Think Economically

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Maximum understanding, minimum average total cost.

Economist smacks down skeptics for misreading his research

A fantastic write-up of an even more fantastic reply to misinterpretation from William D. Nordhaus (http://www.nybooks.com/articles/archives/2012/mar/22/why-global-warming-skeptics-are-wrong/).

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Price controls in the market for gasoline. Could Gingrich push gas prices lower? Should we actively make gas more expensive?

Gingrich says gas should cost two dollars and fifty cents. When markets and politicians disagree, the market usually wins. Still, every time gas prices creep higher, there’s political hay in claiming you can fix it.

Thomas Friedman has a whole different idea on how to handle the price of gas: push it up and let it stay there. Ivan Eland calls it mercantilism.

Some crazy guy still thinks we should peg the dollar to gold. I say crazy because that’s crazy.

What would happen to the market for gas with price controls? Check the video:

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Stupid subsidies are stupid. Economists know this. Obama’s proposed manufacturing subsidy may be good politics but it’s bad policy..

Matt Yglesias is great here. Seriously? What possible argument can there be for manufacturing subsidies?

It’s not an infant industry. It’s not clear that we have huge returns to capital in manufacturing that are being ignored by the private markets. And if we do, lowering the corporate tax rate and broadening the base is the right solution–why would we favor manufacturing jobs over other jobs? It just means less jobs.

 

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