The hottest Economic Theory Substack posts right now

And their main takeaways
Category
Top U.S. Politics Topics

Economics Links, 1/4/2024

In My Tribe • 470 implied HN points • 04 Jan 25
💰 Finance Market Trends Economic Theory Regulation Crypto Investing
  1. Paul Krugman talks about how gambling on asset prices is like a natural Ponzi scheme. People get caught up with optimism, which can lead to bigger financial risks.
  2. There are new types of market leaders, like Michael Saylor of MicroStrategy, who influence markets and create a kind of cult-like following among investors.
  3. In Argentina, Javier Milei is changing things by cutting government departments and privatizing state companies. His aim is to weaken the power of his political rivals.

Chartbook 342 Are we all dead in the long run? John Maynard Keynes and the politics of time

Chartbook • 2617 implied HN points • 22 Dec 24
🇺🇸 U.S. Politics Economic Theory Political theory Future studies Historical Analysis
  1. Keynes' famous quote 'In the long run we are all dead' is often misunderstood. It doesn't mean he didn't care about the future; instead, he criticized how some economists ignore present issues in favor of uncertain future predictions.
  2. Keynes saw the future as full of possibilities, suggesting we should focus on bold and significant plans that address current crises rather than worrying too much about long-term outcomes.
  3. He believed in experimentation and creativity in political action, encouraging open-ended approaches to solve today's problems while keeping an eye on the potential futures we can create together.

Economics Links

In My Tribe • 394 implied HN points • 24 Dec 24
💰 Finance Macroeconomics Interest Rates Consumption Inflation Government Policy Economic Theory
  1. Cato's wish list includes ideas for government reform, like raising Social Security retirement ages. Some of these suggestions might not be politically popular, but they show a push for change from a libertarian angle.
  2. There's a big difference in how academics and policymakers view the impact of interest rates on consumption. Academics think higher rates could boost future consumption, while policymakers see them as a negative for the economy.
  3. Scott Sumner highlights the issues with measuring inflation. He argues that inflation numbers are often confusing and imprecise, which also affects how we understand productivity changes.

Economics Links

In My Tribe • 455 implied HN points • 21 Dec 24
💰 Finance Economic Theory Regulation Labor Market Cryptocurrency Market Trends
  1. Academic economics has a culture that can feel snobby. Many economists avoid challenging well-known figures out of fear of seeming unimportant.
  2. The job market has changed a lot over the years, moving from agriculture to manufacturing, and now to service-based jobs. This shift reflects changes in demand and productivity.
  3. Cutting regulations can significantly lower prices, leading to increased real income for people. This could result in economic growth that exceeds what many economists expect.

Thinking About Teaching Economic History to the First-Year Economic History Graduate Students This Forthcoming Semester

Brad DeLong's Grasping Reality • 199 implied HN points • 02 Jan 25
🚌 Education Economic History Teaching Methods Historical Analysis Economic Theory
  1. Economic history helps us understand how preferences and market structures formed over time. Looking back can show us why things are the way they are today.
  2. It's important for economics students to learn about the historical context of economic principles. This context can enrich their understanding and practical applications in the real world.
  3. Questions about past economies can shed light on current issues, like inequality and technology progress. Exploring these questions can lead to valuable insights for today's economists.
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Fischer Black vs. Monetarism

In My Tribe • 455 implied HN points • 14 Dec 24
💰 Finance Monetary Policy Economic Theory Inflation Market Dynamics Financial Systems
  1. Fischer Black believed that both money supply and price levels are based on collective beliefs rather than strict numbers. People accept money because they trust others will accept it too.
  2. Inflation and prices are influenced more by market behavior and expectations rather than solely by money supply. This means prices can change based on what people think will happen in the future.
  3. The relationship between money and prices might be less reliable than before. As people use less cash and more digital forms of payment, traditional ways to predict inflation might not work well anymore.

My Social Journey Toward the Right

In My Tribe • 1245 implied HN points • 15 Nov 24
🇺🇸 U.S. Politics Political Ideologies Social influence Economic Theory Political History
  1. Beliefs are influenced by the people we trust. For example, trusting certain professors or colleagues can shape your view on politics.
  2. Life experiences, like working in different environments, can also change your political stance. Being around business-minded people can lead you to adopt more right-leaning views.
  3. Understanding complex issues, such as economics and evolution, can lead to a more nuanced perspective on human behavior and society, making one appreciate different political ideologies.

When we lost our minds: Pt.1 Overview

Erdmann Housing Tracker • 189 implied HN points • 09 Dec 24
💰 Finance Economic Theory Market Analysis Housing policy Financial Crisis Investment Strategies
  1. Many people believe the 2008 financial crisis was inevitable, but this oversimplifies what really happened. It's important to question how we understand the events leading up to the crisis.
  2. High home prices and rental costs are more about limited housing supply than just low interest rates. Building more homes could help address these issues.
  3. Experts often misunderstood the role of foreign capital and how it influenced the US economy. Rather than viewing borrowing negatively, it can be a way to invest in growth.

The Physiocratic Platform: Land Tax

Contemplations on the Tree of Woe • 1108 implied HN points • 27 Oct 24
🇺🇸 U.S. Politics Tax policy Government Structure Economic Theory Land use Political Reform
  1. A land value tax (LVT) is different from a property tax because it only taxes the value of the land itself, not any buildings on it. This means it encourages landowners to use their land efficiently.
  2. Implementing a 2% LVT could raise a lot of money for government services while avoiding economic issues that other taxes might cause. It's seen as a less harmful option for funding government needs.
  3. There are ways to protect homeowners from being forced out of their homes due to rising land taxes, like exemptions for primary residences or allowing tax deferrals until the property is sold.

The Physiocratic Platform: Taxation

Contemplations on the Tree of Woe • 1560 implied HN points • 11 Oct 24
🇺🇸 U.S. Politics Tax policy Federal Budget Government reform Economic Theory Political Philosophy
  1. There are many types of taxes in the U.S., which can make the system very confusing. The government collects money through taxes like income tax, sales tax, and property tax to fund its activities.
  2. A proposed way of understanding taxes is to link them directly to the services the government provides. For example, taxes could cover the cost of maintaining order and protecting citizens.
  3. One suggested tax is a poll tax, which would be paid by everyone, regardless of income. This tax could help fund voting processes and personal protection, though it might be seen as unfair for low-income households.

Some Austrian Answers

Bet On It • 306 implied HN points • 25 Nov 24
🇺🇸 U.S. Politics Economic Theory Libertarianism Philosophy Behavioral Economics
  1. The author's views on Austrian economics have not changed much over the years, but they've become more open to certain ideas, particularly regarding human behavior in economics.
  2. They believe that Austrian economists should focus more on using empirical psychology and less on philosophical debates to better understand economic behaviors.
  3. The author finds that reading Austrian economists has inspired new libertarian policy ideas and encourages others to do the same for creative thinking.

Some Austrian Questions

Bet On It • 251 implied HN points • 20 Nov 24
🇺🇸 U.S. Politics Libertarianism Economic Theory Political Philosophy Public Policy
  1. Many people start with a simple understanding of economic theories, often identifying with one school without fully knowing its details. It takes time and deeper study to really understand the nuances between different economic thinkers.
  2. As people grow and learn, they often reassess their beliefs about economics and may find they resonate more with certain schools over others. It's okay to change your mind as you gain more knowledge.
  3. A strong pull toward empirical data and analysis can lead someone to align with mainstream economics rather than strictly adhering to one specific school of thought, like the Austrian School.

Philosophical economics: Status anxiety

Klement on Investing • 3 implied HN points • 09 Jan 25
📖 Philosophy Economic Theory Political Economy Social Dynamics Wealth Inequality
  1. Status anxiety makes people feel like they are doing worse than their peers, leading them to take bigger risks in their investments or choices. This could mean putting themselves in tough situations just to feel they might catch up.
  2. Recent events like Brexit and the election of Donald Trump can be seen as responses to this anxiety. People felt left behind, and their desire to disrupt the system was a way to express their frustration.
  3. Economic changes, like slower growth and higher taxes, can worsen the feelings of anxiety among the less well-off. When people feel they have no control, they often react in ways that can hurt the economy instead of helping it.

The Housing Shortage by Metro Area, Part 4

Erdmann Housing Tracker • 84 implied HN points • 02 Dec 24
🇺🇸 U.S. Politics Housing policy Real Estate Economic Theory Urban planning
  1. There is a housing shortage, which means there are not enough homes available for people who need them. This shortage can lead to high prices and long waiting lists for affordable housing.
  2. When rent control is put in place, it may help some tenants afford their homes but can also lead to declining quality of living conditions. Property owners often stop maintaining their properties, which can create additional problems.
  3. Access to mortgage loans is important for homebuyers. If people can't get loans to buy homes, it reduces the amount of housing being supplied in the market, contributing to the overall shortage of available homes.

Capitalists Do Not Take Risks.

JoeWrote • 130 implied HN points • 19 Nov 24
🇺🇸 U.S. Politics Capitalism Labor Rights Economic Theory Wealth Inequality Political Economy
  1. Capitalists often claim they take risks when starting businesses, but the reality is they just risk losing money, while workers create the real value.
  2. The idea that financial risk deserves the biggest reward is flawed. Labor plays a crucial role in producing wealth and should be valued more than just money at stake.
  3. Ultimately, capitalists face the possibility of becoming workers themselves if their businesses fail, but this isn't much of a risk compared to the actual physical and personal risks that workers take daily.

Unique Locations of Rich Cities

Erik Examines • 44 implied HN points • 16 Dec 24
💾 History Urban Development Economic Theory Cultural Exchange
  1. Cities become rich not just because of resources, but often due to their location. Being in the right place for trade can make a huge difference.
  2. Historical and modern successful cities like Singapore, Amsterdam, and London thrived because they were trade hubs. They had good harbors and access to important waterways.
  3. Even if a city has challenges like diversity or resource scarcity, its strategic location can lead to economic success. This shows that trade routes and connections can often matter more than local resources.

An Austrian Perspective on Tariffs

QTR’s Fringe Finance • 20 implied HN points • 05 Dec 24
🇺🇸 U.S. Politics Trade policy Economic Theory National Security Market Dynamics Government intervention
  1. Tariffs are taxes on imported goods that can raise prices for consumers and protect domestic industries. When tariffs go up, the cost of imports usually rises, which can lead to higher prices in stores.
  2. Using tariffs to fix trade imbalances often doesn't help because it doesn't address the real issue of competitiveness in industries. Just raising prices on foreign goods doesn't make local products better if they aren't competitive.
  3. The Austrian view suggests that free trade is better for everyone because it allows countries to specialize where they are most efficient. Tariffs can mess up this system, leading to less efficient production and higher prices overall.

Can Bitcoin Save The U.S. Dollar?

QTR’s Fringe Finance • 23 implied HN points • 01 Dec 24
💰 Finance Cryptocurrency Monetary Policy Economic Theory International Trade Government Policy
  1. Some politicians suggest creating a Bitcoin reserve for the US, thinking it could help the dollar's value and stability. They believe having Bitcoin might make the US economy stronger.
  2. Having reserve assets like Bitcoin is not as necessary for the US dollar, which is already powerful globally. The dollar doesn't need extra support from things like Bitcoin because it's already widely used.
  3. Adding Bitcoin to the US reserve wouldn’t really help the dollar; it might just serve to enrich some investors. The government should focus on what truly supports the economy, not on trendy assets.

The Capitalist is Useless.

JoeWrote • 92 implied HN points • 15 Oct 24
🇺🇸 U.S. Politics Capitalism Socialism Economic Theory Labor Rights Wealth Inequality
  1. Capitalists were once important for society by helping to build industries and trade. Now, they are seen as less useful because most work is done by the people, while capitalists take the profits without doing much themselves.
  2. Modern technology comes a lot from public funding and resources, showing that capitalists often profit off ideas created by the public. So, people can question what actual role capitalists play in today's economy.
  3. Instead of relying on capitalists, society could benefit more from worker-owned businesses and government-managed industries. This would allow everyone to get fair value for their work and reduce exploitation.

Inequality is overwhelmingly between firms, not within

Something to Consider • 99 implied HN points • 13 Jul 24
💰 Finance Income Inequality Corporate Structure Economic Theory Labor Market Public Policy
  1. Income inequality is mainly based on differences between companies, not just between workers in the same company. Some companies pay their workers a lot more than others, and that's a big part of why inequality has grown.
  2. About 40% of this inequality comes from workers choosing to work at different firms. The other 20% is because some firms are simply more productive or profitable than others.
  3. We should focus more on how many highly skilled workers are earning a lot overall, rather than just looking at top executives. More people than ever have high incomes, showing that there's great potential for those who can add value in the economy.

The existence of the monopsony model does not imply a minimum wage is optimal

Something to Consider • 99 implied HN points • 12 Jul 24
🇺🇸 U.S. Politics Economic Theory Market Power Public Policy
  1. The monopsony model suggests there might be just one buyer for labor, which can create wage issues. However, just because this model exists doesn't mean we should automatically support a minimum wage.
  2. Implementing a minimum wage isn't straightforward because we can't easily measure supply and demand for labor. Different firms have different needs, making a one-size-fits-all wage unrealistic.
  3. Studies on minimum wage effects are mixed, but many show that while it can help some workers, it can also lead to slight job losses and reduced hours. It's also more complex than just raising pay; sometimes, directly giving support to people may be a better solution.

DeFi Education's Holiday Book List 2023

DeFi Education • 739 implied HN points • 05 Dec 23
💰 Finance Investing Book Reviews Market Analysis Economic Theory Personal Finance
  1. The holiday season is a great time for reading, and the recommended books cater to different interests for personal growth.
  2. Books like 'The Alchemy of Finance' and 'Undermoney' offer unique insights into finance and investing, influenced by real experiences and theories.
  3. Many of the books are available for free online, making it easy for anyone to dive into these enriching materials.

Gold Is Back—And So Is Judy Shelton

QTR’s Fringe Finance • 25 implied HN points • 13 Nov 24
💰 Finance Investing Gold Banking Monetary Policy Economic Theory
  1. Gold prices are rising due to economic and geopolitical concerns, attracting more interest from central banks. This suggests that many countries are starting to value gold again.
  2. Judy Shelton proposes a new kind of bond that would let people redeem their bonds for gold or dollars, giving the public more control over their money. This could help stabilize the economy.
  3. Shelton believes that moving back to a gold standard could improve trust in the financial system and reduce government control over money supply, which many people see as a good thing.

Why is my Electric Company Using Uber-Style Surge Pricing?

JoeWrote • 33 implied HN points • 31 Oct 24
🇺🇸 U.S. Politics Capitalism Energy Policy Economic Theory
  1. Xcel Energy is using surge pricing for electricity to increase profits, especially during peak hours. This could make it hard for people to manage their bills.
  2. The idea that capitalism leads to innovation is challenged, as many believe companies find new ways to charge more rather than truly improve consumer life.
  3. Consumers feel trapped by energy monopolies, and experts suggest shifting towards public utilities for better service and prices.

The Physiocratic Platform: Banking

Contemplations on the Tree of Woe • 882 implied HN points • 13 Sep 23
💰 Finance Banking Policy Reform Economic Theory
  1. The Physiocratic Platform focuses on reforming the banking system by replacing the Federal Reserve and fractional-reserve banking.
  2. The Chicago Plan advocates for full-reserve banking and government-issued equity money to avoid debt and inflation.
  3. Implementing the Chicago Plan can regulate credit cycles, prevent bank runs, reduce government debt, and boost long-term economic output.

The O-Ring Theory of Economic Development

Something to Consider • 59 implied HN points • 15 Jun 24
💼 Business Economic Theory Human Capital Productivity Trade policy Labor markets
  1. Production can be broken down into many steps, and a failure at any step can ruin the entire process. The skill level of workers, known as human capital, plays a key role in this.
  2. Regions can be stuck in a bad place with low investment in education due to a lack of returns. Immigration can help individuals escape this situation, leading to better education and economic growth in both their new home and their original country.
  3. Trade policies can significantly impact production. Quotas can be much more damaging than tariffs because they disrupt the entire production process, leading to larger losses than expected.

Did Wages Really Rise The Fastest In 28 Years?

Japan Economy Watch • 439 implied HN points • 09 Jul 23
💰 Finance Wages Inflation Economic Theory Consumer spending
  1. Wages per hour, not per month, need to be examined to truly understand wage growth
  2. The data showing nominal wages growth doesn't necessarily reflect a true increase in pay, as it may be influenced by other factors like scheduled hours of work
  3. The focus on nominal wages by the Bank of Japan is aimed at achieving a specific inflation target, which may not fully account for the real impact on consumers

The Sword of Damocles

The Dollar Endgame • 319 implied HN points • 30 Aug 23
💰 Finance Global Markets Economic Theory Central Banks Currency Markets Monetary Policy
  1. The global financial system heavily depends on the US dollar, causing a constant demand for dollars worldwide.
  2. Triffin's Dilemma and the Dollar Milkshake Theory highlight the systemic risks and implications of the US dollar's dominance.
  3. The Fed plays a critical role in stabilizing the global financial system by supplying dollars; any missteps could lead to widespread financial instability.

There Are Three Ways to Get Rid of Inflation. One Is "Impossible" and One Will Destroy the Country.

Surviving Tomorrow • 314 implied HN points • 18 May 23
💰 Finance Inflation Taxation Wealth Distribution Monetary Policy Economic Theory
  1. Inflation impacts different groups differently: savers punished, poor robbed, debtors rewarded.
  2. Eradicating inflation can be done by destroying the working class, taxing the rich, or creating anti-inflation money.
  3. Anti-inflation money involves investing in new assets, taxing back excessive money, and destroying it for common well-being.

Bullshit jobs

Logos • 39 implied HN points • 09 May 24
💼 Business Work Culture Economic Theory Corporate Structure Employee Satisfaction
  1. Bullshit jobs are roles that seem pointless or don't add real value to society. People often feel their job is useless because they don't see how it benefits others or the economy.
  2. Many jobs that seem pointless actually exist because of unnecessary processes or rules. For example, lawyers might just deal with silly lawsuits instead of making real progress.
  3. Some jobs can be damaging because they make workers feel unproductive and trapped. It's important to find jobs that give a sense of purpose and real impact.

The Case for Fiat

The Dollar Endgame • 159 implied HN points • 23 Sep 23
💰 Finance Monetary Systems Economic Theory Financial Literacy Cryptocurrency Wealth Inequality
  1. The fiat system's survival doesn't depend on morality, as history shows evil systems have persisted. People may feel powerless against organized evil but may also become complicit in it.
  2. The fiat system, flawed as it is, has worked to lift many out of poverty and fuel innovation. Everyday citizens often lack the financial and political knowledge to make informed decisions about the system.
  3. Bitcoin's adoption faces hurdles as the majority may not share the beliefs of its proponents. Transitioning to a new system might lead to short-term pain and disparities, impacting various demographics differently.

Should we tax realized gains?

The Pursuit of Happiness • 1 HN point • 03 Sep 24
💰 Finance Tax policy Economic Theory Investment Wealth Distribution
  1. The tax system should focus on consumption instead of income. Taxing what people spend rather than what they earn could simplify things.
  2. A consumption tax could be fairer and encourage saving. It would tax money used for living expenses while allowing people to keep their investments untouched.
  3. Real-world issues with a consumption tax should be dealt with through thought-out adjustments. Instead of going back to an income tax when problems arise, we should refine the consumption tax system.

Is capitalism making you lonely?

inexactscience • 2 HN points • 13 Aug 24
📖 Philosophy Capitalism Loneliness Social Science Economic Theory Well-being
  1. There is a loneliness epidemic seen around the world, and some people think capitalism might be contributing to it.
  2. Research shows a moderate negative relationship between economic freedom and loneliness. When economic freedom increases, loneliness tends to decrease.
  3. While there are arguments that capitalism could increase loneliness, such as encouraging long working hours and individualism, the data suggests that capitalism, in fact, may help reduce feelings of loneliness.

Why Wages Slowed More In Japan Than Elsewhere

Japan Economy Watch • 159 implied HN points • 13 Dec 21
💰 Finance Wages Economic Theory Labor Market Income Wealth
  1. Wages in Japan have not just slowed down but actually fallen, unlike in other rich countries where wages have been suppressed.
  2. The widespread slump in wage growth goes against economic theory, signaling a shift in how consumer demand and wages have traditionally grown alongside output.
  3. One main reason for Japan's wage decline is the rise of poorly paid non-regular workers, showcasing the impact of political factors on wage disparities.

Assessing altruism

Model Thinking • 19 implied HN points • 09 Jul 23
🔬 Science Behavioral Economics Altruism Child development Economic Theory
  1. Intergenerational altruism in the Barro-Becker model may need to be as low as 0.09 for a stable solution, which seems paradoxical considering the proportion of a parent's and child's consumption.
  2. Potential explanations for this paradox include scale economies in household production, children being viewed as 'utility monsters,' and parents seeing children as a prestige good.
  3. The discrepancy in altruism values between parents and consequences may imply that individuals are not consequentialists and may prioritize existing utility over potential future utility.