Bryan Caplan and David Henderson

David Henderson: December 2011

An Author Archive by Month (33 entries)

Reflections on My 2011 Blogging

Economic Education
David Henderson
In terms of enjoyment, 2011 has been my favorite year of blogging since I started in late October 2008. In late November I hit 1,000 posts and certainly hope to make it to at least 2,000. I went quickly through... MORE

The Benefits of Wealth

Regulation
David Henderson
Tyler Cowen has a thoughtful answer to the question, "Does wealth equal power?" (Of course, the obvious answer is "Yes, it equals power over material things but no, it doesn't equal power over other things. It might give one power... MORE

Arnold Kling's Paradox of Thrift

Finance
David Henderson
On my list of potential topics to blog about in the last few days was Megan McArdle's excellent post in which she advises people to save more. I've gone after her here, here, and here and so I like to... MORE

Let's Deregulate all the Lawyers

Labor Market
David Henderson
The authors carefully build their case, first telling of the various restrictions on who can be a lawyer. All but a few state governments, they note, require prospective lawyers to have graduated from a law school that the American Bar... MORE

Keynes a la Mode

Macroeconomics
David Henderson
Backhouse and Bateman argue, as the book's title implies, that although Keynes wanted a substantial amount of government intervention, he did believe in preserving large elements of capitalism. This part of the book is somewhat persuasive, although their discussion of... MORE

The "Courage Campaign's" False Statement

Taxation
David Henderson
In my state of California, the so-called Courage Campaign is pushing for higher tax rates on high-income people. California now, by the way, has one of the highest top marginal tax rates on income in the country: 10.3 percent. To... MORE

George Stigler's Tenure Call

Labor Market
David Henderson
A friend of mine who used to be a colleague at the Naval Postgraduate School, Patrick J. Parker, was a young student taking his first economics courses at Columbia University in the late 1940s. He was sitting in George Stigler's... MORE

Rothbard on Stigler and Friedman

Price Controls
David Henderson
Many of us libertarian economists, even relative veterans such as me, are so used to seeing the late Murray Rothbard attack the "Chicago School." So the following from Rothbard came as somewhat of a surprise: It was in this stifling... MORE

Bauman versus Landsburg et al

Public Goods
David Henderson
In a comment on co-blogger Bryan Caplan's recent post, economist Yoram Bauman writes: If you're looking for another post topic, you could try to mediate between me and Steve Landsburg. (I've given up on him for now :) I thought... MORE

Thomas Sargent on Government Default

Fiscal Policy
David Henderson
Tom Sargent's Nobel prize lecture is quite clear and informative. True to form, Sargent shows some equations at first. This reflects his view that the way to be a "real economist" is to use equations. Yet he does pretty well... MORE

Fiscal Policy: A Counterexample for Krugman

Fiscal Policy
David Henderson
Blame Canada for contradicting Krugman. Paul Krugman writes: And bear this in mind: no country has driven itself into a debt crisis with stimulus -- nor has any country with significant debt regained investor confidence through austerity. Actually, the last... MORE

My "Occupy Monterey" Talk, Part IV

Social Security
David Henderson
This is the last installment in my recounting of my "Occupy Monterey" speech. For the earlier parts, see here, here, and here. When my talk ended, we went to Q&A. One of the first questions was about my preferred presidential... MORE

My "Occupy Monterey" Talk, Part III

International Trade
David Henderson
For Parts I and II, see here and here. "One big advantage of free markets," I said, "is that they make wars less likely. When there is a lot of trade between countries, both sides have more to lose by... MORE

My "Occupy Monterey" Talk, Part II

Economic Education
David Henderson
To follow this completely you need to read my previous post, "My 'Occupy Monterey' Talk, Part I." (One thing I forgot to mention in that post is that I pointed out that Congress had voted to give the U.S. military... MORE

My "Occupy Monterey" Talk, Part I

Regulation
David Henderson
I finally have found time to tell the story of my "Occupy Monterey" talk last Saturday, titled "Crony Capitalism versus the Free Market." My expectations for the success of my talk, on a scale of 10, were 3 to 6... MORE

My Review of Robert Frank

Books: Reviews and Suggested Readings
David Henderson
Ultimately, though, I find his case unconvincing. Moreover, his own reasoning leads to conclusions that even he finds distasteful, and he has yet to find a way out of those unfortunate conclusions. Frank often misstates the libertarian viewpoint, sometimes in... MORE

News Item: Half of American Families are Below the Median

Income Distribution
David Henderson
The title of this post should have been the title of my post yesterday. As one of the commenters, Zach Pruckowski, pointed out, the new poverty measure that the U.S. Census Bureau uses does include food stamps. My bad. But... MORE

How Food Stamps Increase Measured Poverty

Income Distribution
David Henderson
The leading story in the Monterey County Herald this morning is titled, "Nearly half in U.S. near poverty or low-income." It is Hope Yen's Associated Press item, and the leading two paragraphs are: Squeezed by rising living costs, a record... MORE

The Marginal Cost of Perfection

Cost-benefit Analysis
David Henderson
In my Executive MBA class, I use The Economic Way of Thinking by the late Paul Heyne, Peter Boettke, and David Prychitko. In a recent problem set, I used a question from the chapter on externalities. The authors have a... MORE

Donald Trump: The Price is Wrong

International Trade
David Henderson
On The O'Reilly Factor last night, Bill O'Reilly asked Donald Trump for, in order of priority, which were the most important butts to kick. Number 1 for Trump was the Chinese government for keeping the value of China's currency artificially... MORE

NYT's Jeff Sommer's Shoddy Reporting

Macroeconomics
David Henderson
I've been busy in the last week with end-of-quarter classes and two speeches, the latter of which I'll report on today or tomorrow. Which is why I hadn't replied to Jeff Sommer's criticism of me in the New York Times.... MORE

Some Motives Revealed

Economics of Health Care
David Henderson
In my chapter on health care in my The Joy of Freedom: An Economist's Odyssey, I had an extensive discussion of government regulations that drive up the price of insurance and . At the end of that discussion I wrote:... MORE

The Risks of Kidney Donation

Economics of Health Care
David Henderson
In a recent New York Times op/ed that is creating a buzz on the blogosphere, Alexander Berger tries to persuade people that donating a kidney while you're alive is no big deal. He says that donating a kidney is easy,... MORE

John Cochrane's Talk at Hoover: His Version

Macroeconomics
David Henderson
On Tuesday, I posted my notes from John Cochrane's December 3 talk at Hoover. When he saw my notes, John sent me his talk and gave me permission to reprint it. Here it is. Comments at "Restoring Robust Economic Growth... MORE

My "Occupy Monterey" Talk

Upcoming Events
David Henderson
On Saturday, December 10, I'll be giving a talk at Occupy Monterey. Title: Crony Capitalism versus the Free Market Time: Saturday, 1:15 p.m. to 2:15 p.m. Place: Colton Hall lawn, Monterey.... MORE

Hayek and 20th Century Economic Thought

Austrian Economics
David Henderson
How important is the work of Friedrich Hayek in 20th-century economic thought? David Warsh has written an excessively nasty piece on that, which doesn't mean it contains no kernels of truth. Alex Tabarrok has written a defense of Hayek which... MORE

Is Iran a Threat?

Upcoming Events
David Henderson
On Friday morning, I'll be speaking on the topic, "Is Iran a Threat?" at the campus of Cal State University, Monterey Bay. It's open to the public. There's another speaker also and we go from 10:00 a.m. to noon. Here... MORE

John Cochrane's Talk at Hoover

Macroeconomics
David Henderson
At his Friday talk at Hoover, University of Chicago economist John Cochrane went a mile a minute to try to fit a lot into 10 minutes. He succeeded and the talk was outstanding. But because he went so fast, my... MORE

The Fed's Secret Handout

Monetary Policy
David Henderson
Remember when Ron Paul was almost the only politician in Washington calling for auditing the Fed? After this latest revelation, one can see what good sense he had in doing so. Co-blogger Arnold Kling has already highlighted this, but it... MORE

Wolfgang Kasper on the Euro

International Macroeconomics: Exchange Rates, International Debt, etc.
David Henderson
When, as a Senior Fellow at the Kiel Institute of World Economics in Germany, I wrote my PhD thesis about international monetary affairs, it became clear to my colleagues and me that an imposed Europe-wide currency would be a stillborn... MORE

Greenspan on Dodd-Frank: Start Over

Finance
David Henderson
As I noted yesterday, in his Friday talk at the Hoover Institution, Alan Greenspan advocated two policies. The second is to scrap the Dodd-Frank financial regulation law and start over. The law, said Greenspan, "is unimplementable." He went on to... MORE

Greenspan: Let Them In

Labor Mobility, Immigration, Outsourcing
David Henderson
Alan Greenspan, along with George Shultz and John Cochrane, gave short speeches at a Hoover lunch yesterday and took questions and answers. All the speeches were good: Cochrane's was outstanding. I'll be posting in the next day or two, mainly... MORE

Betty Friedman Nails It

Politics and Economics
David Henderson
"People talk about Main Street vs Wall Street. It should be Main Street vs the Beltway." David Friedman's latest post is so to the point that I'll simply quote the whole thing: Reading Google News this morning, I noticed a... MORE

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