyed studying economics. One aspect in particular which has drawn me to the science of economics is its permanence as a result of its causal-realist nature. Sound economic theory establishes truths that hold from generation to generation. It provides one with a timeless framework to evaluate market exchange between individuals as well…
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Subsidies for ‘Innovators’ Will Stifle Innovation

Last Thursday, an article in The Atlantic argued that despite claims to the contrary, the United States government should subsidize the manufacturing industry. The author argues that the manufacturing industry is the most innovative of all industries and therefore deserves exceptional support from the US taxpayer. The article, however, falsely claims that innovation is the…
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Welfare is Mean-Spirited and Bad Economics

In his latest New York Times blog post, MIT professor and former chief IMF economist Simon Johnson fallaciously argues that those who oppose welfare are mean-spirited and bad at economics. After reading this post, you’ll see it is actually Johnson who is the bad economist. The main problem with unemployment benefits, or government handouts, is…
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Reality TV Inventor Loses Big to ‘Buy American’ Fallacy

Bad economics and reality television just made Donny McCall an overnight hero. Unfortunately for him, it’s all for naught. On a recent episode of ABC’s Shark Tank, a show that features a panel of super-rich investors negotiating investment proposals from entrepreneurs, Invis-a-Rack owner Donny McCall was denied $100,000 to help expand his business because of…
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Does Immigration Cause Unemployment?

It’s not uncommon for the zero-sum fallacy to crop up in a discussion on the economics of immigration.  Many individuals assume that immigrants will necessarily “steal” jobs from domestic workers.  That’s exactly what this article about Canadian immigration concludes.  But can immigrants realistically be blamed for increased unemployment rates?  If they do cause joblessness, why…
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Chrysler

Did Obama save Chrysler?

That is very much the impression I got after reading this article from Think Progress the other day. And the facts are certainly there. Huge profits, debt repayment, a promising future, and plans to expand production and create jobs. Couldn’t have gone better, right? I agree with the author that Chrysler is doing well because…
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