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David Henderson: July 2011

An Author Archive by Month (29 entries)

Hooper and Henderson on Out-of-Control FDA

Economics of Health Care
David Henderson
Then there's the issue of off-label promotion. A drug's "label" is the drug's FDA-approved prescribing information--those complicated package inserts that we've all seen. Any approved use is on-label, while any use not listed on the insert is considered off-label, even... MORE

David Friedman's Defense of His Father

Austrian Economics
David Henderson
David Friedman's latest post is titled "Austrian Fantasy." It's well worth reading. In the post, David defends his father from Lew Rockwell's statement that the whole world is reading Murray Rothbard and that outside of mainstream economics, Milton "is almost... MORE

What is Opportunity Cost?

Economic Education
David Henderson
On his blog, "Conversable Economist," which, I agree with co-blogger Arnold, is excellent, Timothy Taylor gives an example of opportunity cost from Yale economist Shane Frederick: "While shopping for my first stereo, I spent an hour debating between a $1,000... MORE

Matt Yglesias's Best Post Ever

Economics of Crime
David Henderson
It's short and so I'll quote the whole thing: One doesn't want to lean too heavily on human tragedies to make political points, but since a lot of our politics rightly concerns itself with how to minimize the occurrence of... MORE

Another worry about Moody's position is that the firm is frequently represented in the media by economists from Moody's Analytics, such as Mark Zandi. Moody's Analytics is a distinct subsidiary within Moody's Corporation from the rating issuing entity, Moody's Investors... MORE

Bastiat's Letters

Books: Reviews and Suggested Readings
David Henderson
Because nobody else can understand them, modern economists speak to one another. They gossip in algebra and remonstrate in differential calculus. And when the pungently correct mathematical equation doesn't occur to them, they awkwardly fall back on the English language,... MORE

Timothy B. Lee's Blunder

Monetary Policy
David Henderson
With the lonely exception of Scott Sumner, virtually every libertarian or conservative who has expressed a strong opinion about monetary policy has come down on the side of the inflation hawks. This is from Timothy B. Lee, "Why Are Libertarians... MORE

Tom Saving on the Social Security Trust Fund

Fiscal Policy
David Henderson
President Obama said in a recent interview with Scott Pelley of CBS News, "I cannot guarantee that those [Social Security] checks go out on August 3rd if we haven't resolved this issue [increasing the debt ceiling]. Because there may simply... MORE

Hummel on Krugman, Keynes, and Patinkin

Macroeconomics
David Henderson
Indeed, Krugman's presentation doesn't incorporate any of the more sophisticated arguments about the financial system of such old-line, hard-core Keynesians as James Tobin. He moreover completely ignores any possible complications arising from Ricardian Equivalence, essentially knocking down straw-men objections to... MORE

Sumner on the Big Macro Debate

Monetary Policy
David Henderson
Lots of brilliant people talking past each other. Lacking a common language for communication. Welcome to elite macroeconomics, circa 2011. The right doesn't think we need more NGDP [Nominal Gross Domestic Product] and the left doesn't understand that the Fed... MORE

My Debate with Ian Fletcher, Part Trois

International Trade
David Henderson
Ian Fletcher responded to my last post as follows: You accuse me of wanting "the government to interfere in people's lives." I'd like to plead cheerfully 100% guilty as charged to that. Although a government that doesn't "interfere in people's... MORE

Matt Ridley on the Christians and the Romans

Growth: Causal Factors
David Henderson
The Problem with the JCs Although I always read a whole book before I write a review of it [Exception: I reviewed the New Palgrave for Fortune after having read "only" about 300 of its 1,196 entries] and I usually... MORE

Debate with Ian Fletcher, Part Deux

International Trade
David Henderson
I appreciate a number of the comments people made on my previous post on my debate with Ian Fletcher, both the tone and the content. On tone, I want to highlight Tom West, whose tone I always appreciate. On content,... MORE

My Debate with Ian Fletcher

International Trade
David Henderson
After my article appeared in which I criticized Ian Fletcher's argument for more manufacturing in the United States, Fletcher responded by e-mail and we carried on a back-and-forth debate. It was pretty civil on both sides, something that, unfortunately, is... MORE

Ellen Brown on Why Banks Aren't Lending (Much)

Monetary Policy
David Henderson
In an effort to salvage a comatose credit market after the Lehman collapse, the Fed set the target rate for Fed funds - the funds that banks borrow from each other - at an extremely low 0.25 percent. Paying interest... MORE

Clarity on the Budget Debate

Fiscal Policy
David Henderson
Most of the media have done a worse job than usual of reporting on the debt ceiling/budget debate. Specifically, when one side or the other offers a deal, the media don't typically tell us when the budget cuts would come,... MORE

Tyler Cowen challenges me to engage "with the academic literature" on consumer surplus from the Internet. Fair challenge. First, before doing so, I'll point out that I found it a little strange that he referred critically to a post I... MORE

Jonathan Gruber's Analysis of "ObamaCare"

Economics of Health Care
David Henderson
Last month, MIT economist Jonathan Gruber published an NBER Working Paper, "The Impacts of the Affordable Care Act: How Reasonable are the Projections?" WP No. 17168. Gruber points out in a footnote that he was a paid advisor to Governor... MORE

John Goodman on Justice

Economics of Health Care
David Henderson
A few days ago, I posted on a John Goodman post in which he asserted that he knows of no theory of justice that would imply that the Affordable Care Act, aka ObamaCare, is a good idea. There followed a... MORE

Schumer's Nonsensical Solution for Pharmacy Robberies

Economics of Crime
David Henderson
New York. Associated Press. June 26 In the wake of last week's deadly shooting at a Long Island pharmacy, Sen. Charles Schumer says the federal government must work harder to fight prescription drug abuse. Schumer said Sunday that the abuse... MORE

Consumer Surplus from the Internet

Business Economics
David Henderson
Would you give up the Internet for One Million Dollars? That's the title of a 5-minute YouTube video produced by the Fund for American Studies. There's a lot of good stuff packed into this video plus some apparently contradictory stuff.... MORE

Nudged and Stuck

Behavioral Economics and Rationality
David Henderson
Automatic enrollment appears to be a win-lose approach to changing 401(k) savings behavior. The win aspect is that automatic enrollment dramatically increases 401(k) participation, with particularly large effects among the groups who would otherwise tend to have the lowest participation... MORE

John Goodman Hits a Home Run

Economics of Health Care
David Henderson
On his health policy blog this morning, John Goodman asks whether there's a moral case for the Affordable Care Act. The whole thing is worth reading. Some excerpts: Search the world's ethical codes and you will have a hard time... MORE

The Problem with Greece

Growth: Causal Factors
David Henderson
Summed up in a nutshell I'm giving a presentation at the Mont Pelerin Society meetings in Istanbul in October and I'm staying over a few days to see the country and visit former students. The Turkish students I've taught have... MORE

Monterey Sheriff Admits that Drug Raids Engender Fear

Economics of Crime
David Henderson
Yesterday, I wrote the following letter to the Monterey Herald about a local incident that has created a lot of publicity: If reporter Julia Reynolds quoted Sheriff Miller correctly ("Rights Violated, Sergeant Claims," Herald, July 3), then Miller has made... MORE

Murphy to U.S. Government: Sell Assets

Fiscal Policy
David Henderson
Do you think that if the U.S. government doesn't take on more debt in August, it will have to raise taxes, cut spending, use the Ron Paul/Dean Baker solution of having the Federal Reserve Bank extinguish government bonds, or default... MORE

The Right Amount of Manufacturing

International Trade
David Henderson
In my latest Freeman column, I take on Huffington Post author Ian Fletcher on his claim that the United States doesn't have enough manufacturing. Some excerpts from my article: To judge whether a sector of the economy is too small,... MORE

TSA Wins Another Round

Regulation
David Henderson
I've posted before on the TSA (here, here, here, here, and here.) I had some hope for a little assertion of federalism from Texas. The Texas legislature, after the U.S. Attorney John E. Murphy threatened that the TSA would ban... MORE

Anthony Gregory on Why the Left Hates Us

Economic Philosophy
David Henderson
Libertarian Anthony Gregory has written the best article I've read this year. I've been trying to decide what excerpts to paste in and I found myself wanting to paste the whole thing in. I'll restrain myself and use a few... MORE

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