Economics: Macroeconomics
Essential
The Concise Encyclopedia of Economics (CEE)
This encyclopedia contains articles by leading economists on basic concepts, economic systems, schools of economic thought, macroeconomics, economic policy, taxes, money and banking, economic regulation, environmental regulation, discrimination, labor issues, international economics, corporations, financial markets, the marketplace, the economics of special markets, economies outside the U.S., and biographies of famous economists.
Selected Essays on Political Economy
By Frédéric Bastiat: "Bastiat directed his arguments against certain ever recurring fallacies as they were employed in his time. Few people would employ them today quite as naively as it was still possible to do then. But let the reader not deceive himself that these same fallacies no longer play an important role in contemporary economic discussion: they are today expressed merely in a more sophisticated form and are therefore more difficult to detect."- F.A. Hayek
Economic Sophisms
By Frédéric Bastiat: "Bastiat was not primarily an original economic theorist. What he was, beyond all other men, was an economic pamphleteer, the greatest exposer of economic fallacies, the most powerful champion of free trade on the European Continent."- Henry Hazlitt
Opening the Door to the Economic Way of Thinking
By Russell Roberts: "Here are ten fundamental ideas to help you explore and understand the world around us using the economic way of thinking. "
Economics in One Lesson
By Henry Hazlitt: "This primer on economic principles brilliantly analyzes the seen and unseen consequences of political and economic actions. In the words of F.A. Hayek, there is "no other modern book from which the intelligent layman can learn so much about the basic truths of economics in so short a time."
Economic Freedom and Peace
"Since before the time of Thucydides, states have used wealth to acquire more territory and to dominate the affairs of their neighbors. Understanding the reasons that the powerful countries of today are less prone to dispute than their predecessors is critical to maintaining the peace and to extending its benefits more broadly."
Project on Social Security Choice
The Cato Institute's experts examine the problems facing the current social security system, the methods that can be used to move towards a system of personal retirement accounts, and the effects that a new system would have on workers.
Recommended
Calling the President's Bluff
Republicans should not force President Obama to propose a budget that reflects their ideas, because it is clear that each side has a drastically different view of the role for government in society; rather, they should force him to present an honest budget effort, and then judge him on its result, says William Poole Cato senior fellow and former CEO of the St. Louis Fed. By doing so, if Obama doesn't submit a budget, the responsibility for default would rest on him. Poole advises that, "Republicans should emphasize that the debt ceiling issue is not about the substance of how to address the deficit, but that the president present a plan voters can judge."
Fight of the Century: Keynes vs. Hayek Round Two
Economist Russ Roberts and multimedia producer John Papola again combine pop culture and solid economic theory in a creative rap battle between F.A. Hayek and John Maynard Keynes, which takes place in a boxing ring. For the first installment, watch it here.
Are Soccer Stars Inherently Libertarian?
What does soccer have to do with libertarian principles? Apparently, the world's most popular sport proves free market economic theories correct. Dan Mitchell, Senior Fellow at the Cato Institute, explains that a recent study by scholars (who usually write about un-libertarian social welfare issues) shows that international soccer stars are very sensitive to nation's tax policies. Since soccer stars can vote with their feet, watching their behavior as it relates to shifting policies provides a clear lesson: countries with low, flat tax rates attract better soccer players. The study even shows that lowering taxes can in some cases actually raise total tax revenue because of the influx of high earning players. The Laffer Curve scores again.
40 Minute Crash Course in Economics & Politics
Want some bullet points for instances of government gone wrong? Check out Cato's David Boaz and Michael Cannon on FOX's "Top 10 Promises Gone Wrong" with John Stossel. Stossel, Tanner, Boaz, and others highlight government inefficiencies, economic falacies, and misleading legislation in an excellent crash course in economics.
Government Doesn't Create Jobs, Silly
Former Cato intern and current George Mason University economics student, Meg Patrick, gives a real quick lesson in why the general public (and the government) should respect private enterprise. She also explains what happens when the government prints money and taxes people. Check out GMU's Students For Liberty blog here!
End the Fed?
The Fed, while being a private entity, is tasked with some major responsibilities in managing the American monetary system and economy. Cato scholar Richard Rahn, a former presidential economic advisor, weighs in on what's wrong with the Fed and what to do about it. He notes that, on the surface, if we didn't know better, we'd think "the elected officials are trying to sabotage the economy." But that is just a reality of the often mutually exclusive goals of the Fed. In fact, Rahn says, "The Fed is in an impossible situation. It has been given multiple targets — i.e., a constant-value dollar, bank stability, consumer protection and full employment — plus being required to outguess the market." He highlights that the Fed has historically had trouble accomplishing any of these tasks, and concludes with a perplexing question, "Why are we keeping a failed institution?"
Does Spending Create Prosperity?
In a recent article, George Mason University economist Russ Roberts addresses the question of how top-down macro policies impact bottom-up economic growth. He questions the logic that spending resources could generate prosperity, stating that it's prosperity that drives spending. To move away from a theoretical discussion, Roberts uses two examples with empirical evidence: WWII and foreign aid. Both cases show that artificially inflating an economy with government spending only lasts a short while, and has minimal, if any, long-term impact. Foreign aid specifically shows that the political elite and interest groups are the ones who benefit most, at a cost to others.
Debating Our Fiscal Future
The American Action Forum recently participated in a debate on progressive vs. conservative policy responses to the U.S. budget deficit.
Panelists included John D. Podesta (Center for American Progress) and Douglas Holtz-Eakin (American Action Forum), and was moderated by Jim Tankersley (National Journal). The event was this Tuesday, September 14th, at George Washington University.
The video of the debate has been archived here.
Greece: The Canary in the U.S. Coal Mine?
Writing in the July/August edition of The Freeman, Professor Steven Horwitz clearly describes what is going on in the world economy of deficits, debt, and big government spending –- and does so in a way that doesn’t require a degree in economics. He explains the process by which a country goes bankrupt through bad economic policy and democratic politics, describing in detail what happened to Greece and how the U.S. may be facing a similar situation in the near future. Horwitz draws the analogy that, “Like a canary in a coal mine, the crisis in Greece should serve as a warning that polluting the fiscal air with large budget deficits, a growing public sector, and high debt-to-GDP ratios is a sure way to kill an economy.”
The Myth of the Model
“Most people don’t notice it, but “model” may be the most dangerous word in the English language right now. Models justify a lot of the bad policies that have been, or soon will be, foisted on us,” says Max Borders, writing in the June 2010 Freeman. Explaining how society has come to rely on models, and how that reliance has come to cripple us, Borders says “economies are not pumps to be primed, but economic ecosystems. Economists are thus notoriously bad at predicting, much less planning, economies.” Therefore, he advocates that, moving forward, economics should focus on the fundamentals, not magic models that carry an air of accuracy but are most often defunct in reality.
When Will Europe Collapse?
In a new Cato Institute paper, Václav Klaus, president of the Czech Republic, examines the eurozone's contribution to slowed economic growth in Europe and predicts the costs of maintaining the European monetary union. The creation of the eurozone was presented as an economic benefit to all the countries willing to give up their own currencies. Studies promised that the euro would accelerate economic growth and reduce inflation. Also, the studies stressed that the member states of the eurozone would be protected against all kinds of unfavorable economic disruptions and exogenous shocks. It is clear that nothing of that sort has happened.
17 Things to Despise about Government Regulation
At a time when the government is considering more regulation of private business - in the energy, financial, and healthcare industries, it is important to look a little deeper into what that may mean for average Americans. The Foundation for Economic Education, in a couple of articles in their Freeman publication, do just that.
- Richard Fulmer and Robert Bradley lay out fifteen problems with government regulation, saying "Any time government regulators try to do much more than lay out the basic rules of the game, unintended consequences and moral hazards rear their ugly heads."
- In an article on the financial crisis, Peter Lewin, professor at the University of Texas at Dallas, unveils two faulty assumptions of government involvement: 1) the cause of "market" failure, and 2) the nature of regulation itself.
At a time when "regulation" is a term filling many top headlines, it would serve us well to consider time tested lessons, and not repeat the same mistakes.
Deficit Timebomb?
Cato scholar Dan Mitchell co-hosts on CNBC to discuss Congress' move toward a second stimulus bill aimed at "creating jobs." Mitchell, along with Josh Barro of the Manhattan Institute, Michael Linden from Center for American Progress and CNBC's Simon Hobbs debate the need for more stimulus.
"Fear the Boom and Bust" (Hayek v. Keynes)
George Mason University economics professor Russ Roberts and John Papola have finished producing an economics hip-hop rap video. The video contrasts the theories of John Maynard Keynes and Friedrich A. Hayek, two of the most famous and yet divergent economic minds of the 20th century.
Tale of Debt: An American Story
Trying to understand how the U.S. government works is a complicated task. This brief video by The Heritage Foundation makes understanding the debt limit a bit easier by presenting a clearly worded narrative that lays out the problems the U.S. is facing in an engaging allegory.
Video: Deficits Aren't Bad, Gov't Spending Is
Deficit spending has become a common term in U.S. political conversation, and is cause for much focus as the U.S. holds more and more debt. Dan Mitchell, in a new Center for Freedom and Prosperity video, however, argues that the deficit spending in itself is not necessarily a bad thing. With a historical and investment perspective, Mitchell explains that debt can be a useful tool if it allows for long term benefits. The problem is that government – which is hardly a role model of financial prudence – has demonstrated a tendency to spend enormous amounts on political rather than economic investments. With the ability to tax and inflate its way along, the government isn’t worried, but we the people should be.
Unemployment Continues to Rise Despite Stimulus Spending
While the government has spent over 32% of the stimulus so far, unemployment remains 11% higher than the Obama administration's projections of the worst case scenario. Mercatus Center budget scholar Veronique de Rugy provides an update on stimulus spending and unemployment. The Obama administration projected that unemployment would peak at 8.8% without a stimulus package; unemployment figures have been at 10% or greater for the past three months. De Rugy's work comes at a time when some are considering a second stimulus. To that she says, "It seems clear that for the sake of taxpayers and for the sake of job creation, a second stimulus is absolutely the wrong idea." Her Working Paper, entitled 'Stimulus Facts,' is available here.
Keynes, his followers, still wrong
Cato scholar and Hoover Institute fellow Tibor Machan reflects on the re-emergence of John Maynard Keynes in current political discourse. Michan notes that while some of Keynes' theories have been recently cited, other ideas and his personal philosophy have evaded the public eye, mainly because they are fundamentally flawed.
"It seems that for Keynes the sole avenue for self-improvement is to go to governments and seek their coercive support. Among other things what he fails to notice, as did Burke and other statists, is that government is composed of people and all the people with the power (some) others bestow upon them (or they grab) are susceptible to all the foibles Keynes attributed to people in general."
Roughly, if people are flawed, why is giving government (made up of people) immense power and elite status to dictate whatever policies it sees fit a good idea? Machan responds, "Keynes was wrong back then, and his followers are wrong now in thinking that our salvation lies with government."
Financial System Needs Less Regulation
Cato scholar Mark Calabria discusses President Obama's approach to reforming the national financial system. He notes that while reform is much needed, the wrong kind of reform will lead to even greater trouble than has been experienced over the past year. About Obama's plans, Calabria says, "The President’s plan chooses convenient targets and protects entrenched interests, rather than address the true underlying causes of the crisis." He notes that not addressing the problems that instigated the bubble and burst in the first place is a grave error. "Without real reform — fixing Fannie and Freddie, scaling back the massive subsidies for leverage in our tax code, loose monetary policy – it will only be a matter of time before the next crisis hits."
The Effects Of Fiscal Stimulus: A Magical Analysis
NYU economist Mario Rizzo evaluates the results of the massive stimulus packages and bailouts passed early in the year. More than half a year later, he finds that they have had a negative result, at least by traditional measures. But not to fear, politicians these days don't seem to use "traditional" measures. Rizzo says of Obama's stimulus apologists, "They attribute to the stimulus the current state of affairs — but not anything regarding the current state of affairs, just anything that can be construed as better than something else that could have happened."
Bailouts Could Hit $24 Trillion?!
"These promises could make the implosion of Fannie Mae and Freddie Mac look like a lemonade stand closing," said Cato Executive VP David Boaz. In this post he discusses an article by ABC News regarding the escalating cost of our nation's current 'bailout' mentality, and the potential price tag of such efforts.
Doing "Something" vs. Doing "Nothing"
ABC News' 20/20 Co-Anchor John Stossel counters Vice President Joe Biden's defense of the stimulus plan, and provides an insightful graph. Stossel condludes that doing something "may have created uncertainties that brought us results worse than they predicted doing "nothing" would achieve."
Fuel Standards Are Killing GM
Cato scholar Alan Reynolds in The Wall Street Journal writes, in a compelling and timely manner, that "General Motors is likely to become profitable only if it is allowed to specialize in what it does best — namely, midsize and large sedans, sports cars, pickup trucks and SUVs. The company can't possibly afford to scrap billions of dollars of equipment used to produce its best vehicles simply to please politicians who would rather see GM start from scratch, wasting more taxpayer money on "retooling" to produce unwanted and unprofitable subcompacts and electric cars. The average mileage of GM's future cars won't matter if nobody buys them."
King George III: Obama-esque?
Cato scholar David Boaz succinctly lists many examples of the current administration's tendency toward excessive and business-retarding tax policies. He contrasts the opressive attack on American's back pockets with the historical declaration announced by our nation's founders 233 years ago, quoting the Declaration: "He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance." Strangely familiar? You decide.
Audit the Fed
Republican Congressman and two time presidential candidate Ron Paul wants to audit the Federal Reserve. Arguing that Americans need to know more about the central bank, especially given the drastic increases in the size of the bank's balance sheet.
At Least Some Are Coming Around
By Daniel J. Mitchell: "The class-warfare crowd in Washington wants bigger government and higher tax rates, so it’s a bit shocking to see that a group of Northeastern Democrats are slashing tax rates. Yet that is exactly what Maine’s politicians are doing. The Governor even makes the common-sense observation (that so far has escaped President Obama’s attention) that there won’t be any jobs without investors and entrepreneurs."
Baffled By the Economy? Don't Listen to Economists
By Steve Chapman: "Macroeconomists are expected to be smart, learned and articulate in explaining and predicting the course of the economy. But these days, at least, no one really expects them to be right."
Globalisation is Good - Johan Norberg on Globalization
The world is an unequal and unjust place, in which some are born into wealth and some into hunger and misery. To explore why, in this controversial Channel Four documentary the young Swedish writer [and senior fellow at Cato] Johan Norberg takes the viewers on a journey to Taiwan, Vietnam, Kenya and Brussels to see the impact of globalisation, and the consequences of its absence. It makes the case that the problem in the world is not too much capitalism, globalisation and multinationals, but too little.
Do Economists Believe American Democracy Is Working?
William L. Davis and Bob Figgins write, "Economics it is said, presumes that status-quo policy has some sense behind it, that it emerges from a political process that works. Has conomics come to a status-quo orientation from a widespread attitude that the political process works?"
Return of the Living Dead: What the U.S. Can Learn From Japan's Failed Experiment With "Zombie Businesses"
By Anthony Randazzo: "Killing zombies isn't typically the responsibility of America's president or treasury secretary. But if the country is going to get through the current financial crisis, President-elect Barack Obama and his economic team better get out their shotguns and aim for the head."
Ask the Expert: Dan Griswold on Work Visas
Dan Griswold, Director of the Center for Trade Policy Studies at Cato, argues that the current H1-B work visa policy hinders economic growth and scolds U.S. companies "for seeking the human capital they need abroad while at the same time denying them the ability to expand their skilled workforce at home."
Jeffrey Miron on the Stimulus
A friend of the Cato Institute, Professor Jeffrey Miron, writes that "Bailout 2.0, like its previous incarnation, is a dangerous gamble for the Treasury and the economy."
Keep the Banks Private
Donald Boudreaux, an advisor for Cato's Center for Trade Policy Studies, argues that "When government takes over, political meddling is sure to follow."
Taking the Name of Lord Keynes in Vain
By Mario J. Rizzo: "But if we are going to attempt to solve the problems of today by drawing inspiration from Keynes, then we should pay attention to his mature ideas rather than to the textbook versions of what he said, some of which reflect Keynes’s earlier thinking. When we do this we shall find that some of his policy proposals were quite different from today’s “Keynesian” wisdom. Other proposals were extraordinarily radical and far from what is being proposed by lawmakers on the political left or right today."
Cato on Campus Challenges the Stimulus
Cato on Campus is proud to bring Cato's message directly to your campus. Cato on Campus is publishing a full page ad in 15 of the U.S.'s most prestigious universities providing a statement, signed by 200 economists, that government intervention in the economy is not a means of producing economic growth. Check out this page to find updates on campus op-eds, letters-to-the-editor, and teach-ins related to the Cato ad and the stimulus package/Keynesian economics in general.
Ask the Expert: Tad DeHaven on Digging Ditches and the Stimulus
A common justification for the stimulus package is that government spending can counteract economic shortfalls. Tad DeHaven explains why this is a common mistake and that the jobs we see created by government stimulus does not encompass the lost jobs and investment that we don't see.
Hundreds of Economists Sign on to Cato Institute Ad
There is plenty of disagreement on whether a big-government stimulus project is the best way to bring the United States out of recession. The Cato Institute purchased a full-page ad in major newspapers across the country listing the names of several hundred economists who object to massive deficit spending as an economic stimulus. Cato scholars and ad signatories have made their case on television since the spending program was proposed.
History Passing By Cornell?
Andrew Loewer, President of the College Libertarians at Cornell University, wrote this letter to the editor of the Cornell Daily Sun, arguing that the stimulus package presents an epochal moment in history that deserves more attention than the Cornell Daily Sun has given it.
Mr. President, We Disagree
President Obama says that "economists from across the political spectrum agree" on the need for massive government spending to stimulate the economy. In fact, many economists disagree. Hundreds of them, including Nobel laureates and other prominent scholars, have signed the statement that appears in the Cato Institute's newspaper ad.
Ask the Expert: Dan Mitchell on Keynesian Economics
Dan Mitchell explains why the current economic crisis is the result of government policy mistakes and why more government intervention will not end the crisis any sooner than the market.
Keynsian Economics is Wrong
Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.
Bush and Obama Opt for Corporatism Over Freewheeling Capitalism
The auto industry just got its bailout. Cato's Executive Vice President, David Boaz, explains that with the recent bailouts, "the government is seeking to support existing businesses. That isn't laissez-faire. It isn't what free-market advocates support. But it is what Bush is doing and Obama wants to continue."
Obama's New New Deal
reason.tv has just released this new video on addressing the pressing likelihood that president-elect Obama will construct a new New Deal to address the U.S. economic woes. Michael Moynihan interviews UCLA economist Lee Ohanian, who argues that the New Deal's massive intervention into the economy actually prolonged the economic crisis by seven years.
Consequences of the Bailout
Richard W. Rahn, senior fellow at the Cato Institute, writes, "Many policymakers and politicians in Washington seem to be incapable of thinking through the consequences of many of their bad ideas. When a "bailout" is given to one firm, all of its competitors are put at a disadvantage."
Bankruptcy Doesn't Equal Death
Don Boudreaux, chairman of the George Mason University department of economics, writes, "A government bailout of the Big Three keeps huge amounts of productive inputs in firms that can't use them efficiently. Forcing taxpayers to subsidize the continued employment of gargantuan quantities of raw materials, labor and capital goods in unproductive pursuits is a recipe for economic stagnation. The popular and politically convenient myth has matters backwards: The bigger the unprofitable firm, the more vital it is that it be allowed to fail."
What Happened? Anatomies of the Financial Crisis
In this special issue of Cato Unbound, we’ve asked four respected economists, with four very different perspectives, to supply what they think are the missing pieces of the puzzle and to tell us how they all fit together.
Cato's Annual Monetary Conference: LIVE
Listen live to Cato’s 26th Annual Monetary Conference will provide an in-depth treatment of the Lessons from the Subprime Crisis, which some view as the worst financial crisis since the Great Depression. Leading experts will discuss the underlying causes of the loss of confidence, particularly the policies that contributed to the subprime crisis and the reforms needed to avoid future turmoil in financial markets.
Understanding the Financial Crisis
This video, created by AfricanLiberty.org, clarifies the basic causes and consequences of the current financial crisis.
Is it Constitutional?
Richard Rahn, Senior Fellow at the Cato Institute, asks a question about the government's $700 billion bailout that few others are asking: Is it constitutional?
Changing Times
By Donald J. Boudreaux: "One lesson I draw from this frightening state of affairs is that even the most obvious falsehood stands a good chance of being widely believed if it is repeated often enough. The claim that the U.S. economy of late has been one of laissez faire has become a mantra. And it's now taken as fact."
The End of Jacob Weisberg
By Brink Lindsey: "We’ve just experienced a global disruption of financial markets on a scale not seen in seven decades. And we’re still in the middle of it: the ultimate extent, severity, and consequences of this crisis remain unknown. Yet Weisberg can already sum up the story in a single sentence: the libertarians did it!"
Suspend Cap Gains Tax on Toxic Assets
By William Shipman: "A simple change in tax laws could do more to resolve the current credit crisis than the massive bailout legislation that was just enacted or Sen. McCain's recent proposal that the federal government buy up all bad mortgages."
Regulators Cannot Avert Next Crisis
By Johan Norberg: "As usual after a financial crisis, we hear demands for new controls and regulations to stop it from happening again. But since every crisis has led to thousands of new pages of regulation, why is it that regulation doesn't stop crises from happening again?'
An Open Letter to my Friends on the Left
By Steven Horwitz: "In the last week or two, I have heard frequently from you that the current financial mess has been caused by the failures of free markets and deregulation. I have heard from you that the lust after profits, any profits, that is central to free markets is at the core of our problems. And I have heard from you that only significant government intervention into financial markets can cure these problems, perhaps once and for all. I ask of you for the next few minutes to, in the words of Oliver Cromwell, consider that you may be mistaken."
Cato Scholars on the Financial Crisis and the Bailout
In this video Cato scholars explain the causes of the financial crises as well as the consequences of further government intervention.
Econ Professor Criticizes Bailout
Jeffrey A. Miron is senior lecturer in economics at Harvard University and was one of 166 academic economists who signed a letter to congressional leaders last week opposing the government bailout plan. He explains why in a CNN commentary.
Doing Something?
By John Berlau: "But what if the bailout, as originally proposed and in its latest incarnation, would spend $700 billion of taxpayers' money and actually make the economy worse? Believe it or not, there is good evidence this may happen."
Bailout Bill Fails
The proposed $700 billion bailout bill just failed in the House of Representatives. Cato Senior Fellow Jagadeesh Gokhale provides a full account.
Bailout Nation
By David Boaz: "But the bailout of Fannie Mae and Freddie Mac is another giant step toward government control of the economy. NPR reported this morning that the government takeover “could turn out to be a smart one.” Yes, if you think nationalization of the means of production just might work."
Is the Gold Standard Still the Gold Standard among Monetary Systems?
By Lawrence H. White: "Critics have raised a number of theoretical and historical objections to the gold standard. Some have called the gold standard a "crazy" idea. The gold standard is not a flawless monetary system. Neither is the fiat money alternative. In light of historical evidence about the comparative magnitude of these flaws, however, the gold standard is a policy option that deserves serious consideration."
The Dollar Is Falling, and That’s Good News
By Tyler Cowen: "But when it comes to currencies, a higher value neither brings national success nor predicts future prosperity. The measure of a nation’s wealth is the goods and services it produces, not the relative standing of its currency."
Fed Up
By Alvaro Vargas Llosa: "All in all, financial instability has been far greater since the creation of the Federal Reserve. What did the Great Depression teach us? Essentially that even with the best of intentions, it is impossible for the authorities to manage the supply of money in accordance with the exact needs of the economy."
Why We Trade
By Russell Roberts: "We’re used to shrugging off all sorts of rhetorical gobbledygook from our politicians. But when you hear U.S. presidential candidates start to mouth off about free trade, watch your wallet: A discredited 14th-century theory of economics is enjoying a dangerous renaissance in the 2008 campaign. "
Something Besides Money Growth Causes Inflation? It Just Ain't So!
By Howard Baetjer, Jr.: "In the words of the great Milton Friedman, whose masterwork with Anna Schwartz, A Monetary History of the United States, did a lot to settle the matter, 'Inflation is always and everywhere a monetary phenomenon.' Unfortunately, many educated commentators have not learned this important truth."
The Grand Old Spending Party: How Republicans Became Big Spenders
By Stephen Slivinski: "Republicans could reform the budget rules that stack the deck in favor of more spending. Unfortunately, senior House Republicans are fighting the changes. The GOP establishment in Washington today has become a defender of big government."
Sports, Jobs, & Taxes: Are new stadiums worth the cost?
"Advocates argue that new stadiums spur so much economic growth that they are self-financing: subsidies are offset by revenues from ticket taxes, sales taxes on concessions and other spending outside the stadium, and property tax increases arising from the stadium's economic impact. Unfortunately, these arguments contain bad economic reasoning that leads to overstatement of the benefits of stadiums."
The Fundamentals of Rent Seeking
By Gordon Tullock: "Once the concept of rent seeking was discovered - and defined as the outlay of resources by individuals and organizations in the pursuit of rents created by government - there followed a flourishing of research as relevant ideas began to disseminate throughout economics. It is now rare to find an issue of an economics journal that does not refer at least implicitly to the concept of rent seeking."