Thursday, January 31, 2008
Saturday, January 26, 2008
In the dark green countries, disease that is nonexistent in the US killed 14 million children under the age of 5 in 1990. In Africa, 15 countries are landlocked making trading with developed countries difficult. In many countries, corrupt officials skim off money that could be saved and invested. Many of the incentives for direct foreign investment in Africa are defeated by corrupt officials, trade barriers, nepotism, and high marginal tax rates. Usually, the powers in charge, reap the rewards in a winner-take-all market while the country burns in flames of greed. Africa is a mess.
Saturday, January 19, 2008
Friday, January 18, 2008
Tuesday, January 15, 2008
Sunday, January 13, 2008
Saturday, January 12, 2008
Monday, January 07, 2008
Sunday, January 06, 2008
Last night in New Hampshire, the Democratic Presidential hopefuls debated over energy and economics. Obama backs price controls on energy noting that there will be costs as well as benefits to US citizens. Cafe Hayek discusses the politics of economics including prediction markets and voting.
Saturday, January 05, 2008
The Iowa caucus received national attention. I thought my readers might enjoy being on the inside of the caucus. Mary Huddleston is standing firmly in the Richardson camp at the beginning. You'll see MHS teachers Eric Olsen and Dolores Silva. Also Brooke and Connie Armstrong showing grace under pressure.
Muscatine Urgent Care is meeting the demand for medical care in Muscatine, Iowa. Dr. Maitreyi Janarthanan, an immigrant from Sri Lanka, found the right spot to help those in urgent need of immediate health care. Dr. Janarthanan thought that they would serve 2 or 3 patients a day but has served 12 to 15. Earlier I posted about the possibility of losing market share to Unity. I was wrong.
Health care in Muscatine is dominated by Unity Hospital which operates as a monopoly. Maitreyi and her husband, Tracy, has put themselves in the right position to provide a substitute. Both work late into the night.
Those against immigration would have to refute my hypothesis that many immigrants enter the health care field. Furthermore, immigrants tend to help those in lower income brackets. It's hard for anyone to argue against immigration.
Friday, January 04, 2008
MUSCATINE, Iowa — A dollar increase in the state minimum wage that went into effect Tuesday will have limited impact for local workers and uncertain effects for employers.The increase — from $5.15 to $6.20 on April 1, 2007, and to $7.25 on Jan. 1, 2008 — was signed by Gov. Chet Culver last January.About 1,000 workers out of more than 23,000 in Muscatine County began earning more on Tuesday, said Greg Jenkins, director of economic and community development at the Greater Muscatine Chamber of Commerce and Industry.
Wednesday, January 02, 2008
A salute goes to Marginal Revolution for this tip.
Tuesday, January 01, 2008
On Monday, the Des Moines Register endorsed Hillary. So does the AFSCME. Hillary's smile is beautiful, and I think it shows her true character. I think the power union, NEA has endorsed Hillary. Hillary was sweet enough to autograph an American flag for my mom. While waiting for the autograph, secret service men told me to keep my hands out of my pockets and to put my pen away. The security is tighter, it seems to me, than around Obama even though Obama is the poll favorite.
Suppose there are two ways to delivering a package to a location. One way is with a truck and the other way is to pack it on a mule. The truck is more expensive than the mule. So why aren't all packages delivered by mule? The answer is that a truck can carry more. A truck is more productive. One reason why wages are higher in the United States is that workers here are more productive. Using a formula from micro, let's say that W/P = MPL, where W is the wage, P is the price, and MPL is the marginal product of labor. If MPL increases and P is constant, then W must increase. As wages increase, this increases the demand for more skilled labor who can work with capital. Those workers displaced by the increase demand for skilled workers will increase the supply of labor in the nonskilled sector. One reason why jobs are lost in the manufacturing area is this substitution of capital for labor.