I’ve been doing a lot of thinking – far too much, actually – about this election. I am not going to blog here about the relative merits of each candidate – anyone undecided between these two extremely different candidates at this point hasn’t been paying attention. In fact, this will probably be my last election-related blog prior to the first results coming in. There are a few things bothering me, however, that I have to get off my chest:
1. Smoke and mirrors
2. Media spin
3. One party rule by super-majority: threat to checks and balances, or just another day in D.C.?
4. Who really pays
Continue reading “Where It All Gets… Interesting…”
We voted. Have you?
Fair warning: if you go wearing a propaganda T-shirt and try to start a riot in line about whether or not this is the kind of country where people want to live, yes, you will get to meet a nice member of the HPD. (Apparently, not everyone got that memo…)
“It was during the first period of this constitution that the Athenians appear to have enjoyed the best government that they ever did, at least in my time. For the fusion of the high and low was effected with judgment, and this was what first enabled the state to raise up her head after her manifold disasters.”
-Thucydides, History of the Peloponnesian War (hat tip: Steve Schwartz)
Greg Mankiw’s new post on his personal work incentives is required reading for anyone who wants to discuss taxes in this election cycle.
The idea is simple: our tax system uses marginal rates, meaning one rate applies to the first dollar earned and different rates kick in at different thresholds. (That is, unless you’re so economically productive or generous as to get stuck in the Alternative Minimum Tax system and get taxed at high flat rates.) The higher rate is called a marginal rate. This is the rate which applies to the last dollar a worker earns in a year. This rate is the rate which determines how much it’s worth to you to make the effort to earn that last dollar. If you’re acting rationally, it’s the rate which determines whether you take a second job, have a one- or two-income family, or start that business on the side you’ve been talking about.
Mankiw takes it one step further and asks how much he could leave for his kids out of that last dollar under each presidential candidate’s plan. You could do the same thing for any long period of time, of course, like saving for retirement or for your kid’s college education.
Do yourself a favor and read the post.
I offer a final thought for the evening. Last night, a dear friend and I were discussing the state of the world and the nation, particularly with reference to some of the more extreme economic proposals made by politicians and pundits of varying degrees of skill. My friend is one of the most intelligent, well-educated, level-headed, and reflective people I have ever known. He noted that the proposals in question reflected a radical embrace of a radical degree of government control of private affairs. He said, “I fear for America. The people really won’t stand for democracy much longer.”
Coming from this source, that sent chills down my spine. I hope he’s wrong. But I think he might be right.
[Author’s note: In the spirit of my four other posts today, I choose not to explicate this post any further. As one of my favorite math professors used to say, “The proof of whether I’m right or wrong – and I’m right – is left as an exercise to the reader.”]