Monthly Archives: December 2012

“The charitable deduction doesn’t benefit the individual.” Right.

Picture: T. Boone Pickens *not* benefiting from his $165 million dollar donation to OSU. That’s the head coach of the football team, Mike Gundy, he is casually chatting up. The prospects for a grand bargain that includes tax and entitlement … Continue reading

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Predicting the Future: Baumol Cost Disease Edition

In one of my first posts on this blog, I discussed a possible method for curing Baumol’s cost disease: turn services into goods. For those of you who didn’t read that post, Baumol’s cost disease describes the situation where wages … Continue reading

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The Risk-Free Rate, Reconsidered

The risk-free rate of return, which is the return on investment that is required as compensation for not having access to the capital for a period of time, is a fascinating theoretical notion from the finance world. In essence, the … Continue reading

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When Everything Else Is Free

Since the Great Recession in June of 2009, the United States economy has failed to produce the kind of catch up growth necessary to return to its pre-recession trend of growth (also known as potential GDP). Two percent growth in real … Continue reading

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How to Stimulate an Economy in the Age of Debt: Tax Cuts vs Government Spending

According to the National Bureau of Economic Research, the official arbiter of when recessions begin and end, the Great Recession began in December 2007 and ended in June 2009. For the millions of Americans who still cannot find a job, … Continue reading

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What Germany Owes the Eurozone

The euro crisis has been with us for more than a few years now, but there are still some fundamental questions left to be answered before there can be stability in the eurozone. In case you haven’t been following the news … Continue reading

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