Wednesday, March 14, 2012

"Green Jobs" will be real, but invisible

John Whitehead quotes Joe Romm:
Last week economist William Nordhaus slammed global warming deniersand explained that the cost of delaying action is $4 Trillion. As I wrote, Nordhaus’s blunt piece — “Why the Global Warming Skeptics Are Wrong” – is worth reading because, like most mainstream climate economists, he is no climate hawk. 
Those costs are real.  Those costs shift the supply curve for stuff in.  Those costs reduce employment.  So "Green Jobs" are largely not those building windmills and solar panels (the total number of these jobs will be small relative to the economy).  "Green Jobs" will be the jobs saved from cost reductions associated with reduced greenhouse gases.  This is why good environmental policy is also good economic policy.

(h/t Mark Thoma)

Tuesday, March 13, 2012

Why owning a house may not be the American Dream

Lots of societies outside of America seem to have a preference for home-ownership. I have spoken to policy makers and scholars in several countries--India, Bangladesh, South Africa, Peru--about the importance of a well functioning rental sector.  Rental housing allows for mobility, and for people to use savings to invest in such things as small businesses.  Rental housing is also a way for small entrepreneurs to earn a return on investment.

Yet everywhere I go, I am told that people don't want to rent, they want to own.  The principal reason seems to be security of tenure; in places where enforcement of contracts remains an issue, fear of abuse by landlords sours people on renting as an option.  And so it is that people want to be owners.

Many countries in Western Europe--Germany and Switzerland in particular--do not have fetishes about homeownership.  But tenant protections in these countries are strong (see this piece on Germany and this piece on security of tenure beyond lease terms in Switzerland), so renting is sort of "owning-light" in these countries.  

Sunday, March 11, 2012

Who are you going to hug?

As I watch the ridiculous controversy over Barack Obama's hugging Derrick Bell, I can't help but think that if only people who agreed with me hugged me, I would never be hugged.

When I wrongly and mistakenly supported the second war in Iraq, my wife and daughters all told me how wrong and mistaken I was.  And yet they continued give me hugs, thank goodness.

Friday, March 09, 2012

Banks seem to be lending

The Flow of Funds data for the fourth quarter of 2011 is out.  Total net lending by commercial banks and savings institutions has been solid for two quarters in a row, and the fourth quarter was quite strong.  This is indeed a good sign.

Eduardo Porter reminds me of a favorite Joan Robinson quote

...the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all.  From Economic Philosophy.



Thursday, March 08, 2012

James Q. Wilson the teacher

The past few days have brought encomiums to and reflections of the work and life of James Q. Wilson (see here for example). But I have yet to see anything about Wilson the teacher.

When I was 17 years old, I took Government 30, American Government, from Wilson, Sydney Verba and H. Douglas Price.  The whole course was good, but I found Wilson to be an awe-inspiring figure.  He behaved the way I thought a Harvard professor was supposed to be--he was elegant, he had an easy-to-listen-to voice, and despite the fact that we had been a national champion debater, he never spoke too quickly or aggressively.

Both the style and substance of his lectures were memorable.  Leonard Bernstein once wrote of Beethoven that has never had a note out of place--every note followed inevitably from the previous note.  The same was true with Wilson and words.  The prose coming out of his mouth was flawless, but never flowery.  I remember that some of my classmates didn't like this--they deemed the polish to be slickness.  To me, however, the pristineness of his language meant that it never detracted from the substance he was communicating.  His lectures were also models of organization and clarity; as such, he made sophisticated ideas easy to grasp.

Because I was a 17 year old naive liberal from Wisconsin (a state once known for clean government and progressive traditions), I came to college thinking that people got involved in government because they wanted to do good.  Wilson managed to convey the idea that bureaucrats, members of congress and interest groups often behaved in, well, their own interests.  This may seem obvious, but it was actually a bit of a bolt out of the blue for me at the time.  But the great thing is that he conveyed these "conservative" sentiments without demeaning the idea that there is a role for idealism in government.







 


Tuesday, March 06, 2012

Not sure when it will pop, but it must be a bubble

Rental yields on housing in India are now at times less than one percent in some large cities; people have been saying to me "it's OK--we are getting 15 percent appreciation."  

Monday, March 05, 2012

A nice sentence by Peter King of Sports Illustrated

Peter King is, by far, my favorite football writer.  But I liked this non-football related gem today:


Dick Ebersol has urged me not to mention anything about politics in this presidential-election year. And so I won't. But as a college grad and father of two college graduates and a husband of a college graduate, boy, am I dying to.


The wonders of great design

I am making my annual visit to the Indian School of Business in Hyderabad (I will report on rent data collected by students here in a couple of weeks).  The temperature is in the upper 90s F. today, and yet I was comfortable eating lunch in an open air setting, specifically here:


This is the atrium of the Academic Centre, which was designed by John Portman (the picture comes from the ISB web site).

The air flows so well through it that it is comfortable to sit in, even when the outside temperature is very high.  Portman thus created functional space that doesn't need to be air conditioned, even on beastly hot afternoons.