Frederick W. Kagan has an article in National Review Online that attempts to refute some of the antiwar arguments about Iraq. I haven't read the whole thing---It's a huge piece that covers a lot of ground, and some of it may even be correct---but there's a pretty glaring example of the broken-windows fallacy in the first section: The "$3 trillion war." Simplistic economic … [Read more...] about Broken Windows and the Iraq War
Economics
What’s Up With Bear Stearns?
I've been trying to make sense of what the Federal Reserve has been doing with Bear Stearns. My usual source for smart thinking about financial issues, Kip Esquire, is so far silent, so I'm trying to figure this out myself. It's not going well. The argument against government bailouts of private businesses is that it's a bad idea for the government (even in the form of the … [Read more...] about What’s Up With Bear Stearns?
Why I Love Economics
Over at Simple Justice, Gritsforbreakfast left this comment: My college major was economics, and I was downright angry when, after learning all the theory, it became clear that nearly every "assumption" economists said make free markets "work" was actually, demonstrably false. E.g., people have perfect information, make rational choices that maximize their self-interest, etc.. … [Read more...] about Why I Love Economics
Market Failure in 22-inch Winter Wiper Blades?
Chicago just got hit with some more snow, and I realized I need new wiper blades on my car. The ones I have now are not winter blades, so ice builds up in the wiper frame and prevents it from applying even pressure, allowing ice and sleet to remain on the window. My Camry bit the dust with serious engine problems about a month ago (my mechanic says it's a "spun bearing," but … [Read more...] about Market Failure in 22-inch Winter Wiper Blades?
An Unbearable Lightness of Brains
I speak, of course, of our Congress. They've actually gone and outlawed the light bulb. Thomas Edison's lightbulb. I don't want to alarm you. They haven't gone and outlawed all illumination, they're only after your conventional incandescent light bulbs. They still want us to buy energy efficient compact flourescent bulbs. You know, to save energy. I have no clue … [Read more...] about An Unbearable Lightness of Brains