Benjamin Studebaker

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

Tag: Wage Share

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 III: Printing

This is the conclusion of my three-part series on how governments finance themselves. The aim is to clear up the popular misconception that the state’s budget is similar to that of a corporation or a household, that government borrowing is always necessarily a bad thing. Previously we talked about taxation and borrowing–today is all about printing. Read the rest of this entry »

A Stark Response

Recently I made an argument that the minimum wage should rise. In that argument, I sought to refute some of the things fellow blogger Rick Stark said to the contrary. Stark has done me the great honour of a thorough two part response. It demands answer–either I must concede his expanded, larger argument, or I must explain where I differ with it. Having read both posts in their entirety, I find myself still unconvinced. Here’s why.

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