Quote of the Day: Eurocalypse Now

The whole thing is worth a read, but here's a blurb:

... with the exception of communism itself, the euro has been the biggest economic catastrophe to befall the continent (and the world) since the 1930s.

LOL: How Economists Break Up

It's not you; it's me the quantitative cost-benefit analysis. (Via Pejman Yousefzadeh.)

Econ Prof: "Why Is Higher Ed So Expensive?"

Econ prof Daniel Lin explains why higher ed is so expensive and why government subsidies for it are so ultimately counter-productive:

Lessons From a 1956 Sears Catalog

Fascinating, actually!  For instance:

Sears’s lowest-priced 30″ four-burner electric range, with bottom oven, was priced, in 1956, at $129.95.  (You can find this range on page 1049 of the 1956 Sears catalog.)  Home Depot sells a 30″ four-burner electric range, with bottom oven, today for $348.00.

The typical American manufacturing worker in 1956, therefore, had to work 129.95/1.89 – or 69 hours – to buy an ordinary kitchen range.  His or her counterpart today must work 348.00/19.79 – or 18 hours – to buy the same sized ordinary range.

By the way, the numbers use the following: "[For 2012] ... the nominal average hourly earnings of nonsupervisory nonfarm private production workers in the U.S. [is] $19.79 (as of October 2012) ... For 1956 I instead use average hourly manufacturing earnings of production workers. That figure is $1.89."

Paul Krugman vs. the Baltic

Economist/commentator Krugman gets called on his antipathy to the Baltic nations, something that Estonia already did in magnificent fashion. Is Krugman seriously dumping on the successful Baltic states because they are successful (as opposed to the implosions in southern Europe)?

Thoughts on Paul Ryan

The choice of Generation X?  (Well, we're "the Screwed Generation," after all, though that's a rant for another post - and, believe you me, I will rant if given half a chance, since plenty of Boomers seem perfectly happy to eat their young, metaphorically.)  Interestingly, this article was written by a center-left member of Gen X.  

In the New York Times editorials, of all places, comes this argument why moderates should like Ryan.

Remember that Ryan's budget plan was praised by none other than Erskine Bowles, the Democrat who co-chaired Obama’s National Commission on Fiscal Responsibility and Reform.  Here's the video.

Finally, look at this list: http://economistsforromney.com/
Now think about this.  As Alessandra and I were saying earlier tonight, WOW, you know the economy's shot to hell if you find so many economists - including Nobel laureates and Ivy League econ professors - willing to publicize their support for Romney.  Come on, campus culture is heavily tilted to the Left.  It takes some nerve to declare in public, as these professors have, one's support for the anything else.  Now take a look at the list of economists.  Look at their institutions.  These aren't cranks.  These are established authorities and serious academics.  (And I'm pleased to see Greg Mankiw of Hahvahd on the list too, and he's also got this note.)  I counted 5 Nobel laureates and as for the others I quit counting at 200 and I was only at the letter H.

On a somewhat related note: I still wish we could require that every single member of government, beginning with Congress and the executive branch, take Econ 101 and pass it with a B or better before being allowed anywhere near policymaking.

Anyway, sci fi author Larry Correia's opinion is worth a look too because he's got a flair for words.  I repeat my now-uncontrollable desire to see Paul Ryan beat Joe Biden like a drum during the VP debates.

Oh, and I debated with myself whether to link to this uproarious Onion satire since it's so pottymouthed, but it's late, I'm tired, and I revert to my old mantra of discourse (i.e, "Screw 'em if they can't take a joke").  I had previously stated that I'm pretty sure the Obama camp is terrified of Paul Ryan, and apparently the Onion thinks so too.  Satire Alert: Take a look at this hilarity written in the guise of Ryan: "Admit It, I Scare the Ever-Loving Sh*t Out Of You, Don't I?"  Here's a blurb:

"I’m young, I’m handsome, I’m smart, and I’m articulate. And that scares the ever-loving sh*t out of you. You can pretend like you have this thing in the bag, but you know good g*dd*mn well that this race just got real interesting, real fast."

Whole Foods CEO John Mackey on the Moral Case for Capitalism

Take a look.  I love how Mackey starts off by noting the nannyish desires of those meddling busybodies who think they "know best."  Don't you also find the politicization of food to be terribly tiresome?  I know I do.

Happy 100th Birthday, Milton Friedman

Alas, the great man is no longer around to celebrate his centennial, but his ideas remain and seem to be more relevant than ever.

Reading Recommendations From An Econ Prof

Usually this sort of thing would have me rushing for the doors, but econ professor Art Carden (Samford University) has some interesting-looking choices.  Carden also links to some cool TED talks and free online lectures.  Ain't technology grand!

6 Policies That Economists Love And Politicians Hate

Hmmmmmm (and on NPR, no less!). Here are two of the policies:

Three: Eliminate the corporate income tax. Completely. If companies reinvest the money into their businesses, that's good. Don't tax companies in an effort to tax rich people. 

Four: Eliminate all income and payroll taxes. All of them. For everyone. Taxes discourage whatever you're taxing, but we like income, so why tax it? Payroll taxes discourage creating jobs. Not such a good idea. Instead, impose a consumption tax, designed to be progressive to protect lower-income households.

New Technology and Creative Disruption

Here, read this.  Innovation isn't for sissies, and - you know - that's as it should be. Oh, and here's a cool quote:

Every new technology that becomes profitable causes people to scream about the plight of existing producers. Then it turns out over time that the sector itself thrives as never before but in ways that no one really expected.

The Hungry Dragon: China and Raw Materials

Zambia-born, Oxford-trained economist Dambisa Moyo has a new book out on the subject, and her conclusion is sobering.

Euro Notes: That Single Currency Is Doomed?

I had my doubts about this entire enterprise, because - as you recall - Milton Friedman predicted that the euro wouldn't survive its first recession.  Of course, perhaps the idea itself of forcing all those nations into a single currency was "an incredibly stupid idea in the first place."  In a nutshell, just look at Greece and Germany.

Santelli Rants About Government Overreach

Greece: Circling the Drain?

The S&P expects Greece to default soon.

The American Dream Lives in Canada?

A professor at the University of Ottawa has recently done a study.  What do you think, eh?  It's a lot about upward economic mobility.  We should also be thinking about opportunity.

The 2012 Index of Economic Freedom Is Out

We're not doing so well?  The US is out of the top tier at #10. What would Milton Friedman say?  By the way, the top tier rated "Free" consists of Hong Kong at #1, followed by Singapore,  Australia, New Zealand, and (the first non-Asian country on the list) Switzerland.  Taiwan is #18.  C'mon, guys, we can do better than that.

Hayek Vindicated (Again)

Surprise.  Or not.

Quote of the Day: the Zero Sum Fallacy

Read this as P.J. O'Rourke takes a look at the latest iteration of an old falsehood:

But the Occupiers are wrong about something much more important. They believe in the Zero Sum Fallacy -- the idea that there is a fixed amount of the good things in life. Anything I get, I'm taking from you. If I have too many slices of pizza, you have to eat the Dominos box. The Zero Sum Fallacy is a bad idea -- dangerous to economics, politics, and world peace. It means any time we want good things we have to fight with each other to get them. We don't. We can make more good things. We can make more pizza -- or more tofu, windmills and solar panels, if you like. 

The Zero Sum Fallacy is just that, a fallacy. Economic history since the Industrial Revolution proves -- be the rich however stinking rich -- we ordinary people can make more of the good things in life. But we have to make them ourselves, with our knowledge, skills and hard work. Government can't give us good things. Government doesn't make things, it just redistributes them. This brings us back to fighting with each other.

Euro Notes: NOW He Tells Us

The architect of the euro currency, Jacques Delors, apparently now says that the thing was doomed from the start.  Well, Milton Friedman did say that the euro wouldn't survive its first major European recession.  I had my misgivings about the whole project, and I take no pleasure really in seeing the eurozone in flames now because it's wrecking the economic lives of millions.  But the fact remains that it's becoming increasingly clear that the euro is fatally flawed.

On a related and ironically timed note, here is a new propaganda video from the European Central Bank "celebrating the first ten years of the euro."  I rather doubt that euro will see another ten years.  Dude, doesn't the ECB have any better to do than churn out propaganda and make video games?  But I digress.  On to the video, which I find unintentionally hilarious, beginning with the choice of Beethoven's "Ode to Joy" as the opening music.  (LOL!)