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

The Great Growth Target Leak of 1961

In Doctor Strangelove, General Ripper explains to Captain Mandrake why Clemenceau’s dictum on war is now obsolete: He said war was too important to be left to the generals. When he said that, 50 years ago, he might have been right. But today, war is too important to be left to politicians. They have neither […]

Can John Cochrane and Jennifer Rubin handle the truth about the lump-of-labor fallacy?

An open letter to John Cochrane and Jennifer Rubin Dear John Cochrane and Jennifer Rubin, I read with interest your column, Jennifer, which led me to your chapter, John, in Blueprint for America on trade and immigration. I have studied the history of the lump-of-labor fallacy claim for nearly 20 years and have have published several […]

It’s An Idea (not all) Economists View With Contempt…

As the derisive name suggests, it’s an idea economists view with contempt, yet the fallacy makes a comeback whenever the economy is sluggish. — Paul Krugman Isabel V. Sawhill (Brookings): “Time for a shorter work week?“ Dean Baker: “Shorter Workweeks Will Defeat the Robots“ Eva Swidler: “Radical Leisure“ Ilana E. Strauss: “Would a Work-Free World Be […]

“Why Are Voters Ignoring Experts?”

That is the question Jean Pisani-Ferry asks at Project Syndicate. In the wake of the Brexit vote there is a veritable chorus of experts and economists asking the same question. One explanation I don’t expect to see very often is that the supposed experts systematically ignore their own critical literature. Hubris. Professor Pisani-Ferry inadvertently presents an […]

FLEXIT

“If, as a result of Brexit, the economy crashes it will not vindicate the economists, it will simply illustrate once more their failure.” — Ann Pettifor You can see immigrants. You can’t see NAIRU or flexible labor market policies. Most people wouldn’t know a NAIRU from a Nehru jacket and have probably never heard of flexible […]

The Iatrogenic and Incoherent “Theory” of Flexibility

In its report on “The long-term decline in prime-age male labor force participation,” President Obama’s Council of Economic Advisers writes: Conventional economic theory posits that more ‘flexible’ labor markets—where it is easier to hire and fire workers—facilitate matches between employers and individuals who want to work. Yet despite having among the most flexible labor markets […]

Is “Political Correctness” to Blame for Orlando Massacre?

Well, well, the dear old National Rifled Assholeciation has weighed in with its theory. Assault weapons don’t kill people, “political correctness” does. “The National Rifle Association (NRA) on Tuesday defended gun rights, two days after a gunman killed 49 people and left 53 others injured at a gay nightclub in Orlando,” Jesse Byrnes at The […]

Dear Omar al-Ubaydli:

Yes, Omar, I would be delighted to elaborate. Thank you for asking. The point I am trying to make was stated by John Stuart Mill in On Liberty, “He who knows only his own side of the case, knows little of that.” The truth of that maxim is illustrated by the claim, in your counterpoint to […]