Economics Archive

Eastern States Celebrity Death Match

If I had a dollar for every demand to abolish state governments I’ve heard, I wouldn’t need to make the big bucks blogging. It seems whenever there is a half-baked thought about government, up pops abolishing the States. Set aside the fact the Constitution is based on residual powers for the States; that the Senate […]

Honest Talk About Academic Factions

Arnold Kling, who blogs at Econlog, has a series of 3 really interesting posts on the state of macroeconomic debate. Not technical and a conversation we really need to have. Read the first, second and third posts. The posts come from a committed perspective and Kling is upfront about that. But its real value is […]

Deleveraging Continues Apace

ABS Lending Finance release today for Jan -Feb 2012 isn’t terribly encouraging. Personal finance commitments down. Owner-occupied housing finance commitments down. Commercial finance commitments down. And it’s not just due to standard post Christmas paydowns: seasonally adjusted figures down as well. Got to get those ‘animal spirits’ cooking again. The Federal Government has clearly done […]

SmartPhones: You Ain’t Seen Nothing Yet

Free Exchange mentions Matt Yglesias on the underdeveloped possibilities of smart phones. Like most major, general innovations it’ll take years for the full impact to filter through: What makes this particularly interesting is the fact that information and communication technologies (of which smartphones represent an extraordinarily elegant and powerful marriage) are a general purpose technology. […]

Public Economics: Tool of Big Government Tools

There are a lot of people who are pissed off they no can longer claim that capitalism hurts ordinary workers.  The 19th- 20th centuries were the longest and most convincing economic-political experiment in human history. Laughed into oblivion every time they claim capitalism hasn’t improved ordinary people’s lives, they take legitimate economic insights and build […]

Public Economics: Tool of Big Government Tools

There are a lot of people who are pissed off they no can longer claim that capitalism hurts ordinary workers.  The 19th- 20th centuries were the longest and most convincing economic-political experiment in human history. Laughed into oblivion every time they claim capitalism hasn’t improved ordinary people’s lives, they take legitimate economic insights and build […]

The Trouble With Smart – Part 1

The way Andrew Leigh MP spanked former ALP Senator John Black for his views  on the Federal implications of the Queensland election reveals a core problem for policy and economic research. This is Leigh’s slapdown tweet (courtesy of Catallaxy): It’s important to understand that Leigh is a former ANU economist with a Harvard PhD and […]

Industry Grows a Pair

I shouldn’t find fault. The stand taken by AIG, BCA and ACCI on green tape is very welcome, particularly as it has got a positive response from the PM. But it is deeply disappointing that industry associations have waited this long, and waited until they could smell a change in community sentiment, before acting. It’s […]

Forced Redundancy Long Overdue for NSW Public Service

Thank God. The  Public Sector Employment and Management Amendment Bill, which passed last week, finally stops the nonsense of carrying unattached public servants with no work to do. And it is a nonsense that we have seen as part of our process and productivity business over the past 2 decades. The idea that someone who […]

Inner City Housing Follies – Electorate Stacking Masquerading as Concern

Recently a Joint Regional Planning Panel (JRPP) rejected a 112-apartment development application in the inner Sydney area of Balmain. Nothing to note there in itself, it is an entirely normal outcome.  But the response from councillors and activists reveals the core economic illiteracy, and long term social engineering at the heart of the ALP’s and […]

Economics IS Crap – Best Post I’ve Read in Ages

Knzn has posted on the truth and worth of economics in one of the best posts I’ve seen – partially because it corresponds to my views. Partially too, because of the plain speaking involved. It is well worth the read. An excerpt: Here’s my take: to begin with, economics is basically bulls**t. I mean, it’s […]

Krugman v Steve Keen

NY Times columnist Paul Krugman has just spanked UWS economist Steve Keen – though not justifiably. Seems Prof K went off half-cocked and didn’t even read the entire post from our UWS controversialist. Krugman’s post follows from this and this. It all started from Keen posting this. They’ve been having a toe-to-toe over assumptions and […]

Government Isn’t About Protecting Competitors

Stephen King at Core Economics has a corrective for the dinner-party talk on market power and competition: Competition laws necessarily place restrictions on large firms that have market power. These restrictions are not faced by smaller, less successful businesses. But judging any abuse of market power must be handled very, very carefully. An abuse of […]

Smart Machines, Exports and Wage Rates

Tyler Cowen identifies 3 key drivers for US exports, and this counter-Luddite view of technology’s effect on wages: The more the world relies on smart machines, the more domestic wage rates become irrelevant for export prowess. That will help the wealthier countries, most of all America. This logic works on both sides. America is using […]