https://t.co/mgWQbsFQGN
1/Today's @bopinion post is about Trump's taxes, and what they show about how America allocates capital.
We appear to have some big problems.
https://t.co/mgWQbsFQGN
Why would creditors give money to a guy who wastes the money on bad businesses and doesn't even pay them back?
Why hasn't an abundance of cheap capital caused the return on financial capital to fall? Interest rates are low, but stock returns have held up strongly.
When you increase the supply of loanable funds, prices are supposed to go down. In other words, cheap capital should fund a lot of marginal businesses that compete away profits...
Simcha Barkai and Matt Rognlie have both written about this:
1. https://t.co/OLln8npr8b
2. https://t.co/BY1EWyluD7
https://t.co/xNzE9SO8nY
https://t.co/BY1EWyluD7
And it doesn't really explain Trump, does it? He's not a monopolist, and he doesn't even make profit. He's just a huckster who can borrow cheaply because he's famous.
Financiers are willing to throw tons of cheap money at big powerful companies or at famous hucksters like Trump, but charge inordinate prices to fund new entrants or marginal businesses.
We need to figure out what's going wrong, and fix it!
(end)
https://t.co/dHVCEQGa9q
More from Noah Smith 🐇
Imagine for a moment the most obscurantist, jargon-filled, po-mo article the politically correct academy might produce. Pure SJW nonsense. Got it? Chances are you're imagining something like the infamous "Feminist Glaciology" article from a few years back.https://t.co/NRaWNREBvR pic.twitter.com/qtSFBYY80S
— Jeffrey Sachs (@JeffreyASachs) October 13, 2018
My theory is that the jargon creates an artificial barrier to entry. https://t.co/MqLyyppdHl
If one must spend years marinating one's brain in jargon to be perceived as an expert on a topic, it protects the status and earning power of people who study relatively easy topics.
In econ, a similar thing is accomplished by what recent Nobel prize winner Paul Romer calls "mathiness": https://t.co/DBCRRc8Mir
But mathiness and jargon are not quite the same...
Jargon usually doesn't force you to change the substance of your central point.
Mathiness often does. By forcing you to write your model in a way that's mathematically tractable (easy to work with), mathiness often impoverishes your understanding of how the world really works.
has written about this problem:
We all know about Right-NIMBYs, rabidly protecting their white-flight suburbs from Those People. And there are plenty of liberal NIMBYs too.
But NIMBYs of the Left are also a force to be reckoned
2/Left-NIMBYs have developed a canon of interlocking, mutually reinforcing beliefs about housing and urbanism.
These beliefs are mostly false, but they form a powerful "canon" that quickly ossifies into a hardened worldview.
It looks something like this:
3/Fortunately, Nathan J. Robinson of Current Affairs has written an article that perfectly encapsulates the Left-NIMBY worldview (and quotes me in it!).
So this is a teachable
4/Robinson selectively quotes a Bloomberg article of mine (https://t.co/iamRrW6oei).
Look at the part he quoted, vs. what I actually wrote!
Pretty different, eh? 😉
5/In fact, as I wrote in the article that Robinson failed to read more than one line of, it's theoretically possible that Left-NIMBYs COULD be right that allowing market-rate housing drives up local rents.
I take that possibility very seriously, as do YIMBYs.
Secretary of State Mike Pompeo said the U.S. is quickly approaching \u201ca moment of crisis\u201d because of the \u201crecord number of migrants\u201d spilling into the country https://t.co/QuiWPcXswA
— POLITICO (@politico) October 20, 2018
Facts.
Facts!!
FACTS FACTS
Moar
More from Trump
You know … Lindsey … I want you to think about something
F$&kin\u2019 dare yah, dare yah (dammit, already thought of one) to find a time in history when the following has been more true. \u201cNever doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.\u201d - Margaret Mead
— Moondeer (@kelleydawg) February 15, 2021
Now if a small group can change the country, what do you want to f$&kin’ bet that ONE MF can change this country?
Oh thank Christ! I was worried you might go the other way and that would totally f$&k up everything I had left to say.
‘Cause Lindsey, I have learned something this week. We are all familiar with the phrase: