ordnungsokonomik:

Blogger Lord Keynes made a post last year on Gardiner Means’ theory of “administered pricing.” LK explains the concept:

Administered price theory was developed in the early 1930s, and noted how many industrial prices are deliberately set by private businesses, tend to be relatively

minarchist:

creatingatlantis:

minarchist:

Scotland voters are to the left of the UK population and they receive more in benefits than they pay in. So why do people want them to stay?

Britain loses access to their claim of the North Sea Oil if Scotland secedes. Scotland is the biggest producer of gas in the EU.
http://fortune.com/2014/09/12/scotland-uk-energy-north-sea/

Kind of hope it happens. I always tend to lean in favor of any action that decentralizes power.

In principle I agree, it’s always great to see a move toward decentralization. Yet on the other hand I think both places will be worse off from this. Britain loses out on energy and Scotland loses out on all the benefits from Britain’s most productive. My guess is that if it goes through there will still be extensive and generous deals between the two in trade and finance to mitigate uncertainty from the change. Like an energy for cash special deal.

Tags: scotland

minarchist:

Scotland voters are to the left of the UK population and they receive more in benefits than they pay in. So why do people want them to stay?

Britain loses access to their claim of the North Sea Oil if Scotland secedes. Scotland is the biggest producer of gas in the EU.
http://fortune.com/2014/09/12/scotland-uk-energy-north-sea/

ordnungsokonomik:

dentonsocialists:

From the ISO’s kick-off forum “Why You Should Join the Socialists & Change the World”.

"Starbucks baristas make about $9/hr. If they make 3 drinks for $5 each, they pay for their hour of their labor & supplies. At 5 drinks they pay for themselves & a coworker. At 10 the whole store for an hour. At peak hours they make 2-300 drinks & see none of the profits. Every drink after 3 is theft."

Firstly, does each separate employee at Starbucks really make one drink every 18 seconds (60*60/200 = 18) for the entire time they’re working? That sounds like a gross exaggeration.

Secondly (this is so obvious it’s embarrassing to point it out) to make a coffee involves an enormous production process. The milk, the sugar, the coffee beans, the machines, the building, the land, the machines that made the machines, the transportation costs, the plastic for the cup, the machines that made the buildings for the chemicals that produced the plastic, and so on—all of these costs come together to form the price. Are you really so dense that you think the person who assembles the final pieces together is wholly entitled to the value of the coffee?

Thirdly, have you actually bothered to look at the real profit margins? Starbucks makes a margin of about 12%. Not 11000%, 12%. And this 12% is a quasi-rent (it doesn’t include the sunk costs), over the long-run the “true” profit is only the rate of interest which is normally around 3%. It’s unreal that someone could be this stupid.

theonion:

Millions of citizens nationwide could be heard muttering “God, why are you so stupid?” to themselves after realizing they had looked to an elected official for some kind of solution.

theonion:

Millions of citizens nationwide could be heard muttering “God, why are you so stupid?” to themselves after realizing they had looked to an elected official for some kind of solution.

Evidence that the private sector is so much more efficient than the public sector led economist Thomas Borcherding (The Sources of Growth in Public Expenditures in the U.S., 1902-1970, Duke University Press, 1977) to conclude a “Bureaucratic Rule of Two: Removal of an activity from the private sector to the public sector will double its unit costs of production.” The astounding claim of “Rule of Two” is a testable hypothesis, one that Professors James T. Bennett and Manuel H. Johnson, who later became Vice Chair of the Federal Reserve, set out to examine with real world empirical evidence (see Better Government at Half the Price, 1981).

Bennett and Johnson evaluated a wide range of services and found the following examples:

  • Private refuse collection firms provided twice the service at half the cost;
  • Private fire service firms operated at half the costs of public fire departments;
  • Private debt collectors could operate at 40% of the cost of a government agency;
  • It costs the government three times more to repair a similar sized ship than a commercial ship repair enterprise;
  • Federal hydroelectric plants were significantly higher cost to operate and had nearly 50% more employees;
  • Private airlines consistently outperformed government-owned airlines, leading to sweeping trend of deregulation across the globe;
  • Weather forecasting costs were cut in half when a portion of the costs were outsourced to a private firm;
  • Policing services, and more commonly, private ambulance services, undercut the cost of publicly provided services; and
  • Amid the falling quality of public schools and calls for vouchers, there is evidence that public institutions employ 40% more labor than private institutions.

(Source: ordnungsokonomik)

eltigrechico:

she was too awesome for this shit world

(Source: breatherunlive)

sniffing:

distressed—teens:

ddaughter:

i think its dumb if drug dealers get sentenced to longer in prison that rapists?? like people ask for drugs but no one asks for rape???

Finally someone said it.

(via minarchist)

minarchist:

"Don’t hire more police officers just teach the criminals not to commit crimes!"

fatal-conceit said: Could you go through in a bit more detail your criticisms of Austrian Economics?

ordnungsokonomik:

Some points of disagreement:

  1. I think the “a priori” only contains tautological systems such as mathematics and formal logic. There is a very solid philosophical wall which prevents concrete facts of experience from being derived through pure logic. Tautological (a priori true) systems are by their nature consistent with any set of facts. For this reason I reject praxeology.
  2. Since factual theories are not a priori true, I think such theories ought to be tested against empirical statistical evidence. Theories that are unable to be tested by statistical evidence are sterile. Furthermore, evidence ought to be the guide for theorising.
  3. I think the mathematical method is very useful in economics. Many things are difficult to grapple with only verbal logic. However I agree that mathematics should be used with great caution.
  4. I find Rothbardian economics to be dogmatic and myopic. It has essentially walled itself off from the remainder of the field meaning that innovative ideas never reach it or are treated with hostility. For example, there is really no justification whatsoever for the Rothbardian hostility towards public choice theory, game theory, the random walk hypothesis, search theory, and the Coase Theorem.
  5. Rothbard’s rejection of the idea of public goods and externalities, as well as his treatment of monopoly theory, is pretty much indefensible.
  6. I also think the Economic Calculation Problem is overrated. To illustrate, imagine the politburo is deciding how much food to produce. All they need to do is work out their population size, work out how many calories people ought to consume, what is a healthy diet, and then they know roughly how much ought to be produced. Austrians often make it sound like the reason there were famines in the Soviet Union is because they didn’t know how much food to produce, which sounds ridiculous when stated explicitly.

I have many other more minor disagreements.

ichosethesassylife:

cobra-23:

rider650:

Gedankenfutter für Waffengegner.

That’s like comparing a whale to a salmon….

Population of Germany = Approx. 82,678,629 (2014)Population of USA = Approx. 318,892,103 (2014)BRITAIN DOESN’T ALLOW THEIR POLICE OFFICERS TO CARRY GUNS SOOOOO WHY ARE THEY ON HERE?? BUT IN 2012/13 THERE WERE 30 DEATHS ARISING FROM POLICE PURSUITS, 15 DEATHS IN OR FOLLOWING POLICE CUSTODY, AND 21 OTHER DEATHS FOLLOWING POLICE CONTACT (SOURCE). 
ALSO I WOULD LIKE TO MENTION THAT THAT NUMBER FOR JAPAN IS INCORRECT. ACCORDING TO THE JAPAN TIMES, TWO PEOPLE DIED AFTER BEING SHOT BY POLICE DURING A PROTEST 4 DAYS AGO. 
JUST SAYINGGGG. BEFORE YOU POST DO YOUR RESEARCH.

ichosethesassylife:

cobra-23:

rider650:

Gedankenfutter für Waffengegner.

That’s like comparing a whale to a salmon….

Population of Germany = Approx. 82,678,629 (2014)
Population of USA = Approx. 
318,892,103 (2014)

BRITAIN DOESN’T ALLOW THEIR POLICE OFFICERS TO CARRY GUNS SOOOOO WHY ARE THEY ON HERE?? BUT IN 2012/13 THERE WERE 30 DEATHS ARISING FROM POLICE PURSUITS, 15 DEATHS IN OR FOLLOWING POLICE CUSTODY, AND 21 OTHER DEATHS FOLLOWING POLICE CONTACT (SOURCE). 

ALSO I WOULD LIKE TO MENTION THAT THAT NUMBER FOR JAPAN IS INCORRECT. ACCORDING TO THE JAPAN TIMES, TWO PEOPLE DIED AFTER BEING SHOT BY POLICE DURING A PROTEST 4 DAYS AGO. 

JUST SAYINGGGG. BEFORE YOU POST DO YOUR RESEARCH.

(via minarchist)

fatal-conceit:


Here is some evidence that the government would win. For 19 OECD countries for which there is good data back to the 1960s, I plotted the average corporate tax rates and average corporate tax revenues. The chart illustrates the Laffer effect of cutting high statutory tax rates on a very mobile tax base.

-Chris Edwards, Corporate Inversions, Tax Rates, and Tax Revenues

fatal-conceit:

Here is some evidence that the government would win. For 19 OECD countries for which there is good data back to the 1960s, I plotted the average corporate tax rates and average corporate tax revenues. The chart illustrates the Laffer effect of cutting high statutory tax rates on a very mobile tax base.

-Chris Edwards, Corporate Inversions, Tax Rates, and Tax Revenues

(via iates)

eltigrechico:

after looking at stupid political arguments on Tumblr, felt like making these.

(via minarchist)

"One of the great mistakes is to judge policies and programs by their intentions rather than their results."

— ― Milton Friedman (via jaget)

(via minarchist)

REBLOG IF YOU SUPPORT THE DECRIMINALIZATION OF SEX WORK

(Source: free-speach4sexworkers, via minarchist)

Tags: prostitution