Posts tagged with: economics

Coal power plant Datteln 2 Crop1Today at The Federalist I explore “Why Big Oil Wants A Carbon Tax.” Perhaps such advocacy isn’t just made out of a sense of global citizenship and environmental stewardship.

On the surface such advocacy may seem counter-intuitive. Why on earth, other than out of selfless benevolence, would a firm (or group of firms) advocate for higher taxes on their products? But on reflection, it makes some sense, and the reasoning is similar to why an online retailer like Amazon might be in favor of the collection of sales tax at the state level.

As Adam Smith famously put it, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”

Companies are often happy to raise prices if it hurts their competition or provides them with a competitive advantage. And in the case of carbon taxes, it’s important to recognize that not all fossil fuels are equally carbon-intensive, just as not all renewable sources are equally sustainable and resilient.

This is one of the economic realities that I wish Pope Francis had recognized more clearly in Laudato Si’, although I may have more to say about this later. For now, David Brooks expresses a similar desire in his column, “Fracking and the Franciscans.”

george horrifiedIn today’s Public Discourse, Acton’s director of research, Samuel Gregg, discusses the enormous debt crisis the U.S. and many nations currently face. While debt crises are hardly new, Gregg states, America’s current debt situation is frightening.

America’s public debt amounts to approximately 105 percent of GDP. Since 20 January 2009, America’s total outstanding public debt has grown from $10.626 trillion to $18.152 trillion as of May 8 this year. Such an increase reflects a consistent disparity between government revenues and expenditures that has long plagued America’s public finances.

What’s driving this debt? Gregg’s response: the welfare state. (more…)

Blog author: ehilton
Tuesday, June 23, 2015
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Economist Nicole Gelinas, a fellow at the Manhattan Institute, explains the recent financial crisis in this brief video. Did banks fail us? No, she says. The problem is that the U.S. government has become too closely tied to banks, enabling their bad financial practices.

woman-with-air-conditionerIf you are of a “certain age,” you grew up without air conditioning. As unthinkable as it is now, we made due with window screens and fans. And we survived.

Honestly, it was pretty miserable sometimes. Especially if your dad happened to have a vinyl recliner that you sat on during hot, humid August days watching Brady Bunch re-runs. Peeling  yourself off one of those is an experience that will scar you forever.

Air conditioning is more than just a way to make our lives more comfortable; it’s economically advantageous. (more…)

In this short video, Allan Carlson of the Howard Center for Family, Religion & Society describes the importance and centrality of the family to a health society. Families that work together in some endeavor tend to be healthier, are able to care for themselves and thus become the foundation of a sound economy and society.

Blog author: jsunde
Wednesday, May 20, 2015
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economicman (1)“As a social psychologist, I have long been amused by economists and their curiously delusional notion of the ‘rational man.’” writes Carol Tavris. “Rational? Where do these folks live?”

In a review of behavioral economist Richard Thaler’s new book, Misbehaving: The Making of Behavioral Economics, Tavris notes how economists are slowly beginning to see — or, one could argue, finally returning to the notion — that the discipline ought treat man as more than a mere robot or calculator.

“Researchers in this field are making up for lost time,” Tavris continues, “or perhaps realizing that they are social psychologists after all.”

As human beings who arrogantly and often wrongly consider ourselves “sapiens,” we simply don’t match the model of human behavior favored by economists, one that “replaces homo sapiens” (whom Mr. Thaler calls Humans) with “a fictional creature called homo economicus” (whom he calls Econ). “Econs do not have passions; they are cold-blooded optimizers,” he says. “Compared to this fictional world of Econs, Humans do a lot of misbehaving”—thus the book’s title.

The problem, Mr. Thaler argues, is that although economists “hold a virtual monopoly” on giving policy advice, the very premises on which that advice rests are deeply flawed. That is why “economic models make a lot of bad predictions”: some small and trivial, some monumental and devastating. “It is time to stop making excuses,” he admonishes his colleagues. Mr. Thaler calls for an “enriched approach to doing economic research, one that acknowledges the existence and relevance of Humans.” By injecting economics with “good psychology and other social sciences” and by including real people in economic theory, economists will improve predictions of human behavior, make better financial and marketing decisions, and create a field that is “more interesting and more fun than regular economics.” In that way, Mr. Thaler believes, economists will finally produce an “un-dismal science.”

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tppThe controversial Trans-Pacific Partnership (TPP), backed by many Republicans and President Obama, hit a snag Tuesday when key Democrats spoke out against the agreement.

What exactly is the TPP? It is a free trade agreement with 12 nations (including China and Japan) that purports to increase economic growth, jobs and free trade. However, there is much opposition in Congress.

Leading opponents of the measure in the Senate have pushed for additional protections for U.S. workers and address concerns about alleged foreign-currency manipulation by China that makes American products too expensive.

“It’s a betrayal of workers and small business in our communities to pass fast track, to put it on the president’s desk without enforcement  … and without helping workers,” Sen. Sherrod Brown, D-Ohio, told The Washington Post.

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