Relevant and even prescient commentary on news, politics and the economy.

Half Full or Half Empty ?

Robert Waldmann has been rather harsh on efforts to base macroeconomics on models of rational forward looking utility maximisers in Nash or Walrasian equilibrium recently. One might almost think that I agree with my PhD supervisor Larry Summers who once said and I quote from memory (but believe me the words had enough of an […]

Welfare Reform not a Disaster, Interlude; or What Do We Mean When We Say Aid

Those of you who want to argue that something being “just symbolism” are invited to consider the fate of “Aid to Families with Dependent Children.” AFDC is clear and precise. It tells us that we are helping a specific set of people: Families with Dependent Children. Not just the father and the mother, but the […]

Welfare Reform Not a Disaster ? Part II

Robert Waldmann I argued that the conventional view that welfare reform was a success is based on the coincidence that the economy boomed right after welfare war reformed, the journalists stopped paying attention, not noticing the following increase in severe poverty during the Bush non boom. Now we are in a severe recession. How is […]

Mundell Fleming Muddle ?

Robert Waldmann Wow an argument in favor of protection from Paul Krugman. I never expected to read that. Now he’s against protection all the same, but he does admit that there is a good argument that right now a bit of protection would be good for the world. The argument, basically, is that governments aren’t […]

Ruben Navarrette Picks His Pork

Well the true colors are beginning to show. Navarrette is a San Diego columnist whose work appears on CNN.com. His stimulus piece is called Ridiculous Items in Stimulus Plan Out of the whole plan which items stood out for our man Ruben? I’d settle for removing more of the ridiculous items that House Democrats slipped […]

Name Dropping

Paul Krugman writes about “Vanishing Dark Matter.” Robert Waldmann waxes nostalgic. Ah memories. Brad DeLong and I recall an impromptu debate on dark matter at 1050 Mass ave (NBER) featuring Paul Krugman and Larry Summers (apparently just back from advising Dukakis — some memories aren’t as pleasant as others). googling (krugman, summers, nber, … “anything […]

Things to Do About Taxes When You’re President

by cactus Things to Do About Taxes When You’re President Every time we have a new President, we are treated to a new spectacle of people nominated to high office who have made questionable decisions. The new administration is not any different than its predecessors in this regard. Often, the questionable decisions involve taxes, more […]

Cato Disinformation

By Spencer The New Republic recently published an article by Jim Powell calledNot-So-Great Depression How Warren G. Harding got us out of it. Jim Powell wrote: Which U.S. president ranks as America’s greatest depression fighter? America’s greatest depression fighter was Warren Gamaliel Harding…. Harding inherited Wilson’s mess — in particular, a post–World War I depression […]

Bacchus , Bilious, and Friedman

by reader Noni Mausa What You Mean “We”, Rich Man? From Thomas Friedman’s op-ed today (Elvis Has Left the Mountain, February 1, 2009) he discusses the loss of trust in the whole financial world. Davos is worried, the banks that were previously rock solid turn out to be papier mache, Madoff in his depradations curiously […]