Benjamin Studebaker

Yet Another Attempt to Make the World a Better Place by Writing Things

Tag: Taxation

Why Cryptocurrencies Don’t Work as Currencies

I’ve been surprised lately by the number of people who have brought up or asked me about Bitcoin and other cryptocurrencies. It’s moved me to take a minute to point out why many economists and political economists don’t get excited about them.

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Sarah Huckabee Sanders’ Bar Metaphor Is Really Stupid

A friend of mine recently sent me this clip of White House Press Secretary Sarah Huckabee Sanders attempting to defend President Trump’s “Cut Cut Cut” tax plan with an elaborate bar metaphor. Let’s call it the “Allegory of the Tab”:

A couple days later, my dad told me he heard someone bring this up, as if it were some kind of serious argument for Trump’s plan. I can’t let this stand. The Allegory of the Tab is too reductive, too simplistic, too brain-dead to pass without a post exclusively and entirely about how dumb it is.

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Bernie Sanders: What the Economists are Fighting About

Economists have gotten into a big fight with each other about the potential economic impacts of Bernie Sanders’ proposals. First Gerald Friedman came out with a new paper anticipating a tremendous improvement in economic performance under Sanders. Then four economists (Krueger, Goolsbee, Romer, and Tyson) affiliated with the Obama and Clinton administrations wrote a joint letter asserting that Friedman’s claims “cannot be supported by the economic evidence”. Paul Krugman subsequently took their side on his popular blog. Others have defended Friedman–Jamie Galbraith accuses the four of not having rigorously reviewed the paper, while Dean Baker claims that the New York Times is not giving Sanders’ side a platform and that there’s far more support among economists than we are being led to believe. In the popular press, this argument has rapidly devolved into a question of which authorities are more or less credible. I want to give you something better–a readable analysis of the actual arguments at stake here.

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The 3 Ways Governments Raise Money Part I: Taxation

One of the things I’ve noticed lately is that there is a lot of confusion about how governments finance themselves. Many people try to make sense of the state’s finances by extrapolating from their own experiences with household budgets or running businesses. This leads to a lot of misconceptions, the most prominent of which is the idea that whenever governments borrow money, they must be acting irresponsibly. So I’m embarking on a 3-part series that I hope will clear things up for some people.

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