Last Wednesday the New York Times Economix Blog published an article written by Casey Mulligan that was billed as a summary of how work incentives change employee behavior. I expected Professor Mulligan to educate readers as to how work and compensation incentives change worker behavior and effect business. I quickly realized, however, that the real […] [read full story]
Today Catherine Rampell of the New York Times authored a story in the Week in Review that quoted an economist who stated there are “as many views of the economy going forward as you have letters of the alphabet to describe the recovery”. I was disappointed by the article because rather than focusing on the […] [read full story]
Last Wednesday the New York Times Economix Blog published an article written by Casey B. Mulligan suggesting President Obama should consider letting “a bank panic run its course”. While Dr. Mulligan is an Economics Professor at the University of Chicago and the New York Times is one of the most respected publications in the world, […] [read full story]
Two weekends ago Paul Krugman explained in a New York Times Magazine article that many economists can’t forecast the economy because they have a cultish belief in the nearly always wrong efficient market theory. Mr. Krugman’s solution, an academic exorcism where economists renounce their loyalty to the efficient market theory and swear allegiance to neo-Keynesianism, has created quite a stir in the profession and prompted a number of personal and professional attacks on Mr. Krugman. Unfortunately, both Mr. Krugman and the efficient markets believers are both wrong. The theory is correct but the conditions necessary for the efficient markets theory to work don’t exist. [read full story]
Paul Krugman’s New York Times Magazine article of September 6th maintains that externalities are the most important factor in market failures, but then never considers whether or not large “externalities” caused the failures of 2007. By ignoring externalities, the usually brilliant Mr. Krugman illustrates why economists didn’t see the market crash and Great Recession. The unintended and unrecognized effects of negative externalities were probably the largest factor that contributed to the summer of 2007crash, yet economists virtually ignore these cultural and sociological phenomena that almost resulted in economic seppuku. [read full story]
Paul Krugman’s New York Times Magazine article explaining the dismal state of the economics profession is itself an object lesson in what is wrong with the economics profession. While Mr. Krugman is one of the most talented economists alive, this article isn’t an example of Mr. Krugman at his best. Instead of trying to figure […] [read full story]
How the Credit Crisis Might Help American Manufacturers By Mark Sunshine Mark Sunshine is president of the commercial lending institution First Capital. It’s hard to believe that the banking crisis can be good for anyone, but the credit crunch is starting to help some American companies at the expense of their foreign competitors. Most people […] [read full story]
I am glad to be doing business in the U.S. and I think that the U.S. is going to emerge from the current crisis stronger and more dominant than ever before. David Leonhardt wrote today in the New York Times that the U.S. is “a power that may not stay so super”. I disagree. A […] [read full story]
Gross Domestic Product Two numbers from this week’s GDP release for Q2 2008 caught my eye, (i) exports were up 9.2% and (ii) imports were down 6.6%. For several months I have been discussing improving US global competitiveness and the second quarter GDP release supports my analysis. US exports are surging and US firms are competing […] [read full story]
Today the New York Times published an article titled Agency in Massachusetts Is Stopping College Loans. According to the article approximately 40,000 students that either live or attend school in Massachusetts are just finding out that the Massachusetts Education Financing Authority (“MEFA”) isn’t going to be providing financing for tuition bills that were due in […] [read full story]
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