Fri May 29 15:08:37 EDT 2015

Items of Interest

Various web links I found to be of interest recently:

  • Can States Boost Growth By Cutting Top Individual Tax Rates?

    Howard Gleckman

    A new paper by my Tax Policy Center colleagues Bill Gale, Aaron Krupkin, and Kim Rueben concludes the answer is "no" to both questions. In the cautious language of academic research: "Our results are inconsistent with the view that cuts in top state income tax rates will automatically or necessarily generate growth."
    But Bill, Aaron, and Kim also have a warning for those who assert that cutting state taxes is good for growth or raising them is bad: All taxes are not alike. It turns out that while individual income taxes don't matter much at all, and corporate taxes may actually boost growth a bit, higher property taxes do seem linked to slower growth though even that relationship seems to change over time.

  • How 'Mathiness' Made Me Jaded About Economics

    Noah Smith

    But the way math is used in macroeconomics isn't the same as in the hard sciences. This isn't something that most non-economists realize, so I think I had better explain.
    In physics, if you write down an equation, you expect the variables to correspond to real things that you can measure and predict. For example, if you write down an equation for the path of a cannonball, you would expect that equation to let you know how to aim your cannon in order to actually hit something. This close correspondence between math and reality is what allowed us to land spacecraft on the moon. It also allowed engineers to build your computer, your car and most of the things you use.
    ... But macroeconomics, which looks at the broad economy, is different. Most of the equations in the models aren't supported by evidence.

  • The Vindication of Edward Snowden

    A federal appeals court has ruled that one of the NSA programs he exposed was illegal.

    Telling the public about the phone dragnet didn't expose a legitimate state secret. It exposed a violation of the constitutional order. For many years, the executive branch carried out a hugely consequential policy change that the legislature never approved. Tens of millions of innocent U.S. citizens were thus subject to invasions of privacy that no law authorized. And the NSA's unlawful behavior would've continued, unknown to the public and unreviewed by Article III courts, but for Snowden's leak, which caused the ACLU to challenge the illegal NSA program.

  • Japanese hotel launches 'crying rooms'

    A hotel in Tokyo is offering rooms designed to allow female guests to "cry heartily" in private

    The crying rooms are the latest in a series of unusual hotels and cafes available in Japan.

  • Vin Scelsa Leaves the Airwaves May 2, 2015

    Vin Scelsa concluded nearly fifty years on New York's airwaves

    "Idiot's Delight" was a wonderful anachronism: unscripted, idiosyncratic, and unashamedly out of step with contemporary listening habits.

  • Why you should really start doing more things alone

    "The reason is we think we won't have fun because we're worried about what other people will think," said Ratner. "We end up staying at home instead of going out to do stuff because we're afraid others will think they're a loser."
    But other people, as it turns out, actually aren't thinking about us quite as judgmentally or intensely as we tend to anticipate. Not nearly, in fact. There's a long line of research that shows how consistently and regularly we overestimate others' interest in our affairs. The phenomenon is so well known that there is even a name for it in psychology: the spotlight effect. A 2000 study conducted by Thomas Gilovich found that people regularly adjust their actions to account for the perspective of others, even though their actions effectively go unnoticed. Many other researchers have since confirmed the pattern of egocentric thinking that skews how we act.

  • GMO Quarterly Letter 1Q 2015

    U.S. Secular Growth: Donkey or Racehorse? -- Jeremy Grantham

    Mainstream economics continues to represent our economic system as made up of capital, labor, and a perpetual motion machine. It apparently does not need resources, finite or otherwise. Mainstream economics is generous in its assumptions. Just as it assumes market efficiency and perpetually rational economic players, feeling no compulsion to reconcile the data of an inconvenient real world, so it also assumes away any long-term resource problems. "It's just a question of price." Yes, but one day just a price that a workable economy simply can't afford!


Posted by mjm | Permanent link | Comments
comments powered by Disqus