This point would have been worth including in a discussion of President Obama’s effort to get China to agree to emission reductions. China remains much poorer than the United States, even though it has surpassed the United States in GDP, because it has four times the population.
Furthermore, many of its emissions are associated with goods that are produced for export to the United States and other countries. In that sense, the United States has effectively exported emissions connected to its own consumption to China. Also, the problem of global warming is associated with the accumulation of carbon dioxide over time. The United States and other wealthy countries have been contributing to this buildup on a large scale for more than a century. If they had not put so much carbon dioxide in the atmosphere, global warming would not be a problem today. China has far to go before it catches up to the United States in total carbon dioxide emissions over time.
This point would have been worth including in a discussion of President Obama’s effort to get China to agree to emission reductions. China remains much poorer than the United States, even though it has surpassed the United States in GDP, because it has four times the population.
Furthermore, many of its emissions are associated with goods that are produced for export to the United States and other countries. In that sense, the United States has effectively exported emissions connected to its own consumption to China. Also, the problem of global warming is associated with the accumulation of carbon dioxide over time. The United States and other wealthy countries have been contributing to this buildup on a large scale for more than a century. If they had not put so much carbon dioxide in the atmosphere, global warming would not be a problem today. China has far to go before it catches up to the United States in total carbon dioxide emissions over time.
Read More Leer más Join the discussion Participa en la discusión
Read More Leer más Join the discussion Participa en la discusión
The Washington Post gave us the ostensibly bad news that home sales were down slightly in August. It later uses as a point of reference the number of mortgages issued in 2001. The housing market had already entered its bubble phase in 2001 with house prices running well above trend levels. If we compare total sales (new and existing homes) with sales in the pre-bubble years 1993-1995, they would actually be somewhat higher today, even after adjusting for population growth.
While there may be an issue of many people being unable to qualify for mortgages because of their credit history, this does not appear to be having a negative effect on the state of market. Prices are already about 20 percent above their trend levels.
It also is not clear that all of the people being denied mortgages are being harmed. Because of the weak labor market, workers often have to move to find or keep jobs. There are large transactions costs associated with buying and selling a home. These average around 10 percent of the purchase price. If a person can’t expect to stay in a home for at least five years they will likely lose by buying rather than renting. it is especially likely they will lose in a context where higher future interest rates, which are almost universally predicted, will put downward pressure on house prices. It is worth noting that many of the people pushing homeownership today were also pushing it as the housing bubble was reaching its peaks in the years 2005-2007.
The Washington Post gave us the ostensibly bad news that home sales were down slightly in August. It later uses as a point of reference the number of mortgages issued in 2001. The housing market had already entered its bubble phase in 2001 with house prices running well above trend levels. If we compare total sales (new and existing homes) with sales in the pre-bubble years 1993-1995, they would actually be somewhat higher today, even after adjusting for population growth.
While there may be an issue of many people being unable to qualify for mortgages because of their credit history, this does not appear to be having a negative effect on the state of market. Prices are already about 20 percent above their trend levels.
It also is not clear that all of the people being denied mortgages are being harmed. Because of the weak labor market, workers often have to move to find or keep jobs. There are large transactions costs associated with buying and selling a home. These average around 10 percent of the purchase price. If a person can’t expect to stay in a home for at least five years they will likely lose by buying rather than renting. it is especially likely they will lose in a context where higher future interest rates, which are almost universally predicted, will put downward pressure on house prices. It is worth noting that many of the people pushing homeownership today were also pushing it as the housing bubble was reaching its peaks in the years 2005-2007.
Read More Leer más Join the discussion Participa en la discusión
There are many issues raised by Uber, Airbnb, and other major companies that are part of the “sharing economy.” For example Uber drivers don’t have to pass the same tests, undergo the same background checks, or carry the same insurance as drivers for traditional taxis. Uber cars also don’t have to meet rules about being handicap accessible.
The same sorts of issues arise with rooms rented through Airbnb. These rooms don’t have to meet the safety and accessibility standards imposed on hotels. Also, many people living in apartment buildings rent out rooms, creating a nuisance for their neighbors who didn’t expect to be living in a hotel.
These and other issues have been raised by people concerned about the spread of the sharing economy in both Europe and the United States. The NYT has however determined that these concerns are not real, telling readers:
“As in the United States, where tech start-ups have also faced legal challenges, the wide-ranging response in Europe often comes down to whether lawmakers view the companies as a threat to local businesses or an opportunity to improve economic growth.”
Apparently the NYT believes that people who raise concerns about hotels being accessible to people with disabilities or that they should not be fire hazards are actually only interested in protecting existing businesses. That’s an interesting position to express in a news article.
There are many issues raised by Uber, Airbnb, and other major companies that are part of the “sharing economy.” For example Uber drivers don’t have to pass the same tests, undergo the same background checks, or carry the same insurance as drivers for traditional taxis. Uber cars also don’t have to meet rules about being handicap accessible.
The same sorts of issues arise with rooms rented through Airbnb. These rooms don’t have to meet the safety and accessibility standards imposed on hotels. Also, many people living in apartment buildings rent out rooms, creating a nuisance for their neighbors who didn’t expect to be living in a hotel.
These and other issues have been raised by people concerned about the spread of the sharing economy in both Europe and the United States. The NYT has however determined that these concerns are not real, telling readers:
“As in the United States, where tech start-ups have also faced legal challenges, the wide-ranging response in Europe often comes down to whether lawmakers view the companies as a threat to local businesses or an opportunity to improve economic growth.”
Apparently the NYT believes that people who raise concerns about hotels being accessible to people with disabilities or that they should not be fire hazards are actually only interested in protecting existing businesses. That’s an interesting position to express in a news article.
Read More Leer más Join the discussion Participa en la discusión
Read More Leer más Join the discussion Participa en la discusión
Josh Barro has an interesting article noting how conservatives in the U.S. appear to have a love affair with Canada, based on its tax cuts and promotion of fossil fuel production. Barro points out that a big part of Canada’s low-cost government is its single payer, or universal Medicare, system. According to the OECD, Canada spends 10.4 percent of its GDP on health care (mostly from the government) whereas the U.S. spends 16.2 percent of GDP (a bit more than half from the government). The difference would come to more than $1 trillion a year in the current U.S. economy.
The housing bubble is the other striking story of the Canadian economy. The ratio of house prices to rent has more than doubled since the turn of the century. When this bubble bursts, Canada is not likely to look very pretty.
Josh Barro has an interesting article noting how conservatives in the U.S. appear to have a love affair with Canada, based on its tax cuts and promotion of fossil fuel production. Barro points out that a big part of Canada’s low-cost government is its single payer, or universal Medicare, system. According to the OECD, Canada spends 10.4 percent of its GDP on health care (mostly from the government) whereas the U.S. spends 16.2 percent of GDP (a bit more than half from the government). The difference would come to more than $1 trillion a year in the current U.S. economy.
The housing bubble is the other striking story of the Canadian economy. The ratio of house prices to rent has more than doubled since the turn of the century. When this bubble bursts, Canada is not likely to look very pretty.
Read More Leer más Join the discussion Participa en la discusión
The NYT had a fascinating piece on medical care freelancers: health care professionals of various types who show up at hospitals and pass along huge bills to patients undergoing treatment. According to the article these contractors generally do not make their employment status known to patients at the time, so they would reasonably assume that they are hospital staff who would be covered under normal billing procedures. Patients often first discover that this is not the case when they get bills for services, which can run into the tens or hundreds of thousands of dollars.
The piece explains that there have been some efforts to regulate these practices, but the industry has been largely successful in blocking serious restrictions. This presents another case of the enormous potential gains from free trade in health care. Other wealthy countries do not have medical scammers running around in their hospitals. If people could arrange to go to Canada, Europe, and many of the top notch facilities in the developing world, they could save a huge amount on their procedures, even after covering the cost of travel for themselves and their family members. Large-scale trade would likely put the medical scammers in the United States out of business quickly, since hospitals that did not bar them would not be able to get any patients.
Unfortunately, protectionists largely dominate public debate so freer trade in health care is almost never discussed. Economists like to help the protectionists in this respect by politely agreeing not to discuss trade in medical services. This makes it easier for them to say silly things about inequality being due to globalization and technology. They get to conveniently ignore the fact that our doctors make twice as much as doctors in other wealthy countries, not because of technology and globalization, but because they enjoy protection from international competition.
The NYT had a fascinating piece on medical care freelancers: health care professionals of various types who show up at hospitals and pass along huge bills to patients undergoing treatment. According to the article these contractors generally do not make their employment status known to patients at the time, so they would reasonably assume that they are hospital staff who would be covered under normal billing procedures. Patients often first discover that this is not the case when they get bills for services, which can run into the tens or hundreds of thousands of dollars.
The piece explains that there have been some efforts to regulate these practices, but the industry has been largely successful in blocking serious restrictions. This presents another case of the enormous potential gains from free trade in health care. Other wealthy countries do not have medical scammers running around in their hospitals. If people could arrange to go to Canada, Europe, and many of the top notch facilities in the developing world, they could save a huge amount on their procedures, even after covering the cost of travel for themselves and their family members. Large-scale trade would likely put the medical scammers in the United States out of business quickly, since hospitals that did not bar them would not be able to get any patients.
Unfortunately, protectionists largely dominate public debate so freer trade in health care is almost never discussed. Economists like to help the protectionists in this respect by politely agreeing not to discuss trade in medical services. This makes it easier for them to say silly things about inequality being due to globalization and technology. They get to conveniently ignore the fact that our doctors make twice as much as doctors in other wealthy countries, not because of technology and globalization, but because they enjoy protection from international competition.
Read More Leer más Join the discussion Participa en la discusión
Gretchen Morgenson had a good piece on the decision by the California Public Employees Retirement System (Calpers) to stop investing in hedge funds. She pointed out that such investments have been big losers for pension funds since the money transferred to the managers vastly exceeded any investment gains.
Interestingly, just last week the NYT praised to the sky Rhode Island’s Treasurer and now Democratic gubernatorial candidate Gina Raimondo for a pension “reform” strategy that put much of the state’s pension funds into hedge funds. Apparently, public subsidies for Wall Street still rank as an important policy goal in some circles.
Gretchen Morgenson had a good piece on the decision by the California Public Employees Retirement System (Calpers) to stop investing in hedge funds. She pointed out that such investments have been big losers for pension funds since the money transferred to the managers vastly exceeded any investment gains.
Interestingly, just last week the NYT praised to the sky Rhode Island’s Treasurer and now Democratic gubernatorial candidate Gina Raimondo for a pension “reform” strategy that put much of the state’s pension funds into hedge funds. Apparently, public subsidies for Wall Street still rank as an important policy goal in some circles.
Read More Leer más Join the discussion Participa en la discusión
People often confuse percent and percentage points. (I’ve even done it myself.) It makes a big difference. The Wall Street Journal told readers about G-20 plans to increase growth by 2 percent.
If this is accurate, then the goal is to have growth that is 2.0 percent faster than the baseline. In the U.S. case the baseline projections for annual growth are a bit more than 2.0 percent. The G-20 plans would then raise this figure by 0.04 percentage points. That would be nice, but not a terribly big deal. After a decade, GDP would be 0.4 percent higher than in the baseline scenario, a bit less than the economy grows in a normal quarter.
Alternatively, the article could have meant increasing growth by 2.0 percentage points. That would raise growth from the baseline of 2.0 percent to 4.0 percent. That would be a big deal, but doesn’t sound very plausible. A big stimulus could perhaps do this for a year or two, but no one seems to be talking about increasing the deficits by $300 billion or $400 billion.
Anyhow, it is difficult to understand what the agenda of the G-20 is supposed to be. Perhaps the use of percent is correct, but if so, we are probably wasting our money sending our leaders to focus on such small stakes.
People often confuse percent and percentage points. (I’ve even done it myself.) It makes a big difference. The Wall Street Journal told readers about G-20 plans to increase growth by 2 percent.
If this is accurate, then the goal is to have growth that is 2.0 percent faster than the baseline. In the U.S. case the baseline projections for annual growth are a bit more than 2.0 percent. The G-20 plans would then raise this figure by 0.04 percentage points. That would be nice, but not a terribly big deal. After a decade, GDP would be 0.4 percent higher than in the baseline scenario, a bit less than the economy grows in a normal quarter.
Alternatively, the article could have meant increasing growth by 2.0 percentage points. That would raise growth from the baseline of 2.0 percent to 4.0 percent. That would be a big deal, but doesn’t sound very plausible. A big stimulus could perhaps do this for a year or two, but no one seems to be talking about increasing the deficits by $300 billion or $400 billion.
Anyhow, it is difficult to understand what the agenda of the G-20 is supposed to be. Perhaps the use of percent is correct, but if so, we are probably wasting our money sending our leaders to focus on such small stakes.
Read More Leer más Join the discussion Participa en la discusión
We are used to politicians making bizarre distinctions, but we expect a little better from the NYT. Therefore many readers were probably surprised to see the NYT imply that the Affordable Care Act (ACA) does not affect women in an article reporting on former Secretary of State Hillary Clinton’s campaigning for Democratic candidates.
“Democrats in several key Senate races have attempted to shift the debate from President Obama and the Affordable Care Act to issues affecting the key constituency of women, whose votes could sway close races.”
Separating the ACA from issues that affect women is really almost otherworldly, given the importance of health care, especially to mothers of young children. In fact, our analysis of changes in voluntary part-time employment showed a sharp jump in the number of young parents in this category in 2014 compared with 2013. The implication is that many parents of young children prefer to work part-time in order to spend more time with them. The ACA gave them this opportunity since they can now get insurance through Medicaid or the exchanges and therefore are not dependent on employer provided health insurance. Generally workers have to work full-time to qualify for employer provided insurance.
None of the policies that the NYT refers to as affecting women are likely to have as much impact on the lives of most women as the ACA. The Democrats may for whatever reason not want to talk about the ACA, but the NYT should not play along with their silliness.
We are used to politicians making bizarre distinctions, but we expect a little better from the NYT. Therefore many readers were probably surprised to see the NYT imply that the Affordable Care Act (ACA) does not affect women in an article reporting on former Secretary of State Hillary Clinton’s campaigning for Democratic candidates.
“Democrats in several key Senate races have attempted to shift the debate from President Obama and the Affordable Care Act to issues affecting the key constituency of women, whose votes could sway close races.”
Separating the ACA from issues that affect women is really almost otherworldly, given the importance of health care, especially to mothers of young children. In fact, our analysis of changes in voluntary part-time employment showed a sharp jump in the number of young parents in this category in 2014 compared with 2013. The implication is that many parents of young children prefer to work part-time in order to spend more time with them. The ACA gave them this opportunity since they can now get insurance through Medicaid or the exchanges and therefore are not dependent on employer provided health insurance. Generally workers have to work full-time to qualify for employer provided insurance.
None of the policies that the NYT refers to as affecting women are likely to have as much impact on the lives of most women as the ACA. The Democrats may for whatever reason not want to talk about the ACA, but the NYT should not play along with their silliness.
Read More Leer más Join the discussion Participa en la discusión
