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Price Controls

A Category Archive (107 entries)

Trump on Obamacare

Economics of Health Care
David Henderson
Many people say they are humbled when others bestow honors on them. I've never understood that. When I get honors, I feel proud, if I think I deserve them. I get humbled when I make mistakes. I've consistently made one... MORE

One argument for a minimum wage is that there sometimes isn't enough competition among employers. In our nation's history, there have been company towns where one employer truly dominated the local economy. As a result, that employer could affect the... MORE

This is the last post in a series of four (here, here, and here) in response to the Council of Economic Advisers' recent report on monopsony in the labor market. At the end, I'll sum up. (In yesterday's Wall Street... MORE

Robert Tollison, RIP

Obituaries
David Henderson
Many people have already done obits and reminiscences of Robert Tollison, a 73-year-old economist who died in his sleep on Monday. My two favorite are Pete Boettke's and this one at the Liberty Mortuary in Liberty, South Carolina. Most... MORE

Scott Alexander IS an Economist

Economics of Health Care
David Henderson
So many other bloggers called attention to Scott Alexander's outstanding post about why the price of EpiPen is so high that I didn't feel the need to. But now he has written another post about drug prices and the harm... MORE

Forced Labor in Venezuela

Price Controls
David Henderson
Well, Venezuela's government has now taken the next step--to forced labor. Here's Richard Washington, "Venezuela calls for mandatory labor in farm sector," on CNBC: A Venezuelan ministry last week announced Resolution No. 9855, which calls for the establishment of a... MORE

Free, good and happy

Cross-country Comparisons
Scott Sumner
Tyler recently linked to a study that used data on happiness in 22 OECD countries (all majority white). Only 6 countries scored above 8.00 in the happiness survey: Denmark: 8.35 USA: 8.32 New Zealand: 8.22 Australia: 8:05 Switzerland: 8.01 Finland:... MORE

Here's Neil Irwin of the NYT, expressing some rather unoriginal views that you might see in 100 other media outlets: What lesson should a card-carrying member of the economic elite take from the success of Donald J. Trump, and British... MORE

Response to a Regular Reader about Illegal Prostitution

Economics and Culture
David Henderson
In response to my post criticizing Jimmy Carter for his advocacy of keeping prostitution illegal, Stanley Greer wrote me the following (and gave me permission to reprint.) David Henderson criticizes Jimmy Carter for saying prostitutes sell themselves. He insists they... MORE

What to Do about London Housing

Price Controls
David Henderson
Update below. James Jirtle, a long-time reader of Marginal Revolution, recently wrote Tyler Cowen and asked his views about what to do about high housing prices in London. Mr. Jirtle listed 11 proposed responses and asked which Tyler thinks "are... MORE

Misallocation under Rent Control

Price Controls
David Henderson
On Marginal Revolution this morning, Tyler Cowen addresses the question "How bad is rent control when housing supply is artificially restricted by law?" He leads with this: Many of you have been asking me about this NYT article on the... MORE

The Slippery Slope Not Taken

Economics of Health Care
David Henderson
Two slippery slopes diverged in a wood, and I-- I took the one less traveled by, And that has made all the difference. --David R. Henderson, with apologies to Robert Frost Like my co-blogger Scott Sumner, I hope that certain... MORE

Ozimek on Hanauer

Price Controls
David Henderson
A few days ago, a regular reader of Econlog wrote me to suggest that I do a critique of a long piece written by Nick Hanauer, the person who made a few billion dollars as a tech investor. Hanauer has... MORE

As you may know, the American Revolution swiftly led to hyperinflation and price controls.  From Rothbard's Conceived in Liberty, vol. 4:By the end of 1775, Congress had already increased the nation's money supply by 50 percent in less than a... MORE

What If Donald Trump Isn't All That Different?

International Trade
David Henderson
I woke up Wednesday morning feeling a little bleak that our two main choices are two really awful candidates: Hillary Clinton and Donald Trump. Many of my libertarian and conservative friends have denounced Trump continuously, both on his policy views... MORE

More from Lester Thurow

Books: Reviews and Suggested Readings
David Henderson
In my post on the late Lester Thurow on April 15, I promised to post more from his book The Zero-Sum Society. Here are some further excerpts. Thurow as Ludwig von Mises Proposition VII: Regulation Leads to Regulation Since individual... MORE

A new study supports The Midas Paradox

Labor Market
Scott Sumner
In my book entitled The Midas Paradox, I argued that FDR's NIRA wage program set back economic recovery by almost 2 years. Prior to the wage increase, industrial production had surged by 57% in 4 months, mostly due to the... 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

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

In yesterday's Washington Post, Charles Lane reports on the move, that's almost a done deal, to raise California's minimum wage in stages to a whopping $15 an hour by 2022. Lane, or his editors, wisely titled the article, "The risks... MORE

Two dubious ideas

Price Controls
Scott Sumner
Here's The Economist: In places stuck in deflationary quicksand it may be necessary to be more radical still. Olivier Blanchard and Adam Posen of the Peterson Institute for International Economics have argued that Japan would benefit from an incomes policy.... MORE

Jonathan Meer and Jeremy West have found that increases in the minimum wage destroy jobs, not so much by destroying current jobs as by reducing the growth rate of new jobs. That makes sense if employers' investments in capital are... MORE

Noah Smith's Unpersuasive Case

Economic Education
David Henderson
Economist Noah Smith has a recent article titled "Most of What You Learned in Econ 101 Is Wrong." He doesn't actually make the case that would support that title. But he also probably didn't choose the title. However, he did... MORE

Meer vs. Galbraith on the $15 Minimum Wage

Labor Market
David Henderson
I finally got around to watching the debate about the minimum wage between Jonathan Meer and Jamie Galbraith. Meer is an economics professor at Texas A&M University and Galbraith is an economics professor in the Lyndon B. Johnson School at... MORE

Robert Murphy on Minimum Wage Studies

Labor Market
David Henderson
Many economists who currently support large minimum wage hikes claim that the best research now shows that such an increase would not cause significant drops in employment. However, their conclusion relies on a dubious reading of the literature. Dozens of... MORE

Minimum Wage Debate: Meer versus Galbraith

Cost-benefit Analysis
Bryan Caplan
Video of Jonathan Meer's debate with James Galbraith on the minimum wage is now up!  Enjoy.... MORE

Would Conscription Reduce the Odds of War?

Labor Market
David Henderson
Note: I wasn't planning a special Labor Day-oriented blog post. I wanted to write this one. Then I realized that this is a Labor Day-oriented blog post. What better defense of labor could there be than a defense of laborers'... MORE

How bad government policies make us meaner

Price Controls
Scott Sumner
In a recent post I argued that government monopolies often offered worse service to customers than competitive private firms. In this post (which will have something to offend both progressives and conservatives), I'll look at a different, but related problem.... MORE

Divine coincidence?

Labor Market
Scott Sumner
Some of my progressive friends argue that markets are not efficient because information is a public good. Thus research in equity values will be under-provided. Others argue the financial sector is inefficient because greedy Wall Street types convince the gullible... MORE

Paul Krugman on the minimum wage

Labor Market
Scott Sumner
Paul Krugman recently had this to say on the minimum wage: Until the Card-Krueger study, most economists, myself included, assumed that raising the minimum wage would have a clear negative effect on employment. But they found, if anything, a positive... MORE

This report in the Financial Times caught my attention: George Osborne has delivered Britain's first radical Tory Budget for nearly 20 years, announcing huge welfare cuts offset by a higher minimum wage in a bid to create a "high wage,... MORE

The answer is probably yes (and the scare quotes head off complaints that big impersonal governments don't actually have human feelings.) The administration has clearly been upset that the Eurozone isn't doing more to help Greece. They complain that a... MORE

HINT: The textbook is The Economic Way of Thinking by Heyne, Boettke, and Prychitko. UPDATE BELOW In an excellent post today, Greg Mankiw writes about an unnamed competitor's textbook: I happened to be flipping through another introductory economics textbook. (Yes,... MORE

As promised, I'm reporting here on how I drew out Milton Friedman's views on conscription during World War II. If you look at the quote from his 1966 piece on conscription, you can easily conclude that he favored conscription during... MORE

Over at Cafe Hayek, Don Boudreaux has written a passionate statement against the draft: "My Son Will Never Be a Conscript." I love the last paragraph: Fortunately, what is perhaps Milton Friedman's greatest legacy remains in place: actual conscription does... MORE

Nick Hanauer on Noah Smith

Labor Market
David Henderson
A billionaire named Nick Hanauer has weighed in on the minimum wage debate. Am I trying to bias you against him by mentioning his net worth? Not really. Instead, I'm following the lead of PBS, which published his piece. In... MORE

Pizza shop worker Devin Jeran was excited about the raise that was coming his way thanks to Seattle's new $15 an hour minimum wage law. Or at least he was until he found out that it would cost him his... MORE

I'm an Outside Agitator

Behavioral Economics and Rationality
David Henderson
Frequent Econlog commenter Greg G wrote recently: But there is something very strange about this debate [about the minimum wage]. All the agonizing about the suffering that the minimum wage causes to poor people seems to come from relatively wealthy... MORE

Ball State University economists Philip R.P. Coelho and James E. McClure wrote a short piece recently that makes an obvious and telling point. But even though it's obvious, few people who discuss the minimum wage are talking about it. And... MORE

Krugman versus Krugman on Labor versus Butter

Price Controls
David Henderson
OMG. In my recent post "Krugman's Priceless Economics," I criticized a recent column by Paul Krugman in which he argued against thinking about labor markets in terms of supply and demand. I quoted the following from his article: Specifically, this... MORE

Krugman's Priceless Economics

Microeconomics
David Henderson
As regular readers of my posts on Econlog know, although I am often critical of Paul Krugman, I defend him when he's doing good economics (here, for example). His New York Times column yesterday, though, "Walmart's Visible Hand," essentially throws... MORE

The Minimum Wage and Monopsony

Labor Market
David Henderson
I promised a few weeks ago to "write a further note explaining a more-sophisticated way of understanding the harmful effects of the minimum wage." This isn't it. The reason is that three issues came up in the comments and e-mails... MORE

Allen Wallis vs. David Henderson on Amnesty

Labor Market
David Henderson
I was talking to a fellow academic economist today who is also a strong critic of military conscription. He had read my post in which I discussed my disagreement with the late W. Allen Wallis about amnesty for draft dodgers.... MORE

Hell Nyet, We Won't Go

Labor Market
David Henderson
The late Milton Friedman was the one of the strongest and most eloquent opponents of military conscription. In all my conversations with him, though, and in all of his writing on the draft, I don't recall whether he took a... MORE

Reply to Student on Minimum Wage

Labor Market
David Henderson
Two weeks ago today, I gave a talk at Susquehanna University in Selinsgrove, Pennsylvania. I had a good time, by the way, and I estimate that, in the midst of a small snow storm, over 150 students and faculty attended.... MORE

Los Angeles Unions' Two-fer on Minimum Wage

Labor Market
David Henderson
When the U.S. minimum wage law was put into effect in 1938, northeastern labor unions gained from it by pricing out their competition. Unions in the textile industry were seeing textile firms move from New England states to southern lower-wage... MORE

The Case for Balance Billing

Economics of Health Care
David Henderson
The problem starts with the Center for Medicare and Medicaid Services (CMS), the federal agency that sets prices for the medical services of Medicare patients. CMS is really a giant central-planning agency. It sets hundreds of thousands of prices. What... MORE

Henderson on Minimum Wage for Prager University

Price Controls
David Henderson
Prager University has published a beautiful graphic-filled video on the minimum wage with me as the "talent." You can see it here or here.... MORE

I was on the road from Sunday a.m. to late last night and thus my sparser than usual blogging. I taught classes in Patuxent River, MD on Monday, Norfolk, VA on Tuesday, and Arlington, VA on Wednesday, with lots of... MORE

Unintended Consequences of De-Insuring Insurance

Economics of Health Care
David Henderson
Kevin Drum alerts us to some unintended consequences of a law that he advocates. Over at Mother Jones, Kevin Drum has noticed that some health insurers are charging a huge co-insurance rate for HIV drugs. He writes: If all your... MORE

Larry Summers on Oil Exports, Part I

Energy, Environment, Resources
David Henderson
I believe that the question of whether the United States should have a substantially more permissive policy with respect to the export of crude oil and with respect to the export of natural gas is easy. The answer is affirmative.... MORE

Reverse Mortgages in Organs

Price Controls
Art Carden
Bryan's post below inspired me to think about an idea Mike Hammock and I first talked about while we were colleagues at Rhodes College that, I think, carries Zac Gochenaur's* argument a bit further: reverse mortgages in organs (here's an... MORE

Raise Minimum Wage: Reduce Benefits

Labor Market
David Henderson
At the start of this year, the minimum wage in SeaTac, a city in Washington state, was raised by a whopping 63 percent--from $9.19 an hour to $15.00 an hour. If we critics of the minimum wage, including the late... MORE

Mitt Romney's True Colors

Labor Market
David Henderson
"I ... part company with many of the conservatives of my party on the issue of the minimum wage," he said in an interview on MSNBC's "Morning Joe." "I think we ought to raise it because, frankly, our party is... MORE

Donald Boudreaux takes on one of Robert Reich's recent arguments for the minimum wage. Reich writes: A $15/hour minimum is unlikely to result in higher prices because most businesses directly affected by it are in intense competition for consumers, and... MORE

Michael Cannon's Cannon

Economics of Health Care
David Henderson
Cato Institute's health economist Michael Cannon is the lead economist in a legal case that takes on the IRS. The Affordable Care Act (ACA), aka Obamacare, grants tax credits to low-income people who buy health insurance in state-run exchanges. There... MORE

My debate opponent Ron Unz says he's abandoning his California minimum wage initiative for lack of funds.  The Nation's Sasha Abramsky responds with a soft-hitting interview.  The low point:You just mentioned undocumented migrants in the context of your minimum wage... MORE

I've finally got around to reading more details about the Congressional Budget Office's report on the number of jobs lost from raising the minimum wage. The CBO estimated a range of outcomes from raising the minimum wage from its current... MORE

Rent Control Devalues the Whole Neighborhood

Price Controls
James Schneider
Rent control has numerous negative effects on the housing market. If a landlord is forced to charge below-market rent, it reduces the incentive to improve the property or even perform basic maintenance. Perhaps, even more importantly, it misallocates who lives... MORE

Robert Murphy on the Minimum Wage

Labor Market
David Henderson
In this article, I explain why, even if the revisionist empirical studies are accurate, it still does not follow that the proposed hike in the minimum wage will be a boon for low-skilled workers. I also argue that, because critics... MORE

In a post earlier this month, I reported on a Brief Analysis I did for the National Center for Policy Analysis, drawing on a journal article by Sabia and Burkhauser, showing that a hypothetical increase in the minimum wage from... MORE

Et Tu, Economist?

Labor Market
David Henderson
Is this from The Economist or from Yes, Prime Minister? Scepticism about the merits of minimum wages remains this newspaper's starting-point. But as income inequality widens and workers' share of national income shrinks, the case for action to help the... MORE

The Swiss overwhelmingly rejected a popular initiative that would have capped executive pay to 12 times the wage of the lowest-paid employee in the same business. Some 65% of the voters came out against the proposal, which was proposed by... MORE

A Crime Beyond Denunciation

Price Controls
Bart Wilson
The works of the roots of the vines, of the trees, must be destroyed to keep up the price, and this is the saddest, bitterest thing of all. Carloads of oranges dumped on the ground. The people came for miles... MORE

But when the minimum wage law confronts the law of demand, the law of demand wins every time. And the real losers are the most marginal workers--the ones who will be out of a job. This is a quote from... MORE

Prices are Like Words

Price Controls
Bart Wilson
People who are troubled by markets tend to treat prices as the problem in a market. Whether the price of labor or agricultural commodities is too low, or the price of housing or healthcare or payday loans is too high,... MORE

Trade unions at the opera

Price Controls
Alberto Mingardi
Richard Epstein has a very interesting column on how "Unions Take High Culture Hostage". The whole thing is well worth reading. Epstein sets off from a recent concert at Carnegie Hall, that was called off because of a surprise strike.... MORE

Galbraith's Imposition of Price Controls

Books: Reviews and Suggested Readings
David Henderson
In 1941, Leon Henderson (no relation), the head of the Office of Price Administration, chose John Kenneth Galbraith as his economist to control prices. This was a few months before the U.S. government officially entered World War II. Galbraith learned... MORE

Not from The Onion, Affordable Care Act Edition

Economics of Health Care
Garett Jones
In the 1990's and 2000's, as more violent criminals were thrown into prison and, partly for that reason, violent crime rates fell, the media had a wave of stories with titles like this: "Despite falling crime rate, prison populations rise."In... MORE

Bryan takes me to task for my prediction that free market airline security would still be rigorous and intrusive.  His prediction: ..here's one massive cost-cutting, convenience-raising change I'd predict in a free market: Profiling.  Private security firms would still claim to... MORE

Eliminating Conscription in Singapore

Labor Market
David Henderson
In response to co-blogger Bryan Caplan, John Smith argues that Singapore needs conscription. Here's where economics is really helpful: in helping us understand the distinction between how big a military to have and how to man a military. Smith argues... MORE

Jeff Ely on Price Controls During Disasters

Price Controls
David Henderson
I had thought that pretty much all economists agreed that price controls during disasters are a bad idea. But Northwestern University economist Jeff Ely has a different take. He writes the following: But in fact it is quite typical for... MORE

Jenkins on CAFE and GM

Regulation
David Henderson
Holman Jenkins has hit a home run with his analysis in today's Wall Street Journal of the CAFE (Corporate Average Fuel Economy) mess. It's titled "GM Faces Its Own Regulatory Cliff." I've written about this here, here, here, and here.... MORE

Does Import Dependence Make Us More Vulnerable?

International Trade
David Henderson
An increasing reliance on imports, combined with the fraying of the nation's power grid, highways and rail lines, leaves the United States more vulnerable to the damage of natural disasters and terrorist attacks, according to a report to be released... MORE

A Short History of Gasoline Price Controls

Economic History
David Henderson
In the Weekend Interview in today's Wall Street Journal (WSJ editor Rob Pollock interviews George Shultz), Shultz says the following: And one thing you know from experience is when you control the price of something, you end up getting less... MORE

Moreover, contrary to widely accepted conventional arguments on the subject, free-market sales of bodily organs can actually lower their effective prices. In this article, we focus on the market for transplantable kidneys, but only for purposes of illustration. The points... MORE

Rent Control

Price Controls
Arnold Kling
Peter Dorman writes, In fact, advocates for rent control have taken Econ 101 (most of them), but they just disagree on how large the positive and negative impacts are. The purpose of economics should be to help us think clearly... 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

The Moral Case for Allowing Kidney Sales

Economics of Health Care
David Henderson
This is just out. I like the point Professor Taylor makes near the end about how virtually everyone involved in the transplanting of a kidney from one person to another is paid except the person who gives up a... MORE

That's the gist of what Lorri Marquez Chapman of West Hartford, Connecticut wrote in a letter to the Wall Street Journal today. She was responding to a modest proposal by Sally Satel for people to be able to donate their... MORE

Medicare Rules: Bring 'Em On

Economic Philosophy
Bryan Caplan
David Henderson argues that (thanks to the Gipper, no less), Medicare imposes price controls on health care:But what made it a system of price controls was that the government, along with DRGs, made it illegal for hospitals to charge even... MORE

The Right Minimum Wage Question

Labor Market
David Henderson
Like Bryan, I received the same request from the same friend: what question(s) would I want to put on a survey of economists. My response was that I would want the question on the minimum wage asked accurately instead of... MORE

Rent Control and Material Things

Price Controls
David Henderson
In a recent article in the New York Times about people living in rent-controlled apartments in New York city is the following telling section: But having made it through the 15-year real estate boom with their tenancy intact, the O'Neals,... MORE

Tales of Rationing

Price Controls
David Henderson
In yesterday's post, I stated: David Kennedy makes the claim that rationing was not used extensively in the United States during World War II. I think he's wrong. Read sometime about how people couldn't drive their cars due to gas... MORE

Incentive Ceiling

Price Controls
David Henderson
As someone who has taught economics for 28 of the last 33 years, I thought I had pretty much seen everything a student could come up with in an introductory course in which the issue was rent control. What I'm... MORE

Priceless Anecdote

Price Controls
Arnold Kling
From Don Boudreaux, This morning your reporter interviewed a resident of Galveston, Texas, about the effects of hurricane Ike. The person interviewed said that she went to the gasoline station before Ike hit to "top off" her tank. But she... MORE

No Price Gouging Here!

Price Controls
Arnold Kling
The Knoxville Sentinel reports, Knoxville-area drivers are seeing more bags on gasoline pumps today as a petroleum shortage spreading throughout the Southeast hits local gas stations, groceries and convenience stores. But thank goodness there is no price gouging. Russ Roberts... MORE

How expensive will gasoline have to get before the federal government brings back price controls? My guess is $5.50. What's yours?... MORE

Tax Cuts Under Price Controls

Price Controls
Bryan Caplan
Yesterday I was explaining Singapore's clever approach to fiscal stimulus to Russ Roberts at lunch. During the explanation, I realized that I should probably back up and explain how tax cuts works in markets with price controls. But since I... MORE

Order and Disorder

Price Controls
Arnold Kling
Richard E. Wagner writes, There is an equivalence between a tariff and a quota as these are drawn on the blackboard...They are not, however, equivalent in practice. A tariff and a quota generally involve different institutional frameworks...With the quota, the... MORE

Mugabenomics

Price Controls
Arnold Kling
The Guardian reports President Robert Mugabe's order that all shop prices be cut by at least half, and sometimes several times more, has forced stores to open to hordes of customers waving thick blocks of near worthless money given new... MORE

According to an engrossing biography of a Saudi princess I was reading, the Saudi government has imposed price controls on dowries. In the Saudi context, this means that the amount of money that men pay the family of the bride... MORE

Tyler Cowen's Evil Twin on the Minimum Wage

Price Controls
Arnold Kling
Tyrone writes, Minimum wages probably lower the net amount of government intervention in an economy. Lower minimum wages would mean higher welfare payments to make up the difference. Ever heard of EITC? In reality, minimum wages and EITC work together... MORE

As I Was Saying

Price Controls
Bryan Caplan
As couple days ago, I wrote: But if my analysis is right, there will be some lucky workers who keep their jobs, don't immediately see their wages fall, and get extra health care. It will be easy to run a... MORE

Confession of a Broken Planner

Price Controls
Bryan Caplan
Tom DiLorenzo has a charming anecdote in the latest issue of the Free Market: During the post-war occupation of Germany, American "planners" rather liked the Nazi economic controls, including price controls, that were in fact preventing economic recovery. The notorious... MORE

Was Jimmy Carter Elected President of Iraq?

Price Controls
Bryan Caplan
I just caught a story on Cap'n Arbyte that has to be read to be believed: Gasoline price controls in Iraq are responsible for retail gasoline shortages and a withering decline in refining capacity. BAGHDAD, Iraq (Reuters) — The country... MORE

I'm in favor of gas price ceilings

Price Controls
Arnold Kling
The price gouger's best friend is my colleague Don Boudreaux. His latest letter-to-the-editor (he emails these to those of us on a distribution list, whether they wind up published or not) puts it quite succinctly. Byron Kass correctly notes (Letters,... MORE

Minimum Consistency

Price Controls
Bryan Caplan
Radley Balko amusingly reveals that ACORN, a group that crusades for the minimum wage, has been trying to pay its employees below the minimum wage for years. Ad hominem attack, right? No, there's more to it: In a suit ACORN... MORE

The Political Economy of Wishful Thinking

Price Controls
Michael Munger
by Michael Munger Guest Blogger States have some ridiculous laws on the books, but some of the most interesting, popular, and ridiculous are those on price regulation. At bottom, they come down to this: Wouldn't it be better if there... MORE

Predicting Drug Price Controls

Price Controls
Arnold Kling
Jonathan Oberlander and Jim Jaffe think that drug price controls are on the horizon. They say that this is what happened to payments to physicians and hospitals under Medicare. The government has habitually responded to budget stresses by changing the... MORE

A Re-importation Parable

Price Controls
Arnold Kling
Edward Lotterman tells fellow Minnesotans a parable to try to help them understand drug re-importation. The incomes of U.S. surgeons are substantially higher than those in any other country in the world. U.S. hospitals could save consumers tons of money... MORE

Drug Price Controls

Price Controls
Arnold Kling
Some economists published a petition against drug price controls. Drug-price controls are more difficult to remove than other price controls. Controls on oil and other products often tend to be limited or short-lived, as voters eventually object to the resulting... MORE

Various Articles

Regulation and Subsidies
Arnold Kling
Posting here will be infrequent until later in October. Meanwhile, here are some links that may be of interest. Is the insecurity of Microsoft software an externality that should be regulated or taxed? An example of professional licensing as rent-seeking... MORE

The Case for Price Gouging

Price Controls
Arnold Kling
C.C. Kraemer argues that laws against price gouging are a bad idea. rather than harming the victims, the profit motive actually helps them because the result is an increase in supplies. That assures that everyone who needs the plywood will... MORE

Minimum Wage and CEO Pay

Income Distribution
Arnold Kling
Marc Brazeau asks (see Steve Antler's site), Two common arguments against raising the minimum wage are possible inflationary effects and job loss. Why aren't these issues raised in relation to executive compensation? I think that the conventional wisdom is that... MORE

Labor Supply and Demand

Microeconomics
Arnold Kling
About a year ago, the big story in our local suburban newspaper was the adoption of a "living wage" bill in our county. This summer, the big story was the shortage of teenage jobs here. I was tempted to write... MORE

Rent Control's Sad History

Price Controls
Arnold Kling
How has rent control worked in New York City? Exactly as textbooks would have predicted, according to this essay by William Tucker in the New York Post. During the 1920s, builders put up nearly 100,000 new apartment units a year.... MORE

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