Monthly Archive for November, 2013

Elbow Catch

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This Day in History

Fifty years ago today at 1:30 PM eastern standard time, a minor tragedy took the life of President John F. Kennedy. A little over an hour later, a major tragedy ensued, as Lyndon B. Johnson was sworn in to replace him.

If there is such a thing as evil, it lived in Lyndon Johnson, whose life was one long obsession with the accumulation and exercise of power. His biographer Robert Caro relates how, in college, Johnson engineered, by intimidation and deceit, a takeover of the Student Council partly so that he could, apparently for sport, force the removal of talented and hardworking students from the editorships of campus publications, replacing them with non-entities and reveling in the tragic aftermath as ousted incumbents (who had received small but urgently needed stipends for their work) were forced through financial hardship to drop out of school.

It was downhill from there. As President, Johnson presided over a misbegotten war in Southeast Asia — a whirlpool of destruction fed with lives and treasure — and an equally misbegotten “War on Poverty” that too often became a war on economic freedom, the only effective antidote to poverty the world has ever known.

The War on Poverty might have been more accurately termed a war to consolidate Johnson’s influence. Poor rural families got grants and loans to expand their farms — provided they stayed on the farms, where Johnson needed their votes. Job training, educational programs, small business loans — all were available as long as you lived your life in a way that suited Lyndon Johnson’s purposes.

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A Little Knowledge is A Dangerous Thing

Sent by a reader:


(Click to enlarge.)

Some questions for the economics students:

  • Which vertical line segment illustrates the carbon tax revenue?
  • Which vertical line segment illustrates the compensation paid by the government?
  • Where does the difference come from?
  • What difference would it make if you changed the axis labels from “Polluting Products” and “Non-Polluting Products” to “Watermelon” and “All Things That Are Not Watermelon”?

Answers below.

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False Imprisonment

The frequently insightful and usually accurate Megan McArdle gets this part quite completely wrong in her latest Bloomberg column about ObamaCare:

Democratic politicians and insurers are locked in a prisoner’s dilemma. In this classic game-theory case, you and a professional associate are both arrested for theft. If neither of you talks, then you’ll probably get off. But if just one of you talks, then the person who talks will get a reduced sentence, while the other person has the book thrown at them. If you both talk, then both of you go to jail for a long time. The equilibrium is for both of you to talk, just in case the other guy does .

I sincerely hope that anyone who’s ever taken my Principles of Economics course — or for that matter, any Principles of Economics course — can explain to McArdle how wrong this is, and why.

Exercise for the reader: To what extent, if at all, does this howler undermine the larger point of McArdle’s column?

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Albert and the Dinosaurs

If you’re wondering what I’m up to, click on the picture.

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Obama Did Not Lie

Say you’re planning a vacation trip to visit the castles of England. You’re thinking maybe you’ll see a castle a day, with lots of time for leisurely drives and exploration in between. Your spouse, meanwhile, has drawn up a rigid schedule that will get you to twenty sites in seven days. In the course of trying, gently, to point out how impractical this is, you ask: “But how can we possibly make it from Harlech to Alnwick in under two hours?”. Your spouse, fed up with this discussion, replies: “We’ll take a rocket ship, okay?”

Actually, of course, your spouse knows perfectly well that you won’t be taking a rocket ship. So: Have you just been lied to? It seems to me that you clearly haven’t been. A lie requires an intent to deceive. You have, perhaps, been treated with contempt, and that can be just as unpleasant as a lie. But it’s not a lie. In order to lie, you’ve got to have some chance of being believed.

When President Obama said that he could provide health care to millions without taking any health care away from people who have already got it, he had no chance of being believed. The statement was absurd on its face. This is a law of arithmetic: If you invite a bunch of friends to share your lunch, there’s going to be less lunch for you. Everybody understands that.

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REALLY Worthless Cash

Just a quick followup to review of Square Cash — further experience has confirmed that using Square Cash is a really really good way to not know whether or not you’ve managed to make or receive a payment. They transfer money from me to you. A couple days later, without warning, they transfer it back from you to me. They ignore most inquiries and respond uninformatively to others. Don’t use these guys.

On another note, I realize blogging’s been slow of late. I’m hoping to find time for some long posts in the near future.

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