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David Henderson: October 2013

An Author Archive by Month (27 entries)

Did Obama Break His Promise?

Economics of Health Care
David Henderson
Jared Bernstein's Sense of Time On a number of occasions before ObamaCare passed in late March 2010, President Obama promised that if you like your current health insurance plan, you can keep it. Now Jared Bernstein, formerly Joe Biden's chief... MORE

Salim Furth: Two Kinds of Austerity

Fiscal Policy
David Henderson
In "Look Closer: Tax Increases, Not Spending Cuts, Are the Harmful Austerity," economist Salim Furth notes two kinds of fiscal austerity: tax increases and budget cuts. He finds that the negative short-run impact of tax increases on GDP is much... MORE

Eugene Fama, Extreme Libertarian?

Economic Philosophy
David Henderson
Well, I'm an extreme libertarian, but I realize we're in a democracy, and in a democracy people can have views of all stripes and there's no reason to argue about it. This is a quote from Eugene Fama, in an... MORE

Friday Night Video: CBS Recognizes How ObamaCare Can Hurt

Economics of Health Care
David Henderson
Here. Notice the guy who says the young woman is paying more for a better product and more protection. Really? She pointed out that her deductible would rise from $1500 to $4000 and that after that, the insurance for only... MORE

Reply to Professor Erik Brynjolfsson

Economics of Health Care
David Henderson
In the comments section of my post yesterday on health insurance, "The Pre-Existing Elephant in the Room," Erik Brynjolfsson, the Schussel Family Professor at the MIT Sloan School of Management, Director of the MIT Center for Digital Business, Chair of... MORE

The Pre-Existing Elephant in the Room

Economics of Health Care
David Henderson
When Republicans advocate, and have advocated, delaying or even ending the individual mandate to buy health insurance, I am, and have been, with them. I don't like the government initiating force against people. But no one should kid himself that... MORE

The Relative Unimportance of Seigniorage

International Trade
David Henderson
I start every 50-minute segment of my class with a 5-minute discussion in which the students can ask about or talk about anything as long as it is economics. I've been doing it since January 1993 and it has been... MORE

Lawrence Klein, RIP

Macroeconomics
David Henderson
Lawrence Klein, an economist who won the 1980 Nobel Prize in economics for his macro-models of the economy, died on Sunday. Because the bio of him in The Concise Encyclopedia of Economics is so short, I'm reprinting all of it... MORE

Reply to James Pethokoukis--and a Challenge

Fiscal Policy
David Henderson
Last week, James Pethokoukis of the American Enterprise Institute, an Institute with which I was affiliated in the late 1990s and early 2000s, wrote a piece titled "The dodgy austerity economics of the tea party." Here's a key paragraph: Now... MORE

David Henderson's "A Nobel for the Random Walk of Stock Prices" (op-ed, Oct. 15) describes me as "one high-profile beneficiary of Mr. Fama's insight," allegedly inspiring my founding of the Vanguard 500 Index Fund in 1975. This is untrue. Perhaps... MORE

Friday Night Video: Mark Cuban, Humanitarian

Entrepreneurialism
David Henderson
This isn't the usual Friday night video. Rather, it's a mention of an ABC-TV show that my wife and I watch every Friday night. It's called "Shark Tank." I highly recommend it. It's the highlight of our Friday evening. Five... MORE

Krugman on Interest Rates

Monetary Policy
David Henderson
Paul Krugman once bragged--I can't find the link off-hand--that he doesn't read much of what libertarians and conservatives write on economics, but he really knows their views well anyway. I wonder. Earlier this month, Jeff Hummel wrote one of the... MORE

Henderson on the Three Nobels

Finance
David Henderson
"Today, Apple announced a bigger dividend than stock market analysts predicted. So I should buy Apple stock, right?" I sometimes get this kind of question from people who know I'm an economist. My answer: "No, you should have bought Apple... MORE

Reinhardt on Doctors' Monopoly

Economics of Health Care
David Henderson
Organized medicine invariably opposes wider scopes of practice and independent practice of nonphysician health professionals, ostensibly not to protect economic turf but to protect the quality of patient care. Curiously, one rarely finds those to be protected by this paternalism... MORE

Henderson on Fama, Shiller, and Hansen

Finance
David Henderson
Sometimes the Nobel committee seems to make a partly political statement in choosing winners of the prize in economics. Not this year. On Monday, the Royal Swedish Academy of Sciences awarded the 2013 Nobel to three deserving American economists: Eugene... MORE

60 Minutes Highlights

Economic Philosophy
David Henderson
UPDATE: Correction below Just before watching David Ortiz's grand-slam home run in the Detroit/Boston game this evening, I watched 60 Minutes bat 1.000. Two out of three segments were excellent, one was good, and all had explicit or implicit economic... MORE

The Economics of Receipts

Business Economics
David Henderson
Megan McArdle has an excellent short piece on why businesses provide receipts even when customers don't ask for them. She gives a brief interesting history of the introduction of cash registers also. Bottom line: the purpose of cash registers, with... MORE

Henderson on Sunstein

Books: Reviews and Suggested Readings
David Henderson
Fresh off a tour as head of President Obama's Office of Information and Regulatory Affairs, Cass Sunstein, now a professor at Harvard Law School, shares his enthusiasm for simpler regulation in this new book. It is appropriately titled Simpler. I... MORE

Krugman on Default

Economic Methods
David Henderson
One of the frustrating things about reading Paul Krugman's blog regularly, as I do, is that I so often have to cut through his nastiness to see if he's actually saying something important and, even better, true. Why do I... MORE

There is no denying that central banks have some impact on interest rates, in both the short and the long run. But the complexity of and qualifications to that impact have been swept into a memory hole, submerging a host... MORE

Higher-Cost Health Insurance for Older California Resident

Economics of Health Care
David Henderson
One thing that pretty much everyone expected if he/she had paid attention during the ObamaCare debate is that the new law would impose a huge cost on young people. That seems to be happening. But what do we make of... MORE

Daniel Goleman's Attack

Economic Philosophy
David Henderson
In "Rich People Care Less," Daniel Goleman, the famous psychologist who writes about emotional intelligence, writes: In politics, readily dismissing inconvenient people can easily extend to dismissing inconvenient truths about them. The insistence by some House Republicans in Congress on... MORE

The ObamaCare-Induced Shift to Part-Time Work

Labor Market
David Henderson
UPDATE BELOW: The title of this post is the same as the title of a post I wrote in January 2013. Why do I use the same title? Because of this statement from Brad DeLong: I mean, some employers are... MORE

Washington Monument Strategy on Steroids

Public Choice Theory
David Henderson
A perennial case in point is the "Washington Monument strategy" of the National Park Service. At budget time, the service frequently threatens to curtail visiting hours at its most popular attractions, such as the Washington Monument, if its budget request... MORE

Prices Sing

Economic Education
David Henderson
Daniel Reid, a Naval Postgraduate School student of mine from the Spring quarter who really grokked my class, wrote a poem titled "Prices Sing." Here it is, with his permission: Such sweetly multi-layered resonances compressively veil themselves within her uniquely... MORE

We've often heard the complaint, "Isn't it awful that public safety workers such as firemen, whose work is so important to us, are paid so little while professional athletes are paid so much?' Before getting to some interesting answers to... MORE

Ezra Klein's Claim about the Shutdown

Politics and Economics
David Henderson
This [the shutdown of well under half of the federal government] is all about stopping a law that increases taxes on rich people and reduces subsidies to private insurers in Medicare in order to help low-income Americans buy health insurance.... MORE

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