Economics Roundtable

May 2014 Payroll Employment

After 76 months, we finally got back to the prerecession level of payroll employment.

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The best summary of the state of our economy is the graph (below) of employment as a fraction of population for people over 16 years old. The decrease is large, but the most troubling feature of the graph is the flat trend .

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Graph-of-the-Year Candidates

Donald Marron likes European interest rates. Click on the image to get a bigger version. Can you find three distinct subperiods?

Brad DeLong favors the U.S. gdp gap.

Remember M1?

Money Supply M1 growth is now over 20% per year over a 12 month lag. M1 growth has touched 20% before, but not with excess reserves of $1.6 trillion. Where is M1 headed?

Click on the chart for a larger version.


The Economics Roundtable is sponsored by EconModel.

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Cafe Hayek

September 30, 2014, 8:04 am, 1343621
(Don Boudreaux)

… is from page 146 of Ludwig von Mises‘s 1951 essay “Profit and Loss,” as reprinted in the 2008 Liberty Fund edition of Mises’s 1952 collection, Planning for Freedom:

What has been called the democracy of the market manifests itself in the fact that profit-seeking business is unconditionally ...

September 29, 2014, 10:04 pm, 1343340
(Don Boudreaux)

In a new and, I’m certain, well-researched research paper, Alice Chen, Emily Oster, and Heidi Williams explore reasons why infant mortality is higher in the U.S. than it is in many other developed countries.  (HT Tyler Cowen)  Here’s the abstract:

The US has a substantial – and poorly ...

September 29, 2014, 6:04 pm, 1343239
(Don Boudreaux)

Here’s the text of the truly splendid talk that John Cochrane gave this past Friday at a Hoover Institution conference, in honor of Gary Becker, on inequality.  Two slices:

But there are lots of different kinds of inequality, and an enormous variety of different mechanisms at work. Lumping ...

September 29, 2014, 10:04 am, 1342923
(Don Boudreaux)

Here’s a letter to the New York Times:

In his New York Times blog on Wednesday - in a post entitled “Having It and Flaunting It” – Paul Krugman complained that America’s rich are obsessed with exhibiting their wealth in the form of “ostentatious” consumption.  Indeed, Mr. Krugman asserted that “for ...

September 29, 2014, 8:04 am, 1342842
(Don Boudreaux)

… is the title of Chapter 5 of William Easterly’s excellent 2006 book, The White Man’s Burden:

The rich have markets, the poor have bureaucrats.

September 28, 2014, 12:04 pm, 1342560

September 28, 2014, 8:04 am, 1342468
(Don Boudreaux)

… is from page 43 of George Smith’s 2013 Cambridge University Press volume, The System of Liberty:

Hume argued that the social utility of a juridical system is not due merely to the direct effects of each constituent rule, considered separately and in isolation, but rather to the ...

September 28, 2014, 12:04 am, 1342376
(Don Boudreaux)

… is from page 172 of the must-read lead article in the current issue of The Independent Review by my colleague Chris Coyne and GMU Econ student Abigail Hall, “Perfecting Tyranny: Foreign Intervention as Experimentation in State Control“; this is an essay that deserves the close attention of ...

September 27, 2014, 8:04 am, 1342242
(Don Boudreaux)

… is from page 303 of 2006 Nobel laureate Edmund Phelps’s 2013 book, Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change:​

There are plenty of economies in human history that offer more stability and equality than any modern economy ever did.  But observation over modern history does ...

September 27, 2014, 12:04 am, 1342167
(Don Boudreaux)

… but so, too, has the value of this education.  See this graph offered today by the brilliant Kevin Murphy at a Hoover Institution conference, in honor of the late Gary Becker, on inequality.

This graph shows, for ...