Real Wages Up, Not Down – Economists Fight

A biased New York Times article on wages being down gets a fisking: “What keeps my wages high (and yours) is our alternatives…What sets workers wages are the wages of those alternatives…Workers are better educated than ever. That is why I believe that compensation, properly measured, is higher than it was five or ten or …

Just Ignore it and it’ll be a Market

Listening to the latest EconTalk Podcast, on the economics of organ donations, the following exchange caught my ear. Russ Roberts: “Markets tend to organize themselves, that’s the marvelous thing about them, if you leave them alone.” Richard Epstein: “If you leave them alone or better, if you know what’s going on and participate in them.”

Real Estate Agents and Dodo Birds

Steven and Stephen, the dynamic duo behind Freaknomics have a bit on Real Estate Agents being added to the Endangered Species list in the New York Times. Nothing new to anyone with a little understanding of the real estate market and how the internet has dissolved both travel agents and stock brokers. The more conversations …

Is Closed a Cultural Benefit?

This weekend, I caught up with a college friend in central Wisconsin. Starbucks recently opened their first storefront in Wausau. Given Starbucks’ consistency and my lack of knowledge of other options, I suggested we meet there. “How about something local, like Jeannie’s Cafe?”, Tom asked. I’m always up for tasting the local flavor and we …

“Because of” Not “With” in Traditional Media Also?

Last night, I was chatting with a copywriter about some story ideas. She mentioned how tough it is to get a story in free ad-subsidized weekly newspapers. Even when you get the by-line, the monetary compensation isn’t all that. Over in the music industry, Steve Albini reminds us how record companies put artists in the …

The Economics of Podcasting

First off, this post defines podcasting is an effective way to deliver highly niche audio to a very enthusiastic audience (the World English Bible translated into Klingon or Tips for Triathletes in the Southwestern US for example). Secondly, the numbers used here are rough and make for easy math. Let’s say you’re making one show …

Auto Insurance Companies Gamble Double or Nothing

This morning, NPR reported on a study finding auto insurance rates in No-Fault states 20% higher and rising more quickly than in “Fault” states. In a No-Fault state, each driver’s insurance pays for their claim. Elsewhere the accident-causing driver’s insurance pays for both claim. This means insurance companies prefer the double-or-nothing gamble over having to …