Economics


Scale Down To Rather Than Up From Denmark

Matthew Yglesias wonders about scaling up Denmark’s welfare state model to larger countries:

The thing to say in response to this is that the Scandinavian countries are really little and it might not work as well in a big country, but I don’t understand what the causal mechanism for non-scalability is supposed to be. I’ll happily grant that it’s politically easier to put a Scandinavian-style system together in a small, homogeneous country, but that’s different from saying it wouldn’t work on the merits.

Tyler Cowan responds by noting a number of factors that might facilitate implementing Denmark scale programs that may not apply in larger countries, e.g.,

Perhaps the ability to dispense with federalism helps government efficiency in small countries. I favor federalism for larger units, such as the United States, but I think of it as a necessary evil. Singapore and New Zealand don’t have much federalism, nor should they.

This factor points us in the right direction.
Leaving aside the question of whether we really want the Denmark like social welfare programs implemented in the US, the very first step toward making this a possibility is to dispense with federalism in the US. No, not by centralizing all government function into the federal governement. Rather, by completely eliminating the federal goverment.

Yep, break the US up: into the current states, into 54 Denmarks by population, or into 223 Denmarks by land mass. Pick your method but break up the country. Not only will you get many opportunities to recreate Denmark’s social structure but you will also eliminate the many ills that result from the massive centralization of power and wealth in the current federal government.


Quote of the Day

Yeah, we’re much better here. The government only rapes rather than kills you.
Warren Meyer, Coyote Blog, 12/10/2006

Read the rest to find out how milk producers are making millions off the back of American consumers.

Also see Battlepanda.

Update 12/11: From Kip at A Stitch in Haste:

“Crushing a competitor” by outcompeting him is one thing. Crushing him by outpoliticking him is something entirely different and entirely despicable.
So the next time you hear a baby crying for milk — or a liberal crying about milk prices, or prices in general, or income and poverty in America — rest assured that Congress is “doing something” about it.
Just don’t think too much about what that “something” actually is.


Why Maine bureaucrats Don’t Want Santa’s Butt To Be Sold

Main bureaucrats will not allow this beer to be sold:

santas_butt.jpg
But not because it exceeds alcohol content limits or some other more appropriate reason.* Nope, aschcroft and gonzalez would be proud of them:

But the state says it’s within its rights. The label with Santa might appeal to children, said Maine State Police Lt. Patrick Fleming.

Gosh, do they really allow children to buy alcoholic beverages in Maine?
Via Pharyngula.
*Regular readers know that the Modulator staff believe that the only legitimate reason to prohibit sale of a product might be that the product contained contaminants like mercury, e coli, etc. Otherwise the state has no business interfering in economic transactions between consenting adults.


Crass Quote Of The Day: Making Housing Affordable

From a federal reserve economist:

Firefighters who want to live in high-priced cities can work two jobs, said W. Michael Cox, chief economist for the Federal Reserve Bank of Dallas. “I think it’s great,” he said. “It gives you portfolio diversification in your income.”

If the grammar wasn’t so good you might think he was from Crawford instead of Dallas.
That firefighter’s family probably already has three jobs: the firefighters, domestic engineer and the out of house job the other partner has. And this guy wants them to go for a fourth?
A much better response on the firefighter’s part will be to choose a city to work in that pays them enough to live there. Of course, this might mean that some cities will go without firefighters until they pay them enough to live in the million dollar + condos that seem to be the dominant form of new housing sprouting up in the big cities.
Perhaps the congress critters and other legislative bodies need to get out of the marriage definition business and realize that in the future it will take 3, 4 or more adults in a family to both earn an adequate income and properly care for the family’s children or that it might take 2 or more families living in a house or apartment to make it affordable.
Via Kevin Drum who notes the euphemism here:

“portfolio diversification in your income.”…means working two jobs because housing costs are too high. Brilliant.

Yea, I still think Cox might be from Crawford.


Will Scientology Lose Funding?

Former cash machine Tom Cruise will likely be getting a pay cut:

But Cruise — tainted by tabloid buzz — isn’t delivering as consistently and that may cost him big. This year “Mission: Impossible III” proved to be the most expensive and lowest-yielding of the franchise grossing only $133 million domestic on a $150 million budget.

If the product isn’t selling it is pretty hard to justify giving 30% of the gross to one actor.

Any way you cut it there will be less money for the dude to tithe.