Category: economics

economics

Delong’s solution

Brad DeLong concludes the benevolent government should put those people to work – without, however, worrying as to what they will be doing, forgetting that people should work to produce the particular goods and services that other people want, or perhaps confidently believing that the wise folk of the government have lots of useful work for idle people to do, forgetting that a large part of the unemployed are unemployed because they were producing things, such as financial services or housing for non Asian minorities, that the recipients are demonstrably unwilling to pay for.

economics

The improbable economic growth of Argentina.

Over the last hundred years or so, Argentina as swung violently, and with increasing frequency, between policies of on the one hand constitutionalism, rule of law, and the free market, and on the other hand populism, bureaucratic decree, and national socialism.  It has also swung violently between being one of the wealthiest countries in the world, and being a typical third world poverty stricken hellhole. After the last crisis, it swung violently towards national socialism, populism, and bureaucratic decree – …

economics

American debt

Thus the excess “private” debt is not private. The normal level of public and “private” debt is about twice GDP, say twenty six trillion, so we are about thirty trillion or so in the hole and getting deeper fast – well past the danger level of twice GDP.

economics

US turning french

It is getting steadily harder and harder for someone to find a new job – and having found a new job, harder and harder to afford a house – presumably because of the very great and rapidly increasing regulatory burden on building houses and hiring people. This renders employees powerless before their employers, which tends to result in class war and social violence as in France, and tends to result in greater regulator burdens.

economics

Moral progress

I suggest we are not more virtuous. Consider the crimes of the twentieth century. Rather, we have strong states that reserve criminal conduct for themselves. When those states weaken, we see private crime on a scale typical of earlier of history, when they are strong, we see enormous crimes by states.