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Garett Jones: March 2013

An Author Archive by Month (10 entries)
Milton Friedman's theory of Starve the Beast said that there was a "politically acceptable deficit," so a one-time ex nihilo cut in taxes would have to cause a spending cut to keep the deficit stable.  My commenters have revised (or... MORE

The "Starve the Beast" theory predicted that if you gave politicians more revenue, they would just spend it.  However, the last few years in Europe have provided example after example that tax increases are quite compatible with relative spending restraint... MORE

In the last few months here in the U.S. we've had a tax increase followed by a sequester.  Tax hikes coupled with slower spending growth: Here on the internet, we call that "austerity." But for decades, much of the American Right... MORE

On Human Evil: Concrete Down the Drain Edition

Cost-benefit Analysis
Garett Jones
When people have little incentive to behave well, and when nobody is watching, what do people do?  The last few years have given us millions of opportunities to answer that question as people living in foreclosed homes decided whether to... MORE

Assorted Tweets: Cyprus Speed Bankruptcy Edition

Public Choice Theory
Garett Jones
1: Is the Cyprus bank levy a crude approximation of bankruptcy?  Actually, the bank levy is probably better for depositors than bankruptcy....The reason it's probably better than bankruptcy is because in return for haircuts, Cypriot banks will get cheap money from... MORE

Some theories of the business cycle say that booms and recessions are caused by shocks to the supply of key inputs: a wave of new high-tech ideas, a rise in oil prices, big changes in labor law.  In supply-side stories, it's easy... MORE

There's an old story about a mathematician asking Paul Samuelson for one idea in economics that was simultaneously true and not obvious.  Samuelson's answer is here.  Today, I've got another: The Chamley-Judd Redistribution Impossibility Theorem.  Chamley and Judd separately came... MORE

An Unwritten Minimum Grade Law Exists

Economics of Education
Garett Jones
The more I think about Boudreaux's Minimum Grade Law proposal, the more I realize it has already been quietly enacted. The names of the departments vary from university to university, but there's almost always a department or two willing to pass... MORE

Assorted Tweets: Minimum Grade Law Edition

Labor Market
Garett Jones
1.  My colleague Don Boudreaux wrote a faux news article where politicians pushed for a "minimum grade law" to help struggling students. It's just a matter of simple fairness, of course.  I tweeted:Extra bonus of Boudreaux's Minimum Grade Law: banning... MORE

There are some ideas I love to believe in despite a lack of evidence.  Among my favorites: That the business cycle is partly a self-fulfilling prophecy: You go to the party you think everyone else is going to, you stay... MORE

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