Friday , September 17 2021
Home / Tag Archives: Other People’s Money

Tag Archives: Other People’s Money

Autor, Boudreaux, and Henderson Converging

David Autor responded in a comment at EconLog to this recent letter of mine in which I was critical of a point that he made in his September 4th, 2021, New York Times essay on labor supply and wages. I posted that letter both here at Cafe Hayek and in the comments section at EconLog. Prof. Autor’s response is fair and welcome. Some welfare payments – most notably, the earned income-tax credit – can actually increase the labor supply and, thus, lower the wages that employers of...

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Quotation of the Day…

… is from page 143 of the 2009 Revised Edition of Thomas Sowell’s Applied Economics: Thinking Beyond Stage One: Our natural inclination may be to want to make every place as safe as possible but, in reality, no one does that when they must pay the costs themselves. We are willing to pay for brakes on our cars, but having a second set of brakes in case the first set fails would make us feel safer still, and a third set would result in even more reduction of risk, although probably not by...

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Some Non-Covid Links

My intrepid Mercatus Center colleague Veronique de Rugy warns of the humongous bill coming due as payment for Biden’s fiscal incontinence. A slice: A closer look reveals that the plan is instead a jackpot for public unions and big business. Coming after two decades of spending indulgence under the last three presidents, culminating in an explosion of outlays during Washington’s COVID-fighting efforts, Biden’s spending extravaganza is in effect the final stage of an effort to centralize...

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Put Your Money Where Your Mouth Is

In my latest column for AIER, I explain why it’s very often appropriate to ask intellectuals who assert that this or that ‘problem’ should be ‘solved’ by government interference to put their own money where their mouths are. Two slices: A common response to my “put-your-money-where-your-mouth-is” challenge is that the persons to whom I direct it are almost always intellectuals rather than experienced business people. Being an intellectual myself – and aware of my accompanying...

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No, the Burden of Deficit Financing Is Not Confined to the Present

Here’s a letter to John Tamny: John: Much of what you write in your essay “Misunderstood Deficits” is correct. But your continued insistence that the burden of government indebtedness is incurred in the current period rather than passed on to future taxpayers is incorrect. It’s simply bad economics to assert, as you do, that “Government spending is always, always, always a tax that is paid right away.” While all resources loaned to government are indeed used by government right away,...

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Some Non-Covid Links

GMU Econ alum Dan Mitchell reminds us that “by historical standards, today’s Americans are fantastically wealthy.” My intrepid Mercatus Center colleague Veronique de Rugy talks with Emily Jashinsky about some of Biden’s irresponsible policies. Also from Vero is this EconLog blog post on Covid and Keynesian stimulus. Here’s her conclusion: I am not expecting newspapers to stop calling government spending “stimulus”, but it would be nice if textbooks would adjust their Keynesian theory...

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Bonus Quotation of the Day…

… is from page 113 of Thomas Sowell’s superb 1984 book, Civil Rights: Rhetoric or Reality?: From an economic point of view, to say that any group is systematically underpaid or systematically denied as much credit as they deserve is the same as saying that an opportunity for unusually high profit exists for anyone who will hire them or lend to them. DBx: This point, at once so obvious, is obviously overlooked in too many cases. How many are the professors, pundits, preachers, and...

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Some Non-Covid Links

GMU Econ student Dominic Pino – writing at National Review‘s “The Corner” – calls on the GOP to find the backbone necessary to oppose wasteful spending on infrastructure. A slice: We know what blanket infrastructure spending looks like. When the federal government is just throwing money at the states for projects they don’t really need, there’s not going to be any urgency to spend the money in a way that benefits taxpayers. Juliette Sellgren talks with Reason‘s Nick Gillespie. Phil...

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The Only Surprise Is That Such Realities Continue to Spark Surprise

Here’s a letter to the Wall Street Journal: Editor: Your criticisms of industrial policy are spot-on (“Industrial Policy, Same Old Politics,” May 26). Yet the absurdity of now throwing 54 billion of taxpayers’ dollars at an allegedly on-the-ropes U.S. semiconductor industry runs more deeply than you had space to mention. It’s true, as you note, that “American companies dominate in design (52%) and chip-making equipment (50%).” But the good news about this industry doesn’t stop there....

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Some Non-Covid Links

George Will decries “Biden’s policy to use less affluent Americans’ money to entice more affluent Americans to buy EVs is only one of the contemplated regressive policies by which his administration would transfer wealth upward.” Bjorn Lomborg decries environmentalists’ attempt to use the courts to impose policies that are proving to be unachievable in legislatures. A slice: This is because strong climate policy is enormously expensive and delivers minuscule climate benefits. President...

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