Building on Alex’s post on income inequality, I note that Mathew Yglesias published this over at Vox. Yglesis advocates for raising the top marginal rate on salaries above $10 million to 90% and the inheritance tax of estates over $10 million to 90%. His argument is that the Laffer Curve is largely bunk and there is no evidence that raising incomes that high would seriously hurt the economy, at least if it were confined to … Read more
Tag Archive: Economics
Fresh off their recent report on Obamacare that predicted a decline in the workforce of 2.5 million (partially as a result of employer cutbacks, mostly as a result of people leaving jobs due to high effective marginal rates), the CBO today issued a report on the effect of raising the minimum wage.
Raising the U.S. minimum wage would lead to the loss of about half a million jobs by late 2016 but lift almost a
I know the Left likes to mock the Heritage Foundation’s Economic Freedom Index as some of Koch Brothers-libertarian-Rush Limbaugh-neocon conspiracy garbage. But, as I’ve argued before, if you want to start looking at the countries that are doing well economically, it’s a good place to start. Almost every country at the top of the rankings is doing well; almost every country toward the bottom is doing poorly. Over the years that Heritage has been tracking … Read more
Liberal pundits and advocates are constantly talking about a “living wage”. The last few years have a been a constant drumbeat about how we need to raise the minimum wage, with some now advocating that Obama should just bypass Congress and do it by executive fiat. It’s even gotten to the point where America’s Dumbest Intellectual deceitfully disputes the basic economic consensus that increasing the minimum wage increases unemployment.
(That last part is not complicated. … Read more
Two economic numbers have come out in the last few days. The first was that the economy grew at an “unexpected” 2.8% rate in the third quarter. The second was that October jobs came in at 204,000, which is almost … not unhealthy? 60,000 jobs were added to previous months. U-6 was up a bit but is still several point down from its peak and labor force participation continues to fall.
Caveat time: even … Read more
Job growth was less than expected in August as the U.S. economy added 169,000 positions, raising questions over whether the Federal Reserve will begin a pullback on its historically easy monetary policy.
The Bureau of Labor Statistics also said the unemployment rate dropped to 7.3 percent, its lowest since December 2008, but due primarily to fewer Americans in the labor force.
A more encompassing rate that counts the underemployed and those who
I’ve been thinking about the President’s recently announced plan to change the federal student loan program. Something about it bothered me and it took Alex’s post below to finally crystallize my objections.
It won’t work. Even if it works, it won’t work. It won’t work because Barack Obama, oddly enough for a Harvard man, misunderstands the nature of higher education and, not oddly at all for a Democrat, misunderstands the nature of the problem with … Read more
HuffPo put out an article the other day claiming that doubling the wages of McDonalds employees would cause the Big Mac to cost just 68 cents more (the original article seems to have gone down the memory hole; see below).
Of course, being idiots, they ignored several basic economic problems. For one, McDonald’s managers won’t pay the same number of people $15 an hour to flip burgers: they’ll find ways to cut back on staff. … Read more