Consumer Reports on Student Loan Debt
But those who pile up $100,000 in student loan debt to get a degree in interpretive dance deserve no sympathy. Continue Reading →
Category Archives: Media Stupidity
Is Algebra Necessary?
Let’s see. Let x be the number of digital rentals and y be the number of sales. We know x + y = 2,000,000. We also know $6x + $15y = $15,000,000. Any student in my economics principles class who could not solve this would not pass the course. But, for the edification of Times reporters, here’s the solution. Continue Reading →
Hypocrisy at the New York Times
So when will the Times editors come clean and admit that they are being hypocritical about the minimum wage? I’m not holding my breath and you probably shouldn’t either. Continue Reading →
Journalists Should Not Be Allowed to Use Data
Mr. Irwin, do the world a favor. The next time you’re tempted to work with data, hire a real economist as a consultant. Continue Reading →
The Invisible Economy is Not the Hidden Economy
National income accounting is not particularly easy or interesting. But those who try to use GDP should know what they’re talking about. Mr. Davidow has sadly failed this test. Continue Reading →
Intellectual Dishonesty at the New York Times
After their previous February 9 editorial on the same subject I sent the editors a long e-mail citing the Neumark, Salas, and Wascher paper and pointing out that this paper refutes both of the studies — including the one cited above. Continue Reading →
The Minimum Wage Yet Again
David Neumark, J.M. Ian Salas, and William Wascher (NSW) used the same data that both ADR and DLR used. Their paper “Revisiting the Minimum Wage − Employment Debate: Throwing Out the Baby With the Bathwater?” (January, 2013. National Bureau of Economic Research Working Paper 18681). In fact, the title is too kind. ADR and DLR have apparently thrown out the baby and kept (and published) the bathwater. Continue Reading →
The Minimum Wage Again
The Times is just plain wrong. The true minimum wage is zero. That’s what you make when you lose your job because the minimum wage was raised. Continue Reading →
The Times Has Discovered That Costs Matter in Obamacare
“The Chapmans acknowledge that they are better off than many people, but they represent a little-understood reality of the Affordable Care Act.” … Perhaps this was “little-understood” by the geniuses who run the New York Times. But many economists, including me, pointed out that costs and prices would inevitably rise given the mandates and rules included in Obamacare. Continue Reading →
Marketplace MegaFail Inflation Edition
Frankly, these statements are incredibly stupid. Inflation means prices and incomes are rising at about the same rate. Any increase in salaries will just keep pace with inflation, leaving the consumer with unchanged purchasing power. The only way people who borrow can pay back with cheaper dollars is if the inflation is a complete surprise. If the inflation is expected, it will be part of the interest rate on the loan. Finally, higher housing prices? Give me a break. Even if housing prices rose, the real net wealth in your house wouldn’t change much because the higher price level would eat up the price increase. Continue Reading →