Economist Dork vs. Political Scientist Dork

Shep recently sent me a political quiz that is simple, yet insightful. It takes about 2 minutes to complete. When you’re done, it plots your political stance on a chart. It is well worth the minor time investment.

Once I divulged my political graph result, he sent me this… Greg Mankiw’s Blog. Greg Mankiw is an Economics professor at Ha-vard. Prof Mankiw talks about the challenges facing Treasury secretary Hank Paulson. Mankiw points out the fiscal crises we will inevitably face in the near future. There are definitely reasons to be concerned with America’s economic outlook.

But I do question one of his underlying assumptions.

One of Mr. Paulson's first briefings from the Treasury staff should be about what high taxes have done to the economies of Europe. According to research by Nobel laureate Edward Prescott and by economists Steven Davis and Magnus Henrekson, the high tax rates in Europe have reduced work effort and distorted the industrial mix. The Davis-Henrekson study reports that a tax increase of 12.8 percentage points (a change of one standard deviation) reduces work for an average adult by 122 hours per year.

As to the solely economic aspects of Europe’s high tax rates, I am not going to question Professor Mankiw, who obviously knows more than I do. But you cannot ignore the reality that reasonable people (could/do) disagree about how much work per year is “optimal.” Life, and decisions about how to live it, should not be reduced to mathematical equations. I would argue that the “European economic model,” while less efficient is not necessarily “worse” than the American version. It is just different. Ranking the two will depend upon personal preferences… how much is your freetime worth?

Like most aspects of politics and life, the best course of action is probably somewhere in the middle. Europeans could do better for themselves by working a little more and taxing themselves less. And Americans could improve their quality of life by slowing down and enjoying the fruits of their productive efforts; taking the time to smell the perverbial roses. And while the Bush tax cuts “appear” to have stimulated the economy, America needs to realize that markets are not very good at being socially responsible.

Unfortunately, you cannot always accurately quantify life’s pleasures. Ultimately then, setting tax rates is an exercise in policy as well as economics. Societies (are/should be) judged based on the way they treat those at the bottom. Effiecency is a fine goal, but we should not pursue it blindly.

Games and Weird Al: The Lighter Side of The MN Life

I stumbled across these net-nuggets. I post them for your enjoyment. Great happy fun times.

The first one is difficult to play, but it includes some sharp political observation: Bush Backrub Game

The second is a good test of your spatial geography skills: 50 States (My scores: 45 out of 50, 15 average miles error, 311 seconds.)

The third is a parody of Mel Gibson's recent debacle: Driving Mel

Oh and if you having seen it, here is Weird Al's new video "White and Nerdy"



Weird Al is a genius.

Mark Kennedy: Get a Clue

As an educated political observer, I’m amused by Mark Kennedy’s outlandish commercials. Is there anything this guy won’t say to get elected? Does he have a conscience?

All at once Kennedy manages to lie, patronize, and offend. He leans on the tried and true Republican cry of “Democrats = higher taxes.” He claims that Amy Klobuchar wants to ration drugs, has handed out plea bargains willy-nilly, and she is somehow responsible for a rise in the Minneapolis crime rate. He generally comes across as a smarmy smartass. (Please forgive the personal attack, but am I wrong?)

First off, for anyone not familiar with the legal process, plea bargains are a normal part of the legal system. They improve efficiency, reduce costs (save taxpayer $, reducing the need for new taxes), and can protect families from painful trials. Like any tool, they can be abused, but they should not be considered “bad” in and of themselves.

Second, health care costs are rising at unsustainable rates. It is completely irrational to think that we can continue along our current path without denying the less fortunate among us some of the most basic medical care. It is unpleasant to think that economic concerns may reduce our treatment options, but that could soon be a reality. The Republicans have been in control of all three branches for six years, and have done nothing but create a complex medicare drug program. Kennedy, and other Republicans, should avoid talking about healthcare policy like the plague. They have done nothing to get a handle on the upward spiraling costs.

Finally, how much influence does a county prosecutor have on the Minneapolis crime rate? None, zip, zilch. All a prosecutor can do is punish crimes after the fact. I doubt that the madmen firing guns into downtown crowds even know what a county prosecutor is until they sit across from them in court. I guess Mark Kennedy thinks that Ms. Klobechar should have packed some heat and patrolled the streets of Minneapolis herself.

In his most recent ad, Kennedy makes the case for “staying the course” in Iraq. At the end of the ad he states, “I approve this message, even though it may not be what you want to hear.” For once he’s right. We don’t want to hear it you patronizing clown. Go home and review your adult children’s allowance requests, and leave the politics to someone who "gets it."

“On Wisconsin…” and Other Thoughts

Last weekend Amber and I ventured back to her homeland. We drove into the very heart of the land of cheese and Badgers. My uncle was good enough to get us some Badgers homecoming tickets. The Gophers ably played the roll of homecoming patsy, coughing-up a fumble that was returned for a touchdown on the first drive of the day. For those who didn’t see the game… it got much worse for the Gophers. When the carnage stopped, the score was 48-12. Ouch. I wanted to burn the bright gold “MINNESOTA” sweatshirt I was wearing.

The Gophers are a bad football team. I knew that. That did not surprise me. But I was surprised by my sudden and deep jealously of missing out on a Camp Randal-esque experience in college. The Camp Randal student section, bathed in the early afternoon sun, teemed with intoxicated exuberance. The kind of intoxicated exuberance that is usually only found at Marti Gras and really good college house parties.

At the end of the third quarter, the PA played House of Pain’s “Jump Around.” (Which I understand has become a tradition at Camp Randal) The entire student section convulsed with energy. From a distance it looked like a mosh-pit at a Danzig show. Students bounced violently, the stands pulsed. (It probably helped that the Badgers were up 20+ points and it was homecoming weekend.)

I just hope that officials from the University of Minnesota have taken good notes on the “college atmospheres” around the Big Ten. They need to think about what goes into a great football program as they begin the construction process of the new on-campus football stadium and the area around it. Because the U of M is in a major metropolitan area it will never have the same charm as a Happy Valley, or a Madison. But the administration, the athletic department, and those in charge of the stadium construction should do all they can to foster feelings of pride and excitement. Build a tradition.

If done the correct way, the University of Minnesota will be able to compete with the elite programs in the country. And as Wisconsin has proven, if your athletic programs thrive, so to will your academic programs. Because former Chancellor Donna Shalala realized and believed this, the Badgers have built one of the best all-a-around college experiences in the country.

I just hope that one day the “Gopher-Experience” will rival the Badger-Experience.”

Try Not to Laugh

I got this video from Paula, via Joe. It is 'work-safe' but check your volume settings first.

I'm Back & Hooray!

Sorry for the long absence, I just needed to take a break from blogging. I’ll be much better from here on out. I’ll get back to posting 2-4 times a week.

It is official… I passed the bar. Hooray, oh joy, thank God. I’ll never have to take the Minnesota bar exam ever again. I satisfied every requirement, I jumped through every hoop. I got into law school, wrote papers, took exams, applied for bar admission, I didn’t oversleep, paid the fees, took the bar, and now I’m officially on the other side. The gauntlet did not defeat me.

What an amazing feeling of relief. It is comforting to know that I will not have to retake the bar in February. It is unbelievable.

The only thing that’s better than passing the bar, is finding out that my friends passed as well. I hope that I continue to hear good news from my classmates. So far, so good. Drop a note and let me know.