Labor and capital both receive income. How do labor and capital consume products or contribute to savings differently? How have these differences changed over the years? What can we learn from the changes? To answer these questions, I made a model based on the circular flow of the economy, where I separated labor income from […]
ACA misinformation. Just for schadenfreude read Ezra Klein on Peggy Noonan on the ACA. Ouch that has to leave a mark. If Noonan were capable of shame, she should would just shut up forever and a pony. Wonkblog is affordable care act (aka ACA aka Obamacare) anti-missinformation central. Unfortunately, right there at wonkblog, Dylan Matthews […]
by Barkley Rosser via Econospeak (reposted with authors permission) Why Are We Rushing To Get Rid Of Fannie Mae and Freddie Mac? “How many Virginians does it take to change a light bulb? Five: One to change the bulb and four to talk about how great the old bulb was.” I think I am turning […]
by Maggie Mahar A New IOM Report Reveals Why Medicare Costs So Much (Hint–It’s Not Just the Prices) (reposted with authors permission) George W. Bush is 67. Chances are Medicare paid for the stent operation that I describe in the post above. For years, medical researchers have been telling us that this procedure will provide no […]
When we as US citizens use our income, whether labor or capital income, to buy a product from another country, those US dollars are remitted to a bank. Now the bank may be in the United States or in a foreign country. If the US dollars are remitted to a foreign bank, that bank pays […]
by David Zetland Local versus regional control In response to this: “The public sector is often better at handling inter-agency cooperation and the private sector is often better at delivering cost-effective, measured results. In either case, the local government plays the most important role as it needs to oversee and regulate all players. Poor regulation […]
by Maggie Mahar George W. Bush’s Recent Stent Surgery—Two Perspectives (re posted with author’s permission) Last week, when former President George W. Bush underwent stent surgery, the procedure was declared a great success. What is surprising is that not everyone in the mainstream media applauded. From Bloomberg News “Former President George W. Bush’s decision to allow […]
John Quiggin writes something absolutely conventional and accepted by 99% of macroeconomists and I throw a cow. Sometimes I bore myself but I must object to “The big problems arose out of the Phillips curve, as I’ve discussed before. First it was oversold as a stable trade-off by Keynesians [citation needed].” Which Keynesians when ? […]
From The Guardian comes this bit of news: “The partner of the Guardian journalist who has written a series of stories revealing mass surveillance programmes by the US National Security Agency was held for almost nine hours on Sunday by UK authorities as he passed through London‘s Heathrow airport on his way home to Rio de Janeiro. […]