Think Economically

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Ezra Klein: Romneycare is working. The jury is still out on Obamacare, but the outlook is good.

Ezra Klein has an excellent summary of economists’ analyses of Obamacare and Romneycare. Healthcare coverage certainly seems like a natural monopoly, and it looks like costs are declining with increases in scale.

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Detroit auto makers are back. General Motors, Ford, Chrysler are all working to expand capacity, but demand is outpacing them.

Nothing quite like reading the news. The article here is from the AP and discusses at length the change in the market from dialing down production to rushing to get back to capacity. It’s such a dense article, and you can’t read it without thinking about the elasticity of supply…well, at least I can’t. What will happen to prices? Was the bailout a good thing? Like I have any idea. I give it a crack though. Part 2 is after the break. Enjoy!

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