An old argument from a less enlightened time seems to be arising in India -a legal ban on procreation in the form of a two child policy. That this is an abnegation of human liberty and freedom seems obvious enough but it’s made rather ridiculous by two other India specific points. The first is that force has already been used there to try to achieve something similar and it didn’t work. The second that not using force has worked and there’s no real point in the policy anyway.…See More
“There are men regarded today as brilliant economists, who deprecate saving and recommend squandering on a national scale as the way of economic salvation”
– Henry Hazlitt
Look at this from the Federal Reserve Bank of Dallas “Higher incomes and household wealth boost spending. Higher, real (inflation-adjusted) interest rates—which encourage consumers to save—reduce current spending”
So if what you want is more spending (higher aggregate demand) then higher incomes and household wealth is good, and higher real interest rates are bad.…See More
It’s a delightful idea, that if we put all the wise people in a big room and get them to chew over society’s problems then they’ll come up with optimal solutions. Reality doesn’t quite work that way as every legislature on the planet shows us. So it is with this idea of Keynesian demand management. Our specific example being this idea that in a recession the government should go spend more so as to get us out of the recession.…See More
This is not, of course, something that Paul Krugman would either ever say nor mean, that fiscal policy just won’t work as a macroeconomic policy. Yet it’s something that can be derived – with caveats – from what he’s just said.
To set the scene here. We’ve, largely enough and for the Lord’s Sake don’t get hung up on details here, two sets of macroeconomic policies. One is monetary, the other fiscal. Monetary talks about the quantity of money floating around, the interest rate which determines how the narrow money supply – that central bank money and cash etc – translates into the wider money supply of credit and bank accounts etc.…See More
If we were to view China’s one child policy through entirely utilitarian eyes we’d say that it is rich enough, and urban enough, to abolish it now. If we actually had any modicum of respect for our fellow humans we’d insist that it should never have been imposed but that’s another matter.
And so it is that China is getting rid of that one child policy:
… See More
The State Council of China, which implements and manages the country’s family-planning policy, is said to have commissioned research on the repercussions of ending the country’s controversial birth-control rule, insiders have told Bloomberg.