Increasing Marginal Utility

A blog so good it violates the law of diminishing marginal utility.

Browsing Catharsis – 12.27.12

THERE ARE MICROECONOMIC PROBLEMS, BUT ONLY MACROECONOMIC SOLUTIONS.

“In fact, the standard comparative-statics propositions of microeconomics are also based on the assumption of the existence of a unique stable general equilibrium. Those comparative-statics propositions about the signs of the derivatives of various endogenous variables (price, quantity demanded, quantity supplied, etc.) with respect to various parameters of a microeconomic model involve comparisons between equilibrium values of the relevant variables before and after the posited parametric changes. All such comparative-statics results involve a ceteris-paribus assumption, conditional on the existence of a unique stable general equilibrium which serves as the starting and ending point (after adjustment to the parameter change) of the exercise, thereby isolating the purely hypothetical effect of a parameter change. Thus, as much as macroeconomics may require microfoundations, microeconomics is no less in need of macrofoundations, i.e., the existence of a unique stable general equilibrium, absent which a comparative-statics exercise would be meaningless, because the ceteris-paribus assumption could not otherwise be maintained. To assert that macroeconomics is impossible without microfoundations is therefore to reason in a circle, the empirically relevant propositions of microeconomics being predicated on the existence of a unique stable general equilibrium. But it is precisely the putative failure of a unique stable intertemporal general equilibrium to be attained, or to serve as a powerful attractor to economic variables, that provides the rationale for the existence of a field called macroeconomics.”

-David Glasner, “The State We’re In.” Emphasis added. Read the whole thing. My head hurts.

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PAUL’S MISTAKE IS THAT HE DOESN’T UNDERSTAND WE WOULD END VIOLENCE BY CENSORING VIOLENCE IN VIDEO GAMES.

“The political right, unfortunately, has fallen into the same trap in its calls for quick legislative solutions to gun violence.  If only we put armed police or armed teachers in schools, we’re told, would-be school shooters will be dissuaded or stopped. While I certainly agree that more guns equals less crime and that private gun ownership prevents many shootings, I don’t agree that conservatives and libertarians should view government legislation, especially at the federal level, as the solution to violence.””

Ron Paul, via Brian Doherty, “Ron Paul Hits NRA.”

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FROM THE DELETED SCENES OF SPACE JAM.

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EVERYTHING IS “INHERENTLY UNSAFE.”

“Fracking is inherently unsafe—that’s why I have spent countless hours fighting for stricter rules. The question I want answered is: What makes fracking more dangerous and unmanageable than all the other industrial activities we permit with regulations?”

-Adam Briggle, “Should Cities Ban Fracking?” No one would care about fracking if it didn’t prove peak oil wrong. These (not all) environmentalists only care about forcing everyone to live “naturally” and get angry whenever you give them evidence it is unnecessary. They don’t actually care about others’ welfare.

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