Tuesday , June 22 2021
Home / Tag Archives: price controls

Tag Archives: price controls

Henderson versus Manning on the $15 Minimum Wage

The video of my debate on the $15 minimum wage, with Professor Alan Manning of the London School of Economics, is out. You’ll find that it starts abruptly. I had asked them to record it and then, after the introductions, reminded them. They had forgotten to record. That’s why it starts where it starts. 1:30 to about 12:30: Professor Manning makes his case for the $15 minimum wage. 12:40 to 23:40: I make my case against. 24:00: Professor Amanda Starc leads with a...

Read More »

Do Profit Maximizers Leave $4,000 on the Table?

On Monday, I debated Professor Alan Manning of the London School of Economics on whether the federal minimum wage should be increased from $7.25 an hour to $15 an hour. Guess which side I took. The audience was MBA students at Northwestern University’s Kellogg School of Management. The moderator was a Kellogg associate professor named Amanda Starc, whose area is health economics. She did a great job and, as I pointed out at the end, was more prepared as a moderator...

Read More »

Richard Nixon and the Draft

My Hoover colleague Tim Kane did a great job of interviewing me this morning. The interview (audio) will be available soon and I’ll post about it here when it comes out (assuming I didn’t say anything really embarrassing, and I don’t think I did.) Tim has a Brian Lamb-style way of getting his interviewee to go deeper on something personal than the interviewee (me) may have planned. So I talked about growing up in my family in a way that I hadn’t planned to. I told...

Read More »

Berlin Rent Control Unconstitutional

Berlin rent controllers: tear down those rent controls! Karlsruhe, Germany (dpa) – A controversial rent cap to control soaring rents in the German capital Berlin has been scrapped by the country’s Constitutional Court. The legislation had been welcomed by tenants, but panned by developers and landlords since it came into force in February 2020. Since then, the rents of around 1.5 million flats in Berlin had theoretically been frozen at June 2019 rates. The court...

Read More »

Hitler’s Version of MMT

I am well aware we should never make any comparison between today’s well-meaning statists and Adolf Hitler. But the latter’s “table talk,” his table monologues to inner-circle guests, recorded by shorthand writers, are sometimes instructive. On October 15, 1941, for example, he explained his monetary theory (Hitler’s Table Talk, 1941-1944, Enigma Books, 1953, pp. 65-66). By happenstance, they show some resemblance with so-called Modern Monetary Theory, perhaps even...

Read More »

The cultural impact of rent control

The Economist has an article discussing the predictable failure of Berlin’s new rent control law: And indeed a recent study by the German Institute for Economic Research found that rents in the newly regulated market of flats built before 2014 have declined by 11% compared with the still-unregulated market for newer buildings. But the problem, entirely foreseeable and foreseen, is that the caps have made the city’s housing shortage much worse: the number of classified...

Read More »

Did Price-Gouging Laws Increase Covid Deaths?

An interesting working paper was published this month by economists Rik Chakraborti (Christopher Newport University) and Gavin Roberts (Weber State University), “How Price-Gouging Regulation Undermined COVID-19 Mitigation: Evidence of Unintended Consequences.” These price controls created shortages, which, according to economic theory, would have been more severe in the 42 states that already had price-gouging laws on the books or (inexplicably for an economist)...

Read More »

The Pandemic in Europe and America

The pandemic evolution now appears to be more worrying in Europe than in America, as illustrated by the graph below reproduced from yesterday’s Wall Street Journal (Marcus Walker, Bertrand Benoit, and Stacy Meichtry, “Europe Confronts a Covid-19 Rebound as Vaccine Hopes Recede,” March 12, 2021). In France, for example, after two very long and restrictive (even tyrannical) national lockdowns, ICUs are close to 80% capacity. The Wall Street Journal explains: Europe’s...

Read More »

Bernie Sanders, Minimum Wage, and Systemic Racism

Last fall I argued with a friend that we don’t have much systemic racism in this country. My friend said we do and defined “systemic racism” as policies that aren’t necessarily intended to hurt black people disproportionately but do hurt them disproportionately. Once he said it that way, I agreed. I thought of black people being disproportionately arrested for drugs, stopped more often by police even when it doesn’t end in confrontation, etc. And I found this...

Read More »

L’Etat, c’est Ro

Louis XIV, pictured above, the king of France from 1643 to 1715, famously said, “L’Etat, c’est Moi.” Thus the title of this post. Ro Khanna, a Democratic member of the House of Representatives, was recently asked what his plan was for the small businesses that might be hurt by the Democrats’ (and some Republicans’) proposal to raise the minimum wage from its current $7.25 an hour to $15.00 an hour by 2025. The interviewer asked: I’m wondering what is your plan for...

Read More »