Trump is smarter. Take the controversies that the two ignite. By insisting that fracking be banned, Sanders seems unaware that Pennsylvania is a swing state. By more easily acknowledging accomplishments of Castro than of Trump, Sanders seems unaware that Florida is a swing state filled with people who voted for Trump but not Castro.
Wednesday, February 26, 2020
Challenger Sanders v Challenger Trump
Trump is smarter. Take the controversies that the two ignite. By insisting that fracking be banned, Sanders seems unaware that Pennsylvania is a swing state. By more easily acknowledging accomplishments of Castro than of Trump, Sanders seems unaware that Florida is a swing state filled with people who voted for Trump but not Castro.
Sunday, October 8, 2017
How government employment can undermine democracy
I spoke to a young woman who was shortly due to sit examinations to become a judge. She thought there was a good chance that her role in assisting the local [Catalan] referendum process would destroy her chances of becoming a judge, and said that one of her fellow students was too scared to even vote for the same reason.
Read here to feel the Joy of Voting
The polling station workers thought that if they had computers with older technology they may be able to connect to a wifi system [the Spanish government was blocking polling stations' internet access] ... we all started clapping – it had worked! They were connected. One man inside excitedly ran to inform the others... “I’m going to be the first to vote!” he yelled excitedly, to laughter. The two elderly women and a handful of others inside took up their ballot papers and voted.
Then the gates opened and the first round of people walked through. Everyone was cheering and applauding jubilantly ...the faces of those who came through were still calm and resolute but some became tearful after they voted. It was a really moving moment, and it’s hard to accurately put it in words. The best way I can describe it to say there was an overwhelming sense of dignity about both the moment and the people.
Saturday, November 5, 2016
The media has been in the bag for Clinton, Obama, and Lincoln too
Lincoln alternately pampered, battled, and manipulated the three most powerful publishers of the day: Horace Greeley of the New York Tribune, James Gordon Bennett of the New York Herald, and Henry Raymond of the New York Times.
Lincoln authorized the most widespread censorship in the nation’s history, closing down papers that were “disloyal” and even jailing or exiling editors who opposed enlistment or sympathized with secession. The telegraph, the new invention that made instant reporting possible, was moved to the office of Secretary of War Stanton to deny it to unfriendly newsmen.
It isn't merely about changing a specific journalist's mind. It is also about helping those who are already inclined favorable to earn more profits than those inclined otherwise. Media market entry and exit takes care of the rest.
Tuesday, May 17, 2016
Did Trump Trap the Times?
- The New York Times published a story Crossing the Line: How Donald Trump Behaved With Women in Private, which
- mentions "Trump" over 100 times
- cites a number of examples over five decades (including high school) where Donald Trump or his father appears to be "crossing the line"
- reports that the Trump Organization was a construction-industry leader when it came to promoting women into the upper ranks of management, and that Donald Trump was taking such actions over the objections of his father.
- Within one day, the woman whose anecdotes lead the New York Times piece comes out to "rebut the NY Times story on history with women."
- This single event appears to have accomplished multiple goals for the Trump campaign
- free advertising for Trump
- discredit the New York Times, at least when it comes to accusations against Trump, and perhaps even making it look like the daily screed for the Democratic Party
- put future accusers (if any) on the defensive
- give the campaign an authority to (selectively) cite on how Mr. Trump had taken personal risks in order to be a pioneer at promoting women in business.
Update: Professor Paglia says "Can there be any finer demonstration of the insularity and mediocrity of today’s Manhattan prestige media? ...Blame for this fiasco falls squarely upon the New York Times editors...."
She is probably correct, but might entertain the idea that Mr. Trump is far more clever than the press.
Monday, November 10, 2014
UPenn takes the high road
Bad Economics for a Good Cause
- Prof. Pauly calls himself "The father of the individual mandate (although not this mandate)"
- Prof. Pauly prefers the "Rambo" alternative the ACA's individual mandate. Rambo would put all of the uninsured on a bronze plan without their permission and send them a tax bill for bronze premiums.
- Prof. Gruber claims that the Cadillac tax is excessive (effectively over 100 percent due to corporate income tax interactions with the Cadillac tax)
- Prof. Gruber claims that the individual mandate penalty should be much larger.
- Both Professors discuss the Oregon study and it's failure to show a statistically significant effect of health insurance on health. Among other things, Prof. Gruber said that the study results widened his priors without changing their mean.
- Prof. Gruber wants to expand the subsidies: expand premium subsidies for everybody and cost-sharing subsidies for people under 300% FPL. He is optimistic that the opportunity for such expansions will come as (if?) healthcare gets more expensive.
- Prof. Gruber would not oppose eliminating the employer mandate. The revenue loss would be nontrivial (but not huge), he says, but the mandate is primarily affecting the composition of insurance (employer vs Obamacare) and who really cares about that. [remark: I agree that the employer mandate affects the composition of insurance, which is why the deficit effects of the employer mandate are huge]
- Neither professor acknowledges the law's work disincentives or its large productivity costs.
- Both professors are clear that they consider the pre-ACA status quo as the relevant alternative for evaluating the law. That's good news for me: my book does the same thing.
Tuesday, November 4, 2014
Good bye to one of my favorites
Sunday, November 2, 2014
High-tech fuel for voter fantasies
Monday, October 27, 2014
Cook County ballot is full of uncontested elections
http://econfaculty.gmu.edu/wew/syllabi/Econ811JournalArticles/BeckerJLE.pdf
Tuesday, December 4, 2012
Wednesday, November 28, 2012
A Time for More Nations
Catalonia, which includes Barcelona, has long been a part of Spain, but its peaceful residents increasingly talk about being an independent country again. In elections over the weekend, where independence was one of the most discussed campaign issues, a majority of offices were won by parties that support more Catalan independence, in one form or another.
An independent Catalonia would reinforce a worldwide trend. The world’s economics and demography are changing, and economic theory predicts that national borders will change with them (see “The Size of Nations,” by Alberto Alesina and Enrico Spolaore or “A Theory of the Size and Shape of Nations,” by David Friedman in The Journal of Political Economy).
The number of countries has grown since World War II, especially since 1990. The Soviet Union broke into multiple nations. Czechoslovakia split into the Czech Republic and Slovakia; Yugoslavia dissolved.
In most cases, many citizens of the parts wanted independence from the larger whole. The large countries were often divided by language or ethnicity and were often held together by nondemocratic leadership. The new independent countries emerged as democracy took hold, or shortly after.
In a few instances, countries combined. East Germany and West Germany unified. North and South Vietnam became one when North Vietnam won the Vietnam War. North Yemen and South Yemen were unified. As their names suggest, they have some common language, culture and history, more so than many former Soviet republics did.
Catalonia has its own language, Catalan, and a long history. Under Franco, Spain suppressed many Catalan institutions. And labor was mobile in Spain during the Franco regime, with many Spanish-speakers moving to Catalonia, Spain’s most prosperous region. The prevalence of Spanish in Catalonia, as well as the heavy hand of Franco, may have undercut an independence movement. But Franco’s death in 1975 and the emergence of democracy in Spain did not foster an independent Catalonia.
New generations have been learning Catalan, however, and that may be tipping the balance toward independence.
Catalonia objects to the amount of taxes it pays Spain’s central government, compared with the benefits it receives. One potential step would be to address that situation without full independence, by having Spain’s central government “charge” Catalonia less for being part of Spain by providing tax breaks or more public services.
As governments and redistribution grow, richer regions find taxes to be increasingly burdensome. With the cold war over, ethnically unique regions no longer perceive the same national security benefits of being part of a larger nation.
Catalonia’s situation is worth watching, as it may hold lessons for Libya, Iraq and even the United States, where regions sometimes diverge in terms of culture, language and preferences for governing. A small nation can be established peacefully and may prove to have long-term benefits.
Saturday, November 10, 2012
My Neighbors Know
Wednesday, November 7, 2012
Flashback: Don't Read This Until Nov 7
If your candidate lost yesterday, I'm sorry. If you lament because you assumed that your candidate would have implemented superior public policies, then you can feel better already because your sorrow is based on a false assumption.
Tuesday, October 30, 2012
Do Not Read This Until Nov 7
Wednesday, June 13, 2012
Leaks and Press Freedoms
Government leaks and a free press are not always compatible.
Democracy is said to depend on freedom of the press and other news media, especially the freedom to publish information and opinions without approval or censure from government officials. Empirically, there is a strong correlation between press freedoms and the fairness of elections, absence of autocratic leaders and other hallmarks of democracy.
Full and complete freedoms of the press and other news media are not an automatic consequence of economic development, education and other factors thought to foster democracies. For example, a 2001 World Bank study of 97 countries found that governments commonly owned their nation’s television stations.
Even in Western Europe, countries otherwise known for their political freedoms, government television stations made up more than half of the television market.
In the United States, most newspapers, television stations and cable television channels are owned and operated by private or publicly owned companies, and the government has little to say about what is published in or broadcast over them, with the exception of obscene, indecent or profane programming transmitted by conventional broadcasting systems, which are subject to regulation by the Federal Communications Commission.
One suspects that Americans and news organizations would loudly object if the government offered cash subsidies to newspapers or television stations as a reward for printing or broadcasting favorable coverage of elected officials or levied special taxes on news organizations as a punishment for unfavorable coverage.
Such practices would not explicitly prohibit unfavorable coverage but would make it more difficult for outlets that displeased the government to survive in a competitive marketplace for readers and viewers.
But candidates and officials can and do reward specific news organizations with personal appearances and interviews that the news organizations and their owners find valuable — or withhold interviews from those they find hostile, as Barack Obama did with Fox News for much of his first presidential campaign.
The private sector does not have the moral high ground, and there are times that private media outlets are unfair to government officials. Nevertheless, the American approach has been to prohibit the government from levying cash penalties on or offering cash rewards to media outlets on the basis of the fairness of their coverage.
Sometimes, however, government officials possess information that would be of interest to the public, and thereby valuable for news organizations. In principle, officials could reward favorable coverage by distributing or “leaking” more information to sympathetic outlets than to unfriendly ones.
We don’t yet have a data set or systematic study of the transactional characteristics of leaks — such as which outlets receive the most leaks and whether those outlets are more favorable in their coverage to the agencies doing the leaking. But government leaks can potentially be a noncash currency that can be traded between the government and news organizations.
Democracy is not jeopardized by a few leaks, and news media deal in a whole array of sports, business and other information to which government officials have no special access. But punishing government leakers is not inconsistent with democratic values. By preventing leaks from being used by the government as a currency for rewarding or penalizing media outlets, it could help keep the press truly independent.
Wednesday, March 7, 2012
Career Concerns in Chicago
Chicago has been in the news twice recently, once for being ranked as the most corrupt American city and this week for losing its opportunity to hold the Group of 8 economic summit meeting in May. The economics of the two events are related.
A study at the University of Illinois at Chicago and the University of Illinois Institute of Government and Public Affairs found that Chicago city officials, especially aldermen, were convicted by the federal government for corrupt activities while in office more often than officials in other cities.
It’s been decades since a Chicago mayor has been convicted of a crime while in office. But something has seemed different in that office too, because its holder had been named Richard Daley for 42 of the 56 years from 1955 to 2011 (first Richard J. Daley, then his son Richard M. Daley). It’s also been at least decades since a Chicago mayor sought a higher office.
A promotion tournament is one way that labor economists have suggested that people can be provided incentives to behave well in their jobs, be they in the private or public sector. The idea is that people have an extra reason to do their job well when they expect to be closely evaluated on the occasion of a promotion decision.
Promotions are sometimes a factor in political careers, too. Aldermen sometimes become mayors and mayors governors. Both George W. Bush and Bill Clinton were governors before being elected president. Officials are sometimes criticized for looking toward higher offices, but those aspirations might give them an extra reason to stay away from corruption, lest credible accusations of corruption mar their campaigns.
Many Chicago mayors have not been expected to pursue higher office. Richard J. Daley and Harold Washington died in office. Richard M. Daley retired, and Chicagoans do not expect him to run for governor, senator or president.
The current mayor, Rahm Emanuel, could be different. He is a prominent figure in the national Democratic Party. If, hypothetically, he were building a résumé for governor or another office, that could be good for Chicago. The better Chicago performs while he is mayor, the better his résumé will look.
Indeed, Mayor Emanuel has already involved himself in statewide, national and international interests. He was eager to play host to the G-8; although that was moved to Camp David, Chicago will be the site of a NATO meeting this year.
Mayors often concern themselves with the city’s public school system through high school. Mayor Emanuel has looked a bit presidential in tackling higher education, too.
Thus, while Chicagoans have wondered why their city should endure the hassle of G-8 and NATO meetings, perhaps they should appreciate having a mayor who might have “career concerns.”
Wednesday, October 26, 2011
Was Qaddafi Overpaid?
By most measures, the former dictator Muammar el-Qaddafi looks to have been overpaid, even as dictators go.
Colonel Qaddafi’s wealth had recently been estimated in the tens of billions. But it now looks as though he could have been worth more than $200 billion.
Obviously, $200 billion, or even $10 billion, is a lot for wealth for one person. But $200 billion is but a fraction of Libya’s national wealth. Its proven oil reserves alone total 46 billion barrels. If those barrels were valued at $100 each, the oil reserves alone would be $4.6 trillion, or 23 times Colonel Qaddafi’s wealth.
In my research on dictators and their public finances, I estimate that, on average, dictators were taking about 3 percent of their nations’ incomes in the form of excessive taxation. Judging from Colonel Qaddafi’s share of Libya’s national wealth, that’s about what he was taking.
Dictators typically spend a lot on the military in order to protect themselves from people who might want to take their lucrative jobs, which itself is a sure sign that a dictator is overpaid. Led by Colonel Qaddafi, Libya’s government spent more of the nation’s income on the military than the average dictatorship does. Libya also spent less of its national income on social security than the typical dictatorship does, although perhaps a bit more than an economically and demographically similar democratic country would.
Colonel Qaddafi’s regime was known to torture and execute its political enemies. So it’s clear that the citizens of Libya were sacrificing too much for their leaders.
What’s less clear is whether the next leaders of Libya will take less or offer better services for the citizens of Libya. Egypt’s experience since Hosni Mubarak shows that the overthrow of a longtime dictator does not by itself bring freedom or democracy. Libya has much more in oil riches than Egypt, and political opponents in Libya are likely to find that wealth worth a violent fight.
Let’s hope that a long, bloody Libyan civil war does not make Colonel Qaddafi’s “fees” for his longtime leadership look cheap.
Wednesday, March 23, 2011
Same Analysis for Iraq
Iraq's situation is not much different. Tsui and I wrote in 2006:
Regime challengers are twice encouraged in Iraq – once by the expected future value of leadership and a second time by political freedoms. Perhaps attempts to grab power in Iraq would have been less intense if the country’s oil assets had not gained so much value since 2003, or entry into the Iraqi political process were as difficult as in neighboring nondemocratic countries.
Don't Hope for Change in Libya
Even as the United States and its allies press their military campaign against forces loyal to the longtime dictator Muammar el-Qaddafi, economic indicators suggest that helping Libyan rebels will neither reduce oppression nor result in democracy for Libya.
Libya’s oil reserves are among the largest and most valuable in the world, and that alone is a big obstacle to democracy. Leaders of oil-rich countries almost always enjoy rich economic rewards, and there’s an endless supply of factions that would, no doubt, like to have those rewards for themselves.
So even if rebel forces succeed under the banner of an essentially democratic revolution in overthrowing Col. Muammar el-Qaddafi, and regardless of whether Libya’s next leader arises from a democracy movement, at some point he is likely to consider political oppression as a survival strategy that helps hold back all his competitors.
For this and other reasons, research in economics and political science has found that democracy’s advances are few in oil-rich countries. Prof. Robert Barro of Harvard found that countries with relatively large net oil exports were less likely to have a democratic national government. Prof. Michael Ross of the University of California, Los Angeles, also found that effect.
Citizens of rich countries like democracy and like to use a lot of energy, so they generally import a lot of oil. The Barro and Ross results are sometimes questioned on the basis that oil exports are a symptom rather than a cause of a country’s political and economic situation.
This is one reason that Prof. Kevin Tsui of Clemson (my former student at the University of Chicago) examined oil reserves rather than net oil exports in a study published in The Economic Journal.
He found that democratization –- the process of moving to fair elections, allowing free speech, free political expression and so on -– was much less likely to occur after a country discovered significant oil reserves, regardless of how much oil the country chose to export.
Libya has other characteristics that make democracy unlikely. It is more Muslim that the average country in the world and more ethnically heterogeneous, and Professor Tsui has found both of these conditions to be associated with less democracy.
If Libya’s rebels are successful, no amount of Allied help will change the country’s location or its basic economics. Nor would it change Libya’s demographics, though perhaps a post-Qaddafi Libya would consist of multiple countries, each more homogeneous than the unified Libya was.
The Allied intervention will not bring Libya peace in the short term, and will not bring democracy in the long term as long as Libya has valuable oil in the ground.