Big Idea #6

The Economist explains the policy trilemma of international finance.

Uwe Reinhardt on Obamacare

The Princeton health economist sees a coming death spiral: "If you got a bunch of Princeton undergrads to design a health care system, maybe they would come up with an arrangement like the marketplaces."

A Survey of CEA Economists

Not a single one endorses Mr. Trump, says the Wall Street Journal.

Summer Readings

Here are some of the books I have read this summer, all recommended.

1. Nobody's Fool by Richard Russo
2. Success and Luck by Robert Frank
3. The Upside of Inequality by Edward Conard
4. Hillbilly Elegy by J.D. Vance

Big Idea #5

The Economist explains Nash equilibrium.

Why many men aren't working

Debunking Scandinavia Envy

Fact of the day: "Danish-Americans have a measured living standard about 55 percent higher than the Danes in Denmark. Swedish-Americans have a living standard 53 percent higher than the Swedes, and Finnish-Americans have a living standard 59 percent higher than those back in Finland."

Borjas on Vetting Immigrants

George says it's a very American tradition.

Big Idea #4

The Economist explains the Keynesian multiplier.

Big Idea #3

The Economist explains the Stolper-Samuelson theorem.

The Scandinavian Fantasy

The Atlantic summarizes some fascinating new research from Jim Heckman.

News from Amazon

Source

 

Source

 
To users of my favorite textbooks: Thank you!  Have a great semester.

My Take on Mr. Trump

This morning, John Harwood of CNBC and the New York Times asked for my view of Donald Trump, which John then summarized on his Twitter feed.  Here is the full answer I gave him:

He will not be getting my vote.

I have Republican friends who think that things couldn't be worse than doubling down on Obama policies under Hillary Clinton. And, like them, I am no fan of the left's agenda of large government and high taxes. But they are wrong: Things could be worse. And I fear they would be under Mr. Trump.

Mr. Trump has not laid out a coherent economic worldview, but one recurrent theme is hostility to a free and open system of international trade. From my perspective as an economics policy wonk, that by itself is disqualifying.

And then there are issues of temperament. I am not a psychologist, so I cannot figure out what Mr. Trump's personal demons are. But he does not show the admirable disposition that I saw in previous presidents and presidential candidates I have had the honor to work for.

Gary Johnson joins the Pigou Club

From an interview with the LA Times.

"I’m open also to the notion of a carbon tax. That it does have an impact, that it ends up being revenue-neutral. I’m not looking at this as a revenue generator, as much as there are costs associated with, there are health and safety issues with carbon."