With a single graph, NYU’s Bill Easterly shows, not tells, why America’s current economic troubles aren’t as bad as they seem.
I won’t spoil the suspense; just click here. And keep in mind that the graph is logarithmic. Its true slope is far steeper.
Some people think that the only reason poverty still exists is because Congress hasn’t passed laws guaranteeing the right to decent housing, health, and education.
Some of these people are in Congress. Over at The American Spectator, my colleague Jacqueline Otto and I explain why their hearts are in the right place, but their heads aren’t:
Suppose that poverty really can be abolished by passing a few laws. Jackson isn’t going nearly far enough, then. The Constitution should guarantee everyone not just a decent home, but a mansion filled with servants to take care of every need.
Everyone should have the right to not just a doctor’s visit every 6 months, but a cadre of specialists with access to the latest technologies and tests. This would be a boon for life expectancy.
And why only an iPod and a laptop for children? They deserve supercomputers! And the right to a Harvard Ph.D. Such a law would give America the most educated population in the world; though it would probably know the least.
Congress might as well pass a law guaranteeing an above-average lifestyle for all Americans.
Posted in Economics, Publications, The Market Process
Tagged american spectator, apple, constitutional amendments, economics lessons, ipad, jess jackson jr., paper, paper industry, positive rights, publishing, rights
Via Russ Roberts, this is an amazing video. I’m always impressed with creative, compelling ways to use data to tell a story. And this story is one of the most important in human history: how most of humanity went from being poor and sick to healthy and rich in just 200 years.
There is still a ways to go. But if past is prologue, I’m optimistic about the future.
Posted in Development Economics, Economics, Fun with Statistics, The Market Process
Tagged bbc, bbc 4, cafe hayek, data, hans rosling, optimism, russ roberts, storytelling
Joe Biden believes that government played a large role in the success of railroads in the 19th century. In this video, Don Boudreaux points out that that isn’t actually true. There were four transcontinental railroads. Three of them received subsidies. The fourth was the Great Northern Railway, founded by Canadian immigrant James J. Hill. He alone rejected any special government favors.
All three subsidized railroads went into receivership. Hill’s Great Northern Railway remained solvent, and is still in business today as the BNSF Railroad.
Posted in Economics, The Market Process
Tagged bnsf railroad, Don Boudreaux, government meddling, great northern railway, james j. hill, joe biden, joe biden gaffe, private enterprise, railroads, subsidies
My colleague Ryan Radia and I recently sent this letter to The New York Times:
Editor, New York Times:
Catherine Rampell’s September 7 article, “Once a Dynamo, the Tech Sector Is Slow to Hire,” mourns the recent decline in U.S. data processing jobs. She blames much of the decline on the automation of previously tedious tasks.
May we suggest one way to get those jobs back: No more automation. Ban the use of computers for data processing. Imagine how much information flows through today’s global economy in an average day. Computers handle most of the load. That costs millions of jobs.
The effects would reverberate far beyond the tech sector. The paper, pen, and pencil industries would also boom.
Companies are dead-set on doing more with less. True, that creates more jobs in the long run by freeing up resources — and employees — for new ventures. But if only they would consider doing less with more, they could create more data processing jobs.
Ryan Young and Ryan Radia
Competitive Enterprise Institute
Posted in Business Cycles, Economics, The Market Process
Tagged basic economics, catherine rampell, creative destruction, data processing, econ 101, Economics, economics 101, employment, high tech jobs, jobs, new york times, outsourcing, progress