Wednesday, May 6, 2015

A few more newsbits

New Deal Demoncrat - unit labour costs increase by 1% in Q1. Quote:
This is another sign that wages are finally participating in the expansion.
W...w...wait! BI just finished saying that increasing labour costs was a sign that DOOOOOM!!!

Nice chart by the way, NDD:

It shows that unit labour costs measurements vary insanely from Q to Q. Therefore, anyone freaking out over OMG a 1% print is a moron and should be ignored from now on.

New Deal Demoncrat - what ails rail? Apparently the problem was coal, due to the pop in USD. Thanks NDD, that's the first explanation I got from anyone. So we don't have to worry about a continued downtrend in rail loads anymore, now that the USD is done moving.

Econospeak - Okun's law turns out to be a big fat lie. There is no tradeoff between equality and efficiency, despite what chapter two of my Mankiw textbook says. The PPF says utterly nothing about the distribution of goods, as Rosser says.

And this was a golden comment too:
Why would you even want to think about growth and inequality divorced from the character of production and the structure of the economy? To do so has more the character of a philosophical musing than an empirical inquiry.
Which also bites hard given Mankiw's textbook asserts that something like Okun's "law" is a "positive" and not "normative" statement. Fact is, nearly everything that comes out of an economist's mouth is normative.

And yeah I passed this link on to my prof.