Wednesday, March 20, 2019

BREAKING Fed Leaves Rates Unchanged


As broadly expected, following a meeting of the FOMC, the Federal Reserve monetary policy-setting committee, the Fed has announced that it will maintain the interest rates it controls at current levels.

The target rate for the Fed funds rate will remain between 2.25% and 2.50%.

-RW

UPDATE HOT:

Karl Marx Call Your Office, Urgent!

Karl Marx, wage theorist
Apparently, sports owners are not doing a very good job of exploiting their workers.

It appears that Los Angeles Angels center fielder Mike Trout will be living above the subsistence level that Karl Marx said is the level at which capitalists pay workers.

Marx wrote in Economic and Philosophic Manuscripts of 1844:

DiLorenzo on Krugman, Academic Economists and the Younger Generation of Econ Ph.D.s

As part of an email exchange with Tom DiLorenzo as a follow up to the post, DiLorenzo vs. Krugman on Krueger, Tom had this to say (posted with permission).

Tuesday, March 19, 2019

Hayek on Fire!!



Austrian school economist and Noble Prize winner Friedrich Hayek’s typewriter was expected to sell at a Sotheby's auction for less than $2,000. It sold for $24,937.

And then it got really crazy.

DiLorenzo vs. Krugman on Krueger

Tom DiLorenzo called it.

It shows the sad state of mainstream economics profession when Dilorenzo has to state the obvious and then provide a warning:

Trump's Fake Trillion Dollars in Budget Revenue

Should President Trump's budget revenue projections be considered a combover?

His budget blueprint for the next decade relies on up to $1.2 trillion in revenue that might not materialize, reports The Wall Street Journal.

A Reverse Austrian Business Cycle Theory?

By Robert Wenzel

Tyler Cowen drops the below post with his limited comment to start:
A Reverse Austrian Business Cycle Theory

Monday, March 18, 2019

Obama White House Economist Alan Krueger Dead at 58; Held Odd View on the Impact of Minimum Wage Laws

Alan Krueger and President Obama
UPDATE Below: Family says it was a suicide. 

Alan Krueger, chairman of the White House Council of Economic Advisers during the Obama administration has died at age 58, Princeton University said in a statement.

Harvard Prof Smacks The New York Times

Greg Mankiw
Harvard professor and big-time economics textbook author Greg Mankiw is out with a new essay, Reflections of a Textbook Author.

In the piece, he claims his textbooks are fair and balanced:

Sunday, March 17, 2019

The Wonderful World of Money Printing in Pre-Revolution Massachusetts (According to MMTers)

By Robert Wenzel

Was there an early successful application of Modern Monetary Theory in the pre-revolutionary American colonies?

What is the Difference Between Socialism and Democratic Socialism?

Below is a discussion about socialism and democratic socialism. Plus, if profit isn't the exploitation of labor, what is it?



-RW

Saturday, March 16, 2019

The One Paragraph That Exposes the Many Problems with Modern Monetary Theory

Updated with 1931 quote from Mises.

James K. Galbraith, MMTer and a professor at the Lyndon B. Johnson School of Public Affairs, University of Texas at Austin, writes at Project Syndicate in defense of Modern Monetary Theory:

Now, Warren Buffett Smashes Modern Monetary Theory

Warren Buffett
I have never considered multi-billionaire Warren Buffett to be particularly sound when it comes to economics.

He is very shrewd when it comes to investing but he certainly didn't get his father's genes when it comes to economics.

Friday, March 15, 2019

Noah Smith's Rejection of "Bloodless Abstractions" and Harvard's Next Econ 10 Professor

Harvard University
By Robert Wenzel

Bloomberg columnist Noah Smith has gone on a screed calling for Harvard to replace the departing Econ 10 professor Gregory Mankiw with a professor with a more empirical-leaning viewpoint.

Current Day Democrats and Republicans: "They are all a bunch of socialists."

Richard Ebeling emails:

Dear Bob,

I have a new article on the website of the American Institute for Economic Research (AIER) on, “Political Contests are Between Competing Socialisms.” 

We are already in the 2020 presidential election cycle, with the results of the last congressional voting only a few months old. Democrat candidates for their party’s nomination are falling over each other with promises for bigger and more controlling government. While president Trump pursues his neo-mercantilist agenda to make America great again. 

When everything Democrats and Republicans say and propose are placed next to each other there is one common denominator:

Alan Blinder Gives Advice to Democrats on How to Not Look Socialist While Calling for Socialists Policies

Alan Blinder
Alan Blinder, a professor of economics and public affairs at Princeton University, a former economic adviser to Hillary Clinton and a former vice chairman of the Federal Reserve, writes in The Wall Street Journal:

Thursday, March 14, 2019

Gary Cohn Rips Trump Trade Advisers

Peter Navarro with Wilbur Ross
and the President
Former White House chief economic advisor Gary Cohn let it rip during a  "Freakonomics" radio interview that was broadcast today.

THE TAKEOVER: Amazon Warehouse Robots

Menial work being done by robots. Heroic!



-RW

Training the Bastard Algorithms: It Works!

As a follow up to my post, Personal Alertness and Beating the Algorithms, Brad A. emails:
Hi Bob,

Your blog last week was spot on...  I didn't even make a purchase though.  I went to JoS. A. Bank's website and searched a bit, did a Google search and an Amazon search and a few days later... I get the below ads.