Saturday, November 10, 2007

Marginal Revolution: The economic consequences of Mr. Bush? or When Economicst Forget their Economics

Tyler Cowen writes:

    Joseph Stiglitz writes:

You'll still hear some -- and, loudly, the president himself -- argue that the administration's tax cuts were meant to stimulate the economy, but this was never true. The bang for the buck -- the amount of stimulus per dollar of deficit -- was astonishingly low. Therefore, the job of economic stimulation fell to the Federal Reserve Board, which stepped on the accelerator in a historically unprecedented way, driving interest rates down to 1 percent. In real terms, taking inflation into account, interest rates actually dropped to negative 2 percent. The predictable result was a consumer spending spree. Looked at another way, Bush's own fiscal irresponsibility fostered irresponsibility in everyone else.

Stiglitz seems to claim that Bush will go down with a lower reputation, in economic terms, than Herbert Hoover.  I have not been a huge fan of Bush's fiscal policy, but I can add: a) Bush is not to blame for loose Fed policy, b) it remains debatable among honest Democratic economists whether loose Fed policy was bad, c) U.S. consumption has been robust for a long time, and d) changes in real interest rates do not explain much of the variation in private consumption, and that's even assuming you manipulate the ex ante vs. ex post distinction to suit your convenience.  The first two sentences of this paragraph are plausibly true but then the text deteriorates rapidly and is determined to blame as many things on Bush as possible.  The paragraph ends up attacking Bush for promoting a "consumer spending spree" when Stiglitz had started by arguing for traditional Keynesian fiscal stimulus, the purpose of which is to promote...a consumer spending spree.

Stiglitz also argues that Bush is in large part (he won't say how large) to blame for high oil prices.  In his view the war in Iraq led to political instability and stifled investment in the region, I say that Saudi oil wells are running dry anyway and increased demand -- most of all from China -- is the fundamental issue.  Note also that for many plausible parameter values, political instability leads to more pumping today and thus lower prices; the counterweighing cycle of less exploration and exploitation can take a long time to kick in.

It's also worth noting how much the arguments run counter to Stiglitz's own (earlier) writings on macroeconomics.  He used to preach that a) banks are excessively reluctant to lend to risky borrowers (compare to his discussion of the subprime crisis), b) changes in real interest rates generally don't matter much, c) adverse selection makes it hard to sell non-transparent assets for a reasonable price (compare to his discussion of securitization), and d) we cannot expect monetary policy to be especially effective but rather we must focus on the extent of credit rationing.  Stiglitz of course has the right to change his mind, but if the shift is so big surely this is news.

There are many good arguments against many of Bush's economic policies, and many other arguments which are maybe wrong but at least plausible or possibly true.  But essays such as this are not promoting the public's understanding of economics.

The pointer is from Mark Thoma

http://www.marginalrevolution.com/marginalrevolution/2007/11/the-economic-co.html

The Supply Side Solution

 
http://www.opinionjournal.com/extra/?id=110010844

Friday, November 09, 2007

Topics for Economic Naturalist

Topics for Economic Naturalist

  1. People face tradeoffs
  2. Opportunity costs
  3. People respond to incentives
  4. Assortative matching
  5. Moral hazard
  6. Adverse selection
  7. Free rider problem
  8. Externalities
  9. Time inconsistency of policy
  10. Strategic interaction
  11. Tragedy of the commons
  12. Comparative advantage
  13. Signaling and screening
  14. Reasoning on the margin
  15. Fixed cost barriers
  16. Social or deadweight loss
  17. Principle – agent problem
  18. Arrow's impossibility theorem
  19. Coase theorem
  20. Compensating differentials
  21. Cost-benefit analysis
  22. Crowding out (or in)
  23. Fallacy of composition
  24. Correlation is not causation
  25. Economies of scale
  26. Market efficiency hypothesis
  27. Public goods
  28. Information efficiency
  29. Search and matching
  30. Lump sum vs. distortionary
  31. Median voter (buyer) theorem
  32. Menu costs (or small costs) preventing large gains
  33. Dutch disease
  34. Prisoners' dilemma
  35. Random walk
  36. Rational expectations
  37. Risk aversion
  38. Prospect theory
  39. Endowment effect
  40. Stock vs. flow reasoning
  41. Sunk costs
  42. Tax incidence or (cost shifting)
  43. Transaction costs
  44. Equity: vertical vs. horizontal
  45. Willingness to pay

Thursday, November 08, 2007

1 Printer for Your Mac and PC :: My First Mac - Help Buying and Getting Started with Your New Mac

 
http://www.myfirstmac.com/index.php/mac/articles/1-printer-for-your-mac-and-pc

Fifth IMF Jacques Polak Annual Research Conference: Policies, Institutions, and Instability Washington, D.C., November 4-5, 2004

 
http://www.imf.org/external/pubs/ft/staffp/2004/00-00/arc.htm

Can Domestic Policies Influence Inflation IMF - Nov 07

 
http://www.imf.org/external/pubs/ft/wp/2007/wp07257.pdf

Interview with Randall Collins

 
http://www.faculty.rsu.edu/~felwell/Theorists/Collins/Interview%20with%20Randall%20Collins.htm

Cafe Hayek: Sowell on 'giving back'

 
http://cafehayek.typepad.com/hayek/2007/11/sowell-on-givin.html

Cafe Hayek: Trade Promotes Prosperity

Don Boudreaux

In this op-ed, the Cato Institute's Dan Griswold explains -- contra, for example, the mistaken fears of Harold Meyerson -- that freer trade is helping to make an ever-greater percentage of Americans richer than ever before.  Here are some key paragraphs from Dan's fine essay:

Like so many assumptions about trade, the belief that more global competition has somehow lowered the living standards of the average American worker and family is just a myth.

The critics have it all wrong: The middle class isn't disappearing - it's moving up.

The Census reports that the share of U.S. households earning $35,000 to $75,000 a year (in '06 dollars) - roughly, the middle class - has indeed shrunk slightly over the last decade, from 34 percent to 33 percent. But so, too, has the share earning less than $35,000 - from 40 percent to 37 percent.

It's the share of households earning more than $75,000 that's jumped - from 26 percent to 30 percent.

Trade has helped America transform itself into a middle-class service economy. Yes, the country's lost a net 3.3 million manufacturing jobs in the past decade - but it's added a net 11.6 million jobs in service and other sectors where average wages are higher than in manufacturing. Most of these new jobs are in better-paying categories, like professional and business services, finance and education and health services.

Trade and globalization have also helped bolster the balance sheets of American households by delivering higher incomes, lower interest rates and wider investment opportunities. From 1995 to 2004, the real median net worth of U.S. households jumped by 31 percent, boosted by rising home values and stock prices. (Even with the recent housing slump, average home values remain more than 2.5 times what they were a decade ago, according to the S&P/Case-Shiller index.)

http://cafehayek.typepad.com/hayek/2007/11/trade-promotes-.html

An iPod Has Global Value. Ask the (Many) Countries That Make It. - New York Times

 
http://people.ischool.berkeley.edu/~hal/people/hal/NYTimes/2007-06-28.html

Cafe Hayek: Made in ? iPod Example at Link

Russell Roberts writes,

Where a product is made has no informational content. It is simply a way for some people to  pretend that their well-being and yours is the same thing. Kristyn Birrell of the Foundation for Research on Economics and the Environment has a very nice essay on labels in the Bozeman Daily Chronicle. It opens this way:

If you had a label, where would you be made? I would be "Made in Valencia" or "Made in California," or, if we took a broader perspective, I could have one of those little flag logos on my sticker and it would say "Made in the USA." But would either of these identifiers tell the whole story? Yes, I was born in the U.S., as were my parents and grandparents, but what about more distant ancestors? My father's grandparents were born in Scotland, Italy, England, and Germany, while my mother's were born in Denmark and the United States. Look back only three generations, and already my label has gotten quite complicated—"Made in Scotland (1/8), Italy (1/8), England (1/8), Germany (1/8), Denmark (1/4), AND the USA (1/4)." My label is not an anomaly; most Americans have similarly complex histories. Given this mosaic of hominal origins, what should we make of products whose label proclaims simply "Made in Mexico" or "Made in China?"

Read the whole thing. It's excellent.

Hal Varian made a similar point citing a study by Greg Linden, Kenneth L. Kraemer and Jason Dedrick. The iPod is "made in China." But what does that really mean? It's assembled in China. But the value comes from all over the world:

...let us look at the production process as a sequence of steps, each possibly performed by a different company operating in a different country. At each step, inputs like computer chips and a bare circuit board are converted into outputs like an assembled circuit board. The difference between the cost of the inputs and the value of the outputs is the "value added" at that step, which can then be attributed to the country where that value was added.

The profit margin on generic parts like nuts and bolts is very low, since these items are produced in intensely competitive industries and can be manufactured anywhere. Hence, they add little to the final value of the iPod. More specialized parts, like the hard drives and controller chips, have much higher value added.

According to the authors' estimates, the $73 Toshiba hard drive in the iPod contains about $54 in parts and labor. So the value that Toshiba added to the hard drive was $19 plus its own direct labor costs. This $19 is attributed to Japan since Toshiba is a Japanese company.

Continuing in this way, the researchers examined the major components of the iPod and tried to calculate the value added at different stages of the production process and then assigned that value added to the country where the value was created. This isn't an easy task, but even based on their initial examination, it is quite clear that the largest share of the value added in the iPod goes to enterprises in the United States, particularly for units sold here.

The researchers estimated that $163 of the iPod's $299 retail value in the United States was captured by American companies and workers, breaking it down to $75 for distribution and retail costs, $80 to Apple, and $8 to various domestic component makers. Japan contributed about $26 to the value added (mostly via the Toshiba disk drive), while Korea contributed less than $1.

The unaccounted-for parts and labor costs involved in making the iPod came to about $110. The authors hope to assign those labor costs to the appropriate countries, but as the hard drive example illustrates, that's not so easy to do.

This value added calculation illustrates the futility of summarizing such a complex manufacturing process by using conventional trade statistics. Even though Chinese workers contribute only about 1 percent of the value of the iPod, the export of a finished iPod to the United States directly contributes about $150 to our bilateral trade deficit with the Chinese.

I love that last line. As loyal readers know, Don and I don't put much stock in the trade deficit as an economic indicator. That last sentence from the Varian excerpt is one more reason to ignore the trade deficit.

 

Cafe Hayek:

Don Boudreaux

"Hey Mr. Free Trader, do you at least agree that companies should be required to tell customers if the people they're dealing with on the phone live in America or not?"

That's the opening line of an e-mail that arrived today in response to my most recent post on Paul Craig Roberts's incoherent fears about outsourcing.

I knew immediately the sort of proposal that my correspondent has in mind. Many times during the past year I
've heard it proposed that Uncle Sam require American companies with call centers in Bangalore, India, and other foreign lands to have their employees in these centers begin each conversation by informing each American who calls into these centers that he or she (the employee) is not American and is not located in America.

John Kerry even made such a proposal part of his presidential campaign, and introduced a bill in to the Senate hopper called the Call Center Consumer
's Right to Know Act.

Sen. Kerry's bill, if passed, would have required any

United States corporation or its subsidiaries that utilizes a call center to initiate telephone calls to, or receive telephone calls from, individuals located in the United States, shall require each employee in the call center to disclose the physical location of such employee at the beginning of each telephone call so initiated or received.

Those who argue in favor of such a requirement allege that it's not coercive (at least not to consumers). It merely requires companies with off-shore operations to disclose this fact clearly to consumers. Consumers are then free to patronize or not the firms that have some of their operations in foreign lands. Many consumers, after all, do indeed care about whether or not the company they're patronizing has off-shore operations. And some of these consumers would no doubt stop patronizing the company upon learning that it hires foreign workers.

"So what can be wrong with full disclosure?" – so concludes the e-mail from my correspondent.

I answered by pointing out that requiring firms to reveal the physical location of their employees isn
't really full disclosure. It's fuller disclosure, but it's far from full disclosure.  And this distinction is relevant.  Oodles of information remain about each company and its employees that is not explicitly revealed in the absence of legislation but which might well be relevant to some callers.

Here are some other things that many American consumers no doubt care about and that firms probably would not reveal unless forced by government to do so:


- an employee's sexual orientation

- an employee's religious beliefs

- an employee's political beliefs

- an employee's attitudes toward controversial matters such as abortion, euthanasia, and the death penalty

So why stop with requiring firms to reveal their employees
' physical whereabouts? Why not also require firms explicitly to reveal to customers information on all of the above matters?

When Joe from Atlanta calls the Dell help center, he might then be treated to the following greeting:
"Hello. Thanks for calling Dell. I'm Anokhi. I'm answering your call in Bangalore, India. I'm an atheist lesbian who always votes for the socialist party. I see nothing wrong with abortion, although I've never had one myself. I also believe in euthanasia, although I oppose the death penalty. I also feel strongly that the U.S.-led war in Iraq is immoral. How can I help you today?"

This greeting sounds silly. This greeting is silly. But each piece of information offered is plausibly important to some small handful of Americans. Therefore, I see no reason to single out for enforced disclosure information on companies' extent of off-shoring. Declaring truthfully that some customers might find this information useful is insufficient to justify such enforced declarations.

http://cafehayek.typepad.com/hayek/2007/11/in-response-to-.html

Wednesday, November 07, 2007

best backup drive option for Leopard? | Ask MetaFilter

 
http://ask.metafilter.com/75541/best-backup-drive-option-for-Leopard

EconLog, Wages and Education, Arnold Kling: Library of Economics and Liberty

writes

Claudia Goldin and Lawrence Katz write,


Relative demand shifts favoring more-educated workers have not been particularly rapid since 1980. Instead, the growth of the supply of skills slowed considerably after 1980 and the wage structure, in consequence, widened. The deceleration in the relative supply of skills of the working population came about largely from a slowdown in the growth in the educational attainment of U.S. natives for cohorts born since 1950. In contrast, the increase in unskilled immigration accounts for only a small part of the post-1980 slowdown in skill supply growth.

...Computers strongly complement the non-routine or abstract tasks of high-wage jobs, but they directly substitute for the routine tasks found in many traditional middle-wage jobs. However, computers have little impact on the non-routine manual tasks of many low-wage service jobs.


Goldin and Katz say that the U.S. wage structure is "polarizing," meaning that wages at the top are getting higher relative to wages in the middle, although wages in the middle are not getting higher relative to wages at the bottom.

Suppose that we want to be puckish and suggest that what is going on is a combination of IQ-biased technical change and assortive mating.

With assortive mating, the distribution of skills will become more unequal. Families become more unequal. Also, kids become more unequal across families in terms of their endowments of natural and financial wealth.

What Goldin and Katz call the slowdown in the growth of average educational attainment might be due to more assortive mating. That would lead to a concentration of high ability among a relatively smaller share of children.

Then you layer on computer technology, which is complementary to abstract reasoning skills. The result will be the polarization of wages.

The difference between the Goldin-Katz story and the assortive-mating story is that the former suggests that there are lots of folks who could benefit from more investment in education. The latter suggests that this may not be the case.

Goldin and Katz cite a couple of papers suggesting that expansion in financial aid and college access and expansion in compulsory schooling have significant effects. I am skeptical, but certainly open to persuasion.

Thanks to Andrew Samwick for the pointer.

http://econlog.econlib.org/archives/2007/11/wages_and_educa.html

Dani Rodrik's weblog: Is the U.N. trying to keep Africa poor?

by Ricardo Hausmann, guest blogger

Thanks to Dani's blog, I learned about the website to track progress on the MDG. I was also impressed by the fact that the UN website also flagged a story calling for a 5-year freeze on bio-fuels production by a UN human rights expert worried about hunger in Africa.  The argument is pretty straightforward and has already been expressed by Fidel Castro and Hugo Chavez. It is that using food as fuel is a crime because food should be used to feed people, not machines. Making food a substitute for fuel raises its price and excludes the poor from feeding themselves. This obviously assumes that the amount of food is given and does not respond to demand, prices and technology. Whys is it that there is agricultural protectionism in this world? Presumably because if the forces of free trade were unleashed in this world, food prices would fall making (mostly rich-country) farmers poorer. At current technologies, there is an excess of arable land that could be productively used and hence the equilibrium price would be too low to support some sense of desired income for farmers.

If biofuels lead to more demand for agricultural products and land it is interesting to ponder how the markets will respond and how the gains and losses will be distributed. In this respect one wonders  what makes a person a human rights expert and how you can go from that expertise to a ban on a technology. What in their training allows human rights experts (and the UN organizations that support them) to work out the impact of an industry on prices, quantities, incomes, investments, growth and inequality. Apparently, this expert concluded that the fact that food prices have gone up is an indication that they did so because of biofuels production, not because of increased food demand in the fast growing developing world which today includes not only East Asia and India, but also much of Africa.  More interesting is the question of how human rights can so easily be promoted by limiting the freedom of people to decide what they grow and how they use their land and skills. And if this is the road to prosperity, why stop at 5 years? Lets ban them forever! In a different assessment, I have argued that a biofuels industry would probably have rather good overall effects on the world and especially on those developing countries that have ample good land that is not being cultivated. Much of this land is in Africa, but it is not being used mainly because infrastructure is inadequate and sugar production has been discouraged over the past three decades because of incredibly distortionary policies in the US and the EU.

Here is a graph of the countries with their relative endowment of  good land that is not being cultivated. It is based on some calculations done with Rodrigo Wagner, using the Geographic Information System.

pic31084

Note the share of the Democratic Republic of Congo (ZAR),  Sudan, Central African Republic (CAF), Mozambique, Tanzania, Zambia, Angola, Chad and Cameroun. These are countries that have found very few products with which to connect their citizens to the global economy. Prohibiting them from using the biofuels industry as a stepping stone in their development is not something that should be done lightly.  How human rights would be affected is a pretty complex issue and it is irresponsible for the UN to come out against it based on the view of a human rights "expert". It may well be the most important thing to happen to Africa in a long time in terms of creating sustainable livelihoods and justifying the expansion of a sorely needed road infrastructure that could crowd in further investment and development.

http://rodrik.typepad.com/dani_rodriks_weblog/2007/11/is-the-un-tryin.html

Tuesday, November 06, 2007

Coffee Bars - Travel - New York Times

 
http://travel.nytimes.com/2007/11/04/travel/04weekend.html?8dpc#

California Video

 
http://renew.visitcalifornia.com/video.aspx?FLV=SPOT_01.flv&TITLE=30%20Second%20Spot

Econ 251 Econ 361 The Structure of Social Security and Medicare

 
http://nber15.nber.org/reporter/2007number3/shoven.html

Cafe Hayek: Cleaned by Capitalism

Don Boudreaux

I sent this letter today to the Baltimore Sun:

You again call upon government to force us Americans to reduce our emissions of CO2 ("Green and right," November 2).  And like nearly everyone else demanding further regulation of markets in the name of environmental protection, you overlook the fact that the very markets that you want to restrain save millions of lives annually by making people's living environments cleaner.

For evidence, read Margo Thorning's essay that appears today just inches from your own editorial.  In "Ending energy poverty," Ms. Thorning reports that "About 1.3 million people - mostly women and children - die prematurely every year because of exposure to indoor air pollution from burning biomass for fuel."  These deaths happen routinely in developing countries because people there have so little access to electrification, internal-combustion engines, and mass-produced consumer goods that they must burn biomass in their homes.  So in developed countries – whose denizens enjoy ready access to electric heating, home delivery of fuel oil, and other life-saving wonders - the capitalism that people loudly fear might raise global temperatures a few degrees over the next several decades silently yet effectively saves thousands of lives each and every day.

Sincerely,
Donald J. Boudreaux

http://cafehayek.typepad.com/hayek/2007/11/cleaned-by-capi.html

Cafe Hayek: We're Richer Today. Period.

Don Boudreaux

Tyler, Arnold, and other bloggers have mentioned this nice study by Terry Fitzgerald that appears in the Minneapolis Fed's September 2007 issue of The Region.  (It's the first of three articles; the remaining two articles by Fitzgerald on this topic aren't yet published.)  In this opening number, Fitzgerald offers

a glimpse of the key findings from this article on wages. Microeconomic statistics showing stagnation, and macroeconomic statistics exhibiting growth, measure "wages" quite differently. When the data are adjusted so that they more closely measure the same conceptual object, the disparity between the microeconomic and macroeconomic statistics largely evaporates, and I find that labor income per hour for middle America has not stagnated. Rather, the economic compensation for work for middle Americans has risen significantly over the past 30 years.

This conclusion (and Fitzgerald's analysis from which it follows) makes sense to me.  While being aware of the dangers lurking in the practice of drawing conclusions about complex reality from one's own personal experiences, I nevertheless am certain that ordinary Americans today are immensely wealthier than they were 30 years ago.  I well remember the mid-1970s.  All telephones in middle America were attached to walls or desks; the television repairman was still necessary; going on-line was something New Yorkers did whenever they queued -- which, back then, they did often in order to buy gasoline for their automobiles that broke down much more frequently than do today's cars.  This was a time before cable t.v. was widespread, and before anyone but the super-rich could watch movies on demand in their own homes.  Prepared foods in supermarkets were tasteless and probably toxic.  And no one outside of New York City and a handful of other major metropolitan areas had any hope of browsing in a bookstore with a respectable selection of titles.

For further evidence that the 1970s was no golden age of abundance, come shop with me from a 1975 Sears catalog - and then let's see how much these goodies will cost us.

http://cafehayek.typepad.com/hayek/2007/11/were-richer-tod.html

Cafe Hayek: Growth in health care expenditures

Russell Roberts writes: 

This week's EconTalk is with Arnold Kling talking about health care. it's a very nice introduction  to the incentives affecting our health care decisions both privately and publicly. One issue that came up is the change in the proportion of health care costs paid out of pocket vs. third party payments. Here are some data, taken from an HHS publication, "Health, United States, 2005":
Outofpocket

 

 

 

 

In 1960, 55 cents of every dollar of health care was out-of-pocket. In 2003, it was down to 16 cents.

http://cafehayek.typepad.com/hayek/2007/11/growth-in-healt.html

An Interview with Paul Romer on Economic Growth: Library of Economics and Liberty

Russel Roberts writes:
 
In the summer of 2007, I interviewed Paul Romer of Stanford University for EconTalk. Paul has been the driving force behind the "new growth theory" writing a series of influential papers that put the role of ideas at the center of growth theory. Our conversation focused on the importance of ideas, the role of institutions and the legal environment for creating incentives for new ideas and how ideas spread beyond national borders helping people around the world. Here are edited excerpts from that conversation.

The podcast can be found at Romer on Growth.
 
...

Russ Roberts: What's the mechanism?  Does Nike improve the life of that worker out of kindness or does competition force them to? 

Paul Romer: Oh, I think it's overwhelmingly competition. There's sometimes a little bit of pressure which makes them do what is basically charitable giving. But look at China right now or India right now. Why are foreign firms that are operating in China and India or Vietnam—why are they paying workers more than they used to?

What happened was that it wasn't just Nike that came in. The government let in a lot of other firms. All of those firms started to compete for the best talent there in the nation, and that process of competition started to drive up wages. You don't want to use the Indian strategy of saying, "Okay, we'll let in one big firm and then we're pulling up the drawbridges and, you know, you can do whatever you want." What you want to do is open it up and say, "Hey, any firm that wants to come in, go for it. Compete as hard as you can to get our best workers."

And that'll reward the workers who have the best skills. It'll give incentives for those other workers to acquire skills and it'll give them opportunities to do things with their skills that they couldn't have otherwise done.

Russ Roberts: In what sense are those workers using the knowledge that that multinational has?  I love that idea. What do you mean exactly? 

Paul Romer: Nike's discovered a recipe for taking rubber and cloth and a few other things and then creating something that people value in the United States for a price of, say, $100. They can take raw materials worth probably pennies and create something that I might go to the store and pay $100 for.

To create that additional value, they have to go out and find somebody who does the rearranging according to their recipe. If they could get somebody at an extremely low wage to do that rearranging, then they'd pay that low wage. But over time what they find is they're competing with other employers. They have to pay higher and higher wages to get people to do that rearranging.

Now if there are lots of people like Nike trying to find workers to do high-value rearranging tasks, they'll be willing to pay quite a bit as they compete with each other. But imagine that Nike only had ideas that could produce things that were worth, say, $10. Nike could never afford to pay—and its competitors could never afford to pay—very high wages to get people to rearrange something to make something worth $10.

But when they're making something that's worth $100, they'll compete and ultimately start to pay higher and higher wages. So the fact that they've got an idea, a recipe, that can create quite a bit of value means that they'll pay quite a bit to have somebody follow that recipe.

There's lots of people out there with good recipes competing for workers. They'll bid up those wages and, in a sense, part of the value that Nike creates will in some sense be taken away by those workers, and taken in a way that we feel is good for the world as a whole. It's good that workers throughout the world will have higher wages in the future than they have now.

 
 
 
http://econlib.org/library/Columns/y2007/Romergrowth.html

Cafe Hayek: Cut those costs!

Russell Roberts writes:

If the government paid for everybody's health care, some argue that we'd save money by cutting out administrative costs. The logic is that we'll save on all those bureaucratic duplications caused by multiple insurance providers. The empirical evidence is that in countries where government pays for health care, they spend less for health care than we do in America.

But as Arnold Kling points out, they spend less not because they're more efficient but because they provide fewer services. Charlie Quidnunc makes an even deeper point in the comments on this earlier post:

If profits and administrative costs are so terrible, why stop at eliminating them in the health industry? Why not get rid of those pesky elements in other industries? How about creating a single provider Information Technology industry? Think about how much better computers would be without all that complex and expensive competition between companies. Or single provider Automobile industry. Or single provider food companies. Why not have the government decide what a wholesome and nutritious meal should look like and eliminate all that expensive experimentation in fancy restaurants?

Here is additional wisdom on the issue from Tyler (HT: Whatever).

http://cafehayek.typepad.com/hayek/2007/11/cut-those-costs.html

Cafe Hayek: The big impact of pharmaceutical industry profits

Russell Roberts writes:

Proponents of a single-payer system in health care argue that it would save costs because of lower industry profits and lower administrative costs. Arnold Kling argues that the impact would be minimal. Is he right?

According to Public Citizen, a source not particularly friendly to corporate interests, pharmaceutical industry profits in 2002 (the year I happened to stumble on) were 36 billion. If all pharmaceutical companies were forced to serve the public at zero profit, that would lower US health care expenditures from 1.3 trillion to 1.3 trillion.

That's a pretty small change

I'll carry it out to a few more decimal places. In 2002, total health care expenditurea in the US were $1.342 trillion. So taking out ALL pharmaceutical profits lowers that number to 1.306 trillion. I don't think there's any way you can argue that the profitability of the pharmaceutical industry is a large factor in the size of US health care costs or that moving to a system where government could exploit its power as a large buyer of drugs would lower total expenditures.

Does anyone have data on administrative costs in the current system?

http://cafehayek.typepad.com/hayek/2007/11/the-big-impact-.html

FT.com / Comment & analysis / Comment - The silver lining in America’s subprime cloud

Turmoil in the US's financial markets got the top billing in news reports about the recent meetings of the world's leading international policymakers in Washington. Virtually everyone expressed concern that the housing slump and the financial crisis triggered by the subprime mortgage market would significantly slow down the US economy, and perhaps the world economy. But there is a surprising silver lining. Signs of it were revealed by the absence of reporting on the big bugaboo of the past few years: the US current account deficit.

The good news is the recent reversal of the steady upward climb in the current account deficit. During the past three quarters for which we have data the deficit has been cut by $119bn, falling from about 6 per cent of gross domestic product to 5 per cent, and the adjustment appears to be continuing.

Why the reversal? One explanation is the implementation of policies that these same international policymakers agreed to at recent past meetings. The basic economic principle that led to these policies is that the US current account deficit is caused by the gap between saving and investment. Accordingly, a three-pronged strategy was called for – reducing the US budget deficit to decrease government dissaving, raising economic growth abroad relative to the US in order to stimulate US exports and increasing the flexibility of exchange rates, especially in China, to facilitate the adjustment.

You can see the strategy being implemented now. The budget deficit has come down sharply to 1.2 per cent of GDP, well below historical averages and less than in most other countries. World economic growth – especially in emerging markets – has been strong, even as US growth has slowed. And China's exchange rate has become more flexible – appreciating by 10 per cent since the peg was abandoned. Forward markets project further appreciation. All these policies are expected to reduce the current account deficit, but they take time – too much time to explain the sharp reduction in the current account in the past year.

So there must be other forces at work too. Because the current account deficit equals saving minus investment, these are logical places to look. Herein lies the silver lining. The housing turmoil has indeed cut a chunk out of investment – residential investment has fallen by $81bn in the three quarters during which the current account deficit declined, and even more compared with the peak of the housing boom earlier last year. Hence a good part of the current account reduction can be directly attributed to the decline in residential investment. Moreover, the decline in housing prices is starting to increase the personal saving rate, as home equity loans are drying up and people are recognising that their housing wealth is not as large as they had expected. When asset prices were rising, households could spend what they earned and still see an increase in their net worth. Sometimes spending even exceeded income. Now, consumption is falling relative to income, so there is more household saving.

http://www.ft.com/cms/s/0/033a9c6e-8bbc-11dc-af4d-0000779fd2ac.html?nclick_check=1

Econbrowser: Well then, would $100 a barrel worry you?

 
http://www.econbrowser.com/archives/2007/11/well_then_would.html

The Guide to Everything

 
http://members.optusnet.com.au/argyle85/index.html

The Fallacy of Campaign Finance Reform by John Samples, introduction

 
http://www.press.uchicago.edu/Misc/Chicago/734501.html

Monday, November 05, 2007

A Guide to the Best Mac/Tech Review Sites :: My First Mac - Help Buying and Getting Started with Your New Mac

 
http://www.myfirstmac.com/index.php/mac/articles/a-guide-to-the-best-mac-tech-review-sites

Jay Bee's House of Fine Bar-B-Que Gardena, CA 90247 | Yelp

 
http://www.yelp.com/biz/Grc73Z51ag4m0i7_dsw_QA

More Robert Graham Shirts

 
http://www.hurricanepasstraders.com/xcart/home.php?cat=806

Island Trends Robert Graham Shirts and others

 
http://www.islandtrends.com/category-exec/category_id/1122

Cheap Memory for MacBook Pro Techworks 4.0GB (2GB+2GB Kit) PC2-5300 DDR2... (12683P4GB) at OWC

 
http://eshopmacsales.com/item/TechWorks/12683P4GB/

Cheap Memory for MacBook Pro 2.2Ghz Intel Core 2 Duo 15” June 2007

 
http://wwwtransintl.com/store/category.cfm?Category=2711&CFID=5871802&CFTOKEN=18521362&RequestTimeOut=500

Mary Oliver Poetry Selections on Allspirit

 
http://www.allspirit.co.uk/maryoliver.html

What Are Philosophers Experts Bryan Caplan: Library of Economics and Liberty


Recently Tyler Cowen publicized one of his periodic challenges to me:

I often joke with Bryan that the time has come for him to accept the consensus of what the experts in moral philosophy (or atonal music) tell us (him) to do.
One of the perks of attending the Social Philosophy and Policy conference was that I was able to ask philosophers the critical question: "You philosophers are definitely experts at something. But what is that something?"

Profs and grad students alike largely seemed to accept the following list of topics where members of their occupation actually have expertise:

  • Accurately describing the views of other philosophers, living and dead.
  • Checking arguments for logical validity/internal consistency.
No one claimed that the philosophy profession was good at figuring out true answers to philosophical questions. One even claimed the the primary product of philosophy is "broken arguments."

Furthermore, no philosopher made an argument analogous to one economists often make: "Outsiders underestimate the degree of consensus because our debates focus on marginal controversies." This would have been an awkward argument to make to my face, since the participants literally spanned the range from radical Kantianism ("Consequences are morally irrelevant") to fanatical Singer-style utilitarianism ("There is no fundamental moral difference between killing and letting die").

The upshot: Deferring to philosophers' consensus is hardly the bitter pill (for me) that Tyler makes it out to be. Many philosophers believe that they personally have virtually all the answers. (Witnessing their disputes was an... experience). But few philosophers believe that their profession has more than a handful of answers.

As for atonal music, I'm still waiting to be invited to a conference for composers!

http://econlog.econlib.org/archives/2007/11/what_are_philos.html

liveplasma music, movies, search engine and discovery engine

 
http://www.liveplasma.com/

movieduo.com :: meet at the movies!

Welcome to movieduo.com! Use this site to make lists of the movies you want to see, your favorite theaters and more. Find and connect with people based on their movie tastes.

http://www.movieduo.com/

movieduo.com :: meet at the movies!

 
http://www.movieduo.com/

Sunday, November 04, 2007

Apple - Support - Switch 101

 
http://www.apple.com/support/switch101/

Apple - Support - Mac 101

 
http://www.apple.com/support/mac101/

Deni Complete Rotisserie and Toaster Oven

 
http://www.mainehomejournal.com/market/products/Deni_Complete_Rotisserie_and_Toaster_Oven-3423-95.html

5 Things to Do After Starting Up Your Mac: My First Mac

From http://www.myfirstmac.com/index.php/mac/articles/5_things

1. Run Software Update There is no telling how long your new Mac was sitting on the shelf before your received it, so you should install the software updates that have been released since your Mac was manufactured. It is very simple, but it will take a while, so you can start it while you continue to use your new Mac. Using Software Update depends on your new Mac already having an Internet connection, so be sure to establish that first. To run Software update, open System Preferences (the light switch plate with gray Apple logo) that is in the Dock, or select it from the Apple menu in the top left. When that opens, click Software Update in the System row. On the next screen, click Check Now. After some time checking, a new panel will pop up listing software updates that apply to your Mac. Go ahead and click Install Items and click through the remaining buttons and passwords. Expect it to take some time to download and install the updates. It is likely that you will need to restart your Mac to use the updates, so don't start a big project on your Mac that you will have to cut out of.

2. Move and resize your Dock

By default, Apple puts the Dock at the bottom of your screen, but it can be located on the left, right or bottom. To make the most of your screen space, move the Dock to the right side of your screen where it won't limit the size of your Application windows. To do this, go to System Preferences again and select Dock from the Personal row. If you don't see all the preference choices, click the Show All button at the top of the window. In this Preference Pane, I suggest you select the Position on Right button and then adjust the Dock Size slider to reduce the width of the Dock until it doesn't cover the icons next to it. I also recommend that you un-check Magnification. This puts a stop to the effect that enlarges the Dock icons when you move your mouse over them. While this effect looks cool, it actually makes it harder to click the icon you want.

3. Add "Right-Clicking" to Your Mouse or Trackpad

Apple has long been criticized for making Macs with only one button mice and trackpads, but did you know you can still use a second button to "right-click"? For your new laptop this secondary click is done by tapping two fingers at once. You can enable this by going to System Preferences > Keyboard and Mouse > Trackpad and checking the box next to "Tap trackpad with two fingers for secondary click." While you are there, check the box for "Use two fingers to scroll" and "Allow horizontal scrolling." For your new iMac or Mac Pro, you go to System Preferences > Keyboard and Mouse > Mouse, and use the drop down menu pointing to the right side of the mouse to select "Seconday Button." If your are left handed, you can reverse the left and right buttons if you choose. Don't forget to take some time to explore all the options on this preference pane. A third and possibly better choice that some people still don't know about is that you can go buy your favorite USB mouse made by any other manufacturer and use it with any Mac, including the MacBook and MacBook Pro. Some come with their own software to install that controls all the options available.

4. Become a Full Citizen on the Internet

Safari will get you to most sites on the Internet, but because Windows computers dominate web usage, you will find some hiccups. The first thing is download the Flip4Mac Windows Media Player plug-in. Install this to view Windows Media files. You should also download the Real Player plug-in for when the only option is to view Real video. A few sites also don't recognize Safari, so download and use the FireFox web browser when you run into a problem.

5. Calibrate your Laptop Battery

Apple advises you to calibrate your new MacBook or MacBook Pro battery in the first week of use and every couple months after that. You can find directions on calibrating here on Apple's Web site. Additionally, Coconut-Flavour makes a great freeware application and widget that keeps track of all your battery stats including maximum capacity and the age of your Mac. Download it here on their web site.

Next Steps If you followed the tips above, you are now set up to use your new Mac a little more efficiently. I suggest that while your are reading this, you bookmark the MyFirstMac site so you can return to find help and learn more about your new Mac. After you are sailing along on the Internet, be sure to check out Apple's Mac 101 web site where you can learn much more about how to operate and get the most out of your new Mac. If you aren't connected to the Internet, you can still find the Mac Help program in the Help Menu of the Finder. In the Help Viewer there is a section called Discovering Your Mac where you can learn the basics of Mac OS X and explore the rest of your Mac.


DIG DEEPER

Helpful Sections of the Apple Web Site
Mac 101
Switch 101
Windows vs. Mac Navigation
Quick Assist Help Page
Mac Application How-to's
Apple's Main Support Site
Calibrate Your Battery
Dramatically Increase Productivity on OS X

DOWNLOADS

Flip4Mac
Windows Media plug-in
FireFox Coconut Battery

http://www.myfirstmac.com/index.php/mac/articles/5_things

My First Mac - Help Buying and Getting Started with Your New Mac

 
http://www.myfirstmac.com/index.php/

Memory Kits for MacBook Pro Santa Rosa

 
http://www.transintl.com/store/category.cfm?Category=2623

Using Clipmarks in Firefox

clipped from addons.mozilla.org
While you are surfing, Yoono instantly suggests what others have discovered:
websites, people and articles. Create a rich scrapbook of your favorite stuff with the new "Buzz It!" feature, one-click grab and share videos, photos and texts from any web page. Yoono keeps your scrapbook and original Firefox bookmarks synchronized across your computers.
To see a demo : http://www.youtube.com/watch?v=AwIzjJrbfq4
 blog it

Lemon Ginger Iced Green Tea recipe

 
http://www.medicinenet.com/script/main/art.asp?articlekey=60950

Saturday, November 03, 2007

aluminum shower set for claw foot tub, riser - Google Search

 
http://www.google.com/search?q=aluminum+shower+set+for+claw+foot+tub%2C+riser&rls=commicrosoft:en-US:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7GGLJ

Beyond Those Health Care Numbers - New York Times

Economic View
Published: November 4, 2007

WITH the health care system at the center of the political debate, a lot of scary claims are being thrown around. The dangerous ones are not those that are false; watchdogs in the news media are quick to debunk them. Rather, the dangerous ones are those that are true but don't mean what people think they mean.

Here are three of the true but misleading statements about health care that politicians and pundits love to use to frighten the public:

STATEMENT 1 The United States has lower life expectancy and higher infant mortality than Canada, which has national health insurance.

The differences between the neighbors are indeed significant. Life expectancy at birth is 2.6 years greater for Canadian men than for American men, and 2.3 years greater for Canadian women than American women. Infant mortality in the United States is 6.8 per 1,000 live births, versus 5.3 in Canada.

These facts are often taken as evidence for the inadequacy of the American health system. But a recent study by June and Dave O'Neill, economists at Baruch College, from which these numbers come, shows that the difference in health outcomes has more to do with broader social forces.

For example, Americans are more likely than Canadians to die by accident or by homicide. For men in their 20s, mortality rates are more than 50 percent higher in the United States than in Canada, but the O'Neills show that accidents and homicides account for most of that gap. Maybe these differences have lessons for traffic laws and gun control, but they teach us nothing about our system of health care.

Americans are also more likely to be obese, leading to heart disease and other medical problems. Among Americans, 31 percent of men and 33 percent of women have a body mass index of at least 30, a definition of obesity, versus 17 percent of men and 19 percent of women in Canada. Japan, which has the longest life expectancy among major nations, has obesity rates of about 3 percent.

The causes of American obesity are not fully understood, but they involve lifestyle choices we make every day, as well as our system of food delivery. Research by the Harvard economists David Cutler, Ed Glaeser and Jesse Shapiro concludes that America's growing obesity problem is largely attributable to our economy's ability to supply high-calorie foods cheaply. Lower prices increase food consumption, sometimes beyond the point of optimal health.

Infant mortality rates also reflect broader social trends, including the prevalence of infants with low birth weight. The health system in the United States gives low birth-weight babies slightly better survival chances than does Canada's, but the more pronounced difference is the frequency of these cases. In the United States, 7.5 percent of babies are born weighing less than 2,500 grams (about 5.5 pounds), compared with 5.7 percent in Canada. In both nations, these infants have more than 10 times the mortality rate of larger babies. Low birth weights are in turn correlated with teenage motherhood. (One theory is that a teenage mother is still growing and thus competing with the fetus for nutrients.) The rate of teenage motherhood, according to the O'Neill study, is almost three times higher in the United States than it is in Canada.

Whatever its merits, a Canadian-style system of national health insurance is unlikely to change the sexual mores of American youth

The bottom line is that many statistics on health outcomes say little about our system of health care.

STATEMENT 2 Some 47 million Americans do not have health insurance.

This number from the Census Bureau is often cited as evidence that the health system is failing for many American families. Yet by masking tremendous heterogeneity in personal circumstances, the figure exaggerates the magnitude of the problem.

To start with, the 47 million includes about 10 million residents who are not American citizens. Many are illegal immigrants. Even if we had national health insurance, they would probably not be covered.

The number also fails to take full account of Medicaid, the government's health program for the poor. For instance, it counts millions of the poor who are eligible for Medicaid but have not yet applied. These individuals, who are healthier, on average, than those who are enrolled, could always apply if they ever needed significant medical care. They are uninsured in name only.

The 47 million also includes many who could buy insurance but haven't. The Census Bureau reports that 18 million of the uninsured have annual household income of more than $50,000, which puts them in the top half of the income distribution. About a quarter of the uninsured have been offered employer-provided insurance but declined coverage.

Of course, millions of Americans have trouble getting health insurance. But they number far less than 47 million, and they make up only a few percent of the population of 300 million.

Any reform should carefully focus on this group to avoid disrupting the vast majority for whom the system is working. We do not nationalize an industry simply because a small percentage of the work force is unemployed. Similarly, we should be wary of sweeping reforms of our health system if they are motivated by the fact that a small percentage of the population is uninsured.

STATEMENT 3 Health costs are eating up an ever increasing share of American incomes.

In 1950, about 5 percent of United States national income was spent on health care, including both private and public health spending. Today the share is about 16 percent. Many pundits regard the increasing cost as evidence that the system is too expensive.

But increasing expenditures could just as well be a symptom of success. The reason that we spend more than our grandparents did is not waste, fraud and abuse, but advances in medical technology and growth in incomes. Science has consistently found new ways to extend and improve our lives. Wonderful as they are, they do not come cheap.

Fortunately, our incomes are growing, and it makes sense to spend this growing prosperity on better health. The rationality of this phenomenon is stressed in a recent article by the economists Charles I. Jones of the University of California, Berkeley, and Robert E. Hall of Stanford. They ask, "As we grow older and richer, which is more valuable: a third car, yet another television, more clothing — or an extra year of life?"

Mr. Hall and Mr. Jones forecast that the share of income devoted to health care will top 30 percent by 2050. But in their model, this is not a problem: It is the modern form of progress.

Even if the rise in health care spending turns out to be less than they forecast, it is important to get reform right. Our health care system is not perfect, but it has been a major source of advances in our standard of living, and it will be a large share of the economy we bequeath to our children.

As we look at reform plans, we should be careful not to be fooled by statistics into thinking that the problems we face are worse than they really are.

http://www.nytimes.com/2007/11/04/business/04view.html?ex=1351828800&en=7ebf86b6773f35bd&ei=5090&partner=rssuserland&emc=rss

ASUS | Eee PC

 
http://eeepc.asus.com/en/product.htm

Asus Eee PC Tweak Guide

 
http://www.notebookreview.com/default.asp?newsId=4062

Windows XP Installation Guide - Notebook Forums and Laptop Discussion

 
http://forum.notebookreview.com/showthread.php?t=81828

Asus Eee PC First Thoughts

 
http://www.notebookreview.com/default.asp?newsID=3829

Apple MacBook Pro 15" with Intel Santa Rosa Review

Overview & Introduction

We'll be taking a look at Apple's MacBook Pro, to be specific the most recently updated model as of June 5th, 2007. The MacBook Pro line is aimed at the professional market, including those who do heavy amounts of video and photo editing. The MacBook Pro is best described as a mid-size desktop replacement, or performance laptop.

http://www.notebookreview.com/default.asp?newsID=3747&review=Apple+MacBook+Pro+2007+Edition+%28Core+2+Duo+2%2E4GHz%2C+2GB+RAM%2C+160GB+HDD%29

Asus Eee PC 701 4G Review

The Asus Eee PC 701 4G is the new affordable ultraportable notebook that's bound to be on many consumers' Christmas wish lists this year. Retailing for $399 or less, the Eee PC isn't exactly a workhorse, but it will do just about every basic task you'd need from a laptop. Our initial hands-on actually proved it does more than we expected, but the more detailed review below helps explain exactly why we're so excited about a $400 notebook.

First, the specs for the review unit we have on hand, which is the Eee PC 701 4G:

  • Processor: Intel Celeron M ULV 900MHz
  • Graphics: Integrated Intel GMA 900 GPU
  • Storage: 4GB of Flash-based storage (SSD)
  • Memory: 512MB of DDR2 RAM (667MHz)
  • OS: Xandros Linux (Asus customized)
  • Screen: 7-inch screen with 800 x 480 resolution
  • Ports: 3 USB 2.0, 1 VGA monitor out, headphone jack, microphone input, SD card reader (SDHC compatible), Kensington lock slot, Ethernet 10/100
  • Webcam (0.3 MP)
  • Battery: 4-cell 5200 mAh 7.4V Li-Ion (rated at 3.5 hours)
  • Wireless: 802.11b/g Atheros
  • Input: Keyboard and Touchpad
  • Weight: approximately 2 lbs with battery, 2.5 lbs travel weight with AC adapter.
  • Two-year warranty
http://www.notebookreview.com/default.asp?newsID=4055

Center for Global Development: Commitment to Development Index 2007

Interactive Graph on rich countries' contributions to development (hat tip: Dani Rodrik)
 
http://wwwcgdev.org/section/initiatives/_active/cdi/

Friday, November 02, 2007

Laptops - PC World - PC World

 
http://pcworld.pricegrabber.com/search_attrib.php/page_id=13/sortby=priceA/vendors%255B%255D=0/popup5%255B%255D=0/popup5_attr_id%255B%255D=1145/popup10%255B%255D=0/popup10_attr_id%255B%255D=276/popup20%255B%255D=0/popup20_attr_id%255B%255D=976/popup30%255B%255D=4%253A386/popup30_attr_id%255B%255D=386/popup40%255B%255D=0/popup40_attr_id%255B%255D=384/popup50%255B%255D=0/popup50_attr_id%255B%255D=230/popup60%255B%255D=0/popup60_attr_id%255B%255D=415/popup70%255B%255D=0/lo_p=495/hi_p=4000/Update+Results=Update+Results/popup70_attr_id%255B%255D=1157/

Econ 251 Econ 361 Labor Force Participation and US Growth FRB-SF

 
http://www.frbsf.org/publications/economics/letter/2007/el2007-33.pdf

John B. Taylor - The Empty Chair at the Iraq Hearings - washingtonpost.com

Thursday, November 1, 2007; Page A21

Effective foreign policy requires paying close attention to economics, not just security and politics. Policy often falters in practice because the economic or financial aspect is overlooked.

My strong recommendation is: As soon as Gen. Petraeus and his coalition forces secure an area -- a neighborhood or a town -- we should immediately focus as best we can on the economic part of our mission. Help businesses reopen and hire people, especially young people who might otherwise join the enemy.

Establish organizations of entrepreneurs to tell us and the Iraqi government what they need. Build industrial enclaves if necessary. Work with Iraqis to provide security for shipments of products and key raw materials for manufacturing or agriculture.

You have heard much about the need to secure an area before significant political progress can be made; the same is true for economic progress. But economics is quicker than politics. We should move in economically even before our teams start helping on political reconciliation. If the environment is secure, entrepreneurs -- both Shiite and Sunni -- can create jobs much more quickly than politicos can reach agreement, let alone pass legislation. Job creation, the economic integration of communities and the taste of prosperity will accelerate political reconciliation and the achievement of our ultimate objective in Iraq.

http://www.washingtonpost.com/wp-dyn/content/article/2007/10/31/AR2007103102547.html

RAM Is More Important Than Chip Speed - Popular Mechanics

 
http://www.popularmechanics.com/technology/upgrade/1278856.html

Can The Democrats Own Prosperity? by Jonathan Rauch National Journal

 
http://nationaljournal.com/rauch.htm

Can Democrats own prosperity?

Clive Crook writes:
 

Take a look at this column by National Journal's Jonathan Rauch, for me one of the two or three most consistently interesting writers on American public policy:

The Democrats' postwar narrative was Keynesianism: By managing demand, the government would balance the economy instead of the budget. Reagan's narrative was supply-side: He would reignite stagnating productivity by reducing tax rates, deregulating, and shrinking a bloated public sector. Bill Clinton preached fiscal responsibility and globalization, a program that succeeded economically but lacked staying power politically, partly because Al Gore seemed to repudiate it.

Bush adopted the supply-side story, but in a primitive form in which tax cuts, deregulation, and smaller government became tax cuts, tax cuts, and tax cuts. The public has responded with something between indifference and contempt, leaving Republicans without a leg to stand on.

As for the Democrats, they have an audience. For the first time since the Great Society era, the public is receptive to a Democratic prosperity narrative, even eager for one. What the party does not have, yet, is the narrative.

Various bits and pieces are in circulation. Fix health care. Improve income security. Restrict trade. Raise taxes on the rich. Democrats hope to speak to middle-class America's feelings of economic vulnerability, which is probably the right tree to bark up. But while some Democrats strike notes of class resentment, others seem to blame foreigners. No candidate has found a package and a tone that tell a story not primarily about populism or nationalism but about prosperity: raising the tide to lift all boats.

Read the whole column here (the link expires in a week).

http://blogs.ft.com/crookblog/2007/10/can-democrats-o.html

Investor's Business Daily -- Even Harvard Finds The Media Biased

By INVESTOR'S BUSINESS DAILY | Posted Thursday, November 01, 2007 4:30 PM PT

Journalism: The debate is over. A consensus has been reached. On global warming? No, on how Democrats are favored on television, radio and in the newspapers.

Just like so many reports before it, a joint survey by the Project for Excellence in Journalism and Harvard's Joan Shorenstein Center on the Press, Politics and Public Policy — hardly a bastion of conservative orthodoxy — found that in covering the current presidential race, the media are sympathetic to Democrats and hostile to Republicans.

Democrats are not only favored in the tone of the coverage. They get more coverage period. This is particularly evident on morning news shows, which "produced almost twice as many stories (51% to 27%) focused on Democratic candidates than on Republicans."

The most flagrant bias, however, was found in newspapers. In reviewing front-page coverage in 11 newspapers, the study found the tone positive in nearly six times as many stories about Democrats as it was negative.

Breaking it down by candidates, the survey found that Sens. Barack Obama and Hillary Clinton were the favorites. "Obama's front page coverage was 70% positive and 9% negative, and Clinton's was similarly 61% positive and 13% negative."

In stories about Republicans, on the other hand, the tone was positive in only a quarter of the stories; in four in 10 it was negative.

The study also discovered that newspaper stories "tended to be focused more on political matters and less on issues and ideas than the media overall. In all, 71% of newspaper stories concentrated on the 'game,' compared with 63% overall."

Television has a similar problem. Only 10% of TV stories were focused on issues, and here, too, Democrats get the better of it.

Reviewing 154 stories on evening network newscasts over the course of 109 weeknights, the survey found that Democrats were presented in a positive light more than twice as often as they were portrayed as negative. Positive tones for Republicans were detected in less than a fifth of stories while a negative tone was twice as common.

http://www.ibdeditorials.com/IBDArticles.aspx?id=278808786575124

Hardware Guide emachine T6522

 
http://downloads.emachines.com/userguides/8511279_eM_NG3_chassis_HW_ref_en.pdf

Thursday, November 01, 2007

The Impact of Milton Friedman by Nelson and Schwartz

 
http://research.stlouisfed.org/wp/2007/2007-048.pdf

Plain Truth About Taxes and Cuts - New York Times David LeonHardt

 
http://www.nytimes.com/2007/10/31/business/31leonhardthtml?ex=1351483200&en=d1abe688f2c11bc7&ei=5090&partner=rssuserland&emc=rss

A Better Path to Tax Reform

Greg Mankiw writes

A Better Path to Tax Reform

In the midst of all the chatter about the Rangel plan, a friend asks me how I would prefer to fix the looming AMT problem. My answer: A good place to start is the Report of the President's Advisory Panel on Tax Reform.
 
http://www.taxreformpanel.gov/final-report/

Windows XP Media Center Edition 2005: Setting it up

 
http://www.microsoft.com/windowsxp/mediacenter/using/setup/default.mspx

Review: Top four external drives

 
http://www.computerworld.com/action/article.do?articleId=9015945&command=viewArticleBasic

Robert J. Samuelson - The Global Poverty Trap - washingtonpost.com

 
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/30/AR2007103001783.html

Are the Poor Getting Poorer? By Walter E. Williams

People who want more government income redistribution programs often sell their agenda with the lament, "The poor are getting poorer and the rich are getting richer," but how about some evidence and you decide? I think the rich are getting richer, and so are the poor.

According to the most recent census, about 35 million Americans live in poverty. Heritage Foundation scholar Robert Rector, using several government reports, gives us some insights about these people in his paper: "Understanding Poverty and Economic Inequality in the United States".

In 1971, only about 32 percent of all Americans enjoyed air conditioning in their homes. By 2001, 76 percent of poor people had air conditioning. In 1971, only 43 percent of Americans owned a color television; in 2001, 97 percent of poor people owned at least one. In 1971, 1 percent of American homes had a microwave oven; in 2001, 73 percent of poor people had one. Forty-six percent of poor households own their homes. Only about 6 percent of poor households are overcrowded. The average poor American has more living space than the average non-poor individual living in Paris, London, Vienna, Athens and other European cities.

Nearly three-quarters of poor households own a car; 30 percent own two or more cars. Seventy-eight percent of the poor have a VCR or DVD player; 62 percent have cable or satellite TV reception; and one-third have an automatic dishwasher.

For the most part, long-term poverty today is self-inflicted. To see this, let's examine some numbers from the Census Bureau's 2004 Current Population Survey. There's one segment of the black population that suffers only a 9.9 percent poverty rate, and only 13.7 percent of their under-5-year-olds are poor. There's another segment of the black population that suffers a 39.5 percent poverty rate, and 58.1 percent of its under-5-year-olds are poor.

Among whites, one population segment suffers a 6 percent poverty rate, and only 9.9 percent of its under-5-year-olds are poor. Another segment of the white population suffers a 26.4 percent poverty rate, and 52 percent of its under-5-year-olds are poor.

What do you think distinguishes the high and low poverty populations? The only statistical distinction between both the black and white populations is marriage. There is far less poverty in married-couple families, where presumably at least one of the spouses is employed. Fully 85 percent of black children living in poverty reside in a female-headed household.

Poverty is not static for people willing to work. A University of Michigan study shows that only 5 percent of those in the bottom fifth of the income distribution in 1975 remained there in 1991. What happened to them? They moved up to the top three-fifths of the income distribution -- middle class or higher. Moreover, three out of 10 of the lowest income earners in 1975 moved all the way into the top fifth of income earners by 1991. Those who were poor in 1975 had an inflation-adjusted average income gain of $27,745 by 1991. Those workers who were in the top fifth of income earners in 1975 were better off in 1991 by an average of only $4,354. The bottom line is, the richer are getting richer and the poor are getting richer.

Poverty in the United States, in an absolute sense, has virtually disappeared. Today, there's nothing remotely resembling poverty of yesteryear. However, if poverty is defined in the relative sense, the lowest fifth of income-earners, "poverty" will always be with us. No matter how poverty is defined, if I were an unborn spirit, condemned to a life of poverty, but God allowed me to choose which nation I wanted to be poor in, I'd choose the United States. Our poor must be the envy of the world's poor.

Dr. Williams serves on the faculty of George Mason University as John M. Olin Distinguished Professor of Economics and is the author of More Liberty Means Less Government: Our Founders Knew This Well.

http://www.townhall.com/columnists/WalterEWilliams/2007/10/31/are_the_poor_getting_poorer

For Brittany? Gateway NX570X

 
http://www.gateway.com/systems/product/529664155.php

Apple MacBook Pro (15-inch) Review by LAPTOP Magazine

 
http://laptopmag.com/Review/Apple-MacBook-Pro-15-inch-Core-2-Duo.htm

EconLog, Easy Essay Money, Bryan Caplan: Library of Economics and Liberty

 
http://econlog.econlib.org/archives/2007/11/easy_essay_mone.html

Marginal Revolution: Rorschach Economics

Rorschach Economics

Gregor Smith of Queen's University has discovered an amazing new relationship, Japan's Phillips Curve Looks Like Japan.  John Palmer of EclectEcon believes that the result may be systematic as he has discovered that Canada's Phillip's Curve looks like Canada.
Jpcurve
Obviously these people are crazy.  Smith and Palmer clearly do not understand Marshallian macroeconomics - everyone knows that the Phillip's Curve looks like this country.

http://www.marginalrevolution.com/marginalrevolution/2007/11/rorschach-econo.html

PC World - UNIVERSAL NOTEBOOK DOCKING User Reviews

 
http://www.pcworld.com/product/userreviews/prtprdid,6526340/universal_notebook_docking.html