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David Henderson: April 2016

An Author Archive by Month (26 entries)

The Uberization of Banking

Finance
David Henderson
But isn't SoFi cherry-picking loans? Absolutely. Why can't banks do this? Because if you use depositor money for loans, as all banks do, you fall under the jurisdiction of the Federal Deposit Insurance Corp. and the Community Reinvestment Act, which... MORE

Zywicki on Debt

Finance
David Henderson
The headlines are alarming. The New York Times panicked that Americans are "Running in Debt" and just a few years later warned that Americans were "Borrowing Trouble." Business Week asked, "Is the Country Swamped with Debt?" and U.S. News and... MORE

Incomes, Spending, and Saving

Finance
David Henderson
Earlier this month, I read two articles that were somewhat eye-opening to me about various Americans' views and actions on income, spending, and saving. One, which got a lot of play, was Neil Gabler's piece in The Atlantic, "The Secret... MORE

Early American Immigrants

Labor Mobility, Immigration, Outsourcing
David Henderson
Scott Alexander has written a fantastic review of David Fischer's Albion's Seed. The book is about early immigration to the Eastern United States. Alexander gives a nice summary of each of the 4 immigrant groups, along with some really interesting... MORE

Cordato on Bathrooms and State

Business Economics
David Henderson
UPDATE BELOW The saga of the so-called Charlotte bathroom ordinance -- and the state of North Carolina's response to it -- has taken on a life of its own. At the national level leftists are accusing North Carolina of bigotry... MORE

Hooper and Henderson on Drug Prices

Economics of Health Care
David Henderson
Patients are heavily insulated from the costs of their care partly because of long-term efforts by policymakers and advocates on the political left. The Affordable Care Act was a notable exception to this trend and, according to the Kaiser Family... MORE

Chrysler's Disgusting Ad

Business Economics
David Henderson
Last night, I saw one of the most disgusting ads I have ever seen on TV. In it a father played by Jim Gaffigan models for his son a threefer: (1) disrespecting property rights, (2) being unaccountable for it, and... MORE

That's the title of my review of Jonathan Kay's book Other People's Money. It appears in the latest issue of Regulation. Here's my introductory paragraph: I can't give a AAA rating to John Kay's new book on finance; it's closer... MORE

Mea Culpa on Fed and Interest Rates

Monetary Policy
David Henderson
In my recent post on George Elgin's primer on monetary policy, I wrote: Maybe not surprisingly, what I will excerpt here makes the point that Jeff Hummel and I have been making for some time: the Fed does not set... MORE

The Case Against a Basic Income Guarantee

Fiscal Policy
David Henderson
Jason Kuznicki of the Cato Institute has written a piece calling for an "Unconditional Basic Income." (I should note that he did not publish this under the auspices of the Cato Institute. I mention Cato only to identify his affiliation.)... MORE

Selgin on Money

Monetary Policy
David Henderson
George Selgin, over at Cato, is writing a primer on monetary policy and his first installment appeared this morning. It's excellent. Maybe not surprisingly, what I will excerpt here makes the point that Jeff Hummel and I have been making... MORE

Property Rights Create Harmony

Property Rights
David Henderson
I live in Pacific Grove, California, where we just voted on a measure to change how an area was zoned so that a luxury hotel can be built. I favor property rights and so I voted in favor of allowing... MORE

Last spring, I tried an idea for a question for my final exam in Energy Economics. Here it is: Write an essay of 300 to 600 words in which you do one or both of the following: (i) Pull together... MORE

Bill Gates: Tax Poor People More

Taxation
David Henderson
Developing countries must also find creative ways to increase government revenue. Even the poorest nations today fund the large majority of essential services like health care and education. But many don't have the expertise and resources to raise more money... MORE

She once told an interviewer that the children's book "Peter Rabbit" was an early influence on her political thinking. Her sympathies were with the gardener. "It was his lettuce," she said, "and Peter had no business stealing it." This is... MORE

Lester Thurow, RIP

Obituaries
David Henderson
On March 25, noted economist Lester Thurow died. Here's a good, if brief, obit in the New York Times. He and I had different views on many policy issues. He was a senior economist with Lyndon Johnson's Council of Economic... MORE

Milton Friedman on Segregation

Labor Market
David Henderson
Former co-blogger Arnold Kling writes: Barry Goldwater and Milton Friedman (at least if I remember correctly the relevant passages in Capitalism and Freedom) were against Federal intervention to protect African-Americans from segregation, even segregation imposed by state and local governments.... MORE

Robert Frank Fails to Connect the Dots

Labor Mobility, Immigration, Outsourcing
David Henderson
Cornell University economics professor Robert Frank has an article in The Atlantic on luck. In "Why Luck Matters More Than You Might Think," he claims that successful people underestimate the role of luck in their lives. I'm quite willing to... MORE

Moneyball

Business Economics
David Henderson
Update below My wife had surgery yesterday and, with the anesthetic taking hours to wear off, had trouble reading. So I read her my favorite front-page story from a recent Wall Street Journal, a story about her and my... MORE

Message to Michael: There's No Tooth Fairy

Labor Market
David Henderson
In an article today, Shikha Dalmia goes after Democrats' attempts and proposals to raise the minimum wage by a lot. She quotes my thinking about monopsony. But she also made me aware of work by U.C. Berkeley economist Michael Reich... MORE

Don't Let the IRS Ruin Your Day

Behavioral Economics and Rationality
David Henderson
In the last week, I've written checks to the IRS for about $9K (for 2015) and $6.2K (2016 quarterly estimated) and to the California state government for $2.5K (for 2015) and $1.4K (quarterly estimated.) I was shocked when I went... MORE

Hummel on Lowenstein and the Fed

Economic History
David Henderson
A devastating critique of an apology for the Federal Reserve. San Jose State University economist and historian Jeff Hummel has written an outstanding review of Roger Lowenstein's new book, America's Bank: The Epic Struggle to Create the Federal Reserve. It... MORE

Implicit Advice from a Nine-Year Old

Competition
David Henderson
We are hearing more and more about 18-to-22 year old college students demanding "safe spaces" on campuses where not only they won't be insulted or verbally attacked but also their most cherished views will not be challenged. Various people who,... MORE

Boudreaux on Prosperity Pools

Growth: Causal Factors
David Henderson
With important exceptions, such as antibiotics, commercial air travel, air conditioning, and the Internet, most of the goods and services that define our modern prosperity are akin to Pool Noodles. Each one, individually, adds only a minuscule amount of well-being--or... MORE

Take That, Madame Secretary

Regulation
David Henderson
Basic economics works. Maerker: In Mexico, there are those who propose not keeping going with this battle and legalize drug trafficking and consumption. What is your opinion? Clinton: I don't think that will work. I mean, I hear the same... MORE

What's so Great about Free Trade? Lots

International Trade
David Henderson
In a post yesterday, my former UCLA graduate student colleague David Glasner asks "What's so Great about Free Trade?" It's a long, well-written piece and I can't completely summarize it in a few sentences, but here goes. David argues that... MORE

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