Social Security Numbers

An excellent paper by Gokhale and Smetters that explains some of the discrepancy in the Social Security numbers we found in the Taking Sides article (Baker's view). The money quote:

Although the Social Security Trust Fund is not projected to be exhausted
until 2042, Social Security's $10.4 trillion present value imbalance is accruing
interest and will grow by $600 billion during 2004 alone.

Structural Unemployment

Unemployment as a result of opening up international trade, or technological advances are called structural unemployment (as you all know). This is a healthy type of unemployment. This link are some interesting types over the years.

Crowding Out Before Our Eyes

The cautionary tale of our current fiscal spending is called the "crowding out effect". The Federal Government demands more bonds to finance their deficit and in turn the interest rates climb. This decreases private investment. (page 122 of our text) Greece has spend far more in terms of their deficit (and debt) as a percentage of GDP. This is the outcome.

In the United States we are also seeing this take place before our eyes. This is the latest evidence suggesting we are spending too much.

Marijuana Debate

As I have just finished grading our latest position paper (the one that has legalization of marijuana as an optional position) I found the vast majority of students taking the position that marijuana should be legalized. This is three semesters in a row (five classes) that I have found this to be the case (each of my classes ranging from 80% to 100% pro legalization). So I plan on opening our next class with the question of "If so many people think this way, why is it still illegal?". One answer is that this is a political dilemma, not so much an economic one. Talk about a timely piece in our Inquirer today by a political writer to put the politics into perspective. The money quote:


Update: I cant get over how timely this topic is. Here is an article from Rolling Stone
(The quote is from the first link)

So much of the marijuana debate used to be about morality; now it's mostly about economics and practicality - which is why New Hampshire, Massachusetts, and Rhode Island are also floating measures to legalize and tax; why similar voter referendums are in the works in Washington state and Oregon; why 14 states (including, most recently, New Jersey) have legalized medical marijuana, and why even Pennsylvania, hardly a pacesetting state, is weighing the sanction of medical pot, complete with 6 percent sales tax

Netflix

Netflix is an industry changing business. I remember how excited I was at going to Blockbuster on the weekend. Now I am amazed at how easy and efficient Netflix is. For those that have wondered how they get and return your movies so quickly this article is for you.

(HT/ Marginal Revolution)

Movies

For the education majors you will enjoy this. I wish I could say it were an April fool's joke, but it is not.

For the Freakonomics fans out there believe it out not there is this documentary coming out.

Update: Another education movie for you called "The Cartel". Looks great.