Megan McArdle

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By request

20 Aug 2008 10:53 am

It's a slow news week.  What would y'all like to talk about?

Comments (67)

The effect on airlines and airports of the auctioning of landing slots!

5 completely unrelated topics:

1. Given what you've said about for-profit companies being the main source of medical innovations, do you think it's worthwhile to give money to private medical research foundations like the Michael J. Fox Parkinsons organization?

2. What do you think makes single women in their 30's decide to get pregnant on their own using a sperm donor? Do you think this phenomenon will continue to grow?

3. What are your favorite parts of the Bible?

4. How should unemployment benefits be improved?

5. I think Jonah Goldberg once said the invention of the automobile did more to disrupt traditional societies than any political or legal change. Do you agree?

the economic differences between small businesses and big businesses.

On the left, there's too much anti-business sentiment generated due to the excesses big corporations and directed at small.

On the right, too much protection of business that benefits big and harms small.

I would suggest this creates an environment that discourages the entrepreneurial spirit.

What do you think makes single women in their 30's decide to get pregnant on their own using a sperm donor?

I question whether this trend is really all that significant in terms of numbers. Are there any reliable statistics?

DaveinHackensack

If you weren't an EMH adherent, what are some investment ideas you would consider to take advantage of the global economic macro trends you see?

How much can we afford to allow the Global Warming Hypothesis (aka, the "scientific consensus") to cost us as a nation and society by applying the so-called Precautionary Principle?

JD-

Private research foundations don't do their own research. They raise money, sponsor research, and sponsor (pay for) clinical trials of, among other things, drug candidates that were abandoned for other indications for one reason or another. Many foundations champion the causes of fighting orphan diseases - those with too small a 'client base' to attract much research, both in academia and in pharma research. They generally do very good work, are not polluted by corruption, are staffed in key positions largely by altruistic, motivated, second-career types looking to make a difference, and are in general a terrific place to send your money.

Should government subsidise the arts and sports?

Are they a public good (witness the national pride here in the UK with GB's performance in the Olympics), also do people feel uplifted by their presence?

Is this inconsistent with good libertarian thinking (is there such a thing?)

p.s. Opera in the US may be mainly funded by private donation, but these often attract substantial tax breaks for the donor.

The Fairness Doctrine.

Anti-"gouging" laws.

Your favorite economists, (1) all-time and (2) current (maybe the same).

I have two, Megan.

1) As a small-l libertarian (like you), this part of the election year is usually spent by me growing gradually more and more disappointed in one or both of the presidential candidates. This year, as I already know enough about McCain to never vote for him in a million years, I've only been getting disappointed with Obama. Would you care to discuss his missteps lately vis a vis failing to maintain a moral high ground (Ayers, the racism card, etc.) and do you see this as an almost inevitable polluting of a good and well-meaning man by the political process, or just another example of another politician being shown to be just another politician under scrutiny?

2) Given that the last couple years' weather and some near future forecasts have not gone the way global warming hypothesis supporters expected, what would it take for you to say, "I think I was wrong." Certainly the true believers will smoothly find another crusade without acknowledging what I believe (but am not totally sure) will turn out to be much ado about nothing, but what about you, Megan? Not that you should be there yet, but what would it take, assuming AGW is either wrong or just not a big deal, for you to change your mind?

Michael Webster

Comment on AK Sen's Lecture on "What Do We Want from a Theory of Justice" on iTunes, Stanford, Law.

Austin Goolsby

How much effect does the President have on the economy in general? I think it was either Tyler Cowen or Bryan Caplan who argued that the President's role in economic growth/decline is small enough to be dismissed in our consideration of who to vote for. Basically, we should vote for President based on their Foreign Policy positions. Do you think this is a good approach? In particular, if you're a libertarian who is staunchly pro-market/anti-regulation but also staunchly anti-interventionist/anti-imperial, should you vote for Obama, more in line with the latter postion, or McCain, more in line with the former (but only marginally so it seems)?

JD@11:12--My favorite parts of the Bible are the short books right after Acts... they are really instructional (not that I follow them all that well). I grew up with my dad focusing on the Old Testament.

Dave@11:20--Don't believe in EMH, so, I would be long-term long anyone doing insurance, banking, in Asia, starting with Asian firms. Especially as their market continues to correct.

My question out there:

I read this article about blueberries in Maine. It mentioned bees being used. Does Megan eat blueberries or honey?

Zimbabwe's official inflation rate hitting 11.2 million percent (although some people say that real inflation is over 30 million percent).

Is there anything the world can do (i.e. any solution that has a practical chance)?

Can we at least stop this monster from coming to the US in September to stay in a luxury hotel in New York while his wife goes out and shops?

Is Columbia University planning to invite him to give a lecture?

Um, hello! It's just eight days until college football season starts. Shouldn't we be dealing with important issues like that?

Joe Klein's conscience

Eriver:
Just because there isn't as many hurricanes as was forecast doesn't mean global warming is a hoax. Just ask any scientist in Alaska or Greenland.

Black Political Analysis

Talk about Howard Dean's comments last week on NPR about the GOP being the "white" party.

Finn,

Romans and I/II Cor. always seemed pretty long to me...

Do you think it is at all plausible that current oil producing companies and countries have significant excess capacity that they are not using due to a percieved lack of competition?

Can this be reconsiled with the fact that beyond the short term, keeping oil in the ground in the hope that prices will be higher relative to all other products in the future is a fools game? Keeping oil in the ground exposes people to upside risk, but also to at least equally significant downside risk and prevents the entity from benefiting from the compounding growth on the wealth it creates. This makes it completely irrational not to maximize production.

How would the public react if Bob Barr were allowed to participate in all of the nationally televised presidential debates?

I'd like some investigative journalist to tell me how much money this study cost the public.

How do you feel about such vegan periphery as honey, silk, and pearls. Or, like something someone else said, about plants pollinated by bees or fertilized by cows? Does it matter if the bees are free-range or hired out by a bee keeper? (I'm assuming that no farmer's fields are fertilized by free range cows).

I'm not sure I would call it a slow news week with Russia rampaging through Georgia.

And what about John McCain's lead over Barak Obama in a recent poll? Obama seems to be fizzling. Evidently people are getting tired of all this pretty, but essentially meaningless, talk, eg "hope and change", "we are the change we've been waiting for", and so on, ad nauseaum.

Cardinal Fang

Recommendations for vegan recipes for people who love food. Not fake food, not earnest whole wheat bean sprout cardboard, but food that tastes delicious and happens not to have meat, eggs or dairy in it.

I'm on Day 1 of a twenty one day vegan challenge, and I won't make it to Day 2 unless I can find more appealing recipes. What do vegans eat for breakfast, anyway? OK, hot cereal and fruit, but where does that protein boost come from to take one through the morning?

How important is divided government, compared to the other differences between the presidential candidates?

As the title of the article says: 'McCain's Health Insurance Plan - More Radical then the Democrats?' One can complain that this shifts us to National Health Insurance. It seems however to cleverly use market mechanisms, gets people involved with the costs.

Most of the previous comments have good recommendations. But for something a little different, what about economics in science fiction? After all, isn't economics about alternatives and opportunity costs?

Of course I realize that the collapse of Pakistan's government, Russia and NATO in confrontation, and the return of Arab governments to Baghdad aren't normally in your blogging bailiwick so much as would be, say, the deeping of crises at Lehman, Fannie and Freddie, or record US wholesale price inflation. But still I'm not sure "slow news week" means what you think it means. Maybe some kind of recipe involving fiddleheads would be nice? I've always liked them but never quite found the "right" way to use them.

JKC-

I wasn't referring to the hurricane rate. Everyone knows that both fewer and more hurricanes are evidence of global warming. I was referring to cooler temperatures, and various forecasts of still cooler years to come.

Joe@12:07...

1st and 2nd Corinthians are pretty short.. 15 chapters each...one can read one of those in an hour or two (if still awake).

And Romans is such a pivotal book; it explains (or harmonizes) the place of Jews and Christians under Christian theology. (Rightfully or unrightfully, the Jewish individual will say hogwash to all this, as will atheists). After picking one of the Gospels, and Acts, Romans is probably the next important, as it lays out the theological underpinning for understanding the transition of God choosing Hebrews, to God choosing all, and God's impartiality. It kind of forms an intellectual bridge between both Testaments. Since I tend to think Christian preachers are largely incoherent in how they present Christianity, more focus on Romans would do people some good.

Sorry for the theological drift.

Cardinal Fang, do some googling on "vegan fettucini alfredo". I had house guests who had intestinal issues that required vegan diet adoption and I was stuck making vegan food for a weekend.

Dessert issues also show up quite regularly. Throw some tofu in a blender and add melted (fair trade!) chocolate and refrigerate.

It's almost mousse.

Keep in mind that Cool Whip is a petroleum product!

I'd like to see some blogging on the "pill makes women date the wrong guy" topic that Ta-Nahisi has at the top of his page.

Ditto to a discussion about the role economics has played in sci-fi to date, as well as the role it should play.

Also, Drudge is reporting that Russia has said that the response to the missles in Poland would be "beyond diplomacy".

So it has officially ceased to be a slow news week.

MoeLarryAndJesus

Steve Sailer - white supremacist or garden variety bigot?

Agree with MoeLarryAndJesus

Whether the system used to elect presidents should be reformed and, if so, how so? Broader rumination about the proper role and power of the presidency, a woefully ignored subject in the sea of promises made, would be intriguing as well.

RWE@12:40,

You can keep repeating things like that over and over, without making a point. Both candidates use soundbites, rhetoric, and make mistakes. Instead of painting by numbers, you could go read some policy points that Obama has presented, and tell us why they are bad or better yet, tell us why McCain--in government since forever--will do in the future what he has not done in the past.

McCain may in fact be the better man, but infantilizing Obama or making sweeping conclusions off of polling numbers is not the way to make a point that will convince the unconvinced.

Megan,

If you could make drugs legal how would you do it?

a) All drugs, classifications, ages, other rules?
b) What other changes, legal and administrative, would be necessary first?

Cardinal Fang

Vegan Fettucini "Alfredo" is an illustration of the problem, not a solution. Fettucini Alfredo is a ridiculously rich, ridiculously delicious dish made of fresh pasta (made with egg yolks), heavy cream, butter and Parmesan cheese, and not much else. It's not vegan, and it's never going to be vegan.

These vegan "alfredos" have garlic, broccoli, lemon juice, tahini, corn, all sorts of non-alfredo ingredients. Now, pasta with corn, broccoli and tofu may be delicious, but if it's Fettucini Alfredo, I'm the Czarina of All the Russias.

"Instead of painting by numbers, you could go read some policy points that Obama has presented, and tell us why they are bad..."-Finn

Finn, I could explain to you why raising marginal tax rates (on the rich as well as the poor) as Obama wishes to do would damage growth. Do you really want to me to?

I'll explain briefly for now and in more depth if you wish. Higher marginal tax rates reduce the incentives to work, save and invest, and therefore damage productivity growth. And it is productivity that determines the standard of living over time. So raising marginal tax rates will surely damage the standard of living in America over time.

That's why I prefer McCain's tax plan to Obama's. We don't need higher taxes, we need lower spending. I think the blogger here used to believe that, at any rate before she started swooning for the charismatic but essentially vacuous Obama.

Now Finn, if you could explain to me how raising marginal tax rates would contribute to economic growth, I'd be very obliged.

Steve Sailer - white supremacist or garden variety bigot?

Ho Hum, another person who can't handle the truth who plays "shoot the messenger" as a tactic to silence anyone who assails the left's mindless ideology. If you can point to something specific that Steve is wrong about then let's hear it; otherwise shut up.

Jim Dunn said:
"Um, hello! It's just eight days until college football season starts. Shouldn't we be dealing with important issues like that?"

I agree. I sort of understand why Notre Dame, back when it was a minor Catholic school few people had heard of, embraced football in a big way. But why do some good schools today (along with lots of mediocre ones) stress sports the way they do? Sure, the football teams make money, but sports programs as a whole don't, so going back to sports played by real students would seem to be revenue-neutral, and in any event most of these schools have huge endowments that they "prudently" refrain from spending. But nobody has gone that way since Chicago, long time back. (When I raise this question at Notre Dame, people just look at me funny. And we don't even win much any more).

BTW--I like college football--even the Ivy League version.

MoeLarryAndJesus

michael quotes and writes: "Steve Sailer - white supremacist or garden variety bigot?

Ho Hum, another person who can't handle the truth who plays "shoot the messenger" as a tactic to silence anyone who assails the left's mindless ideology. If you can point to something specific that Steve is wrong about then let's hear it; otherwise shut up."

Hah! Poke the Sailerite nest with a stick and you can always count on one of the drones coming out to attack!

I like how this one implies that "Steve" (because they all think he's their pal) is always right. The infallible white supremacist Steve Sailer! Or is that the infallible garden variety bigot Steve Sailer?

you could go read some policy points that Obama has presented, and tell us why they are bad

I'm not fan of McCain, but Obama's policy points shift so quickly it's hard to do anything more than make generalizations about them. Witness his ankle breaking shifts on Social Security as a case in point.

http://taxvox.taxpolicycenter.org/blog/_archives/2008/8/14/3837670.html

I think its newsworthy that Obama is not ahead by more than 20 points in a year that should be a cakewalk for him. That McCain actually leads in one poll is astonishing, even if it is Zogby.

making sweeping conclusions

I'd say that covers about 90% of the comments here most days

I think its newsworthy that Obama is not ahead by more than 20 points in a year that should be a cakewalk for him.

They said the same thing about Gore; I'm thinking that maybe our notions of "should" need adjustment.

MoeLarryAndJesus

John Mc writes: "I think its newsworthy that Obama is not ahead by more than 20 points in a year that should be a cakewalk for him. "

You're buying in to the MSM's silly season nonsense. Reagan and Carter did this dance in 1980. There's nothing surprising about the polls at all.

Rob,

Don't you think it's a little different than it was with Gore? I mean, maybe Gore supporters felt he should have been up more at the time, but incumbent fatigue was against him. Incumbent fatigue should be helping Obama, but it's not. At least, not from what I can see.

Which policy positions of yours are the biggest departures from standard laissez faire economic ideals?

Is budgeting an item based on a fee designed to reduce a certain bad condition a good idea? example "Meanwhile, the auctions would provide the funds to upgrade America's air traffic control system, which desperately need it." If you auction the slots in order to cut congestion and you succeed in cutting congestion which decreases the value of the slots which decreases the revenue available to upgrade air traffic control systems. All though the money that would have been set aside for upgrades now isn't because it is covered in the auctions. Similarly if we have a windfall profit tax which is designed to reduce excess profits and then schedule the revenue to be disbursed to the needy don't we end up with the needy being left out in the cold?

If you were in charge of NBC, what changes would you make to how the Olympics are covered? It's easy to say the current coverage is overly sappy, jingoistic, and soft on the more oppressive aspects of the Chinese goverment. What do you think would be an entertaining but also honest way to present it?

I'd like to hear your thoughts on the economics of marriage and spouse selection. That's related to the flap the Australian mayor got into this week when he suggested ugly women move to his town because it has a shortage of women.

Daniel Hammermesh wrote about it in the Freakonomics blog, but I think your thoughts on the subject would be especially interesting. You are much closer to the marrying-years demographic.

RWE@12:40,

You can keep repeating things like that over and over, without making a point. Both candidates use soundbites, rhetoric, and make mistakes. Instead of painting by numbers, you could go read some policy points that Obama has presented, and tell us why they are bad or better yet, tell us why McCain--in government since forever--will do in the future what he has not done in the past.

McCain may in fact be the better man, but infantilizing Obama or making sweeping conclusions off of polling numbers is not the way to make a point that will convince the unconvinced.

What is wrong with health-care companies making a boat load of money?

A common bumper sticker ponders what a great world it would be when schools have as much money as they need and the air force has to hold bake sales to buy bombers.

I LIKE having a powerful military, but let's pass over that point.

Isn't health care one of those things, like education, which almost everyone agrees is a good thing? Couldn't we argue that society does not go far enough in rewarding those who work and invest in health care services? Shouldn't biochemists get groups of young, hot, promiscuous groupies? Shouldn't nurses get fawning profiles in celebrity magazines? Shouldn't paramedics be treated like professional athletes are treated now?

Why are health company CEOs vilified? Aren't they giving us the precious gift of life in return for a few measly dollars?

Sorry for the repost... may have refreshed the screen to see new comments. Something is odd at the Atlantic with how this happens.

In any case, thank you RWE@3:01. Now with your response, you have given me something to use, where I can then go and say, "Hmmm, is he right about marginal tax rates? Am I well informed on that?" (Heck no, I am not...)

That tells me that you disagree with an actual policy position and are not just repeating blather.

Dr. Steven J. Balassi

I teach at a private college which is run by the Christian Brothers. A CB is the President of the college and it will most likely always be that way. My question is, is this fair to women or sexist? To be fair, is it fair to men who are not CB’s?

"That's why I prefer McCain's tax plan to Obama's. We don't need higher taxes, we need lower spending."

I'm not so sure. I think McCain is inclined to regulate. Different tool, same results. Only difference is McCain takes it off the fiscal books. I don't trust him on the economy, he's gone all global warmy. He might be just as dangerous as Obama-- unless Obama picks Biden as a running mate, probably nothing could be worse than that.

The effect state Residential Landlord Tenant Acts have on rental housing prices and the concomitant increase in homelessness since their enactment. Just as setting the minimum wage higher than the value of the labor produced discourages employment, setting "habitability standards" slices the bottom off the housing market and forces people from bad housing [slums!] to no housing at all. However this is almost never part of the discussion of the causes of homelessness.

I wonder how we faired the last time marginal tax rates were cut? Everything peachy now? And I wonder how we did at the pre-cut levels. (In terms of growth, jobs, deficits). Just curious.

I tend to assume both candidates will end up spending until we come near collapse. But I rather trust the person who will raise taxes while spending more, than the man who cuts taxes while spending more.

Granted and ideally, cutting taxes AND spending: priceless.

What do you think about Net Neutrality?

Given that about ±50% of NYC housing is rent controlled/stabilized/otherwise subsidized, how does this currently, and how would repeal thereof, affect the free market rent rate?

To what extent do you think that government should subsidize undergraduate / graduate education?

Should government-sponsored community colleges, four year schools, and/or research universities be privatized?

Should higher education be zero-sum, where the direct cost charged to students through tuition and fees meets the shortfall in the projected insitutional budget for the semester after other sources are considered (research grants, foundation funds, bequests, etc.)?

Does the government have a role in covering part or all of the costs charged to academically qualified students making sufficient degree/certificate progress (separate from any private scholarships or grants)?

My own personal thought is that so long as a student is making sufficient progress towards a degree or certificate, the future earnings (and therefore tax base / value) generated, and the potential innovation, exceeds the initial investment. And that there is a place to incentivize entry into certain fields (nursing, engineering, allied health) where supply/demand equilibrium is not being met.

However, I am not a pure economic libertarian, and I realize that sounds like central planning in a way that may or may not make someone with greater economic libertarian tendencies than myself cringe in horror.

Your thoughts?

A few vegan suggestions ideas. First, try Indian food. Learn to cook it and you won't miss meat at all - you will have to cut the ghee, but otherwise most things are vegan. Good dhal goes with everything, and nine jewels is a particular favorite of mine.

As for breakfast protein, think nuts, nut butters (peanut butter and/or cashew butter), or soy milk. Oatmeal or other hot cereals made with soymilk instead of water is quite nice, even if you aren't crazy about drinking soymilk. Or you can learn to eat beans and rice for breakfast.

Most desserts calling for cream or milk work just as well, if not better, when made with coconut milk. Rice pudding made with coconut milk is divine, and coconut lime sherbet/ice cream will make you forget about dairy ice cream.

Another vegan staple has to be hummus. A meal of good homemade hummus (takes less than 5 minutes if you have a food processor - 10 minutes with a potato masher), fresh pita bread, homemade taboulleh, some nice olives and a fresh vegetable plate is a winner.

To grab a question from a grab bag answer thread:

Electoral College vs. Popular Vote

What about the idea of having every state proportion their EC votes instead of winner take all? I believe Maine & Nebraska(?) do this currently. Would this not maintain the small state vs. large state comprimise in the EC while aligning it much more closely to the popular vote? Plus give minority areas (liberals in Texas, conservatives in Washington, etc.) a chance to feel like their vote 'counts'?

Megan, I never know what to ask on these "grab-bag" sorts of things, but I always try to come up with a question, so I'm going to ask you something a little ridiculous:

Is there anything you'd like to talk about that no one ever asks? If so, what is it?

Thanks for the post on auctioning landing slots. If this thread is still open:
What can explain the economics of airline seat pricing? If you read "price theory", you would suspect that seats are priced near marginal cost, and marginal cost is approximately the area that the seat occupies.
Thus a seat with twice the footprint of a coach seat should cost about double. Clearly this is not what is happening.
I see the merits (from the airlines viewpoint) of capturing the "surplus" of the businessman.
What I don't see is any airline trying to sell "comfort coach". (The tiny 'increased legroom' offers of a few airlines don't really count.)

what do you think about cap and dividend as a global warming policy:

http://www.capanddividend.org/

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