Russell Roberts's Blog, page 1578

Subsidies and Distortions

Suppose that Bill Gates, Warren Buffett, and Larry Ellison pool their wealth into what they call "The Subsidy Fund."  Out of his fund, the three billionaires will subsidize producers of their choice.

Let's imagine that Messrs. Gates, Buffett, and Ellison choose to bestow billions upon Blairex Laboratories, Inc., of Columbus, Indiana.  The three billionaires subsidize Blairex not out of any profit motive but, rather, simply because they want to do so – it makes them feel good.

Blairex...

Keep Those Exports Coming

Here's a letter that I sent to the New York Times – the third letter in response to yesterday's Krugman column:

Paul Krugman notes that Chinese Prime Minister Wen Jiabao "accused other nations of doing what China actually does, seeking to weaken their currencies 'just for the purposes of increasing their own exports'" ("Taking on China," March 15).  This charge of hypocrisy is likely justified.

Nevertheless, why should we non-Chinese complain about this Chinese policy?  We get more for...

Hayek in Texas

Is Hayek an important enough economist to be taught in Texas schools alongside Keynes and Friedman? Justin Wolfers says no. Bill Easterly says yes.

I'm always happy to spread Hayek's name around. But the real question isn't whether F. A. is worthy. The real question is why is there a state-wide board making a decision like this. Of course it's going to a political decision instead of the one that's best for the students. But maybe just as importantly, it imposes a one-size-fits-all solution...

If Technology Were a Country….

Here's a letter to the New York Times:

Paul Krugman accuses the Chinese government of harming America by (allegedly) keeping the value of the yuan artificially low ("Taking on China," March 15).  Because a low yuan allows Americans to get more for less from China, Prof. Krugman believes that the resulting reduced demand for American-made products promotes higher unemployment in the U.S.

Given Prof. Krugman's beliefs, he should aim his mighty rhetorical artillery at a phenomenon whose impact on...

Easterly on Hayek

Bill Easterly – who ranks as not only a superb economist but as one of the finest verbal stylists of the profession – explains why Hayek's works deserve more attention.

Poorer Is Richer

Here's a letter that I sent today to the New York Times:

Paul Krugman writes that "It's true that if China dumped its U.S. assets the value of the dollar would fall against other major currencies, such as the euro.  But that would be a good thing for the United States, since it would make our goods more competitive" ("Taking On China," March 15).

In other words, Prof. Krugman believes that it would be a good thing if Americans' purchasing power falls along with the value of what we receive in...

Don Boudreaux on public choice

In the latest EconTalk, Don talks about his view of the political process. The discussion includes a defense of not voting (though the host of the program does vote from time to time) and a discussion of why politics is not the road to a smaller state.

Washington Knows Best

Here's a letter that I sent to the New York Times:

While applauding government-imposed national standards for schooling, you give no credence to the argument that each set of parents – rather than government – is in the best position, and has the strongest incentives, to determine whether or not their children are being educated well ("National School Standards, at Last," March 14).  Indeed, the only persons you mention as being parties interested in the successful education of children are...

A Campaign that I'd Sign-Up For

Here's a letter that I sent to the Boston Globe:

You applaud efforts by the Campaign for a Commercial-Free Childhood to thwart "Big Business' attempts to turn [children:] into consumers of junk food, junk toys, and junk entertainment" ("Bowing to corporate America, Judge Baker center loses face," March 13).  While I admire these activists' zealous concern for children, I think it to be misdirected.

No business – "big" or otherwise – can, without special privileges from government, force...

No Snow Job on Green Jobs

At Economist.com, my friend Andy Morriss debates Van Jones on so-called "Green Jobs."