Category: Uncategorized

Our Virginia regulatory state is failing us

As of tomorrow, hospitals in Virginia will no longer be able to administer COVID-19 vaccines. Thousands of elderly people are having their vaccine appointments canceled. From now on, all COVID-19 vaccines will go to the local health departments and none directly to hospitals.

Virginia Hospital Center had been running clinics all day every day to give people the vaccine. Appointments there for all 1st dose vaccines have been canceled because the hospital will no longer be able to get the vaccines.

Northam’s health department has also forbidden people from crossing county lines to get the vaccine. If the county next to you has an abundance of the vaccine, you can’t get it. Only residents of that county may get their vaccine.

These new rules will result in many people either having their vaccination appointment canceled or delayed for months. Currently, 7.5 million people in Virginia, Maryland, and DC qualify to get the vaccine, if only they had access to it. The new rules limit the options citizens have for getting the shot. Everyone MUST go through their local health department to be vaccinated. That means in a county such as Loudoun, with a population of over 420,000, and two health department locations to receive the vaccine, will continue to inoculate 400 to 900 people a day. There are no other options. The Loudoun health department has said they are trying to open a third location for vaccinations (possibly at Dulles Town Center) but that could take months. If Loudoun continues at its current pace it will take well over a year for the local health department to inoculate all those who want vaccines. If Loudoun hospitals were allowed to open clinics for vaccines, many more people could be inoculated every day but the Northam administration will not permit it.

Here is the link, via Hans.  In general, Virginia is a fairly well-run state, but as of late it has not been cracking the top 40 for vaccine distribution.

What does the minimum wage literature really tell us?

Let me turn over the microphone to David Neumark and Peter Shirley:

The disagreement among studies of the employment effects of minimum wages in the United States is well known. What is less well known, and more puzzling, is the absence of agreement on what the research literature says – that is, how economists even summarize the body of evidence on the employment effects of minimum wages. Summaries range from “it is now well-established that higher minimum wages do not reduce employment,” to “the evidence is very mixed with effects centered on zero so there is no basis for a strong conclusion one way or the other,” to “most evidence points to adverse employment effects.” We explore the question of what conclusions can be drawn from the literature, focusing on the evidence using subnational minimum wage variation within the United States that has dominated the research landscape since the early 1990s. To accomplish this, we assembled the entire set of published studies in this literature and identified the core estimates that support the conclusions from each study, in most cases relying on responses from the researchers who wrote these papers.

Our key conclusions are: (i) there is a clear preponderance of negative estimates in the literature; (ii) this evidence is stronger for teens and young adults as well as the less-educated; (iii) the evidence from studies of directly-affected workers points even more strongly to negative employment effects; and (iv) the evidence from studies of low-wage industries is less one-sided.

Here is the full NBER paper.

Monday assorted links

Is Germany still our ally?

Armin Laschet, the newly elected leader of Germany’s Christian Democrats, is coming under mounting scrutiny over statements he has made in the past defending Russian president Vladimir Putin and the Assad regime in Syria. Mr Laschet, prime minister of North Rhine-Westphalia, beat rival Friedrich Merz in a digital leadership election on Saturday. He is seen as representing continuity with Angela Merkel’s moderate policies. But in the past Mr Laschet, who has strong chances of succeeding Ms Merkel as chancellor after September’s Bundestag elections, has expressed views on Russia and Syria that put him outside the CDU mainstream and which have now come back to haunt him…

Mr Laschet in a Twitter message [had] said there was a lack of evidence to prove that Russia was behind the novichok attack on Sergei Skripal and his daughter Yulia in Salisbury in 2018.

Here is more from the FTAnd:

CDU Baden-Württemberg lists Huawei as top sponsor of this weekend’s party congress

This will be a tough one for Biden.

What was it that Stanley Fischer said?

Voters in the North would like to see a referendum on a United Ireland sometime in the next five years, while voters in the UK believe Scotland is likely to become independent within the next decade, according to a series of polls.

The Sunday Times commissioned a series of surveys across the UK gauge attitudes towards the Union.

The findings highlight some of the difficulties facing Boris Johnson and the UK government as he struggles to keep the country together following its departure from the European Union.

In Northern Ireland, 47% still want to remain in the UK, with 42% in favour of a United Ireland and a significant proportion – 11% – undecided.

However, asked if they supported a referendum on a United Ireland within the next five years, 51% said yes compared to 44% who were against.

In Scotland, the poll found 49% backed independence compared to 44% against – a margin of 52% to 48% if the undecideds are excluded.

The Irish result seems to be a more rapid shift than the Scottish one.  Here is the full article.

China fact of the day

Bureaucratic politics is a politics of privilege.  By 1956, the wages of the highest-ranking party and government personnel were set at 36.4 times those of the lowest rank.  (By way of comparison, the highest wage in the “corrupt” Nationalist government in1946 was 14.5 times that of the lowest wage.)

That is from the new and important The World Turned Upside Down: A History of the Chinese Cultural Revolution, by Yang Jisheng, who himself participated in the Cultural Revolution.

Are disenchanted Iranians turning to other faiths?

The spiritual gap between Iran’s Shia ayatollahs and the people they rule is widening. The strictures of the theocracy and the doctrine of Shia supremacy alienate many. So growing numbers of Iranians seem to be leaving religion or experimenting with alternatives to Shiism. Christians, Zoroastrians and Bahais all report soaring interest. Leaders of other forms of Islam speak of popular revivals. “There’s a loyalty change,” says Yaser Mirdamadi, a Shia cleric in exile. “Iranians are turning to other religions because they no longer find satisfaction in the official faith.”

…The repression isn’t working. The state says over 99.5% of Iran’s 82m people are Muslim. But its numbers are not reliable. A poll of more than 50,000 Iranians (about 90% of whom live in Iran) conducted online by Gamaan, a Dutch research group, found a country in religious flux. About half of the respondents said they had lost or changed their religion. Less than a third identified as Shia. If these numbers are even close to correct, Iran is much more diverse than its official census shows.

Here is more from The Economist.  Speculative, but interesting.

What should I ask Dana Gioia?

Dana is what I call one of the world’s information billionaires.  For more specifics, here is part of his Wikipedia page:

Michael Dana Gioia (/ˈɔɪ.ə/; born December 24, 1950) is an American poet and writer. He spent the first fifteen years of his career writing at night while working for General Foods Corporation. After his 1991 essay “Can Poetry Matter?” in The Atlantic generated international attention, Gioia quit business to pursue writing full-time. He served as the chairman of the National Endowment for the Arts (NEA) between 2003 and 2009. Gioia has published five books of poetry and three volumes of literary criticism as well as opera libretti, song cycles, translations, and over two dozen literary anthologies.

Gioia is the Judge Widney Professor of Poetry and Public Culture at the University of Southern California, where he teaches, as well as a Senior Fellow at the Trinity Forum. In December 2015 he became the California State Poet Laureate.

He is also well-known as a composer of opera libretti, and more recently as a spokesperson for the importance of Catholicism for culture.  And he is brother of TedGioia, former CWT guest.  And here is Dana’s home page.

I will be doing a Conversation with him — so what should I ask?

Saturday assorted links

1. Rap song about Janet Yellen.

2. Never too much talent?  Should you be bullish on the Nets?

3. Toward a more libertarian pandemic?

4. Will Wilkinson Substack.

5. B.1.1.7 not in decline.  And that variant is exploding in Denmark.

6. Vaccines to take Israel back from the Ibex, photo gallery, recommended.  And some verticality in a video version.  Consider it “the Ibex salt-water paradox.”

7. Peter Huber tribute, he has passed away.

That was then, this is now, now it’s now again

To see how much the sanitary and medical revolutions have changed the risks of global interaction, examine what kills Americans abroad these days: cardiovascular events including heart attacks account for 49 percent of all deaths, injuries for a further 25 percent, and infectious diseases other than pneumonia for just 1 percent…even travel to pathogen-rich environments has become far, far safer than it used to be: a study of 185 deaths of US Peace Corps volunteers,  placed in some of the world’s least healthy countries, found that unintentional injuries and suicides were far more deadly than infection, accounting for more than 80 percent of deaths between them.

That is from Charles Kenny’s new and excellent The Plague Cycle: The Unending War Between Humanity and Infectious Disease, which was started well before Covid.

Federal minimum wage of $15?

It’s a slam-dunk case that doubling the federal minimum wage — it’s been $7.25 since 2009 — would lead to significant declines in employment opportunities for workers with few skills or little experience. According to data from the Bureau of Labor Statistics for 2019 (before the pandemic), in 47 states, at least one-quarter of all workers earn less than $15 per hour. In 20 states, half of all workers earn less than $18 per hour, and in 30 states, the median hourly wage is less than $19.

These statistics show that $15 is a very high wage floor. For employers to keep all their workers would require raising the wages of a huge share of the national workforce. But the number of workers affected would be so large that this wouldn’t happen. Instead, the number of jobs in the low-wage workforce would shrink.

The nonpartisan Congressional Budget Office confirms this basic intuition, estimating that joblessness would increase by 1.3 million if the national hourly wage floor were hiked to $15 [TC: and that is pre-pandemic]. The CBO also concluded that this policy would reduce business income, raise consumer prices and reduce gross domestic product.

That is from Michael Strain at Bloomberg.  I would add this.  No matter what you think about the recent literature on the minimum wage, all economic theories imply that minimum wages should be decided at the state and local level, given the economic heterogeneity of the United States.  That is the message that you as an economist should be carrying forward.

Do you think Puerto Rico should be a state?  Should they have a $15 minimum wage too?  Come on.  Yes, it is easy enough to make an exception for them, and by the way the median manufacturing wage in Mississippi is below $15 as well.  Rinse and repeat.

I am sorry to speak in such terms, but the reality is that an allied cabal of activists and left-wing economists have combined on social media to insist on a particular approach to minimum wage economics and to bully those who disagree.

Ask yourself a simple question: were any of them calling for a temporary two-year cut in the minimum wage for restaurants and small businesses during a devastating pandemic?  If not, are they really carrying forward the banner of science?