Monday, August 13, 2018

Not Only the EU but the USA Should have More than One Currency

I quote Arnold Kling about a quote of Paul  Krugman

The quote:
fiat currencies have underlying value because men with guns say they do.
Don’t peek at the answer, which is below the fold.
Hint 1: You may have read the essay by following a link from Marginal Revolution (but I came across the essay earlier from a different link).
Hint 2: I find much to agree with in the essay.

The writer is not otherwise known for libertarian dog-whistling.

Before I looked I guessed an MMTer like Simon Wren-Lewis.

But I agree with Paul Krugman that this is not a problem. On the other hand I think competitive private currencies (also) would be more stable. The problem that I see is people in developed countries  trust Government currency to much and so horde it in a down turn exacerbating the problem, making it so when one bank fails rather than strengthening competing banks it weakens them.

I also think the USA and the EU are too big to each have a single currency. That is because mismanagement by a single central bank, like in 2008 can significantly, hurt the world economy too much. The USA could have 4 or five regional banks and currencies.

Florida Number One in School Measure

Is Florida number one in education? I don't think that there are significant differences between states in education quality, but this is fun for us who live in Florida.
Nevertheless go Florida! We're number one.

Monday, August 6, 2018

Do Workers Get The Same Slice of the Pie They Always Have

I think I saw this same argument from Dean Baker who is considered more left but who I consider willing to look honestly at the data but I cannot find the Baker post.
Her is Scott Winship on the same: 

Workers Get The Same Slice of the Pie As They Always Have

Of the issues Scott mentions I think Dean mostly talked about this: 
Use net GDP to compute productivity rather than GDP, so that income taking the form of depreciation--which does not go to workers or owners but will simply affect future productivity--is excluded from productivity, and

 According to both of them, growth in inequality is mostly about wages. That is CEO's and people like LeBron James, plus on the lower end of the top 20% computer technicians and MD's pulling away from the lower 80% of earners.

I found the Dean Baker post here. The title is: The Struggle to Explain Things That Didn't Happen: The Non-Existent Shift Away from Wages

Also see  6839117979693056