<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
		>
<channel>
	<title>Comments on: The Opportunity Cost of the Bailouts</title>
	<atom:link href="http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/feed/" rel="self" type="application/rss+xml" />
	<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/</link>
	<description>The Sweet Release of Reason</description>
	<lastBuildDate>Tue, 22 May 2012 20:28:45 +0000</lastBuildDate>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
		<item>
		<title>By: uknowbetter</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23596</link>
		<dc:creator>uknowbetter</dc:creator>
		<pubDate>Sat, 21 Mar 2009 23:35:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23596</guid>
		<description>Most politicians have never taken an economics course in their lives.&lt;br&gt;&lt;br&gt;It would be a good question to ask them if they could define &#039;opportunity cost&#039;.  I doubt many members of Congress could and I doubt Obama could.</description>
		<content:encoded><![CDATA[<p>Most politicians have never taken an economics course in their lives.</p>
<p>It would be a good question to ask them if they could define &#39;opportunity cost&#39;.  I doubt many members of Congress could and I doubt Obama could.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: uknowbetter</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23597</link>
		<dc:creator>uknowbetter</dc:creator>
		<pubDate>Sat, 21 Mar 2009 23:33:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23597</guid>
		<description>I&#039;ll have to look into that more.  Though it&#039;s not as if people are completely shielded; they still put time, money, resources into a company they form and stand to lose those.</description>
		<content:encoded><![CDATA[<p>I&#39;ll have to look into that more.  Though it&#39;s not as if people are completely shielded; they still put time, money, resources into a company they form and stand to lose those.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: uknowbetter</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23595</link>
		<dc:creator>uknowbetter</dc:creator>
		<pubDate>Sat, 21 Mar 2009 16:35:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23595</guid>
		<description>Most politicians have never taken an economics course in their lives.&lt;br&gt;&lt;br&gt;It would be a good question to ask them if they could define &#039;opportunity cost&#039;.  I doubt many members of Congress could and I doubt Obama could.</description>
		<content:encoded><![CDATA[<p>Most politicians have never taken an economics course in their lives.</p>
<p>It would be a good question to ask them if they could define &#39;opportunity cost&#39;.  I doubt many members of Congress could and I doubt Obama could.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: uknowbetter</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23594</link>
		<dc:creator>uknowbetter</dc:creator>
		<pubDate>Sat, 21 Mar 2009 16:33:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23594</guid>
		<description>I&#039;ll have to look into that more.  Though it&#039;s not as if people are completely shielded; they still put time, money, resources into a company they form and stand to lose those.</description>
		<content:encoded><![CDATA[<p>I&#39;ll have to look into that more.  Though it&#39;s not as if people are completely shielded; they still put time, money, resources into a company they form and stand to lose those.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: LarryM</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23593</link>
		<dc:creator>LarryM</dc:creator>
		<pubDate>Fri, 20 Mar 2009 04:51:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23593</guid>
		<description>Obviously at this point we aren&#039;t much in diagreement - about this, anyway - but I&#039;d hardly call the artificial creation of a fictional entity that shields its owners from liability a &quot;simple law dealing with the existance of companies.&quot;  One can argue that it ultimatley is only a small distortion of the free market, and defend it on utilitarian grounds, but it is pretty hard to justify on any kind of big L libertarian gounds.</description>
		<content:encoded><![CDATA[<p>Obviously at this point we aren&#39;t much in diagreement &#8211; about this, anyway &#8211; but I&#39;d hardly call the artificial creation of a fictional entity that shields its owners from liability a &#8220;simple law dealing with the existance of companies.&#8221;  One can argue that it ultimatley is only a small distortion of the free market, and defend it on utilitarian grounds, but it is pretty hard to justify on any kind of big L libertarian gounds.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: uknowbetter</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23592</link>
		<dc:creator>uknowbetter</dc:creator>
		<pubDate>Fri, 20 Mar 2009 04:16:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23592</guid>
		<description>I don&#039;t disagree with much of that.  Many libertarians don&#039;t have a problem with the government creating and enforcing some simple laws dealing with the existence of companies.&lt;br&gt;&lt;br&gt;Big business does tend to benefit more from government interference because they hire the better hookers (ahem, &#039;lobbyists&#039;) to get the government to write anti-competitive regulation or give them subsidies and tax-breaks.</description>
		<content:encoded><![CDATA[<p>I don&#39;t disagree with much of that.  Many libertarians don&#39;t have a problem with the government creating and enforcing some simple laws dealing with the existence of companies.</p>
<p>Big business does tend to benefit more from government interference because they hire the better hookers (ahem, &#39;lobbyists&#39;) to get the government to write anti-competitive regulation or give them subsidies and tax-breaks.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: LarryM</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23591</link>
		<dc:creator>LarryM</dc:creator>
		<pubDate>Thu, 19 Mar 2009 15:39:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23591</guid>
		<description>Regarding growth and welfare, there is an additional argument. Even without adopting the more extreme doom and gloom predictions of environmental catastrophe, there is, at least, an open question as to whether high high rates of growth are sustainable indefinitely. It&#039;s certainly possible that there will be technological fixes to various environmental/resource issues, but it seems somewhat dangerous to just assume such fixes. That&#039;s part of what I meant in a previous comment when I mentioned the magical thinking that soem libertarians seem to have regarding the benefits of the free market. One can have a healthy respect for the power of free markets (especially relative to governmental solutions) without fetishizing the free market.  &lt;br&gt;&lt;br&gt;Or, to put it another way, assuming that enviromental and resource problems will have a technological fix is as big an error (and the same kind of error) as ignoring the possibility of such fixes.</description>
		<content:encoded><![CDATA[<p>Regarding growth and welfare, there is an additional argument. Even without adopting the more extreme doom and gloom predictions of environmental catastrophe, there is, at least, an open question as to whether high high rates of growth are sustainable indefinitely. It&#39;s certainly possible that there will be technological fixes to various environmental/resource issues, but it seems somewhat dangerous to just assume such fixes. That&#39;s part of what I meant in a previous comment when I mentioned the magical thinking that soem libertarians seem to have regarding the benefits of the free market. One can have a healthy respect for the power of free markets (especially relative to governmental solutions) without fetishizing the free market.  </p>
<p>Or, to put it another way, assuming that enviromental and resource problems will have a technological fix is as big an error (and the same kind of error) as ignoring the possibility of such fixes.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: LarryM</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23590</link>
		<dc:creator>LarryM</dc:creator>
		<pubDate>Thu, 19 Mar 2009 15:12:57 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23590</guid>
		<description>And to further elaborate upon the banality of the Florida quote, while many blog commenters may not understand the concept of opportunity costs, I would suspect that our policy makers do. Now, they may not be properly weighing such costs, but if one wants to make the argument that they aren&#039;t ... one should make the argument, rather than just asserting it (or, in Florida&#039;s case, implying it).&lt;br&gt;&lt;br&gt;(And did I say England rather than Florida in my prior comment? Ugh, I need to do a better job of editing my comments.)</description>
		<content:encoded><![CDATA[<p>And to further elaborate upon the banality of the Florida quote, while many blog commenters may not understand the concept of opportunity costs, I would suspect that our policy makers do. Now, they may not be properly weighing such costs, but if one wants to make the argument that they aren&#39;t &#8230; one should make the argument, rather than just asserting it (or, in Florida&#39;s case, implying it).</p>
<p>(And did I say England rather than Florida in my prior comment? Ugh, I need to do a better job of editing my comments.)</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: LarryM</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23589</link>
		<dc:creator>LarryM</dc:creator>
		<pubDate>Thu, 19 Mar 2009 15:03:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23589</guid>
		<description>Re Florida, my beef with him is not that his observation is wrong, but that it is banal, and that he punts the hard questions.  I mean, not to beat a dead horse, but saying that history will determine &quot;[w]hat better and more effective things might have been done with these trillions&quot; is a cop out of major proportions.&lt;br&gt;&lt;br&gt;Re growth and welfare, it&#039;s a little of both, though I&#039;d frame the issues differently. For the former, I&#039;d say &quot;while money and happiness are highly corrolated, they aren&#039;t corrolated on a one to one basis,&quot; for the second, I&#039;d say that &quot;economic growth tends, all else being equal, to benefit some people disproportionately; whatever one thinks about the justice of this, it is a reason why maximizing economic growth does not maximize welfare.&quot;  Of course, that leads to a whole host of additional questions and issues, but as I said, serious engagment of them is beyond the scope of a blog comment.</description>
		<content:encoded><![CDATA[<p>Re Florida, my beef with him is not that his observation is wrong, but that it is banal, and that he punts the hard questions.  I mean, not to beat a dead horse, but saying that history will determine &#8220;[w]hat better and more effective things might have been done with these trillions&#8221; is a cop out of major proportions.</p>
<p>Re growth and welfare, it&#39;s a little of both, though I&#39;d frame the issues differently. For the former, I&#39;d say &#8220;while money and happiness are highly corrolated, they aren&#39;t corrolated on a one to one basis,&#8221; for the second, I&#39;d say that &#8220;economic growth tends, all else being equal, to benefit some people disproportionately; whatever one thinks about the justice of this, it is a reason why maximizing economic growth does not maximize welfare.&#8221;  Of course, that leads to a whole host of additional questions and issues, but as I said, serious engagment of them is beyond the scope of a blog comment.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: lyca</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23588</link>
		<dc:creator>lyca</dc:creator>
		<pubDate>Thu, 19 Mar 2009 14:27:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23588</guid>
		<description>Me too -- I think we should ameliorate recessions, if we can, and if it&#039;s worth it.  Florida&#039;s point is that we shouldn&#039;t be indifferent to the effect on growth, but yes, I&#039;d be willing to sacrifice a sufficiently small amount of growth to prevent a painful recession today.&lt;br&gt;&lt;br&gt;Not sure which reasons you have in mind for growth = welfare.  Do you mean the &quot;money can&#039;t buy happiness&quot; sort of arguments or the &quot;high growth can still leave people in poverty&quot; arguments?  Or something else I haven&#039;t thought of?  &lt;br&gt;&lt;br&gt;And, yes, you&#039;re right about climate mitigation and growth going in opposite directions, at least for a while.</description>
		<content:encoded><![CDATA[<p>Me too &#8212; I think we should ameliorate recessions, if we can, and if it&#39;s worth it.  Florida&#39;s point is that we shouldn&#39;t be indifferent to the effect on growth, but yes, I&#39;d be willing to sacrifice a sufficiently small amount of growth to prevent a painful recession today.</p>
<p>Not sure which reasons you have in mind for growth = welfare.  Do you mean the &#8220;money can&#39;t buy happiness&#8221; sort of arguments or the &#8220;high growth can still leave people in poverty&#8221; arguments?  Or something else I haven&#39;t thought of?  </p>
<p>And, yes, you&#39;re right about climate mitigation and growth going in opposite directions, at least for a while.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: alphie</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23587</link>
		<dc:creator>alphie</dc:creator>
		<pubDate>Thu, 19 Mar 2009 14:07:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23587</guid>
		<description>So Florida hits 80% of Gandhi&#039;s respect and influence just because he came up with a pop economics &quot;theory&quot; along the lines of Dow 36,000 or the Laffer curve?&lt;br&gt;&lt;br&gt;I agree if Tucker Carlson deserves a blog post then Florida&#039;s opinions on the economy do, too, but it just shows how low the bar is to be considered an &quot;intellectual&quot; these days.&lt;br&gt;&lt;br&gt;Nice to think us lowly blog commenter rate a 1.  I would have thought on that scale we are the poster children for the 0 rating.</description>
		<content:encoded><![CDATA[<p>So Florida hits 80% of Gandhi&#39;s respect and influence just because he came up with a pop economics &#8220;theory&#8221; along the lines of Dow 36,000 or the Laffer curve?</p>
<p>I agree if Tucker Carlson deserves a blog post then Florida&#39;s opinions on the economy do, too, but it just shows how low the bar is to be considered an &#8220;intellectual&#8221; these days.</p>
<p>Nice to think us lowly blog commenter rate a 1.  I would have thought on that scale we are the poster children for the 0 rating.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: LarryM</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23586</link>
		<dc:creator>LarryM</dc:creator>
		<pubDate>Thu, 19 Mar 2009 13:59:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23586</guid>
		<description>I think that is a helpful, though somewhat flawed way to look at it (for reasons I&#039;ll get to in a minute). I would say that I personally don&#039;t have a zero pure rate of time preference, which is one reason why I would favor some level of amelioration of current suffering over long term growth. The flaw, though: basically the assumption that increased economic growth maps onto increased welfare on a one to one basis. I think it doesn&#039;t (though obviously there is some correlation), though the reasons for my conclusion (most of which I am sure you have heard before) won&#039;t really fit into a blog comment.&lt;br&gt;&lt;br&gt;As for your final paragraph, I think the reason that you don&#039;t see those preferences correlated to a greater extent is that &quot;aggressively limiting climate change&quot; and &quot;pro-growth policies&quot; are not independent variables - that is, they are to a large extent not compatible. I would certainly agree that, in choosing policies that &quot;aggressively limit climate change&quot; one should choose those policies which tend to have the least impact on growth, but that&#039;s easier said than done and not, I think, terribly controversial.</description>
		<content:encoded><![CDATA[<p>I think that is a helpful, though somewhat flawed way to look at it (for reasons I&#39;ll get to in a minute). I would say that I personally don&#39;t have a zero pure rate of time preference, which is one reason why I would favor some level of amelioration of current suffering over long term growth. The flaw, though: basically the assumption that increased economic growth maps onto increased welfare on a one to one basis. I think it doesn&#39;t (though obviously there is some correlation), though the reasons for my conclusion (most of which I am sure you have heard before) won&#39;t really fit into a blog comment.</p>
<p>As for your final paragraph, I think the reason that you don&#39;t see those preferences correlated to a greater extent is that &#8220;aggressively limiting climate change&#8221; and &#8220;pro-growth policies&#8221; are not independent variables &#8211; that is, they are to a large extent not compatible. I would certainly agree that, in choosing policies that &#8220;aggressively limit climate change&#8221; one should choose those policies which tend to have the least impact on growth, but that&#39;s easier said than done and not, I think, terribly controversial.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: LarryM</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23585</link>
		<dc:creator>LarryM</dc:creator>
		<pubDate>Thu, 19 Mar 2009 13:47:08 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23585</guid>
		<description>This is a perfect example of the pro-business “libertarian” approach which I find rather amusing (in fairness, our host doesn’t seem to share it). The fact is that the United States government benefits most businesses – big business, certainly - in a myriad of ways beyond direct subsidies (of which there are plenty).  Of course, at the most basic level, the government benefits incorporated businesses by creating and enforcing laws protecting the existence of limited liability corporations. Now, there are plenty of grounds to defend that concept; they just don’t happen to be particularly libertarian grounds. Moreover, government regulation, as heavily as it falls upon many small businesses, in most cases privileges larger enterprises (see regulatory capture). I could go on all day.&lt;br&gt;&lt;br&gt;Now, one can derive different conclusions from these basic facts, but unless one starts from the basic premise that, on the whole, big business (at least) gains far more from our system of government than it gives up (a conclusion that is almost inevitable if one consistently applies libertarian principles regarding how governments work – see, e.g., rent seeking), one will go seriously astray.</description>
		<content:encoded><![CDATA[<p>This is a perfect example of the pro-business “libertarian” approach which I find rather amusing (in fairness, our host doesn’t seem to share it). The fact is that the United States government benefits most businesses – big business, certainly &#8211; in a myriad of ways beyond direct subsidies (of which there are plenty).  Of course, at the most basic level, the government benefits incorporated businesses by creating and enforcing laws protecting the existence of limited liability corporations. Now, there are plenty of grounds to defend that concept; they just don’t happen to be particularly libertarian grounds. Moreover, government regulation, as heavily as it falls upon many small businesses, in most cases privileges larger enterprises (see regulatory capture). I could go on all day.</p>
<p>Now, one can derive different conclusions from these basic facts, but unless one starts from the basic premise that, on the whole, big business (at least) gains far more from our system of government than it gives up (a conclusion that is almost inevitable if one consistently applies libertarian principles regarding how governments work – see, e.g., rent seeking), one will go seriously astray.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: lyca</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23584</link>
		<dc:creator>lyca</dc:creator>
		<pubDate>Thu, 19 Mar 2009 13:44:59 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23584</guid>
		<description>Well, it depends how heavily you weight the importance of the present welfare over future welfare.  If you have a zero pure rate of time preference then (I think) you would always prefer to focus on long term growth because it&#039;s exponential &amp; will eventually outweigh any present suffering, even if it&#039;s very great.  If the importance you attach to future welfare decays faster than the &quot;small cost in long term economic growth,&quot; then you&#039;d be willing to take the dip in growth to prevent a depression now.&lt;br&gt;&lt;br&gt;I know that doesn&#039;t answer your question, but it seems to be a useful way to think about this.&lt;br&gt;&lt;br&gt;Funny thing is, if you wanted to be consistent, you ought to prefer both aggressively limiting climate change AND pro-growth policies if you have a low rate of time preference, or prefer both cushioning recessions AND not spending too much on climate change if you have a high rate of time preference.  Of course, that&#039;s not how the usual left-right divisions work out.</description>
		<content:encoded><![CDATA[<p>Well, it depends how heavily you weight the importance of the present welfare over future welfare.  If you have a zero pure rate of time preference then (I think) you would always prefer to focus on long term growth because it&#39;s exponential &#038; will eventually outweigh any present suffering, even if it&#39;s very great.  If the importance you attach to future welfare decays faster than the &#8220;small cost in long term economic growth,&#8221; then you&#39;d be willing to take the dip in growth to prevent a depression now.</p>
<p>I know that doesn&#39;t answer your question, but it seems to be a useful way to think about this.</p>
<p>Funny thing is, if you wanted to be consistent, you ought to prefer both aggressively limiting climate change AND pro-growth policies if you have a low rate of time preference, or prefer both cushioning recessions AND not spending too much on climate change if you have a high rate of time preference.  Of course, that&#39;s not how the usual left-right divisions work out.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: uknowbetter</title>
		<link>http://willwilkinson.net/flybottle/2009/03/18/the-opportunity-cost-of-the-bailouts/#comment-23583</link>
		<dc:creator>uknowbetter</dc:creator>
		<pubDate>Thu, 19 Mar 2009 13:15:15 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/?p=3196#comment-23583</guid>
		<description>All sorts of businesses do without government help and many of them succeed in spite of the government getting in the way.  Nearly every business in America does not get government money.&lt;br&gt;&lt;br&gt;Republicans are stupid (mostly because they act like democrats on economic matters, social freedoms are expanding in spite of them), but the democrats are retarded.&lt;br&gt;&lt;br&gt;It would be pointless to have a serious discussion with you. You didn&#039;t even attempt to answer any of my questions because you can&#039;t.  You believe in all-government-all-the-time-in-every-orifice.  People like you are the enablers of statists and that goes as far as Hitler, Stalin, and Mao.&lt;br&gt;&lt;br&gt;Keep apologizing for incompetence and inefficiency.</description>
		<content:encoded><![CDATA[<p>All sorts of businesses do without government help and many of them succeed in spite of the government getting in the way.  Nearly every business in America does not get government money.</p>
<p>Republicans are stupid (mostly because they act like democrats on economic matters, social freedoms are expanding in spite of them), but the democrats are retarded.</p>
<p>It would be pointless to have a serious discussion with you. You didn&#39;t even attempt to answer any of my questions because you can&#39;t.  You believe in all-government-all-the-time-in-every-orifice.  People like you are the enablers of statists and that goes as far as Hitler, Stalin, and Mao.</p>
<p>Keep apologizing for incompetence and inefficiency.</p>
]]></content:encoded>
	</item>
</channel>
</rss>

