You shall know their names

by Eric on October 25, 2013

California just hit up the Koch brothers for a million bucks. The Koch brothers haven’t admitted hiding behind shell outfits while throwing scads of dollars at initiatives meant to break unions and block tax increases in the Golden State, but the fine is part of a settlement in a case launched to find out if they did so hide and throw.

The California group opposed to public goods wanted big money, so they went to the Kochs on the ground that “nobody in California would want to do this[.]” They appear to have viewed the Kochs as a right-wing money milch cow: “dealing with the Koch network … availability of funds never crossed our mind.”

I love with an unseemly passion the – hastily? purposely? sleepily? – inept redaction that allows the Sacramento Bee to make informed guesses about the other donors to the cause of destroying the state parks and public schools as well as killing labor. These guesses include the family that owns the Gap and “Ventura County businessman Gene Haas, who.… served 16 months in a halfway house in 2008 and 2009 after pleading to conspiracy to commit tax evasion.”

The tax increase that passed is the one that led to the state’s celebrated balanced budget. The million dollar fine might help balance the budget a little, too. Maybe we should hope for some more feckless and shady out of state donations, followed by more fines – then perhaps we could restore California’s public services, including her great universities, to the people who live here instead of eroding them to please ideologues from elsewhere.

The macro foundations of microeconomics

by John Quiggin on October 25, 2013

Twitter alerted me to an amusing exchange between Chris Auld, posting a list of “18 signs you’re reading bad criticism of economics and Unlearning Economics, responding with 18 Signs Economists Haven’t the Foggiest. UL suggests that Stephen Williamson manages an impressive 9 out of 18 in his review of Zombie Economics (my response here with more from Noah Smith.

Scoring myself against Chris Auld’s list, I’d say I’m in the clear. But quite a few commenters on Zombie Economics have made complaints along the lines of his point 1, that I focus too much on macroeconomics (and finance). The implication is that, even if macro is totally wrong, only a minority of economists do it, and microeconomists are in the clear.

This defense doesn’t work, at least not in general.

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