Tuesday, January 3, 2012

Mankiw's arguments on taxation

So far, I do not see the real content of this proposal.


How is it suppose to be determined the social valuation of people's contribution? 

In case of a disagreement, how is it to be settled?

The way it is formulated, it seems to me that it is a rationalization of the outcome of a market economy, adorned with the recognition of the typical market failures.

It seems to be that the emphasizes is put on individual's freedom (I know this seems out of context, but I don't really think it is ; notice the context in which it is introduced, for instance, the references to the competitive equilibrium as the core - if you don't like it, you can walk away) above any sense of ethical criteria leading to compensation.

Wednesday, December 28, 2011

Does unemployment mean people want to work less?


I am not convinced at all. I would say that the burden of proof is on the side of those arguing that unemployment in the current recession is coming from the supply side (workers not wanting to work). Given the importance of the issue, the evidence presented by Casey Mulligan is, in my opinion, circumstancial.

Further evidence: