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January 30, 2007

USA Union Market Share Loss Largest in Two Decades

United States private sector union membership continued its more than 50 year decline in 2006. According to the United States Bureau of Labor Statistics, 7.40 percent of private sector employees were union members in 2006. This is the lowest market share since 1900. The number of private sector union members, 7,981,000, is the lowest since the year before the United States entered World War II (1940).

The 2005 to 2006 market share loss was the largest in more than 20 years (1984 to 1985). The number of private sector union members dropped approximately 275,000 in the last year. Since peaking at 39 percent in 1958, private sector union membership has dropped approximately 8,900,000, while the number of the private sector employees force has risen 64,600,000.

Data:
Union Membership Statistics

November 30, 2006

A Nobel Prize for the "Ways to Work" Program?

SUMMARY

The national Ways to Work program has improved the employment and education opportunities of low-income households across the United States. The model is similar to that used Mohammed Unus, who recently won the Nobel Prize for his small loan program in Bengladesh.

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November 01, 2006

Daylight Savings Time: A Capitalist Plot!

After years of fighting against the reigning mantra of elite academe that we are living in 'The Matrix', i.e. that the concepts of science and rationality are artificial 'constructs' designed to preserve the existing social order in which we are all slaves duped into thinking we have some freedom from our roober baron masters, I have to concede I have finally run up against just such a thing.

While the sun in the sky is not a construct, and perhaps noon is not a construct if it is defined as the time that the sun is directly overhead, the time that our clocks say is decidely a cultural con job. Forgetting the arbitrary idea of rebooting our circadian rhythms twice a year going on and off of daylight savings time (which could be easily fixed by my proposal for adopting daylight savings time year round), the fundamental 'construct' that gives rise to the debate in the first place is time zones.

The sun is not directly overhead at all places in the time zone at noon, even on standard time. Indeed the sun actually rises and sets more or less an hour earlier at the leading edge of each time zone than at the trailing edge. (That was the best thing I noted about living in Michigan, the trailing edge of the eastern time zone, compared to Rhode Island, out there on the eastern front of eastern time). We order our lives around an agreed time for the efficacy it provides to us all. But is this an evil capitalist plot?

Added to this fundamental question of the hegemony of the hourglass is whether daylight savings time is yet another plot to further separate the haves and the have nots. If you were to listen to the anti-Daylight Savings Time ravings of Michael Downing, you might think so.

July 20, 2006

Chinese Lesson for Western Economists: Progress, Not Equality is the Issue

Income inequality has been rising in China, prompting some to suggest that the nation’s market oriented policies must be curbed. The official government newspaper The People’s Daily disagrees as is indicated in a July 20 article, The limitation of the Gini Coefficient in China. The “Gini Coefficient” is widely used in international economics to measure income inequality in nations. Economist Wei Jie, Director of the National Center for Economic Research at Tsinghua University notes that the gini coefficient tends to indicate higher levels of inequality in nations that have not completed the urbanization process. In China, large income differences are to be expected because so much of the population (60 percent) lives in lower income rural areas. In first world economies, generally 30 percent or less of people live in rural areas. Further, Wei Jie points out that income inequality as measured by the Gini coefficient may worsen at the same time that incomes at the lowest levels are increasing --- at the same time as the poor are getting richer! Professor Wei Jie offers a valuable lesson for western and international economics.

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July 12, 2006

The Economics of Penalty Kicks

Lindsey Beyerstein refutes the notion that penalty shootouts in World Cup Soccer are driven by money. After all ties are allowed in early rounds but not in the finals. But the question I want to know is still, why not play until someone wins. Lindsey notes that the overrunning match could preempt higher rated shows. But Baseball does this all the time. If you know about it in advance you can still sell advertising. I gaurantee no soccer game will go 5 hours ... some one will get tired and make a mistake. Endurance counts for something right?

The only possible argument for not letting the match run indefinitely is the possibilty that players' health would be put at risk.

June 28, 2006

Junk Bond Las Vegas Monorail Nears the Brink

Selling a White Elephant: According to a story in the The Las Vegas Sun, the Las Vegas Monorail continues its financial slide. The system, financed by tax-exempt bonds downgraded to junk bond status by Wall Street, was to carry more than 53,000 riders daily in its first year of operation, according to “investment grade” ridership projections. Into its second year of operation, daily ridership is at 20,100, which is near the midpoint of the range I projected in a 2000 report (Las Vegas Monorail Report). According to The Sun, both ridership and revenue are dropping.

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June 27, 2006

California High Speed Rail: Taxpayers Beware!

High Speed Rail Proposal A high-speed rail system has been proposed for California, which would serve San Diego, Los Angeles, Sacramento, the San Joaquin Valley and the San Francisco area. Planners place the cost at $37 billion and claim that the alternatives would cost more. History suggests that projects such as this virtually never achieve their objectives and experience exorbitant cost escalation. Taxpayers beware!

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June 26, 2006

The Interstate Highway System: At the 50th Anniversary

America’s interstate highway system is celebrating its 50th anniversary. It is hard to imagine an infrastructure project that has provided greater economic and social returns. The interstate system has been instrumental in the widespread affluence that has occurred since it was established in 1956. At the same time, the interstate highways system has saved hundreds of thousands of lives and millions of injuries.

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June 23, 2006

Brookings Institution on Middle Incomes: Unrepresentative and Unnecessarily Negative

The Brookings Institution has just released a study showing a decline in middle income families and neighborhoods in US metropolitan areas between 1970 and 2000. Reading the press clippings and the report, it would be easy to get the impression that there is a disappearing middle class in US metropolitan areas. Things are not so simple.

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June 22, 2006

Libertarian Pastimes

Libertarians love to talk about the minimum wage. There are many reasons for this, one being that minimum wage is perhaps the most obvious example of a price control in our nation's policy black bag. This makes it a favorite punching bag on which we demonstrate our economic kung fu. The argument is so clear and so rational. Government sets the price of labor and the result is a shortage of minimum wage jobs and more unemployment. Boom Shakalaka! Don Boudreaux does it better than I do.

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May 30, 2006

In a Nutshell: Socialism Doesn't Work!

I know, I know. Chances are, if you're reading this you probably understand well the critical role that prices play in the economy and the reasons why no complex economy can survive absent them. But this little nugget in the Journal this morning was too good to pass up. The article was on the Bolivarian (socialist) Alternative to global trade, called ALBA and being promoted by Hugo Chavez. The only problem with the plan is that when trade is driven by politics rather than prices, things get a little screwy:

... Bolivian Indian women in traditional bowler hats met with Cuban trade officials and Venezuelan entreprenuers, who encouraged them to sell sweaters and embroidered shawls in Cuba and Venezuela, although neither conutry is known for cold weather.

April 26, 2006

iPrices

Tyler Cowen is hosting a good discussion about why all the songs on iTunes cost the same ($0.99). Since there is obviously a higher demand for some songs and less for others why not charge $2 for one and $0.50 for the other? Cowen has a number of good suggestions, and I think he's real close when he writes "Apple makes much of its money on hardware, especially iPods. Low song prices cross-subsidize the hardware, to some extent at the expense of music companies. That said, some music companies wish to charge lower not higher prices."

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April 20, 2006

The broken clock theory - Clinton era oil incentives probably right

The New York Times splashed what appeared to be one more story about how the Texan's in the current administration are giving it away to the oil companies: U.S. Has Royalty Plan to Give Windfall to Oil Companies. Enough to make your average, even your below average, libertarian nash their teeth.

As per usual, the New York Times is misleading its readers. The story should be titled: Clinton Era Decisions Bring More Oil but Less Royalties. This is the kind of not so subtle bias that pervades the New York Times. The story isn't outright dishonest or untrue, it is just cryptically titled and doesn't reveal that this is principally a Clinton administration decision until you jump to the follow and are 1400 words into a 1700 word article. I would call that irresponsible journalism, but I expect nothing less from the New York Times.

Unfortunately, the Rockefeller Republican and Truman Democrats who people editorial boards at northeastern papers that aren't per se house organs for the Socialist Workers Party don't understand oil exploration economics any better than the New York Times (free sign-up required). But the irony here is that the Clinton administration might actually have gotten it right -- even if the New York Times never will.

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April 13, 2006

Alpha-ism

Alex Tabarrok is pointing to a new paper arguing that the cruelest despot in academia is actually the alphabet. Ask anyone named "Van Winkle" and they'll agree whole-heartedly. I remember distinctly noticing at my high school graduation the bleachers were noticably emptier when my name was called.

April 03, 2006

Market Forces and the Chinese Economic Transition

Market forces always work to whatever extent that governments let them, and they always tend to work toward long-term good. Case in point: China, where labor shortages are working to slow growth in the nation's economy. An article in today's New York Times notes,

Persistent labor shortages at hundreds of Chinese factories have led experts to conclude that the economy is undergoing a profound change that will ripple through the global market for manufactured goods.

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