Assorted links


#1 - someone thinks she will make $125,000 after tax income for 10 years starting now with no experience? That's pretty risky.

Eh, maybe. If it was "ten years past graduation."

If she goes to Silicon Valley or another place where software developers are paid a lot, she might be able to pull it off. She's been doing this for 7 years she says.

With her anti-theory attitude I would worry about employing her, since she might leave a bunch of O(n^2) code to clean up later.

The negative incentives are severe, though. Especially working in a start-up space.

Krugman gets a decent amount right, but this...

"They continue to define the problem as one of fiscal profligacy, which is only part of the story even for Greece, and none of the story elsewhere." wrong.

I wish the Euro never existed, because it allows people to pretend that otherwise everything in Europe would be just peachy. Europe's problems were always more fundamental- the Euro is just an interesting curveball.

Can't say I was impressed by his "humanitarian" solution. Seemed like he was calling for a massive devaluation of the Euro, which Germany wouldn't feel because it would be the only country allowed to print money.

"I wish the Euro never existed, because it allows people to pretend that otherwise everything in Europe would be just peachy. Europe’s problems were always more fundamental- the Euro is just an interesting curveball."

The Euro is not the currency used to pay taxes in ten of the EU nations, nor in the half dozen nations tied to it by treaty obligations that are equivalent. Why do people think things are peachy in Iceland or Britain, or lots of other nations with their own currency? And why don't those criticizing the Euro likewise condemn the dollar and argue Rhode Island and California would be better off with their own currency?

Those who ignore Iceland failing to escape the dollar-Euro crisis while condemning the Euro are just pushing a political ideology, not any sound economic theory. And those ideologies existed prior to the existence of the Euro.

I agree that #1 is a bad investment but mostly for the incentive reasons. If indeed she is a decent coder she could totally have a chance to make more than 1.25m after-tax over the next ten years -- even if she finished college so 3 years of zero income -- but she is taking the money precisely so that she doesn't have to do so! In fact now she has the equivalent of an extra 10% marginal tax rate -- which presumably will make her spend less time making money. Not even to mention that if she is indeed starting a business she has a tremendous degree of latitude to keep almost all of her money in the company until exactly ten years from now.

Presumably there's more to the story here than that somebody made this really terrible bet.

In what world does a coder get $125K wages? The one where migrant workers get $60K a year?

In the wonderful world of the valley, of course! Or NY for that matter. Certainly not everyone working as a programmer in the US is making $125K a year but, if you can pass an Oracle/MSFT/Google/Facebook/Amazon interview and you live near Seattle, SF, or NY, you'll almost certainly be making that kind of money by the time you're 30.

2. Mark Tushnet reviews Richard Epstein and Epstein responds.

From Epstein's response, 2nd graf:

"A grizzled hanger-on from the largely defunct Critical Legal Studies movement, Professor Tushnet’s subpar performance stems from a combination of three interrelated defects: his in-grained skepticism of legal rules; his narrow intellectual focus that incorporates nothing outside of constitutional law; and his inveterate intellectual laziness, which makes it impossible for him to stick with a problem long enough to understand it."

And the 3rd graf starts like this:
"Professor Tushnet’s crippling weaknesses leave him unable to grasp the mission of the book, which uses the lens of private law to integrate the three elements set out in its subtitle:"

Good to see such...honesty. I would love to see a YouTube video of these two debating.

Would you like to see the Miami Heat play a Junior-high basketball team?

I don't know why Epstein even bothered to respond. Tushnet is a gadfly with a small (and ever shrinking) group of irrelevant followers. History is going to judge the importance of their divergent works - and you can already call the winner.

5. fortunately, we don't need to rely on one measure alone to determine that people in Kerala and Tamil nadu are better off, that's where infant mortality, sex-selective abortions, maternal health, female property rights, literacy, and too many other statistics come in handy. I'm pretty sure "an understanding of information theory" isn't gonna get you out of that one.

I would recommend you read India's Tryst w/ Destiny (sold in the US as Why Growth Matters). I have my own criticisms about the book, but what the median (let alone poor) Indian needs is more consumption. Expenditure inequality is derived almost entirely (~90%) from within-state inequality.

Disparities of literacy are have diminished, and will (hopefully) be even more irrelevant 10 years from now. Also, as the Data Stories link notes, in terms of brutal poverty ("no census assets") the cow-belt is the worst. South and the Northern tip fare relatively well. This is, I think, the more equitable distribution of the bottom 95% of all assets.

Conjecture, yes, but as we see inequality across states of the top 5% is not high.

Please don't link to slideshows in the future. Or warn in advance. Thanks!

Same thing for PDF files. Usually Tyler does warn, but not always. They crash my PC, and on the Mac I have to manually minimize every open window so I can move the PDF files from my desktop into the trash. Unexpected PDF files are very annoying.


How about Amartya Sen?

Although hailing from that part of Bengal which is currently part of Bangladesh , considering his later education, citizenship etc, he is generally considered to be of Indian origin. Considering the problems Indians have for international travel , having to get visas for most countries , I was amazed to read somewhere that he did not take the easy route of American or British citizenship ( considering he ha slived the bulk of his life overseas), but holds on to his Indian Passport.

Here is a troubling fact about labor income... Capital income is $500 billion over its pre-recession peak. Labor income is $400 billion still below its pre-recession peak.

Obviously caused by sticky wages - if wages were to fall 40% to clear the market of unemployed, then wage income would be up $500B and capital income down $400B.... least that seems to be the dominant message of "serious economists" who laugh at Krugman as totally out of touch with reality...

#2. Yawn. Another unfalsifiable set of normative claims and counterclaims among verbose legal scholars

5. Congratulations To Askok , a frequent commenter on this blog, for making it to the Assorted Links.

Ungated version of the "public choice and subprime lending" paper.

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