So How Much Should Capital Get? How Much Labour?

This is a useful example of how not to do economics. The set up is, well, labour should get how much of everything? Capital? To work through this we assume the existence of a perfect planner - one who...

Rich People Demand They Are Taxed More – And Fail To Pay More Tax...

A certain group of rich people over in the United States has demanded that there be a wealth tax. That they themselves should be taxed more. OK, so maybe there are arguments that there should be a wealth tax -...

That The Privately Educated Dominate The Top Jobs

From our Swindon Correspondent: The BBC tells us that: A social mobility charity says top professions in the UK are still unduly dominated by people who have gone through private schools and Oxford and Cambridge universities. The Sutton Trust and...

The Confusion Of The Modern Left

Economics isn't everything of course but when we're discussing the structure of the economy it's pretty much everything. Which makes the British left rather more than usually confused. For they've really not grasped the subject at all: There is a...

It’s All Satisfacting And Rules Of Thumb With Human Beings

The complaint that we're not fully rational in our market interactions is entirely true. We don't sit down and calculate everything, we don't do what's "best". We do, however, use rules of thumb to enable us to satisfact. Get...

The More Complicated Trade Gets The More Costly A Trade War

Much international trade is now in "intermediate" goods, rather than finished or raw materials. This globalisation of the value chain makes trade wars far more costly than they were. You know, we should do less of more expensive things?...

We Really Don’t Measure Wealth Properly

It's the Americans who are really going overboard about wealth inequality, here in the UK the polemicists are still warming up. We're rather more shouting about income inequality still. There is though a problem with the basic underlying figures that...

If Only The Guardian Employed An Economist – Instead Of Richard Partington

Richard Partington is the economics correspondent for The Guardian. True, he's a step up from that bird who ended up at Mashable, but still. Richard Partington is the Guardian's economics correspondent. No one who groks economics is going to write something...

Matt Bruenig’s Wealth Calculation – The Rich Gained $21 Trillion, The Poor Lost $900...

The details of anything are tough. Sure, an omelette is just eggs'n'milk'n'butter'n'stuff and yet the number of people who can cook a good one is pitiably small. Baking is entirely a matter of chemistry, get the quantities right and...

Industrial Policy Is Very Difficult – That’s Why Politicians Are The Last People We...

An interesting paper here arguing that industrial policy is what has made the Asian Tigers catch up with the rich world. Arguable, but let's run with it. They also note that industrial policy is very difficult to get right,...

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Language Depends Upon Those Over Processed, Softer, Foods

Or at least the language that we speak today depends upon processed and softer foods that came with the rise of agriculture and static...