Category Archives: Economics

Salary Cap?

Posted on April 21, 2008 | Comments Off on Salary Cap?

Even though the Yankees have a payroll 1/3 larger than any other team, I don’t think baseball needs a salary cap. I say why over at the American Spectator Online.

Comments Off on Salary Cap?

Posted in Economics, Publications, Sports

Tagged , , , , ,

Astro Turf: Mankind’s Doom

Posted on April 19, 2008 | Comments Off on Astro Turf: Mankind’s Doom

Fields made of artificial turf are being investigated as health hazards because some of them contain lead. New Jersey has taken an early lead in overreacting by closing two fields.

This would be a cause for concern if there were signs of lead poisoning in people using the fields. But there is no evidence of even a single player getting lead poisoning.

It’s the dose that makes the poison. That dose just isn’t there in the fields.

A spokesman said, “In the 40 years that synthetic sports turf has been in use in the United States and around the world, not one person has ever reported any ill effects related to the material composition of the fibers.”

It really irks me when media outlets frighten people with scare stories like this. Now a government investigation is wasting peoples’ time and tax dollars because of it.

Comments Off on Astro Turf: Mankind’s Doom

Posted in Certainty, Economics, Mankind's Doom, Science, The New Religion

Bad Economics and Income Tax Withholding

Posted on April 11, 2008 | Comments Off on Bad Economics and Income Tax Withholding

CNN has a poll on its homepage that asks, “On your taxes this years, are you: 1) Getting a refund, 2) Have to pay the IRS, or 3) Not sure yet.” (emphasis added)

Truth is, everyone pays the IRS. Most of us just do it in advance, not on April 15. That’s what withholding is. If you get a refund, that just means you overpaid in advance. A refund is just getting some of your own money back.

We also give the government the time value of that money; we are denied the chance to save or invest that money and earn interest on it.

A lot of people don’t realize that. It’s frustrating when people look forward to April 15, because they think they get free money.

We should end withholding, so people get a better sense of what they’re really paying.

While we’re at it, we should also move tax day to the day before election day.

Comments Off on Bad Economics and Income Tax Withholding

Posted in Economics, Taxation

Are Our Interstate Highways Racist?

Posted on April 8, 2008 | Comments Off on Are Our Interstate Highways Racist?

There is a proposal to widen I-94 between Milwaukee and the Illinois border.

Some people oppose the project. Strangely, they think it’s racist:

They also argued that the project would violate civil rights laws by pouring more money into road construction and depriving minorities and low-income residents of public transportation options.”One can’t look at this without finding a pattern of discrimination against disfavored groups and communities in our society,” said Dennis Grzezinski, an attorney working with the ACLU.

I am a fan of the ACLU, but I can’t say I agree with them on this one. Racial discrimination is real. But crying wolf, as they’re doing here, will only turn people off. It numbs people to what is still a very real problem.

Substantive arguments against the highway expansion exist; opponents should try using those.

As for the merits of current public transportation proposals in Milwaukee, let the facts speak for themselves.

Comments Off on Are Our Interstate Highways Racist?

Posted in Economics

I Don’t See This Working Very Well

Posted on March 28, 2008 | Comments Off on I Don’t See This Working Very Well

Congress is working on a housing assistance package to help bail out the 2% of homeowners under threat of foreclosure.

Presumably the other 98% will pay for it, with help from non-homeowners.

I don’t see this ending well. Lenders made some risky loans they shouldn’t have. They should pay the price for their mistakes.

Bailouts take away incentives to moderate risk-taking. That means risky, failure-prone mortgage loans will continue just as before. Absent better incentives, I see more bailouts happening in the future.

Comments Off on I Don’t See This Working Very Well

Posted in Bailouts, Economics, Political Animals

Self Promotion

Posted on March 28, 2008 | Comments Off on Self Promotion

The NCAA tournament is blamed for staggering productivity losses.

I show why I think that’s a myth over at the American Spectator Online.

Comments Off on Self Promotion

Posted in Economics, Publications, Sports

Pessimistic Bias

Posted on March 17, 2008 | Comments Off on Pessimistic Bias

“Nearly three-quarters of all Americans think the economy is in a recession, according to a national poll released Monday,” reports CNN.

The facts on the ground are quite different from what people think. GDP grew last quarter, therefore we are not in a recession. A recession is defined as two consecutive quarters of declining GDP.

Growth has certainly slowed recently. There’s a chance it could even go negative this quarter. Still, odds are that this year’s GDP will be higher than last year’s. By the way, that would qualify for an all-time record high.

Things could be better, for sure. Still, it is a pity that so many people systematically think things are worse than they are.

Comments Off on Pessimistic Bias

Posted in Business Cycles, Economics

Pro-Market vs. Pro-Business

Posted on March 13, 2008 | Comments Off on Pro-Market vs. Pro-Business

People who hold pro-market views are often tarred as corporate shills. That epithet more accurately describes pro-business attitudes, which are very different creatures.

George Mason professor Don Boudreaux discusses this with his usual eloquence in his twice-monthly newspaper column. Well worth reading, especially for you non-economists out there.

Another thing about such name-calling is that it dodges argument on the merits; it is the highbrow equivalent of ending an argument by saying, “Oh yeah, well you’re ugly.” Which of course, has nothing to do with whether the arguments are right or wrong.

Comments Off on Pro-Market vs. Pro-Business

Posted in Economics, Philosophy

Capitol Visitor Center

Posted on March 12, 2008 | Comments Off on Capitol Visitor Center

The Capitol Visitor Center began construction in 2000. It was supposed to cost $265 million, and open in January of 2005.

Eight years later, it is still unfinished.

Delays and cost overruns have so far resulted in a $621 million price tag and a November 2008 opening.

Congress is less than pleased. “Anything later than a November 2008 opening or more than a $621 million price tag isn’t going to cut it,” said Rep. Debbie Wasserman Schultz.

She continued, “If [the opening] is delayed again, I will personally send the contractors a very strongly worded letter.”

Just kidding about that last part.

Kind of.

Comments Off on Capitol Visitor Center

Posted in Economics, Political Animals

The War on Drugs

Posted on March 12, 2008 | Comments Off on The War on Drugs

Mexico captures key Tijuana drug cartel operative

Tomorrow, another will take his place.

Comments Off on The War on Drugs

Posted in Economics, prohibition