economics

The financial crash

Brad de Long looks at the financial crisis, and concludes that the wise and good hand of government is necessary. Third, the market fundamentalists in other sectors will need to be quiet for quite a while. We have just seen financial markets rife with moral hazard, agency, and adverse selection problems crash spectacularly. Is this a situation in which we should move health care–also rife with moral hazard, agency, and …

economics

The success of globalization

Massive globalization — a major move towards free market capitalism — has brought over a billion people out of poverty, while sixty years of socialist chaos and violence has failed to convince most of the world that central planning is a very bad way to run any economy.“Ruble” symbolizes pretend money, unconvertible into goods, much as “Finland” symbolizes submission to a hostile power, and “Peso” symbolizes inflation. Globalism has done …

war

Yellow bellied surrender monkeys

In the last ten years or so we have been hearing a lot of disturbing reports about Britain – reports of a society of fearful and servile subjects, of criminals acting with impunity, of the British accepting second class status to Islam.  Maybe the gun lobby is exaggerating British submission to criminals, maybe racists and war hawks are exaggerating British submission to Islam, but this story of cowardice and betrayal …

war

What has been happening in Georgia

The boundaries of all the Balkan and Caucasus states are ill defined, one blurs into the other, each contains people who feel themselves outsiders and oppressed. In some, like Estonia, “oppression” is merely that if you cannot speak the majority language, or a widely spoken international language such as English, you have poor job prospects. In others, oppression consists of robbery, rape, and murder. By and large the resentment is …

economics

Explanations of the oil price rise

My explanation for high oil prices is the collapse of oil states. Arnold Kling argues that instead the problem is that investors fear the collapse of advanced states, so are reluctant to take their money. My explanation is that oil states are increasingly short of the competence to pump oil, the ability to provide security to people pumping oil, and the credibility to make deals with people who are competent …