EconLogIssues and insights in economics Edited by Arnold Kling and Bryan CaplanWhen Has Independence Been Worth the Price, by Bryan Caplan- July 5, 2008 I think that the American Revolutionary War was a tragic mistake. After years of bloodshed, it's hard to see how independence led to better policy. So when has independence improved policy My favorite modern example is the break-up of the Soviet Empire, but even that is a mixed bag. Almost all of the countries of Eastern Europe and the Baltics quickly adopted much better policies than they endured under the Russian yoke. Russia reformed too, but reformed less, and took a lot longer to get..http://econlog.econlib.org/archives/2008/07/when_has_indepe.html What Went Wrong, by Arnold Kling- July 4, 2008 In a somewhat melancholy 4th of July essay, Canadian libertarian Pierre Lemieux writes, How could a country founded on the ideal of individual liberty, with a state devoted to the mission of protecting it, slide down the road to tyranny as fast as, and sometimes faster than, other countries Public Choice theory suggests some explanations. With hindsight, the Founders probably did not take seriously enough the danger of the state, as illustrated in Madisons argument for a federal government...http://econlog.econlib.org/archives/2008/07/what_went_wrong_1.html Bryan Caplan Politely Declines to Join the Pigou Club, by Bryan Caplan- July 3, 2008 Arnold is mistaken to think that my notes on signaling indicate that I've joined the Pigou Club. If you read the quote carefully, I only say that a tax on education could increase efficiency. I don't advocate such a tax. (The alternate section title "Why Education Should Be Taxed" is tongue-in-cheek, though you might need to attend the lecture to realize that). A while back, Greg Mankiw gave four reasons not to join the Pigou Club:1. You deny the existence of these externalities as a type...http://econlog.econlib.org/archives/2008/07/bryan_caplan_po.html Scary Housing Data, by Arnold Kling- July 3, 2008 A few weeks ago, Lawrence B. Lindsey wrote, There are 129 million housing units in the United States, comprising owner-occupied, rented, and vacant units. Of these, 18.5 million are empty. This vacancy rate is 2.5 percentage points higher than it has been at any point in the half century the data have been tracked, translating into at least 3 million too many empty housing units in the country. Wow. At typical rates of household formation, I think it would take at least two years to fill...http://econlog.econlib.org/archives/2008/07/scary_housing_d.html The Long-Term Budget Outlook, by Arnold Kling- July 3, 2008 From the Congressional Budget Office: How would the economy be affected if the projected rise in primary spending under CBOs alternative fiscal scenario (from about 18 percent of GDP in 2007 to about 35 percent in 2082) was financed entirely by a proportional across-the-board increase in individual and corporate income tax rates Answering that question is difficult because the economic models that economists have developed so far would have to be pushed well outside the range for which they...http://econlog.econlib.org/archives/2008/07/the_longterm_bu_1.html Creative Capitalism, Capitalist Government, and Thought Experiments, by Arnold Kling- July 3, 2008 Mencius Moldbug proposes a thought experiment. Imagine that there had been no scientific or technical progress at all during the 20th century. That the government of 2008 had to function with the technical base of 1908... Conversely, imagine what would become of 1908 America, if said continent magically popped up in the mid-Atlantic in 2008, and had to modernize and compete in the global economy - tell a different story. I am very confident that Old America would be the world's leading...http://econlog.econlib.org/archives/2008/07/creative_capita.html Dorothea Dix, by Arnold Kling- July 3, 2008 The more I read (or Kindle) Daniel Walker Howe's What Hath God Wrought, the more antecedents I see to modern liberal reformers. For example, he describes Dorothea Dix, who is summed up well in her Wikipedia entry. Dorothea Lynde Dix (April 4, 1802 July 17, 1887) was an American activist on behalf of the indigent insane who, through a vigorous program of lobbying state legislatures and the United States Congress, created the first generation of American mental asylums. Howe reports that her.http://econlog.econlib.org/archives/2008/07/dorothea_dix.html Tyranny Without Law Enforcement, by Arnold Kling- July 3, 2008 Bradford Plumer writes, Finamore points out, for instance, that if China enforced all the building codes it has on the books, it could cut its energy use dramatically. NRDC is training Chinese building inspectors, who often don't understand the codes, and helping set up independent certifiers to act as watchdogs. But too many international green groups, Wen notes, avoid this hands-on approach, instead staying in Beijing, writing papers and trying to influence national policy. Nor have...http://econlog.econlib.org/archives/2008/07/tyranny_without.html Bryan Caplan Joins the Pigou Club, by Arnold Kling- July 3, 2008 He writes, Question: If signaling has negative externalities, could government action make matters more efficient Answer: Yes - government could tax education. Then everyone could get half as much education and still get the same job offers. No, this is not Greg Mankiw's Pigou Club, which wants to tax carbon fuel usage. But it is a proposal to tax an activity with a negative externality. Bryan argues that pursuing a degree as a signal to employers (the courses themselves having little...http://econlog.econlib.org/archives/2008/07/bryan_caplan_jo.html |