One of the less defensible assumptions of microeconomics is that people get paid their “marginal product,” i.e., their wage equals the value of the output they produce. Thus, according to the theory, if the last worker hired is being paid an hourly wage less than the value of the firm’s output per hour, if would… Read more
Over at MSNBC.com, or you could just go with the summary by renowned international economist Dr. John: “refried confusion is makin’ itself clear…wonder which way do I go to get on out of here!” Or, to add a level of complexity, to conflate insolvency with illiquidity is to ask for a protracted mess that delivers more… Read more
And I evaluate it, over at PostEverything.
When, during a public address, I’m asked about the 2009 bank bailouts, I sometimes tell the analogy of the injured dog. Those of us in the first Obama administration were driving along, and saw an injured Doberman on the side of the road. We picked it up and nursed it back to health…and once it… Read more
Give a read to this incisive analysis by Adam Davidson on the challenge of regulating banks. It’s deceptively hard to write about this world as clearly as Davidson does here (I tried to do so in Chapter 7 of The Reconnection Agenda; not sure how well I succeeded). I think his conclusion is unduly pessimistic,… Read more