Tag Archives

Archive of posts published in the tag: John Cochrane

Inflation and MMT

Descriptive powers do not naturally unfold into predictive accuracy. Models by their nature must eliminate variables that can be critical. An economy as large and as dynamic as ours is a wonderful and complicated thing and not cooperative to descriptions and predictions according to simple models.

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The Seduction of Hidden Costs

“There are no solutions, only tradeoffs.” Could the tax credits granted to the wealthy for historical renovation serve us better if it was used to provide health care for the poor? Could it be better served invested in a productive enterprise innovating new products, generating economic growth and dividends which will provide additional tax revenue instead of less?

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It’s the Entitlements, Stupid

“The long run budget problem has essentially nothing to do with the Trump tax cut. It has been brewing under Bush, Obama, and Trump. It fundamentally comes from growth in entitlements an order of magnitude larger. “

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Tax Math Reality

“A key principle here is that the overall marginal tax rate matters.  There is a tendency, especially on the left, to quote only the top Federal marginal rate of about 40%, and to say therefore that high income Americans pays less taxes than most of Europe. But that argument forgets we also pay state and sometimes local taxes.”

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Tax Cut Fallacies

from John Cochrane
“The larger economic point: In the end, investment in the whole economy has nothing to do with the financial decisions of individual companies. Investment will increase if the marginal, after-tax, return to investment increases. Lowering the corporate tax rate operates on that marginal incentive to new investments. It does not operate by “giving companies cash” which they may use, individually, to buy new forklifts, or to send to investors. Thinking about the cash, and not the marginal incentive, is a central mistake. (It’s a mistake endemic to Keynesian economics, but the case here is supply-side, incentive oriented.)”

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Why Social Media is a Sucker for Bad Reporting

The point is that the subject is much more complicated than most are willing to accept. Even the most respected journalists are seduced more by the political angle than accuracy and open mindedness.  This travesty is multiplied thousands of times on the social media by the lazy who read for confirmation rather than information.

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A Health Care Reader

The health care debates are particularly contentious because they are a focus of the fundamental philosophical differences in political and economic thinking.  While activists insist they are only trying to be pragmatic in providing care for all, they remain hostage…

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Economic Bullshit Detectors

From The Grumpy Economist, a review/ commentary  by John Cochrane on an essay by Russ Roberts on Economic Humility In sum, I think economics provides an excellent set of bullshit detectors. This is my stock answer about my own professional expertise.…

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The Original Sins of Health Care

from John Cochrane at The Hill, Here’s what healthcare looks like in a perfect world: It’s wiser to start with a vision of the destination. In an ideal America, health insurance is individual, portable, and guaranteed renewable. It includes the right…

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The Point of an Election

An old post from The Grumpy Economist, John Cochrane, Why the Electoral College Is a Great Idea But every theorem has assumptions. The median voter theorem assumes that political outcomes can be placed on a one-dimensional line, and that preferences are “single…

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A Thousand Little Messes

Some advice for the new president from economist John Cochrane in the Wall Street Journal, Don’t Believe the Economic Pessimists: Health. Replace ObamaCare with a simple health-insurance voucher. Deregulate insurance and entry into health care dramatically. Finance. Replace strangling regulation of financial companies…

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A Better Way to Tax the Rich

Some advice for the new president from economist John Cochrane in the Wall Street Journal, Don’t Believe the Economic Pessimists: The ideal tax system raises revenue for the government while distorting economic decisions as little as possible. A pure tax…

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Hypocrisy Knows No Bounds

  If a doctor of oncology treats a thousand patients, but five hundred of them die, is he still a good doctor? If a preacher saves a thousand souls but one hundred end up in hell is he still a…

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The Home Ownership Myth

from The Wall Street Journal, The Housing Non Crisis The home ownership rate is a largely meaningless statistic that has more to do with politics than economics. For starters, it promotes the myth that owning a home is the key…

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A Thousand Course Smorgasboard

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal The rest of Mrs. Clinton’s economic agenda is a thousand-course smorgasbord of government expansions, with the same deficiencies. A random sample: Higher taxes on capital gains and corporations.…

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Hillary’s World

From John Cochrane at The Grumpy Economist,  Clinton Plan: There are no numbers here anywhere. The $275 billion is clearly just a made up number that sounds sort of big but not so big as to attract tax-and-spend criticism. Because…

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A Veneer of Public Purpose

From John Cochrane at The Grumpy Economist, Micro vs. Macro: The cause of sclerotic growth is the major economic policy question of our time. The three big explanations are 1) We ran out of ideas (Gordon); 2) Deficient “demand,” remediable…

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Bridges to Stagnation

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal America’s foremost economic problem is sclerotic growth. If the economy continues to expand at only 1% to 2% a year, instead of the historical 3% to…

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Fix the Structure of Government

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal Her speech Thursday at least identifies the problem: “Powerful special interests and the tendency to put ideology ahead of political progress have led to gridlock in Congress.” To…

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Losing Your Special Deal

from The Wall Street Journal, Ending America’s Slow Growth Tailspin, by John H. Cochrane Most of all, the country needs a dramatic legal and regulatory simplification, restoring the rule of law. Middle-aged America is living in a hoarder’s house of a…

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